Diagem Recovers 0.50 Carat Diamond

[Franko10 ™]

Diagem Recovers 0.50 Carat Diamond From Testing Of SL-01 Kimberlite Pipe


10:31 EDT Friday, October 15, 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 15, 2004) - Diagem INTERNATIONAL RESOURCE CORP.(TSXVGM) ("Diagem") announces that it has completed its preliminary testing of the SL-01 kimberlite pipe, located on Property 370/96, in the Juina Diamondiferous Kimberlite and Gravel Province, Mato Grosso State, Brazil. Little was previously known about this pipe, which sits on a small creek adjoining the Juinninha River, an area with extensive historical garimpeiro activities.

This preliminary test achieved its objective, determining that this kimberlite pipe is: 1) diamondiferous, and 2) contains diamonds of a commercial size. The results are as follows:

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SAMPLE VOLUME PROCESSED STONES CARATS GRADE
(M3) RECOVERED RECOVERED (CT/M3)
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PBT 01/370
(Eluvial) 31.5 4 0.78 0.025
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PBT 02/370
(Kimberlite) 29.3 1 0.50 0.017
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The two test samples were extracted using a hydraulic excavator and processed in the Company's jig bulk testing equipment; final diamond sorting was conducted in the field using closely supervised panning techniques. The "Eluvial" sample, taken from atop of the kimberlite consisted of soil, rich in ilmenite and garnets containing four diamonds weighing 0.27, 0.22, 0.15 and 0.14 carats. Further delineation and testing of the SL-01 kimberlite pipe is planned.

Diagem signs joint venture agreement with major landowner/diamond miner.

Diagem is pleased to announce that it has entered into an agreement to explore and exploit diamondiferous deposits in joint venture with Mr. Hermes Bergamin, one of the largest landowners in the Juina Diamondiferous Kimberlite and Gravel Province, Mato Grosso State, Brazil.

Mr. Bergamin is well known in the region as a most effective operator who has exploited the diamondiferous gravels of this region in the past. Mr. Bergamin's farmlands mostly cover part of the Company's mineral right, Property 108, which lies at the centre of the Company's property holdings.

The joint venture will share costs and revenues equally; with diamonds produced being jointly controlled by the use of the Company's diamond recovery plant, which incorporates an X-ray Sortex machine. This project will initially commence on a 30-hectare parcel of land with provisions for expansion.

This agreement is yet another example of the accelerated growth in production opportunities now available to the Company in the wake of the Kimberley Process (see Press release March 31, 2004). With the collaboration of Diagem, landowners can now regularize previously illegal operations. Similar agreements are being discussed with other landowners, providing substantial opportunities for increased diamond production. These agreements also grant increased access to the landowner's farms for the Company to explore for further Gravel resources and to test and explore for the primary kimberlite source(s) within the vast Juina diamond field.

The technical content of this news release has been approved by Dr. Mousseau Tremblay, of Williamstown, Ontario, a Qualified Person, President, CEO and Director of Diagem International Resource Corp.

For and on behalf of

Diagem International Resource Corp.

"Mousseau Tremblay"

President & CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Diagem International Resource Corp.
Mousseau Tremblay
President & CEO
(604) 688-GEMS (4367)
[phone] (FAX)
Email: [e-mail]
Website: www.diagem.com
or
Diagem International Resource Corp.
Tony Wood
COO & CFO
(604) 688-GEMS (4367)
[phone] (FAX)
The TSX Venture Exchange has neither approved nor disapproved the form or content of this release.