Update on the Panguma Project

RNS Number:4804P
River Diamonds PLC
06 March 2008

6 March 2008



                               River Diamonds PLC

                      ("River Diamonds" or "the Company")



             Update on the Panguma Diamond Project in Sierra Leone


In December 2006 the Company acquired full ownership of the Panguma Diamond
Project by the purchase of Panguma Diamond Limited. The Panguma Diamond Project
covers an area of 5,400 hectares and has a number of diamondiferous kimberlite
dyke systems with a strike extent up to 4 - 5km.


Exploration Licence EXPL 1/06 covering the Panguma Diamonds Project was issued
on 1 March 2006 and expired on 1 March 2008. The Company has applied for a
renewal of the licence for a further term of one year and is currently awaiting
the outcome of this application. Should the renewal of the licence not be
granted, the Company will no longer have an interest in the Panguma Diamond
Project.


Placing


The board of River Diamonds is pleased to announce that, in addition to the
conditional placing of £4,250,000 at 6p per share announced on 14 December 2007,
a further 6,983,333 new ordinary shares have been conditionally placed at 6p per
share with institutional investors raising gross proceeds of £419,000. The
placings are conditional on completion of the acquisition of the Vatakoula Gold
Mine in Fiji which was announced on 14 December 2007.



Pending Acquisition and Resumption of River Diamonds shares to trading on AIM


The Company's shares are suspended pending the publication of a re-admission
document in connection with the proposed acquisition of the Vatakoula Gold Mine
in Fiji. The Directors are pleased with progress on the proposed transaction and
will publish the re-admission document as soon as possible subject to completion
of the final due diligence.



Enquiries


River Diamonds plc
Colin Orr Ewing                               020 7352 4117
Kiran Morzaria                                020 7016 5100


W.H. Ireland Limited
James Joyce                                   020 7220 1666
David Porter


Hichens, Harrison & Co plc                    020 7382 7785
Dave Paxton


Parkgreen Communications                      020 7851 7480
Beth Harris/Laura Llewelyn






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