The document discusses the global and Brazilian diamond mining industries. It notes that while the global diamond industry is relatively small, it is very profitable. It then discusses some of the major players in the industry. It provides details on two producing diamond mines in Brazil, the Duas Barras Mine and Chapada Mine, including production levels and operating costs. The document also discusses how the recent financial crisis has impacted smaller diamond companies in Brazil and suggests partnerships and incentives to help change the scenario.

1. THE BRAZILIAN REALITY OF THE DIAMOND SMALL-SCALE MINING JOSÉ RICARDO THIBES PISANI

3. Source: Trends in Cdn Mineral Exploration & Pers. Communication with Operating Companies in Brazil; Ontario Ministry of Northern Development and Mines Diamond Exploration Expenditures (US$ Millions) In 1991, the first economic kimberlite pipe in Canada was discovered at Pointe Lake > US$ 2 billion was invested in diamond exploration since 1991 and this results in at least 4 new diamond mines = more than US$ 2 billion of diamond/ year.

4. Diamond Occurrences in Brazil

5. Use the excellent work done by De Beers, Rio Tinto, CPRM, etc. > 1.000 kimberlites discovered since 1966 (Redondão Kimberlite);

6. Why the “Majors” walked away from Brazil The “majors” diamond companies did a very good and successful exploration work in Brazil; however they were looking only for WORLD CLASS MINES . Note: Just for reference most of the kimberlites which comprise Point Lake (Ekati Mine) area are smaller than 3 hectares in size. Ekati produces US$ 500 million/ year for at least 25 years. Many small bodies can make a big mine.

7. Who were the diamond producers in Brazil?

8. Diamond Mining Companies Just for comparason: more than 100 diamond companies are listed and exploring in Canada........

9. Chapada Mine Duas Barras Mine Producing Mines

10. Duas Barras Chapada Producing Mines Annual Production 30,000 cts Diamond Value US$ 165 / ct Cash Cost of Production US$ 93/ ct Mine Life 5 Years Annual Production 20,000 cts Diamond Value US$498 /ct Cash Cost of Production US$ 465 / ct Mine Life 4 Years

11. Duas Barras Mine Minas Gerais State

13. Chapada Mine Mato Grosso State

16. How we can Change this Scenario? Partnership small companies and “garimpeiros” by: 1 – Share the same mining concessions (PLG’s, JV, etc.); 2 – Improving the processing from “garimpeiros” by using the companies technology. 3 – Improving the environmental reclamation in order to minimize the impact of the areas explored by garimperios.

17. How we can Change this Scenario? Brazilian Diamond Players 1 - Incentives in order to have diamond companies listed at BOVESPA; 2 - Finance and facilities to buy equipments and working capital; 3 -Training in order to have Brazilian diamond valuators with international recognition; 4 - Analysis the possibility to create a Brazilian Diamond Exchange Centre. 5 – Safe regulations and legal stability .

18. We need more Players – As soon as possible

19. Thank You