corporate presentation · factors that could cause actual results to differ materially from those...

Corporate Presentation

March 2011

TSX:RDI JSE:RDI OTCBB:RDIAF

2

Forward looking statements

This presentation includes certain statements and other information that may be deemed "forward-looking".

Other than statements of historical fact all statements in this presentation that address future production,

resource potential, exploration drilling, exploitation activities and events or developments that the Company

expects are forward-looking statements.

Although the Company believes the expectations expressed in such forward-looking statements are based on

reasonable assumptions, such statements are not guarantees of future performance and actual results or

developments may differ materially from those in the forward-looking statements.

Factors that could cause actual results to differ materially from those in forward-looking statements include

market prices, exploitation and exploration successes, availability of capital and financing, and general economic,

market or business conditions.

Forward-looking statements are also based upon management’s assumptions regarding the Company’s future

operations growth prospects, and conditions affecting the mining industry generally. Investors are cautioned that

any such statements are not guarantees of future performance and that actual results or developments may

differ materially from those projected in the forward-looking statements.

For more information on Rockwell, Investors should review Rockwell’s annual Form 20-F filing with the United

States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are

available atwww.sedar.com.

Except to the extent required by law, the Company is under no obligations to update any forward looking

statements contained in this presentation.

3

The Rockwell Diamonds story so far…

Review of our historic performance and lessons learnt

Rockwell Diamonds weathered the economic storm

Financial indicators are improving

Committed executives with proven deal making and turnaround skills

Successful implementation of projects on existing operations and Tirisano will

come on stream in fiscal 2012

Commitment to transparent and balanced communications

Clearly defined strategy with well defined plans

4

Producer of large and exceptional gem diamonds

135.98ct (Holpan), 81.30ct (Saxendrift)

and 69.24ct (Klipdam)

105 carat Saxendrift stone forms one

of pair of exceptional round brilliant

cut DIF diamonds with XXX cut

measuring some 35 carats each

Clockwise: 79.13ct (Klipdam), 75.42ct

(Saxendrift), 26.98ct (Holpan), 59.79ct

(Klipdam), 49.97ct (Klipdam) and

62.78ct (Klipdam) (centre)

5

Product leverage:

Rockwell’s value-adding downstream partnerships

Flawless Diamond Trading House (FDTH)

Internationally recognized marketing and sales facility (Johannesburg)

Rockwell holds 20% in FDTH

Platform to market, sell, and leverage Rockwell production

Exploring new opportunities and markets for Rockwell e.g. China

SDG profit share agreement (+ 10 carat stones)

102cVivid Yellow + 25c yellow

Value-add: ~50% on rough price (to RDI)

MOR Rough stone : 212c Yellow

Rough price: US$2.44m (to RDI)

6

$ 200

$ 400

$ 600

$ 800

$ 1 000

$ 1 200

$ 1 400

$ 1 600

$ 1 800

February09

April 09 May 09 June 09 July 09 August 09 November09

February10

May 10 July 10 August 10 Sept - Nov2010

US $/ct Linear (US $/ct)

Steady improvement in prices from mid-2009

Third quarter FY2011 value of sales improved 3% over second quarter

FY 2010 average: US$1 012/carat

YTD FY2011 average: US$1 345/carat

February 2011 tender average: US$1 685/carat

Rockwell diamond sales prices: FY2010 to 2011

Sale of small parcels to State Diamond Trader

Recession impact

7

Acting CEO

Mark Bristow, PhD (Geology)

COO

Graham Chamberlain, Mining Engineer

CFO

Gerhard Jacobs, BAcc, MBA

Diamond Marketing & Sales Manager

Jeffrey Brenner

Mineral Resource Manager

Glenn Norton, Geologist and

registered Pr.Sci.Nat

Experienced management : Empowered operational team

Substantial experience in exploration

work and promoting sustainable

mining industry in West Africa

Seasoned executive at board level of

numerous global mining companies

Mineral resource and financial

skills spanning 26 years in

engineering, operational and

management aspects of South

African mining industry

Extensive mining and corporate

experience spanning junior and

senior mining companies with

operations in South Africa,

Australia and Canada

Extensive knowledge of public

listed mining Companies

A leading international

diamantaire and specialist in

valuation, marketing and sales

of rough diamond production

from alluvial deposits

Extensive geological, mineral

resource management and

production experience in

alluvial diamond deposits as

well as diamond and coal

exploration

Qualified person

8

Improving financial performance:

