BDY Brazilian

RNS Number:8350F
Brazilian Diamonds Limited
17 October 2007


                           BRAZILIAN DIAMONDS LIMITED

          BULK TESTING AND DRILLING COMMENCES ON SALVADOR 1 KIMBERLITE

                   APPOINTMENT OF INVESTOR RELATIONS MANAGER


Vancouver, BC, October 17, 2007.  Brazilian Diamonds Ltd (BDY: TSX & AIM) 
("Brazilian Diamonds" or the "Company") is pleased to announce that drilling and
pit testing has commenced on the Company's 100% owned Salvador 1 diamond bearing
kimberlite in central Bahia State, Brazil.  This bulk testing programme follows
encouraging recovery of diamonds during small mini-bulk sampling earlier in the
year.

The current activity focuses on a large mini-bulk sampling programme comprising
six pits spaced across the Salvador 1 kimberlite which is approximately six
hectares in surface area.  Each pit is designed to recover approximately 1,300
tonnes of kimberlite.  The pits will extend to depths of at least 11m below the
kimberlite surface after overlying diamond-bearing sands and gravels have been
removed to ensure that only kimberlite material is collected with each sample.
Excavation of the first pit has commenced, with soft, clay-rich kimberlite now
being delivered to the plant on site.

The plant was designed and built at the Company's facilities on the Santo
Antonio do Bonito River in Minas Gerais State near the Company's field office in
Patos de Minas.  The plant has been designed specifically for the recovery of
diamonds from the soft clay-rich kimberlite which comprises the upper 10 to 20m
of the Salvador 1 body.  After construction and testing of the plant, it was
disassembled and transported to the Salvador 1 project site where it was
reconstructed and is now undergoing final commissioning.  It is expected to be
ready to commence processing of kimberlite from the first test pit later this
week.  The Flowsort x-ray diamond recovery station has also been installed at
the site and calibration tests will commence this week with the Company focusing
on security issues as a priority throughout the entire treatment process.

While preparing for these pit tests, the Company has completed two diamond drill
holes on the Salvador 1 body and is currently drilling a third.  The two
completed holes extended to their planned depths of 200m and terminated within
kimberlite.  The kimberlite is multi-phase including breccia rich in magma
clasts, as well as intervals with textures suggestive of crystallization from an
un-fragmented magma.  Preliminary interpretations based on hand samples in the
field suggest a uniform texture hypabyssal kimberlite.  The third hole has
intersected dark, blackish green kimberlitic rock and is currently at a depth of
40m.  These drill holes have demonstrated that the Salvador 1 kimberlite
continues to significant depths.

The Company has identified a number of additional drill targets in close
proximity to the Salvador 1 kimberlite and these will be drill tested over the
next few weeks.

Commenting on the work underway, Brazilian Diamonds Chairman, Kenneth Judge said
"We are very encouraged by the progress made to date with our drill and pit
testing programme.  The plant mobilization and assembly, as well as the initial
pit excavation have all been executed smoothly and efficiently following a
straightforward and expedited permitting programme.  The Company now has all
permits in hand to complete the entire planned testing programme and we are
expecting preliminary diamond results from the first test pits before the end of
the year."

Dr. Harrison Cookenboo (P.Geo) and Consulting Geologist is the Qualified Person
as defined under National Instrument 43-101 responsible for the technical
disclosure in this release, and has reviewed and approved the contents of this
release. Dr. Cookenboo assisted in the design of the Salvador 1 testing
programme and recently completed a site field visit which included inspection of
the drill core referred to in this announcement.


Appointment of Investor Relations Manager

The Company is also pleased to announce that Mr. Jon Bey has been appointed to
the position of Manager of Investor Relations and Corporate Communications.  As
Manager of Investor Relations and Corporate Communications, Mr. Bey will be
developing and executing the Company's investor relations and communications
strategy and assisting with future capital raising initiatives.  Mr. Bey is a
member of the Canadian Investor Relations Institute (CIRI) and most recently
managed the investor relations functions for Vancouver's MetroBridge Networks.

In conjunction with this appointment and in accordance with the Company's Stock
Option Plan, Mr. Bey will receive 100,000 incentive stock options exercisable on
or before October 12, 2012 at a price of $0.25 per share.


Editors' Note

Brazilian Diamonds is a leading Brazil-based exploration company focused on the
discovery of kimberlites on its extensive portfolio of properties in the States
of Minas Gerais and Bahia, with the goal of becoming a significant producer of
diamonds.

The Company is awaiting final approval before commencing the environmental
licensing process for development of the Canastra 1 kimberlite body for which
mine feasibility work has already been completed and the required Mines
Department approvals are already in place.  It is intended to bring Canastra 1
into production once the environmental licensing process is completed.

The Company's Salvador diamond project in Bahia includes the diamondiferous
Salvador 1 kimberlite.  This project was acquired from De Beers which retains a
right to reacquire up to 40% of any kimberlite found on the Salvador properties
which is confirmed to contain more that 200 carats of diamonds.

The Company has a fully operational diamond separation/analysis laboratory at
Patos de Minas, Minas Gerais which is strategically located near its properties
in the Santo Antonio and Coromandel areas. The Company has a highly experienced
team including six geologists located at the Company's facilities in Brazil.

The Company's strategy for non-core activities on its properties is to form
joint ventures.  A Cdn$1,000,000 feasibility study is underway for a joint
venture for the mining of alluvial diamonds on its properties in the Santo
Antonio river drainage.  The joint venture involves two important Brazilian
companies: CODEMIG, the state owned mining development organization and
Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one
of Brazil's largest civil engineering firms and an existing large scale, dredge
based producer of alluvial diamonds.

For further information refer to the Company's website www.braziliandiamonds.com
or contact:


Brazilian Diamonds Limited
Ken Judge, Chairman                                           + 44 7733 001 002
Stephen Fabian, CEO                                           + 55 31 8814 5111


Investor Relations
Europe                                                        + 44 207 590 5503
North America                                                    1-866-689-2599



Hanson Westhouse Limited (Nomad to the Company)               + 44 113 246 2610
Tim Feather/Matthew Johnson


Landsbanki Securities (UK) Limited (Broker to the Company)    + 44 207 426 9000
Tom Hulme



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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