26 January 2010

The following amendment has been made to the AGM Statement released today at 13:00 under RNS no 1431g.

In bullet point 4, the figures should be $63 million and $14,50 a tonne as opposed to £63 million and £14.50 a tonne. 

All other details remain unchanged. The full amended text is shown below.

Highlights of Chairman's Statement at AGM

London, Tuesday, 26th January 2010

• The position of African Diamonds has greatly improved in recent months. The uncertainty over the AK6mine development is gone. It will be developed beginning this year and coming on stream in the last half of next year.

• Our new partner, Lucara, part of the $10 billion Lundin Group, shares our belief in a rapid development of the Orapa discovery. 

• The mine at full production will produce 1 million carats of high quality diamonds, including the rare Type II diamonds.  

• Capital cost of phase 1 is estimated at $63 million, with operating costs of $14.50 a tonne. All figures are currently being updated. 

• By mid April, we intend to increase our equity stake in AK6 to 40%, by taking up our option with Lucara. This will cost £5 million. 

• Under the terms of our agreement with Lucara, we can market our percentage of the AK6 diamonds. This is an attractive option for us. The full parcel of AK6 diamonds has been collated and delivered to Geneva, where they are being valued. The world market for diamonds has greatly improved in recent months. Substantial price rises have been recorded and shortages have appeared. This augurs well for the valuation. We anticipate values in excess of the $139 a carat used in our 2009 studies. 

• We are examining options, other than equity, to finance the increased stake and our expected equity contribution to phase 1 mine development.

• All resolutions put to the meeting were duly passed.

Further information:

African Diamonds Plc 

www.afdiamonds.com