Rockwell 2nd diamond sale of 2008

Rockwell Diamonds Inc. reports on its second diamond sale this year completed on February 28th, 2008.

The Company offered a total of 1,843.43 carats for sale, representing production from the Wouterspan, Holpan, and Klipdam alluvial diamond operations.

Rockwell realized total revenue of US$ 4,520,000 for this sale, representing an average price of US$2,452 per carat.

Like in its January sales, prices achieved for the diamonds sold in February showed strength in all categories. Prices for top quality white stones were particularly strong, with strong increases above those achieved for similar goods in the November 2007 sale. A total of 468 carats, 25% of the total production sold, were plus 10 carat stones.

The diamonds sold represent production for a 28 day period from mid-January to mid-February 2008; 68% of the production is plus 2 carats in size, which is above the average of 60% plus 2 carats diamonds. Six diamonds of D color quality and over 10 carats in size were recovered. Four of these stones achieved a price of plus $10,000/carat and two diamonds achieved a price of over $20,000/carat.

The diamonds were produced at an operating cost of approximately US$4.00 per tonne, or US$1,364 per carat during the period. The increase in operating cost is attributed primarily due to lower than normal production throughput as the result of power outages from the National electrical utility grid experienced in January and, to a lesser extent, to heavy rain storms experienced at all mines during this period.

President and CEO John Bristow noted, the prices achieved for the second tender were excellent given the nature of the production, which unlike the previous tender did not include any high quality plus 40-carat stones.

Regarding operating costs and our plans to deal with future power outages, the Company has conducted a detailed analysis of all its electricity needs, and introduced electrical usage and costs saving programs at all its operations and offices. We have also placed orders for four standby diesel generator sets to be installed at all of the Company’s mines. Delivery time on these generator sets is nine weeks from mid-February.

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