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Announcement of Joint Venture

20 November 2007

Kopane Diamond Developments Plc, formerly European Diamonds Plc, ("Kopane" or "the Company"), today announces that it has signed non-legally binding heads of agreement with Mantle Diamonds Limited ("Mantle") to establish a new joint venture in respect of all of the Company's Finnish properties (the "Proposal"). The Proposal is subject to Kopane and Mantle entering into a definitive Joint Venture Agreement ("JVA"). Under the Proposal, Kopane will place all of its diamond exploration assets in Finland, amounting to 28 mineral claims and reservations, into a new joint venture company ("Newco"). Mantle will be able to earn up to a 70% interest in Newco:

1. by spending $5 million on exploration and evaluation on Newco's behalf. As part of this sum, Mantle has specifically agreed to commission, fully fund and complete a bankable feasibility study in respect of the Company's Lahtojoki property; and
2. by paying Kopane £2 million in Mantle shares as follows:
• One-third on completion of the JVA;
• One-third within 24 months of completion of the JVA or on publication of a bankable feasibility study in respect of the Company's Lahtojoki property, whichever is earlier; and
• One-third 12 months thereafter.

Tim Read, Executive Chairman of the Company said: "This Proposal is a very important step forward in the restructuring of Kopane. It allows us to concentrate Kopane's management, technical and financial resources on our Liqhobong assets in Lesotho, whilst continuing to participate in the development of the Finnish assets. Mantle has a strong diamond exploration team with a good understanding of Finland's potential. We are confident that they will be able to add considerable value to the joint venture."

Kopane Diamond Developments Plc is a growing diamond mining company with substantial production and development assets in Lesotho. The Liqhobong Satellite plant is now producing at a rate of over 150,000 carats per annum. A Definitive Feasibility Study has commenced on the Liqhobong Main Pipe, which could demonstrate a viable project, capable of producing up to one million carats per annum. Kopane is also committed to bringing its exploration assets in Finland to full value for its shareholders.

Kopane Diamond Developments Plc (formerly European Diamonds Plc) is listed on the AIM Market of the London Stock Exchange and its shares trade under the symbol KDD.

Mantle is a privately-owned UK company with diamond exploration interests in Australia, Canada, Liberia, Mali, the DRC, Angola and Zimbabwe as well as Finland. Mantle plans to list on AIM within the next six months.

For further information please contact:-

Kopane Diamond Developments Plc
Tim Read, Executive Chairman
James Cable, Finance Director
+44 (0) 20 7529 7502

First City Public Relations
Allan Piper
+44 (0) 207 242 2666

Canaccord Adams Limited
Mike Jones
Ryan Gaffney
+44 (0) 20 7050 6500

E-mail: ir@kopanediamonds.com
Website: www.kopanediamonds.com