Motapa Diamonds Inc.

Motapa Diamonds Inc.

April 16, 2007 14:01 ET

Motapa Grants Option to Bannockburn on Mothae Kimberlite, Lesotho

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - Motapa Diamonds Inc. (TSX VENTURE:MTP) is pleased to announce that it has entered into an Agreement in Principle with Bannockburn Resources Limited "Bannockburn" (CNQ:BNKK) in terms of which Bannockburn is granted the option to earn up to a 70% interest in the Mothae kimberlite project, Lesotho by investing up to US$10 million. The Agreement in Principle provides for an investment by Bannockburn of US $3.8 million to earn a 51% interest, followed by a right to invest a further US $4.2 million to earn an additional 14% interest and a right to invest a further US $2 million to earn an additional 5% in the project.

Motapa's 100% owned Mothae project is located in north-eastern Lesotho, 6.5 km north-west of the Letseng diamond mine. The company received exclusive prospecting rights in June, 2006 for the Mothae kimberlite pipe that has a surface area of approximately 8.8 hectares.

Funds invested by Bannockburn will be used by Motapa to carry out a two phase bulk sampling program to evaluate the economic potential of Mothae. Phase 1 will entail collection and processing of 30,000 tonnes of kimberlite to determine if the Mothae pipe has potential to contain a population of large diamonds similar to the nearby Letseng mine. Pending a successful conclusion to Phase 1, an additional 70,000 tonnes of kimberlite will be collected and processed to obtain a 3,000 to 5,000 carat parcel for diamond valuation. The cost of completing both sampling phases is estimated to be US$8 million.

Motapa's CEO, Dr. Larry Ott, noted that "the option agreement with Bannockburn will provide the necessary funding to fast-track Motapa's planned evaluation of Mothae."

Lukas Lundin a Director of Bannockburn, commented, "Mothae has the potential to be a world-class diamond producer. We are very excited about our upcoming work program on the project and look forward to great success."

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 uranium, gold 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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