Salvador 1 Update

RNS Number:0384C
Brazilian Diamonds Limited
14 August 2007



                          BRAZILIAN DIAMONDS LIMITED


 ENVIRONMENTAL AND MINES DEPARTMENT LICENSES RECEIVED TO COMMENCE BULK TESTING
                           THE SALVADOR 1 KIMBERLITE



Brazilian Diamonds Ltd (BDY: TSX & AIM) ("Brazilian Diamonds" or the "Company")
is pleased to announce that it has received a mines department license and an
environmental license from the relevant State authorities to begin the planned
bulk testing of the Company's 100% owned Salvador 1 kimberlite in central Bahia
State, Brazil.

The Environmental License was issued by the Bahia State Environmental Agency
(CRA) and published in the Bahia State Official Gazette on 7 August 2007.  This
was followed on 10 August 2007 by the issue by the Brazilian Mines Department
(DNPM) of a "Guia de Utilizacao" license which permits the excavation of
trenches and processing of excavated material and authorizes the issue of a
Kimberley Process Certificate required in connection with the sale of any
diamonds recovered.

The Company has also completed construction of a mobile treatment plant which is
now being transported from Patos de Minas to the project site in Bahia State, a
distance of approximately 1,300 km.

Brazilian Diamonds plans to collect six large samples of approximately 650 m3
each from different parts of the Salvador 1 kimberlite in order to assess
further its diamond potential.  The excavation of trenches is expected to
commence at the end of August.

Plant installation on site is expected to be completed in September and the
first results from the testing of material extracted from these trenches are
expected during the fourth quarter of 2007.

A total of 120 diamonds, weighing 0.84 carats, have so far been recovered from
6.58 tonnes of kimberlite from seven samples collected by the Company.  Those
samples were processed using typical methods for indicator mineral recovery at
the Company's mineral processing laboratory in Patos de Minas, Brazil which is
ISO 17025 rated for recovery of indicator minerals including diamonds.  The
samples were processed using a bottom screen size of 0.250 mm following
disaggregation using the Company's primary processing plant.

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
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