Friday, August 14, 2009

African Diamonds PLC

African Diamonds PLC (AFD) was listed on the AIM market in London in July 2003 at 7p and on the Botswana Stock Exchange in February 2005. The shares have been trading in a range of 26.5p - 88.5p over the past twelve months (Feb '09).

AFD is a diamond explorer developing the world class AK6 diamond mine in Botswana and exploring highly prospective diamond ground in Botswana and the DRC. The Company is chiefly focused on the Orapa region of Botswana, the most prolific diamond exploration and mining 'address' in the world, where the AK6 deposit is located. The AK6 mine is the only significant commercial diamond discovery in recent years.

A Mining Licence was granted on AK6 for 15 years in October 2008 and production is expected from the 9.5Ha kimberlite pipe in 2011. Ownership of the deposit is AFD, 28.381%, De Beers, 66.215% and Debwat, 5.404%.

AK6 - Resource to 372m (+1mm)

- 8.9M carats and 40M tonnes

- Average grade 22cpht & modelled diamond value USD$137/ct

- Significant quantities of rare, high value, Type II diamonds

Below 372m, there is an additional kimberlite - 372-756m: 6.2M carats

In addition to AK6, AFD holds a 100% interest in the AK8 and AK9 kimberlite pipes.

AK8 is a 5Ha kimberlite pipe located 10km from AK6 and 10km away from the Debswana Orapa Mine. Studies suggest a resource of 20M tonnes to 300m, with a modelled diamond value of USD$35-190/carat.

AK9 is a 3Ha kimberlite pipe located 10km from AK6 and 20km away from the Debswana Orapa Mine. Studies suggest a resource of 11M tonnes to 250m.

Along with the Botswana interests, AFD also has significant diamond investments in the DRC, through a 35% investment in Bugeco and in West Africa, through a 9% interest in West African Diamonds PLC, where diamond and gold production will commence in Q2 2009

Major Shareholders
Shareholders who hold more than 3% Amount % Holding
Investec PTY 7,682,715 10.0
Chase Nominess Ltd 7,227,625 9.4
De Beers 4,423,293 5.8
Nutraco Nominees Ltd 3,998,600 5.2
John Teeling 3,295,820 4.3
WB Nominees Ltd 3,246,031 4.3
James Finn 2,795,820 3.6
David Horgan 2,795,720 3.6
Lynchwood Nominees Ltd 2006420 2,600,080 3.4

Last Updated 12th August 2009

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

Company Contact Details
Contact162 Clontarf Road,
Dublin 3,
Telephone: +353 1 833 2833 +353 1 833 2833,
Fax: +353 1 833 3505
Registered company number 3999487
IR ContactPaddy Blewer,
College Hill,
The Registry,
Royal Mint Court
London EC3N 4QN
United Kingdom.
Tel +44 (0)20 7457 2074 +44 (0)20 7457 2074
Mob +44 (0)7765250857 +44 (0)7765250857
Fax +44 (0)20 7248 3295

Diamond Growth Opportunities - West African Diamonds PLC

•Strong management team
•Portfolio of projects spanning the delivery pipeline
•Solid relationships both at a business and political level
•Sound institutional shareholding
Near-term production

•Bomboko alluvials (Guinea): >28 cpht and potentially >0.75M carats. Mine to come on stream March 2009, with production April 2009
Advanced projects

•Droujba (Guinea): 6-Ha pipe, >2M cts to 120m (>80cpht).
•Pipe 3 & Dykes (Sierra Leone): re-assessment completed in 2007: grade and diamond value significantly upgraded to 19cpht and $228/ct
Early stage exploration

•EPL11 (Sierra Leone): Licence covering 100 sq km with gold & diamond opportunities. First phase reconnaissance sampling produced kimberlite indicator materials and diamonds
Growth opportunities:

•ex-DB assets in Guinea: people & equipment

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