Vaaldiam Resources Ltd.

March 29, 2005 14:40 ET

Vaaldiam to Drill Priority Kimberlite Pipes

NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VAALDIAM RESOURCES LTD.

TSX VENTURE SYMBOL: VAA

MARCH 29, 2005 - 14:40 ET

Vaaldiam to Drill Priority Kimberlite Pipes

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - Vaaldiam Resources
Ltd. (TSX VENTURE:VAA) is in the process of mobilizing a drill rig to
its 100%-owned Pimenta Bueno property to delineate and sample up to nine
kimberlite pipes. The selection of the nine kimberlite pipes was based
on favorable microdiamond and mineral chemistry results produced during
preliminary sampling efforts. Seven of the kimberlite pipes selected for
drill testing lie within a 2 kilometre radius and form part of a larger
cluster of 24 kimberlite pipes that have been found in the southern half
of the Pimenta Bueno property.

Drilling is expected to commence in early April and will involve the
completion of four to six drill holes into each kimberlite pipe. The
drill holes will be positioned on a grid pattern to test different areas
of each pipe and the holes will be drilled to a vertical depth of
approximately 150 metres. It is anticipated that approximately 2 tonnes
of kimberlite will be collected from each pipe for microdiamond analysis.

In addition to the delineation drilling to be completed on the nine
kimberlite pipes, Vaaldiam will also drill nine, previously untested
magnetic anomalies that were identified during the 2004 exploration
program. These nine anomalies represent high interest dipole and tripole
magnetic responses that are usually indicative of kimberlite pipes in
the Pimenta Bueno district. High interest kimberlitic chromites and G10
garnets have been recovered in both alluvial and soil samples that have
been collected from the anomalies. Soil sampling over one of the
magnetic anomalies produced two +0.300 mm diamonds in addition to the
G10 garnets and other kimberlitic indicator minerals.

In addition to the planned drill program, Vaaldiam is continuing with
its reconnaissance exploration program and is focusing on an area to the
west of the Cosmos-Tumeleiro-Clara kimberlite cluster, where a 200 litre
alluvial sample has resulted in the recovery of abundant G10 garnets,
including eclogitic garnets which as yet cannot be sourced back to a
known pipe. Kimberlitic chromites and ilmenites, whose mineral chemistry
falls within the Diamond Stability Field, were also recovered in this
sampling. The fresh surface textures of the indicator minerals that were
recovered suggest that a source pipe might lie within 2 kilometres of
the sample location, likely along the northwest-trending structural
lineament that appears to control the emplacement of the diamondiferous
Cosmos 3 and 4 pipes to the southeast. Detailed follow-up sampling and
ground geophysics is presently underway in an attempt to isolate the
source of these high interest indicator minerals.

Vaaldiam is a Canadian based diamond exploration company primarily
involved in the exploration and development of the 176,000 hectare
Pimenta Bueno diamond property in the State of Rondonia, Brazil. To
date, 33 kimberlite pipes have been discovered within the property area.
Twenty-four of the 33 known pipes occur in one large cluster and 15 of
the 33 pipes have been found to be diamond-bearing on the basis of macro
and micro diamond analyses.

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