Motapa Diamonds Inc.
TSX VENTURE : MTP

Motapa Diamonds Inc.

May 02, 2007 18:29 ET

Motapa to Raise Between $5,000,000 and $7,000,000 by Way of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Motapa Diamonds Inc. ("Motapa" or the "Company") (TSX VENTURE:MTP) announces a non-brokered private placement of between Cdn$5,000,000 and Cdn$7,000,000 through the issuance of units at a price of Cdn$0.70 per unit.

Each unit will comprise one common share and one non-transferable common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of Cdn$0.95 per share for a period of 24 months from the closing of the private placement.

If, after the statutory four-month hold period following the closing of the private placement, the common shares of the Company trade at a price of Cdn$1.45 or greater for a period of 20 consecutive trading days, the Company will be entitled to provide notice to the warrant holders that the warrants must be exercised or will expire 30 days after providing such notice.

Motapa is proposing to pay on a portion of the financing a finder's fee in cash equal to 6% of the gross proceeds and warrants equal to 6% of the units issued. One finder's fee warrant will entitle the holder to purchase one common share of the company at a price of Cdn$0.95 per share for a period of 24 months from the closing of the private placement.

The proceeds of the offering will be used by Motapa for general working capital and corporate purposes. The offering is subject to TSX Venture Exchange approval.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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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