TIDMNAD

RNS Number : 9891I

Namakwa Diamonds Limited

01 August 2012

1 August 2012

Namakwa Diamonds Limited (AIM: NAD)

("Namakwa Diamonds" or the "Company")

Lesotho Operational Update

Since his appointment on 3 July 2012, the Chief Executive Officer of Namakwa Diamonds has commenced a technical review of all operations of the Company, with the primary focus on the Kao Mine in Lesotho. This review is continuing but a number of conclusions and recommendations have already emerged.

The most important of these is the identification of operational inefficiencies in the current mining operation and in the metallurgical plant. In order to address these issues and to secure sustainable long term production levels, short term production will be negatively impacted. Consequently, management deems it prudent to downgrade current market guidance on production for the 2012 financial year from 150,000 carats to 120, 000 carats.

Chief Executive Officer Theo Botoulas commented "The identification and rectification of operational issues and the optimisation of internal structures is intended to secure a sustainable production profile and positive future for the Kao Mine".

For further information please visit www.namakwadiamonds.com or contact:

 
 Namakwa Diamonds                    Shore Capital 
 Theo Botoulas    +27 11 334 8886    Pascal Keane   +44 20 7468 4090 
 
 Tavistock Communications (IR 
  & PR) 
 Simon Hudson     +44 20 7920 3150

About Namakwa Diamonds Limited

Namakwa is a diamond resource group, which seeks to extract maximum value from the marketing and sale of Group mined and contracted production.

The Group's mining activities are focused on the Kao Mine in Lesotho. Operated by Storm Mountain Diamonds and its leading hard-rock mining team, with a proven track record in the construction and development of Lesotho's leading kimberlite pipes, the Kao Mine presents a 189Mt kimberlite resource of c.12.8m carats (c.4m indicated and c.8.8m inferred), with an additional 1.7m carats at a deposit level of confidence, in which Namakwa holds a 62.5% interest. The other shareholders are the Government of Lesotho 25% and Kimberlite Investments Lesotho Limited 12.5%.

The Group also maintains alluvial mining operations in the North West Province of South Africa and resource-development properties in the Northern Cape Province of South Africa and the offshore marine environment of Namibia.

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This information is provided by RNS

The company news service from the London Stock Exchange

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