Acquisition

Zareba PLC
08 June 2005




ZAREBA PLC



INVESTMENT IN NAMIBIAN DIAMOND MINER



Zareba PLC is pleased to announce that it has made its first investment in
accordance with the strategy set out in its prospectus dated 8 February 2005.



This investment of Namibian Dollars 500,000 (£40,000) has secured an interest of
5% of the total issued capital of a company currently commencing diamond
production in the Northern section of the Skeleton Coast area of Namibia. The
concession to be mined is situated near the mouth of the Kunene River. The
investment will be used to secure a second pan for separation of the diamonds
from the alluvial deposits. Zareba has agreed to subscribe up to a further
Namibian Dollars 1,500,000 on similar terms, should this be required.



The intention is to float this project on AIM as a separate company,
provisionally named Kunene River Diamonds PLC. This is likely to be in the
second half of 2005. As a first step to flotation a Competent Person's Report is
being commissioned.



The area where mining operations will take place is situated within the Skeleton
Coast National Park. The southern portion of the Park is open to visitors, as
far as the settlement of Terrace Bay. North of Terrace Bay visitors are not
permitted. There is a track suitable for 4X4 vehicles as far as Rocky Point, but
the last 220 kilometres to the site requires vehicles to drive along the beach.
After passing the Park headquarters at Moewe Bay there is no habitation of any
kind for the last 270 kilometres. This extreme remoteness has meant that no
diamond exploration took place until recently and all exploration has been under
the control of Glen Rogers, the proposed Chief Executive of Kunene River
Diamonds, and explains why these deposits were not previously known.
Notwithstanding this, diamond mining has taken place on the northern, Angolan,
bank of the Kunene River prior to the Angolan civil war.



Most diamond mining in Namibia to date has taken place in the South of the
country, along the Atlantic coast. Diamonds there are generally accepted as
being derived from inland sources along the Orange River. This mining is of
alluvial diamonds, either off shore where the main operations take place, or on
shore, where diamonds have been re-deposited by wave action. Because the
diamonds have to travel further from the mouth of the Orange River, the further
north they are deposited in marine gravels the smaller the average size tends to
be.



The Kunene diamonds are bigger than those which could be expected from Orange
River sources. They can also be distinguished from Orange River diamonds by
their extreme hardness. It therefore appears that the diamonds were deposited
from a new source. While that source is not known with certainty, the most
likely explanations are either that the diamonds have been transported from
known kimberlitic areas in Angola, or that they are from as yet unknown
kimberlites in Namibia itself. The diamondiferous gravels themselves can be seen
from the associated clays to comprise both marine and river deposits. While
established resources should enable mining for between ten and twenty years,
depending on the rate of extraction, a further exploration programme will also
be undertaken to establish additional resources within the existing area, which
comprises approximately 200 square kilometres, as well as exploring gravels
deposited by other paleo-river systems along the northern Skeleton Coast.



While this is Zareba's first investment, it is also evaluating other mining
projects.





Brian Moritz

(Chairman)



8 June 2005




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