HOLPAN / KLIPDAM

Rockwell Diamonds provided an update on its operations for the period March 1, 2009 to October 2, 2009. As a consequence of the international economic crisis and precipitous decline in rough diamond prices, Rockwell restructured its business and operations in January and February 2009 to ensure it could manage the challenges presented by this situation. The update recovered 122, 120 and 105 carat stones from Saxendrift with monthly production exceeding 2500 carats from its three operating mines during the period June to September 2009.

Rockwell Diamonds Inc. announced financial results for the twelve months ending February 28, 2009. During fiscal 2009, Rockwell operated three alluvial diamond mines in South Africa– Holpan, Klipdam and Wouterspan - and successfully built and commissioned a new plant at Saxendrift, bringing its fourth operation into production. In the twelve months ending February 28, 2009, 17,503.0 carats were produced from operations at Holpan/Klipdam, Wouterspan and Saxendrift. The company sold 15,320.4 carats at an average price of US$2,159.30 per carat. Production losses were experienced in August-September 2008 from an industrial action, and as a consequence of the suspension of operations through December 2008-January 2009 in response to the credit crunch and precipitous decline in diamond prices. The average cash mining cost during the fourth quarter was US$5.08 per tonne, an increase from US$4.66 per tonne in the quarter ending February 29, 2008. This increase was due to the shutdown of two months during December 2008 and January 2009, and costs associated with retrenchment.

Rockwell Diamonds reported on the successful sale of its large 189.68 carat white stone and the sale of run-of-mine production for the period June 1st to August 31st 2008. Concurrently with the sale of the 189.68 carat white stone from the Klipdam mine for US$10.3 million (US$54,255 per carat), the company also realized US$4.93 million for the sale of 3,945.84 carats of run-of-mine production from its Wouterspan, Holpan, Klipdam and Saxendrift operations.