ASX RELEASE

ASX & AIM Code: GRN

14 June 2005

Significant New Kimberlite Pipe Confirmed at Abner Range, NT

• Gravity survey shows potential pipe within the size range of 1.5 and 3 hectares
• Core drilling intersects diatreme facies kimberlite
• Drilling underway to test size and grade potential $\bullet$

Recent fieldwork on the Abner Range project in the Northern Territory has continued to upgrade the area. The program included detailed ground gravity over the ABN21 anomaly followed by a limited diamond drilling program to obtain geological samples of the pipe.

Twenty-five FALCON® targets within the vicinity of ABN21 were followed up with geochemistry and loam sampling.

Ground Gravity Survey

Results from the detailed ground gravity over the ABN21 FALCON® target are shown in Figure 1 and indicate potential for a kimberlite pipe of between 1.5 and 3 hectares. The gravity survey also highlights a smaller, separate lobe immediately to the southwest of the main anomaly, the significance of which will be further evaluated.

The results of this work further confirm the potential of the other FALCON® targets in the area that will be drilled later this field season.

Diamond Drilling

Five diamond drill holes were completed on ABN21 to test the geological nature of the kimberlite pipe during May. Details of the holes are summarised in Table 1 below. Their locations are shown in Figure 1 which also indicates the locations of RC drill holes from the 2004 program. The results of ARC001 and ARC003, previously announced, returned a total of 147 microdiamonds and two small macrodiamonds.

ABN 72 009 178 689

Level 7 Exchange fower 530 Litfle Collins Street Melbourse Victoria 3000 GPO Box 4690 Melbourne Victoria 3001 Tel: +61 3 9909 7655 Fax +61 3 9909 7585 arainfo@arav#vdiamonds.com.au www.aravitydiamonds.com.au

Table 1

The kimberlite body is covered with 5-9 metres of Recent ferruginous gravels and Cretaceous sediments. It intrudes flat-lying, interbedded sandstone and shale. Kimberlitic lithologies recovered in the drill core, an example of which is shown in Figure 2, are indicative of diatreme facies.

Core samples recovered from the diamond drilling were of insufficient volume to submit for diamond analysis.

A reverse circulation drilling program to define the exact area of the pipe and to recover sufficiently large sample volumes for diamond analysis is in progress. The first analytical results from this program should be available in mid August.

Regional Sampling and Target Drilling

Twenty-five FALCON® targets within a 10 kilometre radius of ABN21 were sampled by geochemical and heavy mineral loam sampling techniques. Results from this program are expected shortly and will help to guide a reconnaissance reverse circulation drilling campaign to commence after the completion of the ABN21 program.

The program is being carried out under the terms of an Exploration Agreement with Rio Tinto Exploration Limited.

For further details please contact:

Phil Harman or Elisa Bartlett Tel: (03) 9909 7655 E-mail: [email protected] or [email protected] or visit our Website at: www.gravitydiamonds.com.au

Figure 1: Ground gravity showing drill holes

Figure 2: Example of kimberlite core from ADD01a