BDY Brazilian

 
TIDMBDY 
 
BRAZILIAN DIAMONDS LIMITED 
 
            Sale of Cobre Sul (SAB) and Patos Laboratory 
 
 
Brazilian Diamonds Limited ("Brazilian  Diamonds" or "the  Company"), 
TSX/AIM: BDY, is pleased to announce the signing of formal  contracts 
for the sale  of both  the Company's  Patos do  Minas Laboratory  and 
associated  plant  and  equipment  and  the  Company's  wholly  owned 
subsidiary, Cobre Sul Mineracao Ltda, through which the Company holds 
the Santo Antonio do Bonito alluvial diamond project. 
 
Each of the  assets are  being sold to  Gilmar Alves  Campos and  his 
brother, Geraldo  Magela Campos,  for an  aggregate consideration  of 
US$1,100,000.  The  brothers  are  well known  in  Brazil  for  their 
successful  alluvial  diamond   mining  interests.   The   US$350,000 
consideration for the laboratory and associated equipment is  payable 
in cash  while  the  US$750,000  payable  in  respect  of  Cobre  Sul 
Mineracao Ltda is  being paid as  to US$350,000 in  cash and, at  the 
election of the purchasers, the balance  may be paid by the  delivery 
of diamonds with  an agreed  value of  US$400,000.  A  non-refundable 
deposit of  Reis$25,000  has been  received  and completion  of  both 
transactions is expected within 90 days. 
 
In the Company's consolidated audited accounts for the year ended  31 
December 2008,  the  assets  being  sold were  written  down  to  the 
consideration anticipated to be  received by the Company.   Therefore 
no profit or loss is expected to arise upon completion. 
 
The proceeds of these transactions will be used to repay debt and  to 
provide working  capital to  fund  the Company's  ongoing  activities 
which are  primarily focused  on efforts  to advance  the Canastra  1 
kimberlite project towards development. 
 
The  Company  is  encouraged  by   the  recent  publication  of   the 
government's inter-departmental deliberations  over the  finalization 
of permanent boundaries for the Serra da Canastra National Park which 
is located in proximity  to the Canastra 1  project and the  progress 
made with respect to the passage of this legislation.  In June 2007 a 
draft bill (Projeto de Lei #1448/2007) was submitted to the Brazilian 
Congress to formally exclude the  Company's projects in the Serra  da 
Canastra region from  any expansion  of the  Canastra National  Park. 
 The draft  bill was  approved  by the  Camara dos  Deputados  (Lower 
House) on October  29, 2008 and  has now moved  to the Senado  (Upper 
House) for final approval which is expected during 2009. 
 
Brazilian Diamonds has renewed the Canastra mineral licences that  it 
holds while  awaiting the  issue of  trial mining  permits which  are 
expected  to   follow  confirmation   of  final   approval  of   this 
legislation.  The  Company  hopes to  commence  trial mining  at  its 
Canastra 1 project once the bill has received final approval, but  in 
the meantime the Company's projects  in the Serra da Canastra  region 
will remain on care and maintenance. 
 
The Company will continue to hold a substantial portfolio of  mineral 
licences in  the  Santo Antonio  do  Bonito River  region  which  are 
considered prospective for kimberlite exploration.  The Santo Antonio 
do Bonito kimberlite project is currently on care and maintenance and 
will remain so pending  the availability of funding  for a return  to 
active exploration. 
 
Licences for the  Regis and Tucano  kimberlite exploration  projects, 
also in  the Patos  do  Minas region,  have  been renewed  and  those 
licences are to be  maintained in good standing  pending a return  to 
active exploration in the region. 
 
Certain  statements  included   herein  constitute   "forward-looking 
statements" within  the  meaning of  applicable  Canadian  securities 
legislation.  These forward-looking statements  are based on  certain 
assumptions by Brazilian Diamonds and as such are not a guarantee  of 
future performance.   Actual  results could  differ  materially  from 
those expressed or implied in such forward-looking statements due  to 
factors such  as general  economic and  market conditions,  increased 
costs of  exploration and  unforeseen logistical  issues.   Brazilian 
Diamonds  is   under  no   obligation  to   update  or   revise   any 
forward-looking statements, whether as  a result of new  information, 
future events or otherwise, except as required by applicable laws. 
 
 
For further information contact: 
 
Kenneth P. Judge, Chairman 
Tel: + 44 7733 001002 
 
Stephen Fabian, President & CEO 
Tel: + 55 31 8444 0475 
 
Jon Bey, Investor Relations 
Tel: 1 866 689 2599 
Email: jbey@braziliandiamonds.com 
 
Hanson Westhouse Limited (Nomad to the Company) 
Tim Feather / Matthew Johnson 
Tel: + 44 113 246 2610 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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