Diavik 2007 third quarter update

    YELLOWKNIFE, NT, Oct. 29 /CNW/ - Diavik Diamond Mines Inc. (DDMI),
operator of the Diavik Diamond Mine is pleased to report continued strong
performance in the third quarter with 3.1 million carats of diamonds
recovered. Ore production was predominantly from the A154 South pipe, with
less production from the A154 North pipe. Year to date diamond production now
stands at nine million carats.
    Safety performance for the quarter was mixed. A milestone was reached of
88 consecutive days with no medical or lost time incidents. In September, the
Diavik Mine Rescue Team won the underground firefighting event at the Western
Regional Mine Rescue Competition. Despite this positive performance, two lost
time injuries occurred at the end of the quarter, resulting in a year to date
All Incident Frequency Rate of 0.96 and a Lost Time Injury Frequency Rate of
0.52.
    Significantly, the federal government approved the renewal of the Diavik
water licence for a period of eight years, effective from November 1, 2007.
The regional Wek'eezhii Land and Water Board recommended licence renewal after
an intensive, two year public review. The new licence was granted subject to
substantially increased environmental monitoring, reporting and management
controls, revised discharge limits, and increased numbers and types of ongoing
annual approvals.
    During quarter three, the Mining Association of Canada recognized Diavik
under its Towards Sustainable Mining initiative in the areas of local
communities, tailings management and crisis management planning.
    Diavik's third quarter employment averaged 796 workers, of which 67 per
cent are northern. Approximately half of the northern employees are
Aboriginal.
    In September, Rio Tinto announced the appointment of Kim Truter as DDMI's
new President and Chief Operating Officer. Mr. Truter transferred from Rio
Tinto Coal Australia and joined Diavik in mid October.
    Significant progress has been made on projects during the quarter. A
decision has been made to defer the development of the A21 pipe pending
further engineering studies and economic evaluations that could significantly
improve the economics of the project. The feasibility of the underground
development of the A418 and A154 pipes has been completed and will now be
submitted for internal funding. Economics for the underground project remain
favourable.
    The Diavik Diamond Mine, located 300 km. northeast of Yellowknife,
Northwest Territories, is an unincorporated joint venture between DDMI (60%)
and Aber Diamond Limited Partnership (40%). Both companies are headquartered
in Yellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto plc of
London, England, and Aber Diamond Limited Partnership is wholly owned by Aber
Diamond Corporation of Toronto, Ontario. DDMI is the operator of the project.

For further information:

For further information: Tom Hoefer, Manager of Communications &
External Relations at Tel: (867) 669-6500, or visit the DDMI website at
www.diavik.ca