Rockwell’s 4th sale of 2008

Rockwell Diamonds Inc., a mid-tier diamond mining company, which has an interest in several producing and exploration alluvial diamond properties in southern and central Africa, reports on its fourth diamond sale in calendar 2008, completed on May 22, 2008.

According to the company, it offered a total of 2,142.52 carats for sale, representing diamond production for most of the month of April 2008 from the Wouterspan, Holpan and Klipdam mining operations. Rockwell receives 74% of the revenues from the sale of the diamonds from these operations.

The mining company realized total revenue of US$2,555,471 for this sale, representing an average price of US$1,192 per carat

Top prices of US$26,161 per carat and US$10,193 per carat were achieved on 20.09 carat and 12.45 carat stones from Holpan and Wouterspan, respectively.

During May 2008, two of the Company’s diamonds that were manufactured and sold in respect of the Steinmetz Diamond Group joint venture were sold. Margins of 10% and 17% over and above the original rough diamond sales prices were achieved by Rockwell on these two stones.

Diamond production in this period was achieved at an operating cost of approximately US$3.60 per tonne.

President and CEO, John Bristow, said that the prices achieved are indicative of the on-going strong demand for Rockwell goods. Although the overall prices realized were somewhat lower than past sales, the prices achieved were in line with the qualities sold. Had the 115 carat diamond sold in the latest sale not been a poor quality boart (industrial) stone, the overall average sale price would have been much higher.

Most encouraging were the margins realized on the two cut and polished stones manufactured and sold via the Steinmetz joint venture. With a number of stones now in the joint venture pipeline, we are expecting the real benefits of this added value process to come through.

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