Shear Announces the Closing of Its Previously Announced Equity Offering

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Shear Diamonds Ltd. (TSX VENTURE:SRM) ("Shear") announces the closing of its
previously announced private placement equity financing (the "Offering"). Shear
has issued 2,787,446 conventional common share units ("Conventional Units") at
$0.36 per unit and 4,640,600 flow-through common share units ("Flow-Through
Units") at $0.40 per unit for gross proceeds of approximately $2.85 million. The
securities issued under the Offering are subject to a hold period that expires
July 22, 2012.


Each Conventional Unit consists of one common share of the Company (a "Common
Share") and one-half of one Common Share purchase warrant (a "Conventional Unit
Warrant"). Each whole Conventional Unit Warrant entitles the holder to acquire
one Common Share at a price of $0.55 until September 21, 2013.


Each Flow-Through Unit consists of one flow-through Common Share and one-half of
one Common Share purchase warrant (a "FT Unit Warrant"). Each whole FT Unit
Warrant entitles the holder to acquire one Common Share at a price of $0.60
until September 21, 2013.


In connection with the Offering, M Partners Inc. received a cash fee of $171,583
and 445,683 broker warrants ("Broker Warrants"). Each Broker Warrant is
exercisable to purchase one Common Shares at a price of $0.36 until September
21, 2013.


Proceeds from the issue of the Conventional Units will be used primarily for
equipment and other expenses related to Shear's efforts to bring its Jericho
Diamond Mine back into production. Proceeds from the issue of the Flow-Through
Units will be used for further exploration at Jericho, in addition to Shear's
other exploration properties.


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.