Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX:VAA) reports that, for
the year ended December 31, 2010, it has recorded a net loss of $8,102,000 or
$0.12 per share compared to a net loss of $35,369,000 or $0.74 per share in
2009.


Vaaldiam ended the year with a strong cash position of $8.3 million and working
capital of $7.6 million. Vaaldiam also holds 10.6 million shares in Flemish Gold
Corp. ('Flemish'), which is focused on gold exploration in sub-Saharan Africa,
marketable securities valued presently at approximately $2.3 million and
royalties on two major exploration and development projects.


Company Highlights

Brauna Bulk Sampling

A National Instrument 43-101 ("NI 43-101") report, completed at the end of
December 2010, provided estimates of Indicated Resources at Brauna 3 to a depth
of approximately 40 metres of 0.63 million tonnes at a grade of 24.58 carats per
hundred tonnes ("cpht") in the south lobe and 0.67 million tonnes at a grade of
4.72 cpht in the north lobe of the kimberlite. Inferred Resources to a depth of
approximately 200 metres are estimated to contain 3.75 million tonnes at a grade
of 24.58 cpht in the south lobe and 1.04 million tonnes at a grade of 4.72 cpht
in the north lobe. The diamonds from the north and south lobes were valued at
US$98 per carat ("ct") and US$339 per ct, respectively, using the average
estimated sales price of two independent diamond valuations. A Preliminary
Economic Assessment was commissioned at the end of December 2010 and the results
are expected to be completed by April 30, 2011.


On March 4, 2011, Vaaldiam entered into an arrangement with the joint venture
partners of the Brauna project to restructure the existing arrangement and to
increase the ownership interest of the Company in the Brauna project from 20% to
51% by paying a transaction consideration of US$6.5 million to the existing
partners and financing the project development cost to production. Vaaldiam is
the operator for the project and will advance the project by additional
exploration work in 2011, with a full feasibility study expected to follow.


Duas Barras Mine

Pre-production at the Duas Barras mine commenced in the third quarter of 2010,
focusing on pre-stripping and plant commissioning. During 2010, 56,179 bank
cubic metres ("bcm") of new gravel was mined and blended with 38,243 bcm of
stockpiled gravel for a total run-of-mill feed of 78,475 bcm of gravel and a
gravel stockpile as at December 31, 2010 of 15,947 bcm. A total of 8,804 carats
("cts") of diamonds were recovered during 2010 at an average grade of 0.11 cts
per bcm (8,161 cts in the 4th quarter at an average grade of 0.15 cts per bcm)
versus an average resource grade of 0.16 cts per bcm. In addition, 4,696 g or
150 troy ounces of gold were produced during 2010, at an average grade of 0.05 g
per bcm versus an average resource grade of 0.18 g per bcm. With the higher than
expected level of stripping and operating costs, and the lower than expected
grades of diamond and gold experienced in the pre-production period, the Company
reviewed the Duas Barras project for impairment and recorded a $4.7 million
impairment loss at December 31, 2010. Management continues to monitor Duas
Barras closely and will consider and evaluate any necessary action required to
improve the diamond and gold grades.


Other transactions

On July 30, 2010, the Company closed the sale to Base Resources Limited
(ASX:BSE) ("BRL", previously Base Iron Limited) whereby BRL would acquire the
Kwale Mineral Sands Project ('Kwale'), all the intellectual property associated
with Vaaldiam's mineral sands projects in Africa and an option to acquire 100%
of Tiomin Kenya Limited ('TKL') for US$3 million in cash on closing and a cash
royalty of 1.5% of all product revenue from Kwale.


In the first quarter of 2010, Vaaldiam sold its 49% contributing equity interest
in the Pukaqaqa copper-gold project in Peru to Compania Minera Milpo S.A.A.
("Milpo") for US$7 million in cash. Vaaldiam will also receive US$4 million if
the project begins commercial production, a second payment of US$4 million one
year later and a variable Net Smelter Return royalty ("NSR"). The NSR is 1% on
all mineral production if the quarterly LME copper price averages US$3/lb or
less and 2% above US$3/lb.


Vaaldiam continues to pursue its strategy of using cash flow from disposing of
non-core assets to sustain itself and to advance its high-potential hard rock
diamond and gold properties in Brazil. It is well-positioned to exploit the
strengthening market for rough diamonds.




Selected Financial Information                                              
(Expressed in thousands of Canadian dollars, except share capital amounts): 
                                                                            
                                       December 31, 2010   December 31, 2009
----------------------------------------------------------------------------
Net loss for the year                              8,102              35,369
Loss per share                                      0.12                0.74
Total assets                                      25,452              22,719
Working capital                                    7,619              17,736
Mineral properties                                 4,691                   -
Share Capital:                                                              
  Common shares (000s)                            71,627              48,226
  Warrants (000s)                                  6,094              10,329
  Options (000s)                                   4,807               4,245
----------------------------------------------------------------------------



Cash Flow and Liquidity

As at December 31, 2010, Vaaldiam had working capital of $7.6 million, compared
with $17.7 million at December 31, 2009. For the year ended December 31, 2010,
Vaaldiam generated cash of $7.1 million, which included proceeds of $7.3 million
from the sale of the Company's interest in Pukaqaqa project in Peru, proceeds of
$3.1 million on the sale of the Kwale project and proceeds of $10.0 million on
the maturity of a short-term investment. This was offset by cash used in
operating activities of $9.6 million, plant and equipment additions of $0.7
million, deferred pre-production costs of $1.4 million and $0.7 million for the
acquisition of Vaaldiam Resources Ltd.


The information above should be reviewed in conjunction with the Company's
consolidated financial statements and management discussion and analysis for the
year ended December 31, 2010 that will be available shortly on www.sedar.com and
www.vaaldiam.com.


Certain of the information contained in this news release constitutes
'forward-looking statements' within the meaning of securities laws. Such
forward-looking statements, including but not limited to those with respect to
the prices of metals and minerals, purchase payments, royalty payments,
estimated future production and estimated costs of future production involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different from any
forecast results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the actual
prices of metals and minerals, the actual results of current exploration,
development and mining activities, changes in project parameters as plans
continue to be evaluated, as well as those factors disclosed in the documents of
the Company filed from time to time with the Ontario Securities Commission.