Admission to AIM

RNS Number:5288F
Van Dieman Mines plc
23 November 2004


23 November 2004

            Admission to trading on AIM after #3.32 million placing

  Tin and Sapphire production in Tasmania (Australia) due to commence in Q4 2005
           Funds to be used to bring mine into production and develop global
                             sapphire distribution

The Directors of Van Dieman Mines ("Van Dieman" or the "Company"; Ticker:
"VDM"), the Tasmanian Tin and Sapphire developer, today announces the
commencement of trading on AIM after a placing by Ambrian Partners raised #3.32
million, before expenses. The Company is issuing 11,066,000 Placing Shares,
representing 15.4 per cent. of the enlarged issued share capital of the Company,
at 30p per Ordinary Share. This equates to approximately 15.2 per cent. of the
fully diluted share capital, assuming the exercise of all the Options. The
Placing will raise #3.32m (before expenses), of which #2.98m will be receivable
by the Company. Grant Thornton Corporate Finance is acting as the Company's
Nominated Adviser and Ambrian Partners Limited as the Company's broker.

Van Dieman owns, through its 100% subsidiary Van Dieman Australia, thirteen
exploration licences which lie within the north east Tasmanian tin region that
stretches from the Blue Tier granite massif in the south through to the north
and north east coasts and into offshore Bass Strait of Australia. This region
has been a significant contributor to the overall production of tin and precious
stones in Tasmania. Historical records up to 1980 indicate that in excess of
40,000 tonnes of tin has been recovered from the region, most of it from
alluvial operations.

An independent technical review confirmed resources in excess of 100 million
cubic metres at three of the licences- Scotia, Central Ringarooma and great
Northern Plains. Of this 51.2 million m3 is in the measured category, (11.5
million m3 in Scotia and Ringarooma; 39.7 million m3 in Northern Plains) and
27.5 million m3are in the inferred category. The Company will use the funds
raised to commence production by Q4, 2005 at the tin and sapphire bearing -
Scotia and Central Ringarooma licences, estimated to have a 15 year mine life,
which will be followed by an exploration programme at the Northern Plains
licence. The Company's alluvial mineral resources encompass a number of discrete
project areas- Endurance and Pioneer form part of the Central Ringarooma area
and are "stand alone" projects whilst others including the Scotia, Great
Northern Plains and Offshore licences are linked together such that they each
form one part of a major resource area.

After allowing for project and supplier funding and use of equipment leasing and
financing facilities, the Company estimates that the total cost of putting the
Scotia and Central Ringarooma deposits into production will be #1.4m. Plant and
equipment estimated at #5.4m will be debt funded from operating leases and/or
dry hire of equipment.

Van Dieman's strategy for the next two years centres around establishing stable
mining operations at Scotia and Endurance, optimising minerals extraction and
processing and establishing reliable outlets for the mine production at premium
pricing. The Company also intends to complete exploration in zones around the
resources at Scotia and Endurance and then to commence exploration of the Great
Northern Plains tenements to confirm economic viability for mining.

Commenting today on Van Dieman's Admission to AIM Clive Trist, Managing
Director, said: "An independent feasibility study has indicated strong
financials for a mine on our licences and we are aiming to bring this into near
term production during Q4 2005. Significant work has been performed compiling
drilling and exploration data on our licences and we are confident that an
aggressive exploration programme once the mine is in production has the
potential to add significantly to our existing resource."

For more information

Clive Trist, Van Dieman Mines
Fiona Reid, Grant Thornton
Richard Chase, Ambrian Partners
Laurence Read/ Leesa Peters, Conduit PR [phone] /[phone]
[e-mail]

Appendix

Appendix

Mineral resources 

Tenement        Volume (million m3)     Grade (kg SnO2 / m3)     Total SnO2   Resource           Strip ratio
                 Ore     Overburden                              (tonnes)     Classification
     
                           
Central 
Ringarooma

Endurance        1.57        8.94         1.065                   1,674       Measured and           5.7
                 2.40                     0.972                   2,330       Inferred

