Exploration Update

Sunrise Diamonds PLC
04 January 2006




                            www.sunrisediamonds.com

4 January 2006


SUNRISE DISCOVERS NEW KIMBERLITE IN KUUSAMO CLUSTER

   • Latest Find Results From Follow-Up Drilling Of Geophysical Anomaly

   • Drilling Extends Minimum Width Of Anomaly 45 Kimberlite To 45m

   • On-Going Ground Geophysics, Till Geochemistry And Drill Testing

Sunrise Diamonds plc ('Sunrise') is pleased to announce that follow-up drilling
close to the site of its Anomaly 45 kimberlite at Kuusamo in northern Finland
has resulted in a new kimberlite discovery.

The new discovery was made during drill testing of a geophysical anomaly 200
metres away from Anomaly 45 kimberlite. Hole number 45-07-05 was drilled in late
December and intersected 4.4 metres of kimberlite within granite from 12.2-16.6
metres depth down-hole.

The recent short drilling programme was intended primarily to test the extent of
the Anomaly 45 kimberlite, where micro-diamonds were recently recovered (see
News Release of 13 October, 2005) and to investigate the potential for
higher-grade phases. A northeast-southwest traverse across Anomaly 45 kimberlite
suggests a minimum width of 45 metres for this kimberlite in this direction with
both diatreme and hypabyssal phase kimberlite indicated from preliminary
logging. The northwest-southeast extent of the kimberlite is not yet defined.
Detailed logging and sampling of drill core from Anomaly 45 and the latest new
kimberlite discovery will be carried out by diamond specialists at the
Geological Survey of Finland ('GTK') in mid-January, with further micro-diamond
results expected by mid-March.

A programme of magnetic and electromagnetic ground geophysics totalling
approximately 300 line-kilometres is ongoing and forms part of a systematic
investigation by Sunrise of numerous priority targets in the Kuusamo cluster.
The survey includes a detailed survey around Anomaly 45 and 47 kimberlites and
the latest kimberlite discovery.

The GTK, on behalf of Sunrise Diamonds, recently completed detailed till
sampling at several sites as a follow-up to the identification last summer of
kimberlite indicator mineral trains containing diamond-diagnostic G10 pyrope
garnets, kimberlitic ilmenites, chrome diopsides and chromites. Encouraging
preliminary results have been received from picking of heavy mineral
concentrates, with definitive data from microprobe chemical analysis of
kimberlite indicator grains expected in early January.

Commenting today, Sunrise Chairman, Mr Patrick Cheetham, said: ' We are very
pleased to find another kimberlite body at Kuusamo so soon after the nearby
Anomaly 45 and 47 discoveries. This suggests that kimberlite emplacement in this
particular area of the Kuusamo cluster is likely to be more extensive than we
first imagined and we are looking forward to resuming exploration now that the
festive break is behind us.'

Further Info: Patrick Cheetham, Sunrise Diamonds plc. Tel: [phone].
Mob: [phone]

John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518





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