Exploration Update

Sunrise Diamonds PLC
19 July 2005




                            www.sunrisediamonds.com

                                                                   July 19, 2005

KEY KIMBERLITE INDICATORS FOUND

AT FIVE MAGNETIC TARGETS IN N. FINLAND

   •Drill Testing of Priority Targets In Diamond Search To Start Within Days
   • Indicator Minerals Include Kimberlitic Chromites, Pyrope And
    Picro-Ilmenites

Sunrise Diamonds plc, ('Sunrise Diamonds' or 'the Company') is pleased to
announce that drill testing of magnetic targets at its Kuusamo diamond project
in northern Finland will start within the next few days. This follows the
finding, in early sampling, of kimberlite indicator minerals ('KIMs') including
kimberlitic chromites, pyrope garnets, picro-ilmentites, and chrome diopsides.
KIMs are minerals typically found in kimberlites, the main primary source of
diamonds.

The Karelian Craton, a geological block that underlies northern and central-east
Finland and a part of neighbouring western Russia, is considered by the Company
to be one of the most diamond prospective areas in the world. Over the border
this craton hosts the world-class Arkhangelsk diamond deposits, whilst the
prospectivity of the Finnish part of the craton has been further enhanced by the
announcement by European Diamonds PLC last week of the discovery of a new
kimberlite body in central Finland.

Since admission to AIM on 6 June the Company has progressed quickly in its
evaluation of its untested targets at Kuusamo. A total of 89 surface and basal
till samples have now been taken to test for glacial dispersion of possible
kimberlite material from a total of 33 magnetic targets. In addition ground
magnetic surveys have been carried out at 11 targets. Thirty-one of the till
samples have been processed for indicator mineral recovery by the Geological
Survey of Finland (GTK) as contractor for Sunrise Diamonds.

GTK has commenced preliminary indicator mineral picking and microprobe analyses
of selected indicator mineral grains to confirm their kimberlitic parentage. To
date KIMs have been found in six samples associated with five of the initial
magnetic targets. They include 'kimberlitic' chromites having compositions
matching chromites found as inclusions in and inter-grown with diamond,
'kimberlitic' picroilmenites with compositions favouring diamond preservation,
pyrope garnet, and chrome-diopsides of mantle origin.

Drilling will progressively test priority targets defined by a combination of
magnetic anomalies and kimberlite indicator minerals. Indicator mineral sampling
and picking is continuing.

'It is particularly exciting to get such positive results so early in the
programme and raises an expectation that further kimberlites will be discovered
in the Kuusamo area.' commented Patrick Cheetham, Sunrise Diamonds' Chairman,
today.

Further Information:

Patrick Cheetham, Sunrise Diamonds plc. Tel: [phone]. Mobile: +44 (0)
7767-458751
John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518



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