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Company Information for African Diamonds Plc

AIM-AFD

www.afdiamonds.com

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AIM; AFD

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Company Statement

African Diamonds plc is incorporated in England. The Company was established to develop diamond mines in Botswana and West Africa. The target is to have a producing mine within three years. Having a balanced portfolio of projects will help reach the objective. The current portfolio of the Company consists of:

JV in Botswana with De Beers to fast track the development of our licences to our goal of large gem stone quality diamond mine;
late stage exploration projects which are known to contain diamonds or diamond indicator minerals; and
early stage high potential concessions, both alluvial and hardrock.

Current Operations

Boteti Joint Venture

Boteti Joint Venture formed 2004. The AK6 discovery was in October 2004
Share 49/51. AFD/ DB changing to 30/70 on completion of the first Bankable Feasibility Study (BFS).
De Beers pay 100 % of all costs until bankable feasibility thereafter each side pays its way.
All diamond production contracted to the Diamond Trading Company (DTC).
Mines with annual revenue of less than $70m will be operated by African Diamonds who will receive 70% of the gross profit. Diamonds still go to the DTC.

Ownership of the joint venture will initially be 49% African Diamonds and 51% De Beers with De Beers funding the joint venture through to bankable feasibility study. De Beers' shareholding will rise to 70% upon completion of the first bankable feasibility study. The size of any mine resulting from the joint venture will decide whether it is managed by De Beers or African Diamonds with larger mines operated by De Beers and those below an agreed threshold operated by African Diamonds, who will receive a preferential profit share in those operations of Newco.

AK6
The AK6 deposit is situated approximately 15km south west of Letlhakane. A world class diamond discovery, African Diamonds' Joint Venture partners in Boteti Exploration Company are De Beers (66.22%) and Wati Ventures (5.4%). African Diamonds holds 28.4%. Once on stream, AK6 will be in the top 5 hard rock diamond mines in the world when measured by Profit/Revenue ratio.

On 10 October 2008, a Mining License was issued for 15 years. Under the terms of this license:

production must commence by April 2011 there will be no government equity in the project
diamonds will be sold to the Diamond Trading Company in Botswana (on the same terms as Debswana)
taxation under the 12th Schedule of the Botswana Income Tax Act, including a variable rate

Production is planned as follows;

Q1 2011 - 2.7mtpa in phase 1 ramping up to 4.2mtpa in phase 2 in 2014

Total capital of the project is US$380 million including contingency and escalation. Operating costs are US$13/ton with expected revenue of greater than US$34/ton.

AK8
AK8 is 100% owned by African Diamonds. Pipe AK8 is now estimated from ground geophysics at around 5 hectares in size. Fifty-four stones weighing a total of 6.33 carats including one 2.26-carat stone, were recovered from the 98 tonnes extracted from four holes in the kimberlite using 12-inch drilling. Two of the four holes were negative and two were positive for macrodiamonds. The negative holes drilled into significant intersections of basalt and basalt breccia, despite the fact that their adjacent pilot holes intersected kimberlite. Of the three positive holes, one sampled 154m of kimberlite, of which 80m was highly diluted (80%) by basalt breccia. One hole which sampled some 151m of consistent kimberlite yielded 4.395 carats from 26.44 tonnes of.sample.

The AK8 recovery comprises 54 stones weighing 6.33 carats. There are some interesting features of the data:

Two samples had nil recoveries
About half the caratage recovered from sample DCD 175 is from one stone (2.26cts)
Generally the sample results vary significantly, the raw sample grade estimates range from 0 to 16cpht.

AK9
AK9 is 100% owned by African Diamonds and is located 10km away from AK6 and 20km away from the Orapa Mine. The local infrastructure is excellent. Development opportunities are currently being explored. There is the potential for AK9 to be a small mine or feeder to AK6

Resource (+1mm):

3 Hectare kimberlite pipe
2.5-3.5cpht
11M tonnes to 250m

Exploration Projects
Botswana remains the 'best diamond address' in the world and African Diamonds (AFD) holds several prospecting permits in Botswana;

Kedia Project
Mmashoro Project - Prospecting Licence

Geographical Spread

Botswana, Sierra Leone and DRC

Board of Directors and Key Management

John Teeling	Executive Chairman
James Campbell	Managing Director
James Finn	Non-Executive Director
David Horgan	Non - Executive Director
Alex van Zyl	Executive Techincal Director

Company Address

162 Clontarf Road
Dublin, Ireland


Telephone:	353 1 8332833
Facsimile:	+353 1 8333505
Email:	info[at]afdiamonds.com
Website:	http://www.afdiamonds.com

Additional Address/Key Contact

Registered Office
20-22 Bedford Row,
London
WC1R 4JS

Principal Places of Business
SIERRA LEONE
1a Old Railway Line
Brookfields
PO Box 337
Freetown
Sierra Leone

Capital

Number of AIM securities in issue: 76, 210,766 - 12th August 2009
Percentage of shares not in public hands 11.66% - 12th August 2009

Annual General Meeting

January

Year End

June 30

Nominated Brokers

FinnCap
4 Coleman Street
London EC2R 5TA

Nominated Advisors