Shear Announces the Recovery of 200.85 Carats of Diamonds and Completion of New Geological Model, Jericho Diamond Mine, Nunavut

Shear Diamonds Ltd. (TSX VENTURE:SRM) today announces the recovery of the first
200 carats of diamonds from trial tests performed in the recently restarted
recovery portion of Shear's 100% owned Jericho Diamond Mine, Nunavut. In
addition Shear has completed a new geological interpretation and 3- D Model for
the Jericho Kimberlite Complex.


"The recoveries are an important part of proving Jericho's real potential, and
speaks to the lost grade from past operations. We are excited to see that the
diamond recoveries from the recovery rejects tailings pile are in line with
audits done by both Tahera and Shear (refer to press release dated Februrary 8,
2011)" says Julie Lassonde, CEO and Chair of Shear. "Diamond recoveries continue
during our plant trial, which has seen periodic stoppages to address the
inevitable issues which arise in recommissioning a circuit that has been dormant
for the past three years. Shear's ultimate goal is to generate cash flow from
diamond sales in the coming months and continuing through all of 2012."


The diamond recoveries total 200.85 carats from 22.1 wet tonnes of recovery
reject and coarse processed kimberlite. 14 stones greater than 0.5 cts have been
recovered and the four largest stones are 1.907, 0.978, 0.974, and 0.775 cts
respectively.


The diamond recovery process includes on site processing of material through a
crusher, sorted and fed through the WHIMS, then an X-ray flow sort and grease
table followed by on site manual diamond recovery and sorting. Shear is
reporting total diamond recoveries since the material being processed has
already been run through the plant during past operations is not representative
of the overall diamond count of the Jericho Kimberlite Complex as stated in the
resource.


Geology Update

Mineral Services Canada ("MSC") was contracted to undertake a detailed
geological analysis of all available historical drill core (49 drill holes in
total) complemented by systematically collected thin sections and polished slabs
(851 in total) for petrographic analysis. Twelve kimberlite types and 13 domains
were defined. Shear believes this model better reflects the kimberlite
emplacement processes at work within the Jericho Kimberlite Complex. The purpose
of this exercise is to provide a basis for increased confidence in geological
continuity for future mine planning.


The Jericho Kimberlite Complex is interpreted to represent a series of
pyroclastic kimberlite eruptions that were emplaced in a general south to north
direction from two vents known as the South/Central and North Lobes. Geologic
complexity arises from the mixing of these events as well as the presence of
remnants of interpreted earlier phases found in areas not previously identified
by Tahera s previous geological model.


Geostrat Consulting Services ("Geostrat") was retained to develop the 3-D
Geological Model of the Jericho Kimberlite Complex using Gemcom modeling
software. This process involved working closely with MSC to help develop robust
geological domains that represent a volcanologically permissive model with
manageable mining parcels that can be evaluated for grade modeling and/or
reconciliation.


Geostrat is also working to best, back -reconcile grades from mining production
to the newly interpreted 3- D Model geology, but given that insufficient data
was recorded over the mine life to link recovered carats back to the mining
blocks from which they came, Shear will use this information to complement the
new model, with plans to complete its own due diligence in the next 12-18
months. Recommended follow up work includes collection of geologically defined
bulk samples from within the pit for the purpose of grade estimation and diamond
valuation plus additional drilling.


Shear also announces the departure of Jennifer Burgess, VP Exploration. The
Board of Directors would like to thank Jennifer for her many years of service.
Pamela Strand., P. Geol., Shear's President and a qualified person for purposes
of National Instrument 43-101 will be assuming Jennifer's duties.


About Shear Diamonds Ltd.

Shear is a Canadian-based company focused on diamond exploration and development
in Canada's North, where it explores established diamond districts and has
discovered new ones. Shear currently has a portfolio of eight diamond projects,
including three advanced projects with development potential. Shear holds a 100%
interest in Jericho Diamond Mine and surrounding exploration assets, located in
the Kitikmeot region of Nunavut.


Qualified Person

Pamela Strand, P. Geol., Shear's President is a qualified person for purposes of
National Instrument 43- 101 who supervised the preparation of the information
forming the basis for this press release.


On behalf of the Board of SHEAR DIAMONDS LTD.

Julie Lassonde, CEO & Executive Chairman

Pamela Strand, P. Geol., President

This news release may contain forward looking statements, being statements which
are not historical facts, including, without limitation, statements regarding
potential mineralization, exploration results, resource or reserve estimates,
anticipated production or results, sales, revenues, costs, "best-efforts"
financings or discussions of future plans and objectives. There can be no
assurance that such statements will prove accurate. Such statements are
necessarily based upon a number of estimates and assumptions that are subject to
numerous risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated or projected. Important
factors that could cause actual results to differ materially from Shear's
expectations are in its documents filed from time to time with the TSX or the
TSX Venture Exchange and provincial securities regulators, most of which are
available at www.sedar.com. Shear disclaims any intention or obligation to
revise or update such statements.