Share Placement and Diamond Sale Confirmed

    Share Placement and Diamond Sale Confirmed
             



AIM
RELEASE
21 October 2008


SHARE PLACEMENT & DIAMOND SALE CONFIRMED

DiamonEx Limited (ASX/AIM: DON, BSE: Diamonex), the emerging diamond
producer in Botswana, announces the execution of a Placement
Agreement between the Company and Hartco Nominees Pty Ltd to raise
A$2,000,000 by the placement of 20,000,000 shares.

The placement will be carried out in two tranches.  The first tranche
of the placement will be completed on 22 October 2008 with the
allotment of 5,300,000 shares to Hartco at a price of A$0.10 per
share.

The second tranche of the placement is subject to DiamonEx obtaining
the requisite shareholder approvals at its annual general meeting to
be held on Friday, 28 November 2008.  On the allotment of the
5,300,000 shares, the Company will apply for the quotation of the
5,300,000 shares on the ASX, BSE and AIM.

Announcing the placement, DiamonEx Chairman Mr Greg King said:
"DiamonEx welcomes this further demonstration of confidence by
investors.  In these turbulent times we continue to implement our
planned growth strategy as we move into the production phase for the
Lerala Diamond Mine project."

The company has also commenced the sale of its first parcel of
diamonds, comprising more than 10,000 carats, recovered during the
commissioning and start up phase.  The diamonds are being presented
for viewing in Gaborone this week, followed by a viewing in Antwerp.


Paul Crawford
Company Secretary


For further information contact:
Dan O'Neill
Tel:       + 61 7 37208944
Managing Director
Fax:      + 61 7 37208988
Email: [e-mail]

Greg King
Tel:       + 61 7 37208944
Chairman                                                         Fax:
+ 61 7 37208988
Email: [e-mail]

For further information contact:

Dan O'Neill
Managing Director
Tel: [phone]
Mob: [phone]
Email: [e-mail]

Mark Gray
Corporate Development
Tel: [phone]
Mob: [phone]
Email: [e-mail]

Will Souter or Rob Adamson
RFC Corporate Finance Ltd (Nomad)
Tel: [phone]
        [phone]
Email: [e-mail]
            [e-mail]

Richard Hail
Fox-Davies Capital Ltd (AIM Broker)
Tel: [phone]
Email: [e-mail]

Jos Simson or Leesa Peters
Conduit PR - Investor Relations
Tel: [phone]
        [phone]
Email: [e-mail]


About DiamonEx:

DiamonEx is an emerging diamond  producer having developed a  330,000
carat per year diamond mine at Lerala, in eastern Botswana.  The mine
is 100% owned and is  located in an area that  produces up to 30%  of
the worlds diamonds by value.  The company also owns 15,000 sq km  of
mineral rights  in  Botswana  which  it  is  actively  exploring  for
diamonds, as well as a 9.3 hectare diamondiferous kimberlitic pipe in
northern Colorado, USA,  which it is  currently evaluating for  grade
and value.   DiamonEx  is listed  on  the Australian  Stock  Exchange
(ASX), the Alternative  Investment Market  in London  (AIM), and  the
Botswana Stock Exchange (BSE).

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