Tahera obtains CCAA protection

Tahera Diamond Corporation has obtained an order from the Ontario Superior Court of Justice granting Tahera and its subsidiary protection pursuant to the provisions of the Companies’ Creditors Arrangement Act (”CCAA”). The Court has granted CCAA protection for an initial period of 30 days expiring on February 14, 2008, to be extended or terminated thereafter as the Court deems appropriate.

While under CCAA protection management will remain responsible for the day-to-day operations, under the supervision of a Court appointed monitor, PricewaterhouseCoopers Inc., who will be responsible for monitoring Tahera’s ongoing operations, assisting management with the development and filing of a restructuring plan, liaising with creditors and other stakeholders and reporting to the Court.

The CCAA filing follows a review of the Company’s options by Tahera’s board of directors. It was determined by the board of directors that, as a result of insufficient indications of interest in Tahera’s best efforts equity offering and the absence of any viable strategic alternatives at this time, seeking CCAA protection would be in the best interest of all stakeholders. The CCAA process will stay creditors and others from enforcing rights against Tahera and its subsidiaries and will allow Tahera to restructure its operations and find the alternative that will be in the best interest of all stakeholders.

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