West African Diamonds PLC

An AIM listed diamond & precious metals company focusing on West Africa

www.westafdiamonds.com

November 2009

Important Notice

♦ This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for anysecurities in West African Diamonds plc nor shall it or any part of it form the basis of, or be relied on in connection with, or actas any inducement to enter into, any contract or commitment whatsoever. No reliance may be placed for any purposewhatsoever on the information or opinions contained in this presentation or on any other document or oral statement or onthe completeness, accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty orother assurance, express or implied, is made or given by or on behalf of West African Diamonds plc or any of their respectivedirectors, employees or advisers, as to the accuracy or completeness of the information or opinions contained in thispresentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for any such informationor opinions or for any errors, omissions, misstatements, negligence or otherwise contained or referred to in this presentation.The contents of this presentation have not been approved by an authorised person within the meaning of the FinancialServices and Markets Act 2000.

♦ This presentation does not constitute an offer to the public as referred to in section 85 of the Financial Services and MarketsAct 2000 (as amended) of the United Kingdom and accordingly has not been nor will it be approved by any competentauthority in the United Kingdom. This presentation is not a prospectus within the meaning of the Prospectus (Directive2003/71/EC) Regulations 2005 of Ireland and therefore has not been approved by the Irish Financial Services RegulatoryAuthorities being the competent authority for the purposes of Directive 2003/71/EC in Ireland. This presentation is not anoffering document for the purposes of section 49 of the Investment Funds, Companies and Miscellaneous Provisions Act2005 of Ireland.

♦ This Presentation has been prepared by and is the sole responsibility of the Directors of West African Diamonds plc and isbeing issued solely to and directed at persons who have professional experience in matters relating to investments fallingwithin Article 19(1)(a) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended the"FPO") or (b) high net worth entities and other persons to whom the presentation may otherwise lawfully be communicated,falling within Article 49(1)(a) of the FPO (all such persons together being referred to as "Relevant Persons"). In considerationof the receipt of the presentation each recipient warrants and represents that he or it is a person falling within that description.Delivery of this information to any other person or reproduction, in whole or in part, without the prior consent of West AfricanDiamonds plc is prohibited.

♦ This information is being supplied to you, in whole or in part, for information purposes only and not for any other purpose. Inparticular, the distribution of this document in jurisdictions other than United Kingdom or Ireland may be restricted by law andpersons into whose domain this document comes should inform themselves about, and observe, any such restrictions. Anyfailure to comply with these restrictions may constitute a violation of laws of any such other jurisdictions.

♦ The estimates in this presentation are based on exploration results and are conceptual in nature and insufficient explorationto date has been done to define a mineral resource.

Highlights

♦ Proposed merger with Stellar Diamonds

– Relisting planned for end Jan 2010

♦ Alluvial Bomboko diamond mine in production

in Guinea (upstream from Aredor)

♦ Advanced exploration project at Droujba in

Guinea

♦ Farm out deals in Sierra Leone:

– Thunderball

– Pyramid Resources

Overview of the Diamond Industry

♦ Fundamental change in world economy since Q4 2008

♦ Dramatic short to medium term impact on diamond industry

– Mine closures & production cutbacks

– Long term fundamentals of industry still very good

• No new discoveries forecast to come on stream

• Very little current exploration spend, though beginning to grow

♦ Sustained recovery:

– Rough prices increased by 20-30% since Q1 2009 low

– Producers now in full production

April 2008

Reference: WWW June 2009

Corporate

♦ Listed on AIM 5th January 2007, at 20p a share:

– Suspended price 3.90p.

♦ Market cap £2.75M (listed £6.7M).

♦ 68.28M shares in issue

♦ Nomad and Broker: Astaire Securities Plc

♦ Major Shareholders:

– Mantle Diamonds 14.76%

– Audley EOMF 12.74%

– African Minerals Ltd12.74%

– African Diamonds 7.32%

– Management/Board 6.80%

– BlackRock 4.87%

Directors / Management

John Teeling - Chairman

•38 years resources experience

•20 years African management

experience

•Established a number of AIM

companies

•Doctorate from Harvard

James Finn – Finance Director

•20 years experience in exploration

companies

•Currently Director of 6 AIM

companies

•Degrees in Accounting and

Management

James Campbell – Deputy Chairman

•Managing Director of African Diamonds

•Over 22 years diamond experience with

Anglo & De Beers

•Had world-wide responsibility for diamond

resource delivery in De Beers

•Previously Personal Assistant to Nicky

Oppenheimer.

•Degrees in Geology and Business

Alex Van Zyl –Technical Director

•Over 40 Years diamond experience

with Anglo and De Beers

•Worldwide responsibility for diamond

exploration and evaluation

•Involved in the discovery of Venetia

Hennie Wessels – Chief Operating

Officer (COO)

•Over 20 years experience in African

exploration and mining companies

•Over 9 years of successful project delivery

in Sierra Leone and Guinea

Geo-Political

Guinea

♦ The country has an area of 246,000 SQ. KM and a population of 10 Million

♦ Rich in natural resources including; Bauxite, Diamonds, Gold and Iron Ore.

