Trading Update

 
TIDMKDD 
 
Trading Update 
 
 
                                               PRESS RELEASE 
 
                                      KOPANE DIAMOND DEVELOPMENTS Plc 
 
                                        (the "Company" or "Kopane") 
 
                                               ANNOUNCEMENT 
 
16 April 2010 
 
                                              TRADING UPDATE 
 
        *       Talks continue regarding a possible offer for the company 
 
        *       Proposed recommencement of production at Liqhobong 
 
        *       Funding and construction contracts for power line supply being finalised 
 
        *       DFS plant and tailings dam design to be completed. 
 
 
Kopane Diamond Developments Plc wishes to announce the following information to its shareholders. 
 
Talks regarding a possible offer for the company continue 
 
The  Board announced on 10th February 2010 that it was in discussions which may or may not lead to an offer 
being  made for the entire issued share capital of Kopane. Talks are progressing and a further announcement 
will be made in due course. 
 
Mining and development of Liqhobong 
 
The  Company is putting into place measures necessary for the recommencement of production at Liqhobong  as 
soon  as practicable in 2010. Production will focus initially on the K2 and K5 facies of the main pipe from 
which  high  value  stones  have  previously been recovered, thereby providing  further  material  economic 
enhancement to project value. 
 
Power Line Project 
 
The  project to connect grid electricity to Liqhobong has continued, in order to allow construction of  the 
power line to commence in 2010 and connection of electricity to site to be achieved by the end of 2011. 
 
Terms  for  a bank loan to fund the work are now being negotiated between the parties and tender  documents 
for  construction contracts are being finalised. Connection to the grid power supply is necessary to enable 
Liqhobong to be fully developed and will greatly enhance project value. 
 
Definitive Feasibility Study 
 
In  November  2009 and January 2010 a total of GBP9.3 million before expenses was raised by  the  Company  to 
enable  the  resumption  in production, further work on the Definitive Feasibility Study  ("DFS")  and  the 
assessment  of  strategic  investment  opportunities. Of this amount  GBP3.15  million  and  GBP3  million  are 
receivable  monthly over periods of 24 and 18 months respectively under equity swap arrangements  depending 
on the Company's share price. 
 
The considerably larger Main Pipe kimberlite resource of 90.7m tonnes has necessitated a reconsideration of 
plant  design  and  tailings  disposal and the remaining work on the DFS, which  is  being  undertaken,  is 
concerned mainly with these issues and is being financed through existing resources. 
 
Frank  Scolaro  Chairman of the Company commented today: "I believe the way forward will  be  significantly 
value  enhancing. Kopane remains unencumbered by debt and well funded. Talks in respect of a possible offer 
for  the  Company are progressing well, and in addition, in view of the recent recovery of diamond  prices, 
production at Liqhobong would also lead to significant upside for Kopane's shareholders." 
 
 
 
About Kopane 
 
Kopane  is a diamond producer, developer and explorer with core projects at Liqhobong in Lesotho,  Southern 
Africa. The Liqhobong operations are operated by Liqhobong Mining Development Company ("LMDC") which is 75% 
owned by Kopane and 25% by the Government of Lesotho ("GoL"). As a result of the successful development  of 
the operations at Liqhobong and the delineation of a substantial geological resource in the Main Pipe, LMDC 
was, in February 2007, granted a 20 year mining licence for the Main Pipe by the GoL. 
 
LMDC  produced  over  350,000  carats of diamonds since operations commenced  at  the  end  of  2005  until 
suspension of production in December 2008. The principal development project is the Main Pipe which has the 
potential to produce at a rate of one million carats per annum. 
 
Kopane also has a joint venture to explore for diamonds in Finland, managed and financed by Mantle Diamonds 
Limited. 
 
The Company is listed on AIM (and is also traded through the Plus Market), ticker symbol: KDD. 
 
 
For further information contact: 
Kopane Diamond Developments Plc                      Threadneedle Communications 
Frank Scolaro, Chairman                              Laurence Read/Beth Harris 
James Cable, Finance Director                        [phone] 
[phone] 
 
FinnCap 
Matthew Robinson/Ed Frisby 
[phone] 
 
e-mail: [e-mail] 
website: www.kopanediamonds.com 
 
 
 
Kopane Diamond Developments PLC