Motapa Diamonds Inc.
TSX VENTURE : MTP

Motapa Diamonds Inc.

October 25, 2005 12:37 ET

Motapa Second Quarter Financial Statements and Interim MD&A

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 25, 2005) - Motapa Diamonds Inc. (TSX VENTURE:MTP) has filed its interim consolidated financial statements and its Management Discussion and Analysis for the 6 months ended August 31, 2005, with the regulatory authorities through SEDAR. The interim consolidated financial statements were prepared by management in accordance with Canadian generally accepted accounting principles and were not reviewed by Motapa's auditors.

Overview

Highlights of Motapa's exploration activities during its second quarter of fiscal 2006 are:

- High resolution helicopter-borne magnetic surveys were completed over 2 regions with a total area of 662 km2 on the Lebiri project (Gabon).

- Diamond exploration rights covering 4,298 km2 in western Mozambique were secured.

- Drilling program on the Kavango project (Namibia) continued into the third quarter and resulted in the discovery of kimberlite on target KD92 bringing the total number of kimberlites discovered on the Kavango project to eight.

- Final data processing interpretation of the airborne geophysical data on the Mulonga Plain project (Zambia) was completed and drilling was initiated in the third quarter.

Cash and cash equivalents decreased by US$1,437,352 (2004: US$626,768) during the quarter ended August 31, 2005 to US$5,375,083 (2004: US$9,611,605) after taking exploration expenses of US$1,051,264 (2004: US$771,081) and net corporate gains of US$63,475 (2004: expenses of US$718,375) into account.

Exploration expenditure focused on geophysical surveys on Lebiri project (Gabon) and drilling programs on Kavango project (Nambia) on which US$635,587 and US$203,875 was spent respectively, accounting for 80% of the total exploration expenditure incurred during this quarter. Corporate gains for the quarter ended August 31, 2005 were after taking a foreign exchange gain of US$278,287 (2004: US$46,150) into account.

On behalf of the Board

MOTAPA DIAMONDS INC.

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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