YTD Fiscal 2011 (March – November 2010)

Change (year-on-year)

Carats produced 22 519 +13%

Carats sold 20 564 -

Average price US$1 345 +39%

Total diamond revenues US$29.9m +32%

Tender sales US$27.6m +26%

Beneficiation profit share US$2.3m +360%

Operating profit $3.7m From loss of $2.3m

Realised (loss) ($2.8m) -62%

Diamond inventory 3 865 carats +38%

Rockwell has the potential to further reduce overall unit costs

• Increasing throughput in a sustainable manner

• In existing and development operations

9

-

1

2

3

4

5

6

7

8

9

10

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

US

Do

llars

US$/m3

-

10

20

30

40

50

60

70

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

So

uth

Afr

ican

Ran

d

ZAR/m3

Mining cash costs: US$ per cube*

Average operating cash cost below target : in spite of strong Rand

Three current operations - Holpan, Klipdam, Saxendrift

Wouterspan on care & maintenance from February 2009

Weather and Christmas closure -- seasonal impact in fourth quarter

* Excludes depreciation, royalties + H/O

10

Rockwell operations and project localities:

Northern Cape and North West Provinces, South Africa

2:VAAL RIVER

Holpan + Klipdam

Klipdam-Extension

Springbok

Koa River

Valley

Lower Orange

River

Prieska

Douglas

Middle

Orange

River

Kimberley Bloemfontein

Vaal River

Bloemhof

Johannesburg

Ventersdorp

Pretoria

Botswana

Namibia

Zimbabwe

Swaziland

Lesotho

RSA

N

Vaal River

Riet River

1:VENTERSDORP

Tirisano

0 300

Kilometres

Project hubs in historic alluvial diamond provinces; production since 1860’s and 1920’s

3:MIDDLE ORANGE RIVER

Wouterspan

Saxendrift

11

43-101 Resources as at 28 February 2011

All mines and projects 43-101 compliant signature date 20-02-2011

Long term grades stable and derived from production data

Exploration data derived and controlled from in house Geologists and bulk sampling facilities

Indicated

Resources

m³

Inferred

Resources

m³

Exploration

Potential m³

Indicated

Grade

(ct/100m³)

Inferred

Grade

(ct/100m³)

Value

(USD/ct)

43 - 101

Value

(USD/ct)

FYTD

Holpan 517 800 527 000 4 600 000 0.95 0.95 $1 229 $1 202

Klipdam 2 091 200 949 000 1 800 000 1.21 1.21 $1 049 $1 133

Windsorton Erf

2004 404 700 127 000 1 000 000 0.63 $986 $986

Rietputs 782 000 7 500 000 0.76 $788 $974

Saxendrift 6 634 500 5 986 000 500 000 0.66 0.56 $2 029 $2 003

Niewejaarskraal 20 630 500 20 000 000 0.84 $2 029

Tirisano 25 279 800 15 334 000 10 000 000 2.37 2.37 $606

Wouterspan 5 025 500 37 774 000 15 000 000 0.7 $2 029

Zwemkuil Project 40 000 000

Totals 39 953 500 82 109 500 100 400 000 1.78 0.72 $1 733

12

Rockwell growth plan:

To create critical mass and scale

Monthly

production of

2 500 ─ >4 000

carats

Monthly

production of

9 000 ─ 10 000

carats

Short term:

1 to 2 years

Medium term: 3 to 6

years

Long term:

5 to 6 years

Annual revenues ranging from

C$120m to C$180m

Enlist support of strategic

investors to create a leading

gemstone diamond producer

Larger and improved mix of

diamonds - sales + beneficiation

leverage

13

Capex projections

Alternative funding methods being evaluated

Equity: Private Placement /

Rights Offer

Must be value accretive to shareholders to

compensate for dilution impact

Debt: Loan / Project finance Long term impact of servicing debt on free

cash flow

Contractor Partial solution which provides flexibility on

funding

Fiscal

2012

Fiscal

2013

Fiscal

2013

Tirisano:

