Northern Node (NW Province Production)

Namakwa Diamonds increased diamond production by 77% at 82,925 carats (2009: 46,742 carats) in th FY2010 ended August 31, 2010. In South Africa production of 38,476 carats for the year was up 47% on 2009's performance of 26,256 carats. Increases wre due to the expanded South East Node project area (encompassing the SEN 1, SEN 2 and IDADA mining operations) and the Northern Node. The successful ramp-up of the SEN DMS plant on budget was a significant achievement and two further DMS plants are available within the Group's asset base for deployment on suitable project areas. Since the ramp-up of the DMS plant commenced in July 2009, there has been a marked increase in average grade from 0.59cpht in July 2009 to an average grade of 1.13cpht during October 2010.

Namakwa Diamonds Limited summarized activites at its North West Province, South Africa and DRC alluvial diamond operations for the year ended August 31, 2009. Following a shutdown of North West Province alluvial operations in November 2008, all but thte South Node operations recommence in 2009. The North West produced 26,256 carats during the year, with an average grade of 0.61cpht and an average cost of US$367/ct. The average price for the year was US$325/ct, with a significant increase between Q3 and Q4 from US$244/ct to US$383/ct. Expansion of the South East Node will see the capacity of the DMS ramped-up to 400-450 tonnes per-hour in 2010, at an estimated one-off capital cost of US$1.6 million, as the mine becomes the Group's flagship operation in the North West. In the DRC trial mining from June to the end of August at two locations along the Kasai River resulted in 20,486 carats recovered during the year with an average recovered grade of 7.72cpht.

Reported that mining resumed in February. Production has been bolstered by the continued use of contractors at Namakwa's North-West operations, who produce at their own cost with purchases at Namakwa's option at a discount to market.