Miscellaneous

 
TIDMDON 
 
DiamonEx Limited 
AIM Release 
 
 
26 January 2009 
 
 
SUSPENSION FROM TRADING 
 
DiamonEx Limited (DiamonEx) has requested a suspension to trading of 
its shares on its primary exchange the Australian Securities Exchange 
(ASX).  A copy of this letter follows.  Please note that a trading 
halt of DiamonEx's ASX traded shares has been in place since 10.00 
a.m. 22 January 2009 (Australian Eastern Daylight Time). Under the 
ASX Listing Rules and the occurrence of a national public holiday on 
26 January 2009, the suspension of DiamonEx's ASX traded shares will 
commence on and from 10.00 a.m. 27 January 2009 (Australian Eastern 
Daylight Time). 
 
 
Yours faithfully 
Paul Crawford 
Company Secretary 
 
 
 
26 January 2009 
 
Mr Patrick O'Connor 
ASX Ltd (Brisbane) 
By Email 
 
Dear Sir 
Request for Suspension in trading of DiamonEx Limited Shares 
The Board of DiamonEx Limited (DiamonEx) requests a suspension in 
trading of the DiamonEx Shares on the ASX, in accordance with ASX 
Listing Rule 17.2. 
Reasons for the request 
DiamonEx through Diamonex Botswana Limited has made an application to 
the High Court of Botswana for an order to place its 100% owned 
subsidiary Diamonex Botswana Limited into judicial management, a 
process under Botswana law which is similar in effect to Voluntary 
Administration under Australian Law.  The hearing took place on 
Friday, 23 January 2009 (Botswana time). An order for judicial 
management has been made (Order) and Diamonex Botswana Limited is now 
granted a period of immunity from claims from its creditors.  The 
making of the Order may place DiamonEx in breach of covenants with a 
number of its borrowers and DiamonEx has commenced negotiations with 
these lenders, which are ongoing and the outcome of which are 
uncertain. 
Length of the Suspension 
The suspension in trading of DiamonEx's shares is being sought up 
until 2 March 2009. 
Events that will happen which will end the Suspension 
The successful conclusion of negotiations with the company's 
financiers and an ongoing and sustainable operating plan being agreed 
upon for the continued operations of Diamonex Botswana Limited. 
Background 
The Lerala Diamond Mine Project (Lerala Mine) entered into production 
in the second half of calendar year 2008.  In DiamonEx's quarterly 
report released on 31 October 2008, the company confirmed that 
DiamonEx offered for sale by tender its first batch of diamonds 
produced by the Lerala Mine.  Due to global financial uncertainty and 
the lack of liquidity existing at that time, the price received per 
carat for the parcel was US$20.00.  This price was far below 
expectation and the general market price for diamonds over the last 
24 to 36 months. 
WWW International Diamond Consultants valued the parcel at an average 
price of US$48.00 per carat.  This valuation was supported by the 
government of Botswana's independent diamond valuer. 
DiamonEx in the light of the market conditions looked at various 
sources of interim funding to make up for the poor price received 
from this first sale.  As released to the market by an announcement 
dated 26 November 2008, the government of Botswana has given a 
guarantee on a financing facility provided to DiamonEx by the Stanbic 
Bank, Botswana. 
Diamonex Botswana Limited 
As a result of the cash flow problems caused by the unexpected and 
ongoing collapse in the diamond market Diamonex Botswana Limited 
resolved to file an application for judicial administration with the 
court.  As stated as the Order has been granted, Diamonex Botswana 
Limited will have a judicial manager appointed to it and the ongoing 
management of Diamonex Botswana Limited will be carried out by the 
judicial manager.  As long as the Order is in force, all actions by 
creditors will be stayed. 
DiamonEx's planned actions 
The company intends to pursue the following course of action: 
1.    DiamonEx will continue to operate the Lerala Mine; and 
2.    Operationally, DiamonEx will proceed on a medium term strategy 
which will see: 
*          a reduction in operating costs for the Lerala Mine as 
  further mine expansion will be halted; and 
*          the continued processing of the stockpiled ore 
  (approximately 363,000 tonnes) which the company estimates will 
  result in production level of 28 carats per 100 tonnes (this 
  estimate is based on the company's recent experience regarding 
  diamond production from the stockpiled ore). 
DiamonEx is planning to carry out discussions with two key finance 
providers, to reach acceptable arrangements so that these lenders are 
in agreement with the steps being taken and the status of the 
financing arrangements are maintained. 
DiamonEx will make a further announcement to the market once there 
has been an agreement reached with the lenders. 
 
Yours faithfully 
DiamonEx Limited 
 
 
Paul Crawford 
Company Secretary 
 
 
 
 
For further information contact: 
 
Dan O'Neill 
Tel:       + 61 7 37208944 
Managing Director 
Fax:      + 61 7 37208988 
Email: [e-mail]          Mob:    + 61 4 07596942 
 
Mark Gray 
Tel:       + 61 7 37208944 
Corporate Development                         Fax:      + 61 7 
37208988 
Email: [e-mail]           Mob:    + 61 4 12899979 
 
Will Souter or Rob Adamson 
RFC Corporate Finance Ltd (Nomad) 
Tel: [phone] 
       [phone] 
Email: [e-mail] 
          [e-mail] 
 
Fox-Davies Capital Ltd (AIM Broker) 
Tel: [phone] 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.