C$4.3m

Wouterspan:

C$17.4m

Niewejaarskraal:

C$17.4m

14

Peer group comparison:

Carat value vs Market Capitalization

Rockwell Diamonds Inc

Trans Hex Group

Lucara Diamond Corp Inc

Namakwa Diamonds PLC

Vaaldiam Mining Inc

Shear Minerals Ltd

Shore Gold Inc Diamondcorp Plc Stellar Diamonds PLC $0

$200

$400

$600

$800

$1 000

$1 200

$1 400

$1 600

$1 800

$0 $50 $100 $150 $200 $250 $300

US

$ p

er C

arat

Val

ue

of

Dec

lare

d R

eso

urc

es

Market Capitalisation

Additional information

www.rockwelldiamonds.com

16

Who is Rockwell Diamonds?

Established alluvial diamond producer with a large footprint of diamond deposits in South Africa

Focused on Middle Orange River and known for recovering excellent quality, large gemstones

Primary focus of adding value and optimizing existing operations at Holpan, Klipdam and Saxendrift

Excellent pipeline of other alluvial diamond projects and assessing potential of advanced-stage development projects

Currently producing > 2,500 carats per month and estimated 22 year LOM based on existing resources

Strategic six-year objective of increasing long-term capacity to between 9,000 and 10,000 carats per month funded through additional capital raising

Publicly traded on Toronto Stock Exchange, JSE Limited and Over the Counter Bulletin Board

17

Quarterly financial trends:

Improving financial position

114 636 115 754

113 571

105 243 106 873 107656 108 305

106 362

30 Nov 201031 Aug 201031 May 201028 Feb 201030 Nov 200931 Aug 200931 May 200928 Feb 2009

Total assets ($000s)

10 556 12 232 11 338 11 577

13 291 15 970 15 623 14 463

17 794 16 533 16 841 16 472

19 441 19 404 20 773 21 478

30 Nov 201031 Aug 201031 May 201028 Feb 201030 Nov 200931 Aug 200931 May 200928 Feb 2009

Liabilities ($000s) Current liabilities

Other liabilities and non-controlling interest

18

Positive production trends:

YTD Fiscal 2011 (March – November 2010)

29%

32%

39%

Volume mined up 20% to 2.8 million m3

Nine months to November 2010

FY2011

Klipdam Extension

8%

FY2010

Saxendrift

42%

Klipdam

26%

25%

40%

35%

Carat recovery up 13% to 22 519 carats

Holpan

24%

Klipdam

Extension

7%

Saxendrift

26%

Klipdam

39%

Holpan

28%

19

Quarterly financial trends:

Improving profit and loss indicators ($000’s)

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

28 Feb2009

31 May2009

31 Aug2009

30 Nov2009

28 Feb2010

31 May2010

31 Aug2010

30 Nov2010

Revenue

-14 000

-12 000

-10 000

-8 000

-6 000

-4 000

-2 000

-

2 000

4 000

28 Feb2009

31 May2009

31 Aug2009

30 Nov2009

28 Feb2010

31 May2010

31 Aug2010

30 Nov2010

Operating profit (loss)

-

500

1 000

1 500

2 000

2 500

3 000

3 500

28 Feb2009

31 May2009

31 Aug2009

30 Nov2009

28 Feb2010

31 May2010

31 Aug2010

30 Nov2010

Expenses

-500

-

500

1 000

1 500

2 000

2 500

3 000

28 Feb2009

31 May2009

31 Aug2009

30 Nov2009

28 Feb2010

31 May2010

31 Aug2010

30 Nov2010

Net interest cost

20

Operational cost breakdown

Cash cost breakdown

Maintenance plant 12%

Maintenance fleet 15%

Fuel and oil 18%

Royalties 4%

Business support

18%

Other 3%

Security 2%

Power/water 6%

Salaries and wages 19%

R&D 3%

Total cost breakdown

Maintenance plant 10%

Maintenance fleet 12%

Fuel and oil 15%

Royalties 3% Business

support 15%

Other 3%

Security 2%

Power/water 5%

Salaries and wages 16%

R&D 3%

Depreciation 16%

21

Rockwell Diamonds’ strategy

Project development Mining operations Product leverage

Focus:

