Black Swan Completes Acquisition of Canabrava Brazilian Assets

Black Swan has completed the acquisition of Canabrava Diamond 's Brazilian assets. Black Swan purchase Canabrava's subsidiaries, Canabrava Diamonds and Parima Mineracao.

The total acquisition cost of these assets was $225,000 including Canabrava's assumption of certain liabilities and following completion which has taken place, Black Swan will pay Canabrava the final acquisition installment of $75,000 on December 15, 2003. Certain minor royalties as outlined in the announcement of 30th July will also apply to the licenses and data set acquired.

The acquisition also included investment credits of approximately $5 million and a substantial inventory of vehicles, plant and equipment.

As of yesterday (September 15), Black Swan has taken possession of office and laboratory facilities in Patos da Minas in Minas Gerais, Canabrava's extensive kimberlite geophysical and sampling-database and exploration licenses over approximately 35,000 hectares of properties in proximity to Black Swan's already extensive license portfolio in the Santo Antonio and Abaete Valleys.

Black Swan has relocated its operational base in this area to these facilities.