Monday, June 11, 2007
Salvador 1 Kimberlite Project Update

Vancouver, B.C., June 11, 2007. Brazilian Diamonds Limited (BDY: TSX/AIM) (or "the Company") is pleased to announce that its diamond processing plant is in the final stages of preparation for transport to site for the commencement of large scale bulk sampling for macro diamonds at the Salvador 1 kimberlite project. The Salvador 1 kimberlite was purchased from De Beers in 2006 and is located in central Bahia State, Brazil.

De Beers originally discovered the Salvador 1 Kimberlite in the 1990's and reported recovering macro and micro diamonds from samples obtained in 9 out of 10 large diameter drill holes. De Beers reported results from the processing of a total of 133.2 tonnes of kimberlite yielding 1.67 carats of diamonds for a calculated concentration of 1.3 carats per 100 tonnes.

The bulk sampling programme to be undertaken at Salvador 1 is intended to recover samples of approximately 640 m3 of kimberlite from each of six (6) test pits. The kimberlite will be extracted from depths of up to 11 m from surface and will be processed as two separate samples.

Following a recent site visit by the Company's consulting geologist, Dr. Harrison Cookenboo, the Company was able to verify that the Salvador 1 kimberlite is already partly exposed at the first two proposed test pit sites. Six quality control samples of one tonne each have already been collected from the first two test pit sites with care taken to ensure that the samples did not include any material from the overlying alluvial deposits.

These quality control samples have now been delivered to the Company's mineral processing laboratory in Patos de Minas, Brazil, for testing. The laboratory is ISO 17025 rated for indicator mineral, macro diamond and fine diamond (>0.25 mm) recovery and sample processing is expected to be completed in early July. Processing of the earlier sample at the Company's de Minas laboratory yielded a total of 9 diamonds of which the largest weighed 0.52 carats. Of the other 8 diamonds recovered, one was large enough as to remain on a 0.425 mm screen and the other 7 diamonds remained on the 0.250 mm bottom size screen.

The Salvador 1 kimberlite covers an area of approximately 6 hectares and is partly exposed at surface. Where not exposed, the kimberlite is covered by diamond-bearing alluvial sands and gravels which can be up to 7 metres in thickness. The Company's macro diamond testing programme will be focused on the extraction of kimberlite from sufficient depth so as to ensure that samples do not contain materials from the overlying diamond bearing alluvial deposits.

The test pit kimberlite samples will be processed on-site, using a specially designed primary treatment system to disaggregate the kimberlite material. Subsequent recovery of diamonds will also be carried out on-site using the Company's modular diamond recovery plant which includes an in-line Flow Sort (X-ray) diamond separator and grease tables. Extraction and processing of these samples is expected to take approximately thirty days per test pit. Preliminary results from the first two of these test pits are expected to be available during the third quarter of 2007.

The Company is well advanced with its application to the Mines Department and Environmental Agencies for the processing licenses required in connection with the taking of these large samples. The Company has already received the permits required to mobilize the processing plant onto the test site. Processing licenses to commence the extraction and treatment of the samples are anticipated to be granted early next month.

The Company is optimistic that this evaluation of the Salvador 1 project will confirm that the kimberlite body is diamond-bearing and provide the basis for a scientific assessment of macro diamond concentration within the kimberlite.

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.


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


Brazilian Diamonds Limited
Ken Judge, Chairman
Stephen Fabian, President & CEO

Investor Relations
Europe
North America
+ 44 7733 001 002
+ 55 31 8814 5111


+ 44 207 590 5503
1-866-689-2599

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

Teather & Greenwood: Landsbanki (Broker to the Company)
Tom Hulme + 44 207 426 9000