VANCOUVER, Aug. 2 /PRNewswire-FirstCall/ - Diamond Fields International
Ltd. (TSX: DFI) is pleased to announce that DFI, Inco Limited ("Inco") and
Nuna Minerals A/S ("Nuna") have entered into an agreement whereby Inco may
earn an interest in exploration licenses previously optioned by Diamond Fields
from Nuna on Ammassalik Island in East Greenland. These properties are
adjacent to the Diamond Fields licenses optioned by Inco under a recent
agreement, announced on June 2, 2005.
    Announced in July 2004, Diamond Fields' prior agreement with Nuna granted
Diamond Fields the option to earn a 65% interest in its Ammassalik nickel
exploration properties by making exploration expenditures of U.S.$ 1.7 million
over 3 years. The new agreement modifies these terms to grant Inco the option
to earn a 51% interest in up to 160 square kilometers of the property by
spending at least U.S.$ 500,000 on the property by December 1, 2007. Inco is
also granted a second option, such that if it spends a further U.S.$ 500,000
(for a total of U.S.$ 1,000,000) by December 1, 2007, it can earn its 51 %
interest in the full 403 square kilometers. In either case, the remaining 49 %
interest in the property would be shared by Diamond Fields and Nuna, with each
retaining 24.5 % interests.
    The Ammassalik nickel project has been explored by Diamond Fields since
2003, resulting in anomalous nickel showings over a wide area. The discovery
showing, on the south coast of Ammassalik Island near Tassilaq, is similar to
the ultramafic-hosted Thompson nickel mineralization, based on age,
structural, geochemical and petrographic analysis.
    President and CEO of Diamond Fields, Mr. Gregg J. Sedun said, "We are
enthusiastic about our two agreements with Inco for nickel exploration in
Greenland, and we believe Inco's extensive nickel experience will greatly
enhance the exploration potential of this project."
    Mr. Randal Cullen, Chief Geologist for Diamond Fields International is a
Qualified Person as defined by National Instrument 43-101 and is responsible
for program design and quality control of exploration undertaken by Diamond
Fields.

    DIAMOND FIELDS INTERNATIONAL LTD.

    "Gregg J. Sedun"

    Gregg J. Sedun, President and Chief Executive Officer
    For further information contact: Investor Relations (604-682-2113)
    Website: http://www.diamondfields.com

    Forward-Looking Statements:
    Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in the Diamond Fields' periodic filings with Canadian Securities
Regulators. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking
statement can be guaranteed and actual future results may vary materially.
Diamond Fields does not assume the obligation to update any forward-looking
statement.

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