De Beers Has Started Work On a Detailed Cost Estimate of a Pre-Feasibility Study of Camphor Ventures' Kennady Lake Diamond Deposits

CAMPHOR VENTURES INC.

Thursday, July 31, 2003
(No.03-07-09)
Contact:   
Investor Relations
Phone (604) 684-2181
info@camphor.com

De Beers Has Started Work On a Detailed Cost Estimate of a Pre-Feasibility Study of Camphor Ventures' Kennady Lake Diamond Deposits

Vancouver, British Columbia (PRWEB) July 31, 2003 -- Camphor Ventures Inc. (TSX.V: CFV) (the "Company") is pleased to announce that it has been notified by its joint venture partners, Mountain Province Diamonds Inc. and De Beers Canada Exploration Inc. (De Beers Canada), a wholly-owned subsidiary of De Beers Consolidated Mines Limited (De Beers), that De Beers has started work on a detailed cost estimate of a pre-feasibility study of the joint venture's Kennady Lake diamond deposits. The cost estimate will be presented to the De Beers Board in November 2003 and if approval is given, a pre-feasibility study will start in early 2004.

This decision to start the cost estimate was based on the improving geo-political and economic conditions, which support confidence in longer-term diamond price projections. The project is located in the Northwest Territories of Canada on the joint venture's AK leased claims. The deposits are located in Kennady Lake but the project has been re-named the Gahcho Kue project, using the Aboriginal designation for the area.

The Company reported the results of the updated desktop study on April 15, 2003. At that time De Beers decided to postpone the pre-feasibility decision because the internal rate of return (IRR) was below the agreed upon hurdle rate needed to advance the project to the next phase, combined with the then geo-political and economic uncertainties. At that time De Beers stated it would regularly review the project economics.

In a letter to Mountain Province Diamonds Inc., Mr. Richard Molyneux, President & CEO of De Beers Canada Mining Inc., states:

"Over the past few weeks, we have carried out a further review of the project, taking into consideration a number of important factors. These factors include:
   
1.The ending of the war in Iraq, and the relative improvement in confidence, which has emerged subsequent to this.

2.The ending of the SARS epidemic, particularly in the Far East and the amelioration of concern in terms of its negative impact on the diamond industry.

3.The lessening of our concerns in recent months about the US and global economies.

4.De Beers has further improved its financial position with continued good sales over the first half of 2003.

5.The normal uncertainties associated with long-term projections of diamond prices have been exacerbated in recent months by the Iraq war, SARS and lack of confidence in the USA and global economy. The improvements in these areas have given De Beers increased confidence in the longer-term position and supported projections that diamond prices will continue to rise.

In light of these factors and following reassessment of the project financial models, the De Beers Canada project team has therefore made the recommendation to the board of De Beers, at the Board meeting held in Luxembourg on July 23, that a full pre-feasibility study should be undertaken in 2004 and first half of 2005. The Board of De Beers was sufficiently encouraged by the information presented to them, to have requested that a detailed estimate be prepared of the cost of the pre-feasibility study. Work on this detailed estimate has already been initiated, and this will be presented to the Board in November 2003.

If approval is given in November, we will proceed with this work early in 2004. This will cover a wide range of activities including geo-technical drilling, engineering design and environmental studies."

The Company is very pleased with this decision by De Beers to proceed with the feasibility cost estimate at this time and looks forward to the pre-feasibility study starting in early 2004.

The AK claims, located in the Northwest Territories of Canada are now held 4.9% by Camphor Ventures Inc., 44.1% by Mountain Province Diamonds Inc., and 51% by De Beers Canada Exploration Inc. As reported in its news release on March 7th, 1997, Camphor Ventures Inc. and its partner entered into a joint agreement with De Beers Canada Exploration Inc., formerly known as Monopros Ltd. (a wholly owned subsidiary of De Beers Consolidated Mines Limited), under which De Beers Canada Exploration Inc. has the right to earn up to a 60% interest in the AK property by taking the project to commercial production.

On behalf of the Board of Directors
CAMPHOR VENTURES INC.

"Hari B. Varshney"

Hari B. Varshney
Director

This release may contain forward-looking statements regarding the Company's business or financial condition. Actual results could differ materially from those described in this news release as a result of factors, including, but not limited to the following: additional drilling, sampling and diamond valuations, engineering and construction timetables, financial arrangements, developments in world diamond markets, political developments in Canada, the timing of regulatory and environmental approval and other factors. With respect to additional exploration, actual events may differ from current expectations of the Company or its joint-venture partners and other factors.