London Office:

3rd Floor, Peek House

20 Eastcheap,

London, EC3M 1EB

England

T: +44 (0) 20 7621 0200

F: +44 (0) 20 7621 0300

WOODLARK EXPLORATION DRILLING &

NEW INDONESIAN DIAMOND TENEMENT APPLICATION

Highlights:

  • Gold mineralisation intersected in exploration drill holes under old colonial workings 1.5 kilometers north-east of the Kulumadau resource.
  • A tenement application lodged covering 29,000ha of potential diamond bearing palaeochannel gravels 3km north of the Company’s Cempaka diamond mine.

LONDON – 26 January 2006 – BDI Mining Corp. (AIM-BMG) reports that initial drilling at the Great Northern prospect on Woodlark Island, Papua New Guinea, has intersected gold mineralisation.

Diamond drill hole BKD27 was drilled under old colonial workings at the Great Northern prospect, 1.5km north-east from the Kulumadau resource, and returned an intersection grading 6 metres @ 4.34g/t Au from 41 meters to 47 metres downhole.

The mineralisation at Great Northern is part of the Kulumadau Trend, and lies on the northern-most periphery of a large induced polarisationresistivity anomaly. This anomaly is interpreted to represent an extensive, hydrothermally-altered intrusive breccia or diatreme around which, it is theorised, gold mineralisation may lie. The drilling program for 2006 will incorporate drilling designed to test this theory.

Reconnaissance reverse circulation (RC) drill holes within a 200 metre radius of BKD27 also returned gold mineralisation. BKR17 returned 1 metre @ 23.73g/t Au from 128 metres to 129 metres downhole, and 3 metres @ 2.13g/t Au from 139 metres to 142 metres downhole. BKR11 returned 7 metres @ 1.23g/t Au from 141 metres to 148 metres, BKR6 returned 4 metres @ 2.36g/t Au from 39 metres to 43 metres downhole, and BKR10 returned 4 metres @ 1.41g/t Au from 73 metres to 77 metres downhole. Management considers these results to be sufficiently encouraging to warrant further follow-up drilling, with the aim of testing the potential of the Great Northern area to add additional ounces to the Company’s WoodlarkIsland resource base.

BDI Mining also announces the lodging of an exploration application covering 29,000ha in the Martapura region of SE Kalimantan, Indonesia, 3km north of BDI Mining’s operating Cempaka diamond mine. The tenement covers an interpreted diamondiferous palaeochannel, similar in both geological setting and dimensions, to the Cempaka Palaeochannel immediately to the south. This prospect is believed to consist of alluvium derived from the same hard rock source that contributed to the Cempaka diamond deposit which BDI Mining is now successfully mining.

In accordance with Indonesian regulations, BDI Mining Corp will hold a 90% interest in the area, with 10% held by local company PT Indomineratama. Both companiesare also joint venture partners on the on the potential source of the alluvial diamond deposits, the Bobaris Block project.

For further information, please contact:

BDI Mining Corp.
Chuck Forrest, Finance Director / Tel: +44 (0) 20 7621 0200
Website /
Williams de Broë (Nominated Advisor/AIM Broker)
Simon Edwards/Alex Wood / Tel: +44 (0) 20 7588 7511
Parkgreen Communications
Justine Howarth / Ana Ribeiro / Tel: +44 (0) 20 7493 3713

BDI Mining Corp’s exploration is supervised by the Company’s Managing Director and CEO, Mr Lee K. Spencer, MSc, MAusIMM, a Competent Person as defined by Clause 10 of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code - 2004 Edition). Mr Spencer is responsible for the preparation of technical information in the company’s News Releases.

All core is logged and sawn under the supervision of BDI Mining’s project geologists. All sample preparation was undertaken at Alotau by Intertek Caleb Brett (ICB) in their own sample preparation laboratory. ICB sealed and packed the samples which were then flown by charter flight to Port Moresby and then by DHL courier to ICB’s assay laboratory in Jakarta. All assays were by fire assay with no top cuts applied, within a mineralized envelope defined at 0.5g/t Au.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company’s periodic filings with securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.