BRL Bearclaw Capital Corp

Vaaldiam Mining Inc. ('Vaaldiam' or the 'Company') (TSX:VAA) reports that, for
the three and six months ended June 30, 2011, it has recorded a net loss of
$855,000 and $8,496,000 or $0.01 and $0.12 per share compared to net income of
$711,000 and a net loss of $1,435,000 or net income per share of $0.01 and net
loss per share of $0.02 for the same period in 2010.


Vaaldiam ended the period with a cash position of $4.2 million and a working
capital deficit of $1.8 million, reflecting an amount of US$5.3 million due on
the Brauna transaction discussed below. 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 at approximately $1.7 million
and royalties on two major exploration and development projects. Vaaldiam holds
51% of the Brauna diamond project in Bahia, Brazil as well as two diamond mines,
Duas Barras in Minas Gerais, Brazil and Chapada in Mato Grosso, Brazil, both of
which are on care and maintenance, as well as 100% interest in the gold deposit
at Brauna and other kimberlite projects.


Company Highlights

Brauna Project

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 over 15 months to
the existing partners and financing the project development cost to production.
Vaaldiam is the operator for the project. See press release of March 4, 2011.


On April 7, 2011, Vaaldiam issued a National Instrument 43-101 ("NI 43-101")
compliant Preliminary Assessment Report ("PA Report") which presented two net
present valuations ("NPV") at a 10% discount rate and an independent diamond
value of US$338 per carat ("ct"): a base case pre-tax NPV of US$33.6 million and
internal rate of return ("IRR") of 42%, using the NI 43-101 mineral resource
estimate of diamond grade of 16.8 cts per 100 tonnes ("cpht") by Coffey Mining,
and the second scenario of pre-tax NPV of US$101.0 million and IRR of 107% using
the NI 43-101 mineral resource estimate of diamond grade of 24.58 cpht presented
by A.C.A. Howe International in December 2010.


Under the terms of the March 4, 2011 agreement, US$1.5 million would become due
to the partners on August 4, 2011. As reported last week (see press release of
August 4, 2011), the Company did not make this payment on time and is in
discussions with its partners to work out a mutually acceptable arrangement for
addressing this payment.


Duas Barras Mine

With the escalating fuel costs and other operating costs, and the lower than
expected grades at Duas Barras, Vaaldiam suspended operations at Duas Barras in
April. Vaaldiam had reviewed the carrying value of Duas Barras mine for asset
impairment at the end of the quarter and recorded an asset impairment loss of
$6.1 million for the quarter ended March 31, 2011, representing the full
carrying value of the mine and plant and equipment as at March 31, 2011. The
mine was placed on care and maintenance and the remaining inventory of diamonds
and gold sold in the quarter ended June 30, 2011.


Royalty Interests and Investments

The Company owns a 1.5 % gross sales royalty from the Kwale mineral sands
project (the "Kwale" project) in Kenya. The Kwale project is presently owned by
Base Resources Ltd. ("BRL") (ASX:BSE). BRL recently announced that it has
received confirmation of formal credit approval of a US$170 million syndicated
project finance facility. It further announced that it is undertaking an equity
financing of A$170 million, consisting of an A$140 million confirmed placement
that was significantly over-subscribed as well as A$30 million rights issue.
Material licences and permits are now in place, and both debt and equity
financing are expected to be completed by the end of the third quarter 2011 and
production is expected to commence mid-2013. BRL's Enhanced Definitive
Feasibility Study ("EDFS") for the project forecasts total revenues in excess of
US$2 billion with more than half of the total revenue occurring in the first
five years of the 13 year life.




Selected Financial Information                                              
(Expressed in thousands of Canadian dollars, except share capital amounts): 
                                                                            
                                              June 30, 2011   June 30, 2010 
----------------------------------------------------------------------------
Net loss (income) for the quarter                       855            (711)
Loss per share                                         0.01           (0.01)
                                                                            
Total assets                                         31,970          32,918 
Working capital (deficit)                            (1,811)          7,820 
Mineral properties                                   15,874          12,471 
Share Capital:                                                              
  Common shares (000s)                               71,633          71,388 
  Warrants (000s)                                     6,094           9,844 
  Options (000s)                                      4,997           4,607 
----------------------------------------------------------------------------



Cash Flow and Liquidity

As at June 30, 2011, Vaaldiam had a working capital deficit of $1.8 million,
compared with $7.8 million at June 30, 2010. The working capital deficit at June
30, 2011 includes the US$5.3 million due on Brauna transaction. For the six
months ended June 30, 2011, Vaaldiam used cash of $4.1 million, which included
cash used in operations of $3.2 million, expenditures on plant and equipment and
mine development of $0.3 million and a payment of $0.9 million to the joint
venture partners with respect to the Brauna transaction, offset by proceeds on
disposal of investments and equipment of $0.3 million.


In the second quarter of 2011, global events such as the earthquake in Japan,
the European debt crisis, slowing growth in the United States and China, and
increasing uncertainty about downgrades to the United States debt rating, all
contributed to increased investor risk aversion.


Vaaldiam CEO Robert Jackson said, "The junior resource sector is characterized
by periods of extreme variability in terms of capital availability and the key
success factor for junior companies in periods such as this is to reduce costs
and survive until capital is available again. Vaaldiam is currently pursuing
this strategy."


International Financial Reporting Standards ("IFRS")

The Company adopted IFRS on January 1, 2011, with a transition date of January
1, 2010. Under IFRS 1 First-time Adoption of IFRS, the IFRS are applied
retrospectively at the transition date of January 1, 2010. The effect of the
transition from Canadian Generally Accepted Accounting Principles ("Canadian
GAAP") to IFRS is not material and the explanation of how the transition from
Canadian GAAP to IFRS has affected Vaaldiam's financial position, financial
performance and cash flows are set out in the financial statements.


The information above should be reviewed in conjunction with the Company's
consolidated financial statements, which were prepared in accordance with
Canadian GAAP, and management discussion and analysis for the year ended
December 31, 2010, along with the condensed consolidated financial statements
for the three months ended March 31, 2011, which were prepared in accordance
with IFRS, all of which are available on www.sedar.com and www.vaaldiam.com.


This release has been reviewed by Katya Masun P.Geo., who is a qualified person
under National Instrument 43-101.


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.

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