Low grade alluvial projects

Rare gemstones

Organic growth

Acquisitions

Low Capex + Opex

Strengths:

Geological expertise

Grade reconciliation

Plant construction

Low cost operator

Unique diamond product:

Large + coloured gemstones

Partnerships to add-value

Price improvement

Strong market fundamentals -

gemstone supply declining

22

The business case

Established alluvial diamond mining and development company

Low cost operations – large resource footprint

Average diamond production is predominantly >2 carat gemstones

Growth plan to build critical mass and expand production

Experienced management team

Beneficiation advantage through add-value partnerships

Saxendrift Mine

OPERATIONAL ASSETS

Holpan Mine Klipdam Mine Tirisano Mine

NEW

ACQUISITION:

PRODUCTION

EXPANSION

Wouterspan

Mine

NEW PLANT

DEVELOPMENT

MINE

Klipdam Ext.

Project

BULK -

SAMPLING

PROJECT

Saxendrift

Gekko Jig

Project

BULK –

SAMPLING

TECHNOLOGY

PROJECT

23

Rough and polished price trends

Consistent recovery with prices trending towards 2008 peak levels

Resilient pricing for larger, good quality stones

• Positive trend for clean goods exceeding 10 carats

• Recovery of rough diamond prices outpacing polished stones

Source: WWW International Diamond Consultants Ltd

121

120

119

118

117

116

115

Mar

10

May

10

Jun

10

Apr

10

Jul 1

0

Sep

10

Oct

10

Aug

10

Nov

10

Jan

11

Feb

11

Dec

10

220

210

200

190

180

1470

160

150

140

130

120

110

100

90

2002 2004 20052003 2006 2008 20092007 2009 2010

WWW Overall Rough Index

Polished Prices Overall INdex

Source: polishedprices.com

Polished Prices Overall Index

24

Rockwell rough diamond production: Average US$/carat

$90/carat

<0.3 c/stone #

$1,200 & $1,100 /carat

respectively ~1.2 c/stone #

$2,000/carat ~2.5 c/stone #

World Diamond Average

$700/carat

~0.9 c/stone #

Tirisano (North West Province, RSA)

Holpan/Klipdam (Vaal River, RSA)

Saxendrift /Wouterspan (Moro, RSA)

Small diamonds used in lower price

point and pave jewelry

Engagement rings (Bridal-range),

mid to high price point jewelry

Engagement rings, high price

point jewelry

High-end luxury jewellery

High Net Worth Individuals

Investment Stones

# - Rough stone average sizes

25

Sensitivity analysis

Analysis of interrelated impact of volume, grade, price per carat or exchange rate on revenue

Formula: Volume x Grade = Carats x USD/ZAR = Revenue

Marginally leveraged impact on turnover for 5% change any single variable (all others kept constant):

15.9%

10.6%

5.3%

0.0%

-5.3%

-10.6%

-15.9%

15% 10% 5% 0% -5% -10% -15%

% c

han

ge

in

re

ve

nu

e

Change in production metric

26

Top shareholders (% of shares outstanding)

11.5

10.2

6.4

5.0

4.4

3.3

3.1

2.8

2.6

2.2

1.7

1.6

1.4

1.2

Godia Capital Partners Limited

Daboll Consultants, Ltd.

Springleaf Enterprises Inc

Universal-Investment-Gesellschaft mbH

Craton Capital

The Conus Fund (QP) LP

Wells Capital Management Inc.

van Wyk (Hendrik JE)

RBC

Pala Investments Holdings Ltd.

Dennis M Bristow

BlackRock Investment Management (UK) Ltd.

