Placing of £5.5 million

    RNS Number : 0722W
  River Diamonds PLC
  05 June 2008
   

        
    AIM: RVD


    River Diamonds Plc

    ("River Diamonds" or "the Company")

    Placing of £5.5 million


    River Diamonds is pleased to announce that it has raised gross proceeds of £5,537,500 through the issue of 130,294,118 ordinary shares
at a placing price of 4.25p per share, representing approximately 7.1% of the enlarged issued share capital. Application will be made for
the new shares to be admitted to trading on AIM and it is expected that admission will take place on or around 13 June 2008.

    It is currently intended that these funds will be used to explore the viability of expanding operations at the Company's wholly-owned
Vatukoula Gold Mine in Fiji ("Vatukoula" or "the Project"), with a view to increasing future gold production levels beyond the current long
term annual target of 117,000 ounces.

    The total number of ordinary shares in issue following this placing and issue of shares is 1,831,782,837.

    David Lenigas, Executive Director of River Diamonds, commented, "We are pleased with the successful conclusion of this fundraising which
underlines investors' conviction in the Vatukoula project. We now look forward to examining the possibility of an expansion of operations at
Vatukoula. This decision evidences our commitment to and expectations for the Project where production is progressing well following the
first gold pour announced in May. We will continue to keep investors updated with production numbers in due course."


    Enquiries: 

 River Diamonds plc                       Hichens, Harrison &
                                          Co plc
 David Lenigas         + 44 20 7016 5100  Dave Paxton           + 44 20 7382 7785
 Colin Orr Ewing       + 44 20 7352 4117

 W.H. Ireland Limited                     Parkgreen
                                          Communications
 David Porter          + 44 20 7220 1666  Louise Goodeve        + 44 20 7851 7480
 James Joyce                              Justine Howarth



This information is provided by RNS
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