Motapa Diamonds Inc.

Motapa Diamonds Inc.

December 27, 2006 06:00 ET

Motapa Announces Termination of BHP Billiton Alliance

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 27, 2006) - Motapa Diamonds Inc. (TSX VENTURE:MTP) announces that the Exploration and Farm-In Option Agreement between Motapa and BHP Billiton (the 'Agreement') has terminated effective immediately. Under the Agreement, BHP Billiton retained an option to back into and earn a majority interest in Motapa's African mineral interests on pre-negotiated terms. In addition, Motapa was subject to certain obligations to BHP Billiton with regard to the disposition of its African mineral interests and a loan repayment obligation in the event that commercial production resulted from BHP Billiton exercising its option in terms of the Agreement. A provision of the Agreement provided for termination of the Agreement in the event that BHP Billiton's shareholding in Motapa decreased to less than 10% of the issued and outstanding shares in the Company, an event which has occurred.

As a result of the termination of the Agreement, BHP Billiton will have no further option rights on Motapa's mineral interests, and Motapa will have no further obligations to BHP Billiton with respect to the disposition of its mineral interest and no further loan repayment obligations to BHP Billiton.

Motapa is among the leading diamond explorers in Africa and has interests in approximately 9 million hectares of diamond prospective properties located in Botswana, Gabon, Lesotho, Mozambique, Namibia and Zambia. The company also holds licenses to explore for gold, uranium and manganese in Gabon.

On behalf of the Board


Dr. Larry Ott, Chief Executive Officer

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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