Rockwell’s fiscal 2008 results

Rockwell Diamonds Inc. announces financial results for the nine months ending February 29, 2008(1). Dollar amounts are in Canadian currency unless otherwise indicated.

(1) During the year, the Company changed its fiscal year end from the end of May to the end of February. As a result the 2008 fiscal period is nine months.

Rockwell is positioned for growth by mining and developing alluvial diamond deposits. The Company has focused on projects with the potential for production of high value gemstone diamonds which are predominantly larger than 2 carats in size. Plus 2-carat stones comprise more than 70% of the Company’s production and are of exceptional quality and value. Market forecasters indicate these gemstones are in short supply and will continue to show strong year on year price increases.

During fiscal 2008, the Company operated three alluvial diamond mines, continued its aggressive property assessment and development strategy, and advanced corporate activity to raise its profile, attract new shareholders, and pursue new acquisitions.

Overview and Highlights

- Rockwell shows consolidated positive cash of $6.7 million from operating activities despite the consolidated accounting loss of $9.4 million;

- Rockwell recorded Revenues from sales of C$36.0 million from the sale of 17,667.67 carats of diamonds, and Cost of Sales and amortization totalling $29.3 million;

- The Company achieved an operating profit of $6.9 million;

- At a consolidated level of losses before non-controlling interest Rockwell showed an improvement of $2.5 million for the nine months ended February 29, 2008 when compared to 2007;

- Non-controlling interest (49%) increased by $5.5 million resulting in an overall increase in the total comprehensive loss of $9.4 million when compared to $6.4 million in 2007;

- The average price of diamond sales realized over the year was US$1,984.68 per carat representing a 97% increase on the average price achieved during the previous year (US$1,005.53);

- Total diamond production was 17,746.40 carats from 2.4 million cubic metres of gravel mined and processed at the Company’s three operating mines (Wouterspan, Holpan and Klipdam), and bulk sampling at Makoenskloof, including a 212-carat yellow stone;

Source : http://www.rockwelldiamonds.com/

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