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Brazil // Overview and Map

	Diagem is an exploration company focussed on finding primary kimberlitic sources of diamonds in Brazil's historical alluvial Juina Diamond Province. The Company holds an unrivalled portfolio of mining properties of 228,000 hectares, by far the largest single landholding in the area. There is also an additional 100,000 hectares of priority applications. The properties host 40 identified kimberlite pipes; 19 of which have been proven to be diamondiferous, five are barren and 16 have yet to be investigated. The Collier-04 kimberlite pipe is the only pipe with any appreciable amount of work done to investigate its potential. In late 2006 and early 2007, Diagem discovered two new kimberlite clusters which are believed to be significant primary sources of the Juina historical alluvial diamond production. The realization of the potential of the kimberlite clusters to host one or more economic primary diamond deposits is excellent and constitutes the Company's primary objective. In addition, Diagem has one advanced project at the feasibility stage: the 17 hectare Collier-04 kimberlite pipe on mining concession Property 214 is undergoing large-scale bulk sampling through the commissioning of a 23 cubic metre per hour pilot concentration plant and the recovery of commercial size diamonds at its Juina X-Ray Separator facility in Juina. From a Brazilian perspective, Diagem has all the permits to extract, process, market and sell the diamonds recovered at Collier-04.
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	*Most of the known Juina kimberlite occurrences are found within Diagem properties including the two new clusters believed to be a significant source of the Juina historical alluvial diamonds*


	Status of Mineral Properties

Property	Area	Size (ha)	Issued	Expiry (1)	Status
214	Northwest	10,000	06/05/2005	-	Mining Concession according to Brazilian law.
108	Chapadão	4,803	29/07/1997	16/08/2002	Final exploration report filed and accepted, environmental impact survey report filed February 2007. Mining plan and application for mining concession filed May 4, 2007.
213	Northwest	5,723	17/04/1998	11/12/2004	Final exploration report filed and accepted, mining plan and application for mining concession filed, environmental impact survey report filed February 2007.
1000 (2)	South	759	26/11/1998	07/01/2005	Final exploration report filed and accepted, environmental impact survey report filed February 2007. Deferral of mining plan and mining concession application requested to DNPM.
370/98	Chapadão	7,646	14/01/2000	13/01/2007	Final exploration report filed in January 2007.
370/96	South	10,000	21/08/2000	13/01/2007	Final exploration report filed in January 2007.
211	Northwest	8,294	21/08/2000	19/09/2007	Final exploration report filed in September 2007.
118	South	2,574	14/12/2001	05/05/2008	Exploration – final term.
119	South	9,790	14/12/2001	05/05/2008	Exploration – final term.
120	South	9,195	14/12/2001	05/05/2008	Exploration – final term.
263	South	10,000	09/07/2003	08/07/2006	Exploration – final term.
264	South	10,000	09/07/2003	08/07/2006	Exploration – final term.
190	South	1,150	20/08/2004	19/08/2007	Negative exploration report filed in August 2007.
272	South	9,250	20/01/2006	19/01/2009	Exploration – initial term.
219	Northwest	10,000	07/04/2006	12/04/2009	Exploration – initial term.
079	South	9,217	01/06/2006	19/06/2009	Exploration – initial term.
772	Chapadão	8,820	25/04/2007	24/04/2010	Exploration – initial term.
015	South	4,665	14/05/2007	13/05/2010	Exploration – initial term.
043	South	9,994	13/08/2007	29/08/2010	Exploration – initial term.
044	South	9,325	13/08/2007	29/08/2010	Exploration – initial term.
045	South	9,601	13/08/2007	29/08/2010	Exploration – initial term.
048	South	7,650	13/08/2007	29/08/2010	Exploration – initial term.
049	South	9,055	13/08/2007	29/08/2010	Exploration – initial term.
050	South	9,820	13/08/2007	29/08/2010	Exploration – initial term.
051	South	10,000	13/08/2007	29/08/2010	Exploration – initial term.
052	South	6,539	13/08/2007	29/08/2010	Exploration – initial term.
080	South	4,483	13/08/2007	29/08/2010	Exploration – initial term.
193	South	9,771	29/08/2007	12/09/2010	Exploration – initial term.
046	South	8,184	14/11/2007	20/11/2010	Exploration – initial term.
047	South	5,658	14/11/2007	20/11/2010	Exploration – initial term.
240	South	9,788	14/11/2007	20/11/2010	Exploration – initial term.
241	South	9,559	14/11/2007	20/11/2010	Exploration – initial term.
326	Northeast	9,645	14/11/2007	20/11/2010	Exploration – initial term.
327	Northeast	9,948	14/11/2007	20/11/2010	Exploration – initial term.
328	Northeast	7,363	14/11/2007	20/11/2010	Exploration – initial term.

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