Big Red Diamond Corporation

Big Red Diamond Corporation

March 30, 2005 11:37 ET

Big Red Diamond Corporation: Acquisition of Gold Property in the Michaud Township


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BIG RED DIAMOND CORPORATION

TSX VENTURE SYMBOL: DIA

MARCH 30, 2005 - 11:37 ET

Big Red Diamond Corporation: Acquisition of Gold
Property in the Michaud Township

MONTREAL, QUEBEC--(CCNMatthews - March 30, 2005) - Big Red Diamond
Corporation ("BRDC") is pleased to announce the acquisition of 26 claim
units covering an area of 2,288 hectares, namely in the Michaud
township, known as the "Michaud" property.

The properties were acquired from Robert Robitaille and Douglas Lalonde
of Timmins, and Sheldon Davis of Toronto, against the issuance of
360,000 common treasury shares of BRDC and the payment of a 1.5% NSR,
half of which (0.75%) can be bought back by a cash payment of $900,000.

These properties were selected based on favourable geology for both
precious and base metal potential. The property hosts untested
geophysical anomalies. Grid cutting and geochemical surveys will be
followed by mechanized auger drilling and then small bore diamond
drilling.

The properties represent important additions to an established strategic
land position in this gold district. Currently, Big Red is pursuing
exploration on its 100%-owned properties: Valentine, Fournier, Munro and
McCool.

The Corporation has also filed its Annual Audited Financial Statements
for the period ended October 31, 2004 as well as the Notice, Information
Circular and other required documents in regard to its General and
Special Shareholders Meeting, in Toronto, on May 11, 2005, at 10:00
A.M., at The InterContinental Hotel, Wellington Room.

The Board of Directors has approved a Corporate Resolution whereby it
seeks the approval of a majority of the uninterested shareholders for
changes to the Corporation's Stock Option Plan. These changes would:

i) Reduce the exercise price of the options to acquire shares available
under the Stock Option Plan from the current $0.70 to $0.20;

ii) Increase the number of shares reserved under the Stock Option Plan
from 15% to 17,5% of the total shares issued and in circulation; and

iii) To allow eligible staff and executives the right to subscribe to an
unlimited number of shares under the Stock Option Plan, in conformity
with the applicable Securities' regulations.

The Directors unanimously recommend that the shareholders of the
Corporation vote to approve the Resolution, since the eligible
participants have obtained to date very limited compensation for their
services while having been greatly involved in the Company's affairs
leading up to and following its IPO. Under the new terms of the Plan,
the currently granted options would see the exercise price reduced to
$0.20 from $0.70.

The TSX Venture Exchange does not accept responsibility for adequacy or
accuracy of this release.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Big Red Diamond Corporation
    Francois C. Desrosiers
    President
    514 982 6044 ext. 225