MPF (African Harvest)

BAC Best Asset Class AG

27

Middle Orange River, Saxendrift mine

28

Middle Orange River operations:

Saxendrift mine – Resource and Processing Plant

New high throughput scrubbers Upgraded high security,

hands-off final recovery

Processing Plant

130 000 m3 monthly production capacity

Low cost 18ft Rotary-pans (4)

Scrubbers (4)

Flow-sort X-ray machines (10)

Resource

Braided Fluvial Alluvial Gravel Sequence

Inferred Resource (million m3) 5,986

Indicated Resource (million m3) 6,634

Planned life of mine 5 years

Inferred Resource grade (cphm3) 0.56

Indicated Resource grade (cphm3) 0.66

43-101 diamond Value ($/ct) 2,029

29


Saxendrift mine - Fiscal 2011 Quarterly Performance

Q2

FY2011

Q3

FY2011 Change (%)

Production volume (m3) 442 473 405 551 -8

Production (carats) 1 871 1 527 -18

Average Grade 0.44 0.38 -14

Sales (carats) 2 274 1 316 -42

Value of sales (US$) 3 813 721 2 676 997 -30

Mining cash costs* (US$/m3) 5.17 5.52 +7

* Excluding rehabilitation, lease and royalties

30


Saxendrift mine - Operational update

Investments in year to date

• Construction of in pit desanding plant to reduce tramming costs and remove

majority of sand fraction

• Gekko Jig Plant commissioned to reprocess old tailings

Mitigation measures for declining grades on ore body

• On site geology team

• New detailed mining plan

• Selective mining to balance high sand content

• Process audit to improve productivity

• Redesign of pan plants

• New puddle system to remove medium volatility

31 Klipdam Rotary-pan plant

Vaal River operations: Holpan and Klipdam mines

32

Vaal River operations: Holpan and Klipdam – Resource and Processing Plant

Processing Plant

Holpan Klipdam

90 000 m3 monthly processing

capacity

90 000 m3 monthly processing

capacity

200 tph DMS Low-cost18ft Rotary-pans (2)

Scrubber (1) Scrubber (1)

Flow-sort X-ray (6), grease

units

Flow-sort X-ray (4), grease

units

Rooikoppie gravel

Footwall

Extracted mine gravel

Resource

Holpan Klipdam

Resource Rooikoppie Fluvial Alluvial

Rooikoppie

Planned life of mine 1 year 1 year

Inferred Resources (mm3) 0,527 0,949

Indicated Resources (mm3) 0,517 2,099

Grade (cphm3) 0.95 1.21

43-101 Diamond Value ($/ct) 1,229 1,049

33

Vaal River operations:

Holpan and Klipdam - Fiscal 2011 Quarterly Performance

Holpan Klipdam

Q2

FY2011

Q3

FY2011

Change

(%)

Q2

FY2011

Q3

FY2011

Change

(%)

Production volume (m3) 243 616 233 029 -4 236 926 255 250 +8

Production (carats) 2 112 2 131 +1 2 093 3 756 +79

Average Grade 0.87 0.91 +5 0.88 1.47 +67

Sales (carats) 3 011 1 412 -53 3 578 2 862 -20

Value of sales (US$) 3 632 474 1 432 818 -61 1 997 716 5 227 460 +162

Mining cash costs* (US$/m3) 7.78 7.36 -5 7.14 6.18 -13


34

Vaal River operations:

Holpan and Klipdam - Operational update

Evaluating options to extend Holpan’s life of mine

• Five years of Rooikoppie type II reserves remaining at Holpan

• Lower volume mining requiring redesign of process; or

• Contract mining option

Klipdam is performing to expectation

• Overcame impact of flooding

• Evaluating similar options to extend life of mine by excavating

Rooikoppie resources and exploration potential

35

Impact of January 2011 flooding rapidly overcome

Klipdam Extension Unaffected Klipdam haul road Main road to Klipdam Ext.

Klipdam plant Klipdam plant Klipdam recovery

36

Impact of January 2011 flooding rapidly overcome

Holpan and Klipdam mine operations

• 342mm (75% of annual average) in six-day period with >100mm on 23 January

• Five days of production lost

• Minor infrastructure damage at mines and mining roadway infrastructure remains intact

• Repairs and recovery operations initiated immediately and operations resumed on 25 January

• Damp gravels affected production for several more days until they dried out fully

Saxendrift mine operations

• Sporadic rainfall of 189mm (>50% of average annual rainfall) in two weeks to 23 January

