SEDAR filing FORM 51-102F3
MATERIAL CHANGE REPORT
Item 2. Date of Material Change
May 13, 2004 (being the date of the approval of the Board of Directors of the Company)
Item 3. Press Release
The press release was disseminated through the Canada Stockwatch and Market News on May 11, 2004.
Item 4. Summary of Material Change
On May 5, 2004, Etruscan Diamonds (Pty) Limited ("Etruscan Diamonds"), a South African corporation in which the Company holds a 25% minority equity interest, entered into an Option and Joint Venture Agreement with Mvelaphanda Exploration (Pty) Limited ("ME"). ME was granted the right to earn a 50% joint venture interest in the Nooitgedacht Property, including the Tirisano Mine, by funding a major capital expansion of the Tirisano Mine. ME can also earn a 50% joint venture interest in two adjacent properties also held by Etruscan Diamonds,namely, the Hartbeestlaagte and Zwartrand properties, on certain terms and conditions. ME is owned 50% by Trans Hex Group Limited, the second largest diamond producer in South Africa, and 50% by Mvelaphanda Resources Limited, a broadly based black empowerment company focused on the South African mining sector. The interests earned by ME will also provide Black Economic Empowerment to these projects, in compliance with current South African legislation.