Joint Venture Agreement

8 May 2008 07:00

Sunrise Diamonds PLC08 May 2008 www.sunrisediamonds.com 8 May 2008 AGREEMENT SIGNED WITH MANTLE DIAMONDS TO EVALUATE KIMBERLITE TARGETS CLOSE TO LAHTOJOKI PIPE • Targets Identified By Sunrise From BHP Billiton Database • Sunrise Obtains 20% Joint Venture Interest Free-Carried To Mining Decision_________________________________________________________________________ Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to report that ithas signed a Letter of Agreement with Mantle Diamonds Limited ("Mantle"), aprivate UK registered diamond exploration company, giving Sunrise a 20%free-carried interest in two kimberlite targets located close to the Lahtojokikimberlite pipe in the Kaavi region of central Finland. The targets comprise two high interest electromagnetic anomalies having similarcharacteristics to the anomaly caused by the Lahtojoki kimberlite pipe. They arelocated 400m and 800m from the 2 hectare Lahtojoki kimberlite pipe which iscurrently being bulk sampled by Mantle under a separate agreement with ownerKopane Diamond Developments Plc as part of a full feasibility study fordevelopment of Lahtojoki. Previous drilling at Lahtojoki has indicated a diamondgrade of approximately 35 carats per hundred tonnes. The targets have been identified by Sunrise as a result of reprocessing ofairborne geophysical data obtained under its exclusive agreement with BHPBilliton and are located on claims being acquired by Mantle from private companyGondwana (Investments) SA. In exchange for disclosing the location of the anomalies to Mantle, Mantle hasagreed to drill-test the anomalies and Sunrise will be entitled to a 20% jointventure interest in any project resulting from the successful testing of theanomalies, free carried up to a decision to mine. Further information: Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947. Mobile: +44(0) 7767 458751 Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: +44(0)20-7628-5518 Brett Miller/Roxane Marffy, Ruegg & Co Limited. Tel: +44(0) 20 7584 3663 Note : The information in this release has been compiled and reviewed by Mr.Patrick Cheetham (MIMMM, MAusIMM) who is a qualified person for the purposes ofthe AIM Guidance Note for Mining Oil & Gas Companies issued on March 16, 2006.Mr Cheetham is a Member of the Institute of Materials, Minerals & Mining andalso a member of the Australasian Institute of Mining & Metallurgy. This information is provided by RNS The company news service from the London Stock Exchange