• Negative impact on production volumes with loss of three mining days

• Production at full capacity quickly resumed

Impact at Tirisano mine construction

• Slight construction delays and completion date of March 2011 unaffected

• Sufficient drainage systems planned and commissioned into initial layouts to prevent flooding

37

Holpan gravel Klipdam Extension: Bulk sampling plant

38

Bulk sampling project:

Klipdam Extension (Rietputs)

Plant

Compact mobile evaluation plant

Evaluating large ground holding in Holpan-Klipdam

area

Status

First stage completed and sampling on hold to

evaluate results


Resource

Rooikoppie eluvial and colluvial

Inferred resources (million m3) 0.782

Resource grade (cphm3) 0.76

43-101 diamond Value ($/ct) 788

FYTD diamond Value ($ct) 1 048

39

Ventersdorp Alluvial Deposits: Etruscan/Tirisano Acquisition

40

Ventersdorp operations:

Tirisano Mine – Resource and Processing Plant

Manganiferous Upper Gravel

High throughput scrubbers

Resource

Karst hosted, unique gravel deposit

Indicated resources (million m3) 15.334

Inferred resources (million m3) 25.279



43-101 diamond Value ($/ct) 606

Processing Plant

120 000 m3 monthly production capacity

Low cost 18ft Rotary-pans (8)

Scrubbers (4)

Flow-sort X-ray machines (9)

41

Tirisano project acquisition in North West Province:

Implemented extensive plant reconstruction

Resources

• Provides Rockwell with 40% increase in alluvial resources; 131% increase in carats

• Grade 200% higher than the Northern Cape

• More consistent grade distribution compared to Northern Cape deposits

Diamond Product

• Well sorted gemstone product (0.9 carats / stone; US$700 – 900/carat)

• Ideal Bridal-range product

New Processing Plant

• Initial Phase I capacity ~ 180 000 m3 per month

• Phase I production to start from Q2 2012

• Ramp up to full production by Q3

• New benchmark for alluvial diamond mining business

• First phase completion in Q2 of Fiscal 2012

Other

• Comprehensive data sets from reverse circulation drilling

• Detailed airborne and ground gravity data

• Exploration data worth ~ US$ 10 million

42

Middle Orange River operations: Wouterspan Mine

43

Middle Orange River:

Wouterspan Redesign - Currently on care & maintenance

Placed on care and maintenance in 2008 due to dramatic drop in diamond prices

Construction and commissioning of a new high volume, low cost processing plant

scheduled for FY2012 after Tirisano commissioning

Old Plant New Plant

±90 000 m³ per month 340 000 m³ per month

600 carats per month 2 200 carats per month

12 x 16ft Pans 8 x 18ft Pans

Produced diamonds of exceptional value in prior years

Resource

Braided fluvial alluvial gravel sequence

Indicated resource cubes (million m3) 37.774

Inferred resource cubes (million m3) 5.025



43-101 diamond Value ($/ct) 2 029

44

Middle Orange River operations: Niewejaarskraal

45

Middle Orange River:

Niewejaarskraal - Currently on care & maintenance

Placed on care and maintenance in 2007 by Trans Hex

Construction and commissioning of a new high volume, low cost processing plant

scheduled for FY2013 after Wouterspan commissioning

Old Plant New Plant

±40 000 m³ per month 340 000 m³ per month

336 carats per month 2 700 carats per month

80tph DMS 8 x 18ft Pans

Produced diamonds of exceptional value in prior years

Resource

Braided fluvial alluvial gravel sequence

Inferred resource cubes (million m3) 20.630



43-101 diamond Value ($/ct) 2 029

46

Strategy Delivery Scorecard: Growth objectives

Saxendrift in-pit screening unit • Completed in third quarter of fiscal 2010

Klipdam-Extension Bulk-sampling project

• Project on hold and results being evaluated

Etruscan/Tirisano acquisition • Finalising conditions precedent including Section 11

Commission new Tirisano plant

• Line 2 on track for start up in Q1 of fiscal 2012

Re-design and construct Wouterspan

• Review of designs by third party in progress

Project for organic growth – Wouterspan

• Construction project planned after funding secured

Project for organic growth - Niewejaarskraal

• Upgrade planned once Wouterspan operational with preference to fund using internally generated cash flows