♦ Hosts largest bauxite reserves in the world. Two alumina refineries under development with project costs in excess $3 Billion

♦ Potential commercial projects:

– Bauxite & Alumina: Alcoa, Alcan, Rusal, BHP

– Iron Ore: BHP, Rio Tinto

– Gold: Semafo, AngloGold-Ashanti, Crew Gold

♦ Democracy based on French government system

♦ 1995 Mining code established to attract foreign investment

Geo-Political

Sierra Leone

♦ Covers an area of 72,000 SQ. KM with a population of 6.5 Million.

♦ Peace Accord signed in 2002. UN peacekeeping presence fully wound down in December 2005. Considered to be one of the UN’s most successful operations ever.

♦ Vibrant democracy with President Koroma having recently been elected.

♦ The UK Government, The EU, World Bank are all committed to long term support of the Government and the democratic process. British IMATT and DFID mandates run to 2012.

♦ The country is back in business. Foreign investment is returning:

– Titanium Resources Group Ltd - world’s largest rutile mine and associated bauxite mine.

– African Minerals Ltd –massive iron ore development project (Tonkolili) and alluvial diamond mining

– Cluff Gold PLC – primary gold project at Baomahun.

Licence Areas

Sierra Leone:

now farmed-out to local concerns

Guinea

Proposed Stellar Deal

♦ Double Guinea diamond resource base to ~

1.5mcts

♦ Two producing mines in portfolio – spreads

technical risks

♦ Targeting cash flow of ~ $1m per month

♦ Lower cost base per carat by identifying

production and corporate synergies

♦ Consolidates key high grade kimberlites of Tongo

and Droujba

♦ Combined entity has wider shareholder base

♦ Enlarged entity becomes more attractive to new

merger and growth opportunities

♦ Improving diamond market should see renewed

interest in diamond producers over explorers

Creating an enlarged diamond producer, delivering robust cash flow and a

portfolio of advanced kimberlite projects in West Africa.

New Mine

– Bomboko (Guinea)

♦ Nine alluvial licences adjacent to Guinea’s only diamond mine, Aredor

♦ >435-cts and 5 large stones (16.3, 9.2, 4.5, 4.2 & 3.8 cts) recovered from bulk sampling

– 60% of stones gem quality

– Potential for significantly higher diamond values

♦ Production:

– 18,000tpm operation on stream

– Expanding up to 35,000tpm, with monthly gross revenues estimated at USD350k

Estd in-situ

diamonds (cts)

Average

USD/ct

Estd.

Tonnes

750,000 >135 8,000,000

♦ Mine came on stream May 2009

♦ CPR data:

Bomboko Project

Evaluation Projects

– Droujba (Guinea)

♦ Detailed review completed:

– Independent data assessment complete

– Comprehensive ground geophysical survey completed:

• Droujba kimberlite pipe could be twice as large as previously thought

• Four nearby geophysical exploration targets: possible new kimberlite pipes

♦ Evaluation plan:

– Drilling to determine volume

– Bulk sampling of kimberlite to determine grade and diamond value

Estd in-situ

diamonds (cts)

Average

USD/ct

Estd.

Tonnes

Kimberlite (pipe) 1,500,000 50 1,500,000

Kimberlite (dykes) 260,000 50 330,000

Alluvial 400,000 65

♦ Exploration results

Farm Out Projects

– Pipe 3 (Sierra Leone)

♦ History:

– Pipe 3 is adjacent to the Koidu Holdings Mine which is producing from Pipes 1 & 2

– c.20,000 tonnes bulk sampling of Pipe 3 by WAD in 2005

♦ Progress:

– Audit of Pipe 3 material using DMS / grease plant. Recoverable grade improved from 5 to 19cpht

– Ground geophysical survey completed: satellite body discovered and tonnage estimate upgraded

♦ The plan is to rapidly develop the resource

♦ Joint ventured with Thunderball, a Sierra Leone / Arab / Japanese group, where WAD has a 20% free carry

Estd in-situ

diamonds (cts)

Average

USD/ct

Estd.

Tonnes

66,000 228 350,000

♦ Exploration results

Farm Out projects

- Plant 11 Dump, EPL11

♦ Plant 11 Undersize Dump

– Gold and diamond resource estimated at 7M tonnes, 0.4g/tonne gold and 1.5cpht

♦ EPL11

– Licence covers 100 sq km

– First phase reconnaissance sampling produced kimberlite indicator minerals and diamonds

– Also gold found in some stream samples (63 & 73g/tonne). Potential for shear hosted hydrothermal gold mineralised systems in Nimini Greenstone belt

– Follow-up gold sampling currently taking place. Soil sampling 80% completed. Results awaited

♦ Pyramid Resources:

– Locally owned group

– WAD has a 5% NSR

Summary

♦ Development:

– Bomboko alluvials: >5cpht and potentially >0.75M

carats.

Mining commenced May 2009

♦ Advanced projects:

– Droujba kimberlite pipe, >2M cts to 120m

(>80cpht).

– Droujba alluvials: 0.3 – 0.5M carats exploration

potential

♦ Farm out projects:

– Thunderball: Pipe 3

– Pyramid Resources: Plant 11 Dump, EPL 11

Over 1,100 cts

@ USD228/ct

from SL Pipe 3

Bomboko

Project