Motapa Diamonds Inc.

Motapa Diamonds Inc.

December 18, 2006 12:06 ET

Namdeb Exercises Option with Motapa on Kavango Project, Namibia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 18, 2006) - Motapa Diamonds Inc. (TSX VENTURE:MTP) is pleased to announce that Namdeb Diamond Corporation (Pty) Ltd. ("Namdeb") has completed its due diligence investigations and elected to exercise its initial option on the Kavango project area, pursuant to the letter agreement signed August 21st, 2006 and announced by Motapa on September 18th, 2006.

Motapa's Kavango and Kavango West licenses (the "Project Area"), cover approximately 1.62 million hectares in northeast Namibia.

Under terms of the letter agreement Namdeb has an initial option to earn a 51% interest in the licenses, by committing to undertake a 24 month work program mutually agreed to by Motapa and Namdeb. Namdeb will hold the said interest in the licences by virtue of its 51% shareholding in a new joint venture company in which licenses over the Project Area would ultimately reside. Subsequent to this, Namdeb has a second option to earn an additional 14% interest, totaling 65% shareholding in the joint venture company, by fully funding the project to completion of a bankable feasibility study within five years of electing to exercise its second option.

Motapa's CEO, Dr. Larry Ott commented that he was pleased that Namdeb has exercised its option and that "we are looking forward to working together in the development of a two year work program."

Namdeb's MD, Ms Inge Zaamwani noted that: "As the leading diamond mining company in Namibia, Namdeb embraces the joint venture with Motapa as being in line with Namdeb's overall strategy to brave new frontiers and make a lasting contribution to Namibia."

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.

Namdeb is owned in equal shares by the Government of the Republic of Namibia and DeBeers Centenary AG.

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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