Pioneer          4.62       22.73         0.872                   4,027       Measured and           4.9
                                                                              Inferred

Scotia           5.32       24.90         1.300                   6,913       Measured and           4.7
                21.35                     0.348                   7,430       Inferred
     
Gt. Northern 
Plains

Fosters Marsh  34.10       77.40          0.260                   8,878       Measured               2.3 
Braithwaites    5.16       14.46          0.282                   1,416       Measured               2.8

Peripheral 
Resource Areas 39.70             0.100 to 0.300                               Inferred        2.3 to 2.8
     
Sale of Auxiliary Minerals

Van Diemans intends selling the gold ore fraction from the mine treatment plants
to the Perth mint and has had preliminary discussions with smelters who, from
the tin smelting process, also wish to credit the Company for the magnetic tin
fraction containing the Zircon, Rutile and Tantalite minerals.

Off-take agreements for tin and sapphires

The Company has received draft contracts from Malaysian Smelting Corporation and
Thailand Smelting and Refining Co. Limited for purchase and/or smelting of tin
concentrates, including both purchase of, and hedging options for, the refined
tin metal. These will be reviewed post Admission and a long term contract will
be executed with the preferred dealer.

Agreements concerning the distribution and sales of sapphire products have been
signed with two distribution and selling agents in the US. Further agreements
are being negotiated and discussions are being held with jewellery manufacturers
for Van Diemans to supply their sapphire requirements.

The Tin Market

- Forecast global production in 2004                             290,000 tonnes
- LME stocks at 23 September 2004                                  5,350 tonnes
- Forecast global demand in 2004                                 315,000 tonnes
- Forecast supply shortfall in 2004                               25,000 tonnes

Source: - LME website & CRU Group

Industrial consumption:
- Solders                                                                   32%
- Tin plate                                                                 27%
- Alloys                                                                    14%
- Others (PVC, fire retardants etc.)                                        27%

Source: - LME website

Source: London Metal Exchange 23 September, 2004 & CRU Tin Monitor June 2004

The main growth drivers for the global tin market are as follows:

   *predicted legislation in the US and the European Union banning the use of
    lead in solders, shotgun pellets and bullets;
   *decisions by Dell and other computer manufacturers not to use lead based
    solders in their products; and
   *continued, strong economic growth from China.

The Sapphire Market in the US, the European Union and Japan:

Year                                       2001                      2002              2003
                                      Six months to Sept      Six months to Sept      Annual
                                        US$ millions            US$ millions        US$ millions

US                                       273.3                     304.5             612.0

Source: United States Department 
of Commerce

European Union                          175.5                      155.5             307.8

Source: Eurostat/Haver Analysis

Japan                                    93.0                       89.3             143.0

Source: Jewellery Trade Centre, Japan

Total                                                                             1,062.80

Source: Coloured Stone - International Reporter of the Gemstone Trade January/
February 2002, 2003 & 2004:

The following table shows the top 10 selling gemstones in the US:

         2001                       2002                       2003

     Blue sapphire              Blue sapphire              Blue sapphire
         Pearl                       Ruby                       Ruby
       Tanzanite                   Emerald                   Tanzanite
          Ruby                    Tanzanite                   Emerald
        Emerald                    Amethyst                   Amethyst
        Amethyst               Rhodolite garnet              Blue topaz
    Green tourmaline                Pearl                 Tsavorite garnet
    Rhodolite garnet                 Opal                    Aquamarine
   Fancy sapphire and              Peridot                      Opal
    Pink tourmaline
       Blue topaz                 Blue topaz              Green tourmaline

Source: Coloured Stone - International Reporter of the Gemstone Trade January/
February 2002 & January/February 2003

Statistics published by the International Reporter of the Gemstone Trade show
that for the year 2003 sapphire accounted for over 22 per cent. of the gemstone
market in the US.

Profile of Tasmania

Tasmania is the southernmost state of Australia, separated from the continent by
the Bass Strait and is similar in size to the Republic of Ireland. Tasmania is a
group of over 300 islands, centred around one main island, which has a coastline
of more than 3,000 km. The population of Tasmania is around 475,000, of which
approximately 195,000 live in the capital city of Hobart. Tasmania has a mild,
temperate maritime climate with average temperatures of 21oC (70oF) in the
summer and 12oC (52oF) in the winter.

