Salvador 1 Update

RNS Number:0573B
Brazilian Diamonds Limited
30 July 2007



                           BRAZILIAN DIAMONDS LIMITED

           CONTINUING DIAMOND RECOVERY FROM THE SALVADOR 1 KIMBERLITE


Brazilian Diamonds Ltd (BDY: TSX & AIM) ("Brazilian Diamonds" or the "Company")
is pleased to announce that a total of 120 diamonds have been recovered from
seven samples collected from the Company's 100% owned Salvador 1 kimberlite in
central Bahia State, Brazil.

The seven samples being reported upon in this announcement weighed a total of
6.58 tonnes and include an initial 580 kg sample collected by the Company in
late 2006 shortly after the property was acquired from De Beers. That initial
sample yielded nine diamonds with the largest weighing 0.52 carats.

Six additional replicate samples were collected during May 2007 in an attempt to
confirm the results obtained from the initial sample. Fifty four diamonds were
recovered from the first three replicate samples, as announced on 10 July 2007,
and a further fifty seven diamonds have now been recovered from the last three
samples.

Brazilian Diamonds is now preparing to begin the collection of six much larger
samples of approximately 650 m3 each from different parts of the Salvador 1
kimberlite in order to better assess its diamond potential. Permitting for these
large samples is expected to be completed within 60 days and the plant is
currently being mobilized to the site. The results from the first of these test
pits are expected in the fourth quarter of 2007.

Highlights from the results of the six replicate samples include 111 diamonds
being recovered down to the bottom screen size of 0.250 mm (see Table 1 below)
with the four largest diamonds remaining on a 1.0 mm screen.  The 111 diamonds
recovered from the replicate samples weighed 0.32 carats in total.

Table 1: Diamond results for the six replicate samples by screen size are as
follows:


                 Sieve Size                  Number of Diamonds

                   1.00 mm                            4
                   0.60 mm                           20
                   0.42 mm                           22
                   0.30 mm                           33
                   0.25 mm                           32


After careful removal of overlying sands and gravels, the six replicate samples
were collected from two different locations at the Salvador 1 project site, with
the first being taken from the same site where the original 580 kg sample was
collected.

Three replicate samples from the first site were collected from progressively
greater depths and yielded 16, 21, and 11 diamonds respectively while the three
replicate samples from the second site were taken in a similar manner from a
site located 75 metres to the east of the first location and yielded 23, 23, and
17 diamonds, respectively.

Given the absence of a clear trend in the abundance of diamonds recovered from
any of the three levels at which the samples were taken, the Company is
confident that the sampling process was not affected by the presence of
overlying sands and gravels.  The Company has concluded that the diamonds
recovered originated in the kimberlite and is therefore very encouraged by the
results being reported in this announcement.

All samples were processed using typical methods for indicator mineral recovery
at the Company's mineral processing laboratory in Patos de Minas, Brazil using a
bottom screen size of 0.250 mm, following disaggregation using the Company's
primary processing plant.  The Patos de Minas laboratory is ISO 17025 rated for
recovery of indicator minerals including diamonds. As with the earlier replicate
samples all reported sample weights are as shipped from the field without drying
with water content expected to be less than 10% of total weight.

The Salvador 1 kimberlite is a six hectare body which was purchased from De
Beers in 2007 along with adjacent mineral licenses and exploration data.
Previous testing by De Beers reportedly yielded diamonds from caisson drill
holes 5 to 20 m deep.

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


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 four 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

Teather & Greenwood 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

DRLVDLFLDDBFBBF