SCHEME OF ARRANGEMENT

    ELKEDRA DIAMONDS NL

                                                        Level 1, 130 Hay Street

                                                                Subiaco WA 6008

                                              PO Box 8035, Subiaco East WA 6008

                                                     Telephone: [phone]

                                                     Facsimile: [phone]

                                                 E-mail: [e-mail]

                                                   Web Site: www.elkedra.com.au

2 November 2007

Centralised Company Announcement Office

Australian Stock Exchange Limited

10th Floor, 20 Bond Street

Sydney NSW 2000

Dear Sir,

SCHEME OF ARRANGEMENT

Elkedra Diamonds NL (Elkedra) (ASX and AIM: EDN) advises that the Supreme Court
of Western Australia has approved the scheme of arrangement between Elkedra and
its shareholders under which Elkedra shareholders will receive 0.52 shares in
Vaaldiam Resources Limited for each of their Elkedra shares.

Elkedra intends to lodge a copy of the Court's order with ASIC on Thursday 8
November 2007, which will accordingly be the 'Effective Date' for the purposes
of the scheme, and requests that ASX suspend quotation of Elkedra's securities
at the close of trading on that date, in accordance with Listing Rule 17.4

Trading on the AIM market will cease as of close of trading on Wednesday 7
November 2007.

Important dates to note are:

Last day of AIM Market trading in Elkedra Shares     7 November 2007           
                                                                               
Last day of ASX trading in Elkedra Shares:           8 November 2007           
                                                                               
Record date for determining entitlements (Record     15 November 2007          
Date):                                                                         
                                                                               
Despatch of certificates for new Vaaldiam Shares and 23 November 2007          
trading in new Vaaldiam Shares on the TSX commences:                           


For and behalf of the Board


Max Cozijn

Company Secretary/Director



END