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Xceldiam Limited (XLD)

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Tuesday 12 December, 2006

Xceldiam Limited

Kimberlite Update

Xceldiam Limited
12 December 2006


                                Xceldiam Limited
                                  ('Xceldiam')


              KIMBERLITE UPDATE AT THE LUANGUE CONCESSION, ANGOLA


•     Highly prospective HS-16 kimberlite pipe now estimated at 30 hectares


Xceldiam's wholly owned subsidiary, Frannor Investments & Finance Limited 
('Frannor') announced further positive early signs from its kimberlite 
exploration today.


Frannor operates Project Luangue in association with the Angolan parastatal
Endiama and local partner Bapsil (the 'Association').


Following the announcement in November that diatreme facies kimberlite had been
intersected at the second target area (HS-16) at shallow depths of 20 metres,
the dimensions and character of this pipe have now been determined by further
delineation drilling. The target is currently estimated at 30 hectares and is in
close proximity to an identified Calonda formation where additional alluvial
potential is being explored.


Core samples from the intersections of various kimberlite facies from the HS-16
area have been prepared for shipping to a laboratory for detailed mineralogical
and micro diamond analysis. These are expected to be announced in the first
quarter of 2007.


To date approximately 1,516 metres have been drilled on the concession, with a
further 400 metres planned for this month on targets in the south-central
portion of the concession.


Tim George, CEO Xceldiam commented 'These are exactly the results we have been
expecting from the highly prospective Luangue concession. Angola has always had
the potential to host large kimberlite pipes (as evidenced by the nearby Catoca
pipe); HS-16's current estimate at 30 hectares confirms this. It is still early
days but it would be excellent if a kimberlite this large proved to be
diamondiferous'


                             www.xceldiamgroup.com


For further information, please contact:

Tim George, Xceldiam Limited               +44 7910855640 / +27 82 573 4199

Ed Portman/ Leesa Peters, Conduit PR       +44 20 7429 6603/+44 7733363501

David Youngman, WH Ireland Limited         +44 161 832 2174


Notes:

In November Xceldiam announced that its first kimberlite discovery (HS-1),
buried beneath 23m of overburden, had been shown through additional drilling to
be 18 hectares in surface area. The delineation of HS-16 brings total kimberlite
hectarage to 48 ha



Over 70 kimberlitic type anomalies were identified following completion in May
2005 of the 22,000 line kilometre total magnetic radiometric and topographic
aerial survey over the entire concession. Of these, 20 targets were prioritised
for immediate drilling with the remaining 50 earmarked for drilling pending the
results of this programme.



                      This information is provided by RNS
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