September 30, 2003

News Release: Diamond Discoveries in Paraguay - New Finds in Mauritania Joint Venture with Jindal in India

Rex Diamond Mining Corporation announces the following developments:

- In the past 18 months, Rex has been exploring the eastern part of Paraguay for diamonds. A new interpretation of the regional geology, together with new deep geophysical data, point to the presence of a Lower Proterozoic and Archean craton, the Rio de la Plata craton, underneath the Mesozoic sediments and basalts of the Parana Basin. The present Mining Code of Paraguay does not allow the obtention of large exploration permits. With this in mind, Rex negotiated and obtained from the Ministry of Public Works and the Vice-Ministry of Mining and Energy in Paraguay an exclusive right to explore for diamonds during 18 months in the eastern part of Paraguay. The exclusive area covers 34,000 km(2). The full area was covered with 4189 stream sediment samples. The sample fractions between 0.3 and 2 mm were analysed for kimberlite and lamproite indicator minerals by Mineral Services, a specialized laboratory headed by Prof. John Gurney in Cape Town. Ten diamonds were recovered (9 were larger than 1 mm, one was between 0.71 and 1 mm in size) and about 600 indicator minerals, mainly ilmenite, chromite, pyrope garnet and chrome-diopside. Follow-up of the positive occurrences led to the discovery of 191 lamprophyre bodies, most of which have lamproite affinities. Evaluation of these bodies is underway. A 37 kg sample from a lamprophyre dyke, 4 metres wide, yielded a gem-quality 1 mm diamond, weighing 0.011 carats. SGS Lakefield laboratories, Ontario, Canada, did the lamprophyre analysis. The 18-month period has expired now and Rex has applied for 4 exploration permits in full accordance with the existing Mining Code of Paraguay.

- In Mauritania, Rex is applying for new permits. In the first batch of samples from the new Tasiast permit, analysed by Mineral Services and by a Moscow lab headed by Dr. Felix Kaminsky, Rex has found one diamond and several angular sub-keliphytic pyrope garnets that point to a nearby kimberlite source.

- In India, Rex has signed a Memorandum of Understanding with Jindal Steel and Power to explore together for diamonds in Chattisgarh and Jharkhand States. The Raipur kimberlite and diamond field, discovered a few years ago by the Geological Survey of India, is located in Chattisgarh State. Our joint venture partner, Jindal, is the largest industrial company in the State of Chattisgarh, producing, coal, power, iron and steel.

Dr. Luc Rombouts, Chief Geologist and Executive Director of the company, manages all exploration activities by the company worldwide. - In South Africa, Rex is pleased to announce that it has reached an agreement with the NUM (National Union of Mineworkers) on the outstanding labour dispute at the South African Mines. An increase of 6.2% will be given to the entire workforce to allow for current inflation. Operations at the mines are due to resume on October 1, 2003.

Rex Diamond Mining Corporation is a vertically integrated diamond mining and marketing company. With mines in South Africa, advanced exploration in Mauritania and now online retailing of Rex-branded loose polished stones through www.rexgems.com and Rex-branded diamond jewellery through www.rexdiamonds.com. Rex covers the diamond world from minesite to website.



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