Release: BDI Mining: Cempaka diamond mine resources increase

LONDON - 26 October 2005 - BDI Mining Corp. (AIM:BMG) announces that an independent reserve and resource assessment of the Danau Seran and Cempaka Palaeochannels within the original Contract of Work area has resulted in a 91% increase in global resources to 1,412,950 carats.

The reserve and resource assessment was undertaken by Dr Richard Garnett, an internationally renowned placer consultant, in accordance with Canadian National Instrument 43-101.

The resource assessment incorporates 16,661 metres of drilling completed by BDI Mining since 2002 within Danau Seran, where current mining operations are located, and the nearby Cempaka Palaeochannel.

According to Dr Garnett:
? Danau Seran Main Channel contains a Probable Mineral Reserve of 163,000 cubic metres grading 0.15 carats per cubic metre, containing 24,500 carats, and an Indicated Mineral Resource of 280,000 cubic metres @ 0.15 carats per cubic metre, containing 42,000 carats.
? Cempaka Channel contains an Inferred Mineral Resource of 13,465,000 cubic metres grading 0.1 carats per cubic metre, containing 1,346,500 carats.

The area in Danau Seran covered by both the Probable Mineral Reserve and Indicated Mineral Resource categories are currently being mined.

The Cempaka Resource was calculated to the western boundary of the original Contract of Work area, covering approximately 6 linear kilometres of Palaeochannel. The Company recently expanded the Contract of Work boundary a further 7.8 kilometres to the west.

This Cempaka Resource statement represents a near-doubling of the Company's internal resource assessment prepared in 2002, and has the potential to support mining operations for more than 14 years at a planned Phase 2 production rate of +100,000 carats per annum.

Currently, four Bangka drill rigs are operating in the Cempaka Palaeochannel to further define the resource ahead of Phase 2 mining of Cempaka. A further two drill rigs will be mobilised in the next month.

BDI's Managing Director and CEO, Mr Lee K. Spencer, said: "Dr Garnett's report confirms management's belief that the Cempaka project contains sufficient resources to sustain a long-life mining operation. Our focus now is on optimising this resource while diamond prices are high." (end of release)