Diagem Inc. reports that Brasilia is reviewing the lifting of the Chapadao embargo and it can be lifted in a few weeks.

The invalidity of the embargo and related fines have been fully documented and demonstrated by Diagem. The administrative and legal process can be a lengthy one in Brazil but the IBAMA President, Mr Roberto Messias has promised to rectify any prejudice caused to the Company by processing the case in Brasilia in a swift fashion.

CEO of Diagem, Denis Francoeur comments:

"The defence prepared by our Brazilian legal counsel is based on independent engineering reports documenting the invalidity of the embargo. The documented facts have further been reviewed by an independent environmental firm from Curitiba, Brazil. The presentation of the facts has also lead to the Company receiving political support from the Brazilian Senate. This further strengthens the validity of Diagem's claims and chance for a resolution to the issue. The president of IBAMA recognised these facts and has promised to accelerate a decision through an internal review in Brasilia, aimed at confirming the facts presented by Diagem and quickly rectifying the situation."

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