Tasmania has well-developed internal transport systems with a well-maintained
road and rail network and reliable air and sea links with the rest of the world.
Tasmania also has a reliable, state wide hydro electricity grid, supplemented by
natural gas generation, and an efficient, advanced telecommunications network.

The mineral industry has played a significant part in Tasmania's economic and
cultural development for well over 150 years and the geology is supportive of an
active minerals exploration and mining industry. A diverse range of commodities
are exported, including ores and concentrates of iron, copper, lead, zinc, tin,
gold, high grade silica and tungsten, as well as refined zinc and aluminium and
ferro-alloys.

Directors

Mr Michael Spriggs, Non Executive Chairman, aged 61

Michael Spriggs has 27 years mining sector experience. He graduated from Oxford
University with a B.A. (Honours) in 1964 and he obtained an M.Sc. in Geology and
Mineral Sciences from the University of Leicester in 1969. He worked as an
exploration geologist on a range of international assignments for a number of
major mining groups, including Anglo American, Falconbridge and Rio Tinto. He
spent 11 years with the mining team of the UK investment bank, SG Warburg (now
UBS) from 1986-97. He was appointed Head of the South African Mining Equities
Research Team, was subsequently appointed Director of Corporate Finance, and was
involved in a number of major cross-BORDER="0" mining transactions. In 1997 he
was appointed a Partner at College Hill, the UK public relations consultancy, as
Head of the Mining Team.

Mr Clive Trist, Managing Director, aged 60

Clive has over 10 years senior management experience with Australian and
multinational public companies in general management and new business venture
roles. He has spent the last 18 years with venture capital, investment banking
and corporate advisory firms involved in corporate restructuring, M&A, debt and
equity fund raisings and company start-ups. Between 1991 and 1995 he was a
Partner in the investment banking firm MACC Partners, a joint venture with
Malaysia Borneo Finance Corporation. He has held various directorships including
Chairman, for 10 years, of a successful UK engineering group operating in
Europe, North America and S.E. Asia. Clive holds a Bachelors Degree in
Engineering, a Masters Degree in Business Administration and is a Foundation
Fellow of the Australian Institute of Company Directors.

Mr Ken Frey, Executive Director - Marketing, aged 58

Ken has over 20 years experience with a leading Japanese trading house and
merchant bank involved in major infrastructure projects. Projects managed during
that period included the funding, supply and commissioning of water turbines for
six of the Tasmanian government's electricity grid power stations and the
initiation of Facom's computer marketing programme in Australia. Ken spent over
7 years in New York as a director of a successful group of start up companies.
This involved the establishment and maintenance of a network of distributors
stretching from Chicago through eastern seaboard Boston to San Juan. He has also
undertaken M&A assignments, debt and equity fund raisings and company start ups
in Australia and the US Ken holds a Bachelors Degree in Economics.

Mr Neil Kinnane - Executive Director - Exploration & Operations, aged 57

Neil has over 35 years geology, exploration and mining experience, much of it
involving alluvial gold, tin and gemstone projects. In 1978 Neil was
instrumental in establishing a large alluvial tin operation in North Queensland.
During the period 1980 to 1988 Neil was Chief Geologist with Normin Consultants
specialising in the field of alluvial mine developments in Australia and Papua
New Guinea. Since 1990 Neil has provided geotechnical services to clients in
Papua New Guinea, Lao People's Democratic Republic, Thailand, Vietnam, Cambodia
and the US in the areas of alluvial gemstones and gold and hard rock gold,
industrial minerals and petroleum. During this period, in a trouble shooting
capacity, Neil managed the Great Northern Sapphire mining operation. Neil holds
a Fellowship Diploma in Geology from the Royal Melbourne Institute of
Technology. He is a Fellow of the Australasian Institute of Mining and
Metallurgy and a Chartered Professional Geologist.




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