Shear Announces Diamond Recoveries from the Commencement of Processing High Grade Concentrate Stockpiles at the Jericho Diamo...

Shear Diamonds Ltd. (TSX VENTURE:SRM) ("Shear") is pleased to announce that it
has begun processing its high grade concentrate ("Recovery Reject") stockpiles
at its 100%-owned Jericho Diamond Mine ("Jericho") in Nunavut. A total of
approximately 3,500 carats have been recovered from 358 tonnes after the first
10 full days of processing. For approximately the next 10 months, operations
will be focused on the processing of these stockpiles. Following the required
diamond valuation process by a Canadian government valuator, which is next
scheduled for late May 2012, these and all future diamonds produced from
Jericho, other than diamonds subject to a royalty if the holder has elected to
take the royalty in kind, are to be delivered to Tache Company N.V., Shear's
diamond marketing partner, for sale into end markets.


Shear's goals for the processing of the Recovery Reject stockpiles are to:



1.  demonstrate that a significant number of diamonds went un-recovered
    during Jericho's previous operation and that these diamonds are
    recoverable; 
2.  generate cash flow to support operations in 2012 while sources of
    funding for achieving full commercial production at Jericho are sought;
    and 
3.  acquire key processing knowledge which can be applied to future
    production at Jericho.



"It is incredibly gratifying for the entire Shear team to see the first
recovered diamonds from Jericho since its shutdown in early 2008," commented CEO
Julie Lassonde. "We are seeing daily improvements in tonnage processed as well
as recoveries as we continue to ramp up during the re-commissioning of the
recovery portion of the diamond recovery plant."


As with many mining operations, Shear has had to overcome some significant
challenges in its efforts to restart diamond recoveries at Jericho, some of
which likely result from the facility having been shut and abandoned for three
years. These include, among others, the balancing of processes and general
flowsheet fine tuning, basic maintenance and legacy repair issues that had to be
resolved, recruitment and training of operational personnel, as well as
significant stoppages in power generation and software malfunctions. As well,
Shear had to commence arranging for delivery of fuel for Jericho earlier than
originally expected.


Live commissioning of the recently-modified Jericho diamond recovery plant is
underway on a day-shift basis only while Shear ramps up production. Shear has so
far achieved a maximum processing rate of 50 tonnes over a 12-hour shift and
hopes to hit approximately 80 tonnes/day with an average recovery rate of
approximately 10 cpt. as it moves to 24-hour operations in the coming weeks.


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.




                          On behalf of the Board of                         
                             SHEAR DIAMONDS LTD.                            
                                                                            
                       Julie Lassonde, President & CEO                      



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.