Can't say I'm encouraged by anything mentioned in this.

Debuts Diamonds Inc.
Management Discussion and Analysis October 31, 2009

This management discussion and analysis (the “MD&A”) has been prepared by management and should be read in conjunction with the financial statements of Debuts Diamonds Inc. (“Debuts” or the “Company”) for the six months ended October 31, 2009 which are attached to this MD&A. This MD&A represents the view of management on current activities and past and current financial results of Debuts, as well as an outlook at the activities of the coming months.

1. Date: This MD&A is dated December 24, 2009 and is prepared for the shareholders of Debuts. On October 31, 2009 Debuts had three shareholders including KWG Resources Inc., “KWG – TSX-V”, which owned 30,393,600 Debuts common shares (96.8 per cent) and 10,520,000 Debuts warrants.

2. Forward Looking Statements: This MD&A may contain forward-looking statements that are based on Debut’s expectations, estimates and projections regarding its business, the mining industry in general and the economic environment in which it operates as of the date of the MD&A. These statements are reasonable but involve a number of risks and uncertainties, and there can be no assurance that they will prove to be accurate. Therefore, actual outcome and results may differ materially from those expressed in or implied by these forward-looking statements.

3. Debuts is an Exploration Stage Company: Debuts holds interests in six diamond claim groups in northern Ontario. The diamond group claims include the MacFadyen Kimberlites, and the adjoining Pele and Uniform Surround claims adjoining the DeBeers’ Victor Mine; the Wawa, Kyle and Diagnos Initiative Joint Venture claims are located elsewhere in northern Ontario. None of the properties in which Debuts currently holds an interest contain a known body of commercial ore or diamonds.

4. Recent Developments and Outlook: Debuts is currently inactive; Debuts has maintained its property positions despite the relative inactivity in exploration. There are no significant, recent developments since the last Debuts MD&A dated September 16, 2009. Debuts has sufficient asssessment credit to maintain its present mineral claims for another two years. In anticipation that the outlook for diamond exploration should improve during the next two years Debuts is disposing of non-diamond assets. On October 31, 2009, debuts distributed 3,452,212 Strike minerals common shares to its shareholders as a return of Capital. 3,452,212 Strike minerals common shares had a market value of about $120,000.

5. Liquidity and capital resources: The Company has no operating revenues and relies on equity financings to fund its exploration and administrative costs. During the last two years this financing has come from KWG, the major shareholder of Debuts.
The Company’s operations consist of the exploration and evaluation of its various properties, a process that is ongoing, and is dependent on many factors some of which are beyond the Company’s control. The Company maintains a policy of reviewing its working capital requirements on a continuous basis and is mindful of its property and administrative commitments. Each of Debuts’ projects has demonstrated sufficient evidence of geological merit to warrant retention and/or additional exploration.
At October 31, 2009, cash balances were $1,616 compared with $42,828 at April 30, 2009. These decreases are detailed in the Company’s statement of Cash Flows. Additional funding is required for the Company to continue operations. Management believes that it has the ability to raise sufficient funds for the continuation of operations and while management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be able to obtain the required financing.

6. Results from Operations: During the six months ended October 31, 2009, the Company recorded an operating loss of $77,202 compared to $119,131 for the six months ended October 31, 2008.

7. Share Capital and Principal Shareholder: As at December 24, 2009 Debuts had 31,393,600 common shares and 10,520,000 common share purchase warrants outstanding. Each warrant entitles the holder to purchase one common share at $0.10 until January 15, 2013. This MD&A is dated December 10, 2009, and is prepared for the shareholders of Debuts. Debuts has three shareholders including KWG Resources Inc., “KWG – TSX-V”, which owned 30,393,600 Debuts common shares (96.8 per cent) and 10,520,000 Debuts warrants.

8. Directors’ and Officers’ Compensation: During the six months ended October 31, 2009 Debuts paid $27,000 to an officer of the Company as remuneration for services provided.

9. Risks & Uncertainties
Exploration: The Company’s exploration projects are subject to conditions beyond its control that can affect the carrying costs and development costs for varying lengths of time. Such conditions include environmental hazards, unusual or unexpected geological formations or pressures and periodic interruptions due to inclement or hazardous weather conditions. Such risks could result in damage to, or destruction of, mineral properties or facilities, personal injury, environmental damage, delays in exploration programs, monetary losses and possible legal liability. Mineral exploration is highly speculative in nature, involves many risks and frequently is non-productive. There is no assurance that exploration efforts will be successful. Success in establishing reserves is a result of a number of factors, including the quality of management, the Company’s level of geological and technical expertise, the quality of land holdings, the availability of suitable contractors, and other factors. Through high standards and continuous improvement the Company works to reduce these risks and maintains insurance to cover normal business risks.
If mineralization is discovered, it may take several years in the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish proven and probable reserves through drilling, to determine the optimal metallurgical process to extract the metals from the ore and to construct mining and processing facilities. Because of these uncertainties, no assurance can be given that exploration programs will result in the establishment of resources or reserves. Whether a resource deposit will ultimately be commercially viable depends on a number of factors, including the particular attributes of the deposit such as the deposit’s size, financing costs and the prevailing prices for the applicable resource. Also of key importance are government regulations, including those relating to prices, taxes, royalties, land tenure, land use and environmental protection.

Financing: In the absence of cash flow from operations the Company relies on the capital markets to fund operations. Although the Company has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that additional funding will be available, or available under terms favourable to the Company. Failure to obtain such additional finance could result in delay or the indefinite postponement of further exploration and the development of the Company’s properties.
Licenses and Permits, Laws and Regulations: The Company’s exploration activities require permits from various government authorities, and are subject to extensive federal provincial and local laws and regulations governing prospecting, exploration, development, production, exports, taxes, labour standards, occupational health and safety, mine safety and other matters. Such laws and regulations are subject to change, can become stringent and compliance can therefore become more costly. The Company relies on the expertise and commitment of its management team, their advisors, its employees and contractors to ensure compliance with current laws and fosters a climate of open communication and co-operation with regulatory bodies.
The Company believes that it holds all necessary licenses and permits under applicable laws and regulations and believes it is presently complying in all material respects with the terms of such licenses and permits. However, such licenses and permits are subject to change in various circumstances. There can be no guarantee that the Company will be able to maintain or obtain all necessary licenses and permits that may be required to explore and develop its properties, commence construction or operation of mining facilities or to maintain continued operations.
Environmental, Health and Safety: The Company’s activities are subject to extensive federal, provincial and local laws and regulations governing environmental protection and employee health and safety. Environmental legislation is evolving in a manner that is creating stricter standards, where enforcement, fines and penalties for non-compliance are more stringent. Environmental assessments of proposed projects carry a heightened degree of responsibility for companies and directors, officers and employees. The company is also subject to various reclamation-related conditions imposed under federal or provincial rules and permits, and there can be no assurance that they will not change in the future in a manner that could have a material effect on the Company’s financial condition, liquidity or results of operations.

10. Unaudited Financial Statements: Attached are the Debuts Unaudited Financial Statements for the six months ended October 31, 2009.

11. Additional information: For additional information about Debuts see the Debuts non-offering prospectus dated December 17, 2008 which is available on SEDAR (WWW.SEDAR.COM) or contact Bruce Hodgman, Communications Director 416-642-3575, Debuts Diamonds Inc., Suite 1000, 141 Adelaide Street West, Toronto M5H 3L5 or contact Russell Martel, Secretary, 416-550-1825.