“M+A” activity for added value • Tirisano acquisition, commissioning, and expansion

• Ongoing evaluation of opportunities

Annual revenues of

C$120m to C$ 180m • Tirisano commission is the first major milestone

Enlist support of strategic investors to achieve strategic

growth objectives • Renewed focus on investor relations

Larger and improved mix of diamonds - sales +

beneficiation leverage • Benefits of SDG and FTDH gaining momentum

Short term

(1 - 2 yrs)

2 500 to 4 000 carats

pm

Medium term

(3 to 6 yrs)

9 000 to 10 000

carats pm

Financial

47

Funds raised early in fiscal 2011:

Invested for long term growth (C$m)

Investments funded from combination of external equity funding and internally generated cash resources

Funds raised: Private placement and rights offer 16.6

Used to settle debt -8.0

Transferred to fund Capex -3.5

Other -0.4

Balance of funds 4.7

Utilised to fund Capital Developments -11.3

Acquisition of mineral rights -0.9

Saxendrift -3.0

Tirisano mine -3.1

Wouterspan preparation -2.0

Klipdam Extention -1.4

Mine fleet refurbishments -0.9

Funded from operations 10.4

Remaining Funds (November 2010) 3.8

48

Strategy for production growth

• Additional capital required for Wouterspan and Tirisano

• Confident that subsequent expansion will be funded from internal resources

Holpan

Klipdam

Saxendrift

Saxendrift Saxendrift Saxendrift Saxendrift

Tirisano A & B

Tirisano A & B Tirisano A & B Tirisano A & B Tirisano A & B

Wouterspan A Wouterspan A Wouterspan A Wouterspan A

Wouterspan B Wouterspan B Wouterspan B

Niewejaarskraal A Niewejaarskraal A

Niewejaarskraal B

0

20 000

40 000

60 000

80 000

100 000

120 000

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

FY2012 FY2013 FY2014 FY2015 FY2016

To

tal c

arat

s / a

nn

um

Vo

lum

e P

er M

on

th

Proposed 5 year volume production per month

49

Key risks identified

Business/ Operational

•Weather

•Skills &management

•Tirisano commissioning

•Saxendrift sand lenses

•Project pipeline

Financial/ Economic

• Exchange rate

• Oil price

• Shareholder support and access to capital

• Diamond prices

Regulatory / Governance

• Labour

• Mineral law

• Tenure of title

• Political

• Reputational

50

Risk mitigation

Regulatory / Governance

• Regulatory compliance

• Engage with all stakeholders including regulators, unions and

investors etc.

• Continuous improvements of

infrastructure

• Evaluation of new opportunities

• Empowered management

• Focus on Rand costs

• Efficiency projects

• Open communication

• Gem quality stones

Financial / Economic

Business / Operational

51

Investment summary

Established producer of unique and rare diamonds with quality assets

Production base with strong operational team

Excellent pipeline of “brownfield” projects for organic growth

Acquisitions to fast track growth (e.g. Etruscan/Tirisano)

Creating critical mass and scale

Leverage improving diamond prices and growth

Benefit from positive long-term market fundamentals – world gemstone diamond supply declining

52

Key success factors

Recovery of diamond prices

and demand

Well defined growth strategy with investment and production

roadmap

Marketing & beneficiation

through relationships

(SDG and FTDH)

Operational management

team with increased depth

of experience Committed and hands-on Board of Directors with diversified skills

Loyal pool of anchor

shareholders

Project pipeline to ensure long term

growth

53

Peer group comparison:

Resource value vs Market Capitalization

Rockwell Diamonds Inc

Stellar Diamonds PLC

Namakwa Diamonds PLC

Trans Hex Group

Diamondcorp PLC Shore Gold Inc

Lucara Diamond Corp Inc

Vaaldiam Mining Inc

Shear Minerals Ltd

$0

$500

$1 000

$1 500

$2 000

$2 500

$3 000

$3 500

$4 000

$4 500

$0 $50 $100 $150 $200 $250 $300

In S

itu

Res

ou

rce

Val

ue

C$

Market Capitalisation C$

corporate presentation · factors that could cause actual results to differ materially from those...

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