Result of EGM

RNS Number:2549T
Xceldiam Limited
19 March 2007


                               JOINT NEWS RELEASE

For release 19 March 2007

                  Xceldiam Limited and Petra Diamonds Limited

           Result of Xceldiam Limited's Extraordinary General Meeting


Xceldiam Limited ("Xceldiam" or the "Company") (AIM: XLD), the diamond
exploration group, announces that at the Company's Extraordinary General Meeting
("EGM") held earlier today all resolutions relating to the sale of Frannor
Investments and Finance Limited ("Frannor BVI") to Petra Diamonds Limited 
("Petra") ("the Transaction") were passed.



Consideration Shares and Dividend

In consideration for the sale of Frannor BVI's entire issued share capital to
Petra, Petra will issue 19,674,584 new shares ("the Consideration Shares") to
Xceldiam, representing 12.18% of Petra's current issued share capital. The
Consideration Shares will in turn be distributed to shareholders of Xceldiam on
record as at 9 March 2007 (excluding Petra) by way of a dividend in specie ("the
Dividend").

Xceldiam shareholders will therefore maintain an interest in Frannor BVI's
Luangue project, as well as having an interest in Petra's other operations.

51.18% of Xceldiam's shareholders have entered into a twelve month orderly
market undertaking (expiring 28 February 2008) in respect of the shares they
will receive by way of the Dividend, representing 10,069,820 of the
Consideration Shares.

Xceldiam Investing Strategy

Xceldiam's shares will continue to trade on AIM, ex the entitlement to the
Dividend from 8.00am on Tuesday 20 March 2007, and Xceldiam will pursue new
investment opportunities in the mining sector in accordance with its investing
strategy ("the Investing Strategy"), details of which were announced separately
by Xceldiam on 2 March 2007.


Conditions Precedent

Completion of the Transaction is conditional, inter alia, upon the following key
conditions being satisfied:

*  Admission of the Consideration Shares to trading on AIM;

*  Xceldiam transferring the entire balance held in its bank accounts, less 
   US$1.25m and the proceeds from the exercise of the warrants by WH Ireland
   Limited, to Frannor BVI's bank account;

*  Xceldiam surrendering all loan accounts that it holds against Frannor BVI 
   to Petra;

*  Frannor confirming to Petra that the expenditure under the Luangue
   kimberlite and alluvial exploration contracts is in accordance with the 
   terms of such contracts; and

*  no event, change or circumstance becoming known to Petra or Xceldiam
   from 28 February 2007 to completion which would render any of the warranties 
   in the Frannor BVI sale agreement materially inaccurate.


It is expected that the conditions will be satisfied on or before 31 March 2007.



 Ends


For further information with regards to Petra Diamonds, please contact:

Parkgreen Communications, London
Cathy Malins / Annabel Leather             Telephone: [phone]





For further information with regards to Xceldiam, please contact:

WH Ireland
David Youngman                          Tel: [phone]

Xceldiam
Timothy George                          Tel: [phone]

Conduit PR
Ed Portman                              Tel: [phone]








                      This information is provided by RNS
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