(1) “new” common share for three (3) “old” common shares, as approved by shareholders at the

#910-475 Howe Street, Vancouver, British Columbia Canada V6C 2B3

Tel: (604) 689-2599 Fax: (604) 689-3609

[email protected] www.braziliandiamonds.com

BZD : TSX.V

BRAZILIAN DIAMONDS LIMITED

NEWS RELEASE

Vancouver, Canada – January 18, 2011 – (TSX.V: BZD) (the “Company”). The Company announces that it is proceeding with the consolidation of its common shares on the basis of one

(1) “new” common share for three (3) “old” common shares, as approved by shareholders at the Company’s Annual and Special Meeting held on July 29, 2010. Effective January 19, 2011, the common shares of the Company will commence trading on the TSX Venture Exchange on a consolidated basis. The stock symbol will remain BZD.

Letters of transmittal describing the process by which shareholders may obtain new certificates representing their consolidated common shares will be mailed shortly to registered shareholders. Shareholders who hold their shares through a broker or other intermediary and do not have shares registered in their name will not be required to complete a letter of transmittal. No fractional shares will be issued under the share consolidation and any fraction will be rounded to the nearest whole number.

Following consolidation and subject to rounding, the Company will have 6,479,024 common shares issued and outstanding. All outstanding options of the Company will be adjusted accordingly to reflect the share consolidation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information contact:

Stephen Fabian, President & CEO

Tel: + 33 6439 10649

Francis Johnstone, Chairman

Tel: + 44 7970 415 070

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