Namakwa Diamonds Limited Result of Tender Offer (0116P)

TIDMNAD

RNS Number : 0116P

Namakwa Diamonds Limited

18 October 2012

18 October 2012

Namakwa Diamonds Limited (AIM: NAD)

("Namakwa Diamonds" or the "Company")

Result of Tender

Namakwa Diamonds is pleased to announce that it has successfully closed its recent sale of rough diamonds from the Kao Mine in Lesotho, operated by 62.5% owned subsidiary, Storm Mountain Diamonds. The tender in Antwerp through Fusion Alternatives, the dedicated tender partner of I Hennig & Co., took place between 10 October and 17 October 2012.

All 54 lots offered, totalling 25,952 carats, were sold at an average selling price of US $265.60 per carat, with an average diamond size of 0.28 carats. The sale realised revenues of approximately US$6.9 million, with achieved prices exceeding expectations, once again reflecting the strong demand for Kao product.

Commenting, Theo Botoulas, Chief Executive Officer of Namakwa Diamonds, said: "The Antwerp tender continues to achieve excellent results for the Kao brand with 100 per cent sell-through achieved. Since January 2012, we have now sold a total of 138,172 carats from Kao Mine production in the ten tenders held to date, generating US$38.3 million in revenues for the Company."

For further information please visit www.namakwadiamonds.com or contact:

 
 Namakwa Diamonds                            Shore Capital 
                               +27 11 334                   [phone] 
 Theo Botoulas                  8886         Pascal Keane    4090 
 
 Tavistock Communications 
                               [phone] 
 Simon Hudson/Simon Compton     3150 
 

About Namakwa Diamonds Limited

Namakwa is a diamond resource group, which seeks to extract maximum value from the marketing and sale of Group mined and contracted production.

The Group's mining activities are focused on the Kao Mine in Lesotho. Operated by Storm Mountain Diamonds and its leading hard-rock mining team, with a proven track record in the construction and development of Lesotho's leading kimberlite pipes, the Kao Mine presents a 189Mt kimberlite resource of c.12.8m carats (c.4m indicated and c.8.8m inferred), with an additional 1.7m carats at a deposit level of confidence, in which Namakwa holds a 62.5% interest. The other shareholders are the Government of Lesotho 25% and Kimberlite Investments Lesotho Limited 12.5%.

The Group also maintains alluvial mining operations in the North West Province of South Africa and resource-development properties in the Northern Cape Province of South Africa and the offshore marine environment of Namibia.

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