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Dia Bras Reports Second Quarter Results for 2008

10:48 EDT Friday, August 29, 2008

MONTREAL, QUEBEC--(Marketwire - Aug. 29, 2008) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) is pleased to report results for the six month period ended June 30, 2008. The full version of the management's discussion and analysis and the unaudited financial statements can be viewed on the Company's web site at www.diabras.com or on SEDAR at www.sedar.com.

SECOND QUARTER 2008 HIGHLIGHTS

- During the second quarter of 2008, production of zinc increased 40% and production of copper decreased 30% compared with the first quarter of 2008. Both productions have an overall increase of 103% and 91.5% respectively over the same period in 2007 due to higher zinc and copper grades and higher tonnage processed.

- Decrease of 14.5% of operating cash costs per dry metric tonne during the second quarter over 2007 and a 16.1% decrease over the cumulative six-month period for Bolivar pilot-mining activities.

- Sales of approximately $13.2 million at Bolivar Mine from pilot mining increased 24% compared with $10.6 million in the corresponding period of 2007. For the three-month period ended June 30, 2008, sales amounted $6.59 million, consistent with $6.63 million in the first quarter of 2008.

- Reduction of zinc market price of 42% compared to the same period in 2007 and 13% compared to the first quarter of 2008 has been an important factor that affected the Company's sales, cash flow and financial situation.

- The Company's exploration program at Bolivar continues to generate excellent results.

Daniel Tellechea, President and CEO states, "Company overall performance in the first half of 2008 was positive. The exploration programs generate encouraging results from both Bolivar and Cusi properties. The Company achieved record production of copper and zinc concentrates from its pilot-mining activities at Bolivar. Despite cost pressures, such as increased diesel prices, we were able to reduce our operating cash costs for the first half of 2008 by 16% compared with 2007.

"We continue to focus our efforts to initiate a feasibility study at Bolivar. Currently, most of the definition drilling has been completed, and the Company expects to issue a measured and indicated resource calculation at the end of the third quarter, which will be the foundation of the study."

"Following the termination of the first phase of the exploration process, the Company has reduced its drilling expenditures and will now focus on mine geology development to improve its pilot-mining activities. Efforts are deployed in order to reduce costs in different areas in order to help increase cash levels over the remainder of 2008."

RESULTS OF OPERATIONS AND WORKING CAPITAL- SECOND QUARTER 2008 VS 2007

During the three-month period ended June 30, 2008, the Company realized a loss of $ 1,814,001 ($0.02 per share) (cumulative loss of $1,033,991 ($0.01 per share) compared with a loss of $2,196,390 ($0.02 per share) in 2007 and cumulative loss of $3,619,621 ($0.03 per share) for the six-month period ended June 30, 2007). Included in this quarter loss is the write-off of $751,084 related to the abandonment of the San Jose project.

As at June 30, 2008, the Company's working capital amounted to $726,257, including $2,401,584 in cash and cash equivalents, compared with $6,137,120 as at December 31, 2007, including $6,700,016 in cash and cash equivalents.

Since the beginning of 2008, capital expenditures have been maintained at a minimal level. Capital expenditures in the second quarter of 2008 amounted to $0.16 million (cumulative amount of $0.5 million) and consisted of machinery and equipment at the project mill site, compared with capital expenditures for the same period in 2007 of $2.3 million (cumulative amount of $5.1 million) and $2.3 million (cumulative amount of $5.0 million) in machinery and equipment. Other mining asset expenses, including property payments, amounted to $6.3 million in the second quarter (cumulative amount of $14.6 million) compared with $17.1 million in the same period of 2007.

In July 2008 the Company entered into an advance credit facility with MRI trading for an amount of US$2,000,000 to be used for working capital purposes. Capital expenditures will be kept at minimum while exploration will be focused around the Bolivar pilot-mining area.

PILOT MINING RESULTS

The pilot-mining program at Bolivar Mine generated sales of $6.7 million during the second quarter for cumulative sales of $13.3 million for the first six-months of 2008, compared with $5.0 million and cumulative sales of $10.7 million in 2007. Funds were used for working capital and local operations in Mexico and for the settlement of final negative billings (refer to news release of August 1, 2008).

In April 2008, the Company began processing Cusi material at its Malpaso mill facility and processed 1,730 tonnes of material averaging 3.12% Pb, 116 g/t Ag and 2.2% Zn producing 61 DMT of lead-silver concentrate and 47 DMT of zinc concentrate which were sold to MRI Trading for an amount of approximately $133,000. The recovery rate was of 64.56% for lead, 60.54% for silver and 61.90% for zinc (refer to news release of August 1, 2008).

Since the beginning of 2008, capital expenditures have been maintained at a minimal level. Capital expenditures in the second quarter of 2008 amounted to $0.16 million (cumulative amount of $0.5 million) and consisted of machinery and equipment at the project mill site, compared with capital expenditures for the same period in 2007 of $2.3 million (cumulative amount of $5.1 million) and $2.3 million (cumulative amount of $5.0 million) in machinery and equipment. Other mining asset expenses, including property payments, amounted to $6.3 million in the second quarter (cumulative amount of $14.6 million as at June 30, 2008) compared with $8.4 million ($17.1 million) in the same respective period of 2007.

OTHERS

Currently, the Company has the necessary equipment to complete its 2008 exploration program along with the expected mining and development activities on both the Bolivar and Cusi projects. Other capital expenditures in 2008 will be limited to plant optimization, environmental capital expenditure investment at Malpaso and the purchase of the Malpaso land for a total expenditure of approximately $1.0 million.

Property payments in the second quarter amounted to approximately $516,893 ($86,607 in 2007), including $501,627 for the Cusi Minera property and $15,266 for the Santa Rita property.

The Company also reports, that following the first phase of exploration, management decided to abandon the option on the Enganosa Property, located in the State of Jalisco. Therefore it will not proceed with the August expected payment.

The Board has granted effective August 28, 2008 a total of 50,000 options to an officer of the Company. These options are exercisable at a price of $0.30 until August 28, 2013 and will be entirely vested over a two year period.

About Dia Bras

Dia Bras is a Canadian mining and exploration company focused on precious and base metals in Mexico. The Company is committed to developing and adding value to its assets - the Bolivar copper-zinc project, the Cusi silver mining camp in the renowned Sierra Madre mining district of northern Mexico and. The Company trades on the TSX Venture Exchange under the symbol "DIB".

Forward-looking statements:

Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Dia Bras Exploration
Daniel Tellechea
President & CEO
514-393-8875 ext. 241

Dia Bras Exploration
Nathalie Dion
Investor Relations
514-393-8875 ext. 241

www.diabras.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.