Exploration Update

3 Oct 2006 07:00

Sunrise Diamonds PLC03 October 2006 www.sunrisediamonds.com 3rd October 2006 KIMBERLITE FOUND AT TWO TARGETS IN ONGOING EXPLORATION PROGRAMME • Kimberlite Discovery at Target 295 Indicates Local Source With High Diamond Potential • Kimberlite Material Widespread In Gravels At Target 298_______________________________________________________________________ Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to announce thediscovery of kimberlite "float" at two separate locations in the Kaavi-Kuopioarea in Finland. At Target 295, on claims where the Company is earning up to a 75% interest fromNordic Diamonds, kimberlite fragments have been found in numerous excavator pitsdug into the surficial glacial sediments overlying bedrock. Heavy mineralseparates from the kimberlite fragments contain high-interest G10 pyrope garnets(important indicators of diamond potential) and picroilmenites with compositionsthat favour diamond preservation. The Directors believe the distribution andcharacter of the kimberlite fragments suggests a local bedrock source with highdiamond potential. A programme of geophysics is now being planned to delineatebedrock targets for drill testing. At a separate and unrelated location, prospecting around Target 298 (ina100%-owned area) has located a second occurrence of kimberlite in glacialsediments. Here, kimberlitic material is common in the host gravel, suggesting asource of significant size. 20kg of the kimberlitic material has been submittedfor micro-diamond analysis and a further small sample will be examined fordiamond-diagnostic indicator minerals to characterise the kimberlite source. Commenting today Sunrise Chairman, Mr Patrick Cheetham said "We are delighted toget these results so early in our first programme in the Kaavi-Kuopio area. Theyconfirm our belief that more diamondiferous kimberlites will be found in thiscluster." The Company is currently awaiting micro-diamond test results from a 200kg sampleof the recently discovered Lampi kimberlite in the Kuusamo cluster in Finland.Results have been delayed by a backlog of work in the Canadian laboratories. Further Info: Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947.Mob: +44 (0)7767-458751 John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518 The information in this release has been compiled and reviewed by Mr. PatrickCheetham (MIMMM, MAusIMM) who is a qualified person for the purposes of the AIMGuidance Note for Mining Oil & Gas Companies issued on March 16, 2006. MrCheetham is a Member of the Institute of Materials, Minerals & Mining and also amember of the Australasian Institute of Mining & Metallurgy. This information is provided by RNS The company news service from the London Stock Exchange