Shear Announces Closing of Loan Transaction With Tache Securing Debt Financing and a Strategic Alliance for Sales of Diamond ...

Shear Diamonds Ltd. (TSX VENTURE:SRM) has today confirmed the closing of its
previously announced financing agreements with Tache Company N.V. ("Tache")
securing debt financing and forming a strategic alliance. Shear confirms that
the term loan of US$2 million has been funded as of today.


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 its recently acquired Jericho Diamond Mine and surrounding
exploration assets, located in the Kitikmeot region of Nunavut.


About Tache Company N.V.

Tache is the Belgian sales division of the Tache Group, a family business active
in the diamond industry for over 50 years. The Tache Group deals in rough,
prepared and polished diamonds as well as in diamond jewellery.


The orderly supply of rough is fundamental to the Group's activities and
therefore the Group principally sources its rough from Primary Rough Producers,
in addition to being a DTC Sightholder and an Alrosa long term contract holder.


The Group has a longstanding leading position in fine make polished diamonds,
from Exceptional stones down to 0.01 carats, based on its longstanding
commitment to modern high quality manufacturing capacity. This polished is
distributed world-wide through 12 sales offices to premium retailers and
jewellery manufacturers.


On behalf of the Board of SHEAR DIAMONDS LTD.

Julie Lassonde, CEO & Executive Chairman

The information above related to Tache has been provided by Tache
(www.tachediamonds.com).