News Release

Vancouver – The British Columbia Securities Commission has reached a settlement agreement with a former director and officer of a TSX Venture Exchange-listed mining company over misleading statements the company made to investors.

Donald Nicholson -- a one-time consultant, director, president, chief operating and chief financial officer of China Diamond Corp. (formerly Pan Asia Mining Corp.) – has agreed to pay $15,000 to the BCSC and to comply with the Securities Act after he admitted that he allowed the company to issue an annual information form (AIF) that contained misleading information. Some of the misleading information included forecasts of production from the company’s diamond operations, forecast of average selling value for rough diamonds from its mine, as well as forecasts of gross profits and projected rates of return.

The AIF was partly based on information contained in a report by P.H. Cowdery, who was a director and officer of China Diamond when he prepared the report in March 1999. The report contained statements that were not substantiated and were contradicted by independent reports. As part of his duties as a director of the company, Nicholson reviewed the misleading AIF and admitted he was aware of the statements.

Nicholson is no longer involved with China Diamond.

The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website www.bcsc.bc.ca by typing in the search box, Donald Nicholson or 2005 BCSECCOM 108. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.