Kopane Diamond

Trading Update

                                               PRESS RELEASE

                                      KOPANE DIAMOND DEVELOPMENTS Plc

                                              (the "Company")


15 December 2009

                                              TRADING UPDATE

Kopane Diamond Developments Plc wishes to announce the following information to its shareholders.

Investment in Liqhobong
The  Company announced on 26 November 2009 that it had extended the terms of an Exclusivity Agreement  with
an  interested  party until 15 December 2009 because the party wished to progress to terms regarding  their
potential  investment  in the Liqhobong Project.  During the second half of 2009, the  diamond  market  has
shown strong signs of recovery and the Company has recently received expressions of interest at a corporate
level  from  other organisations which will be further investigated to determine whether they would  better
serve  the development of the Main Pipe and the interests of shareholders.  Therefore, the Board of  Kopane
does not believe it to be appropriate to further extend the Exclusivity Agreement at this time.

The Company believes its outlook for 2010 to be favourable due to the following factors:

The  market  price for rough diamonds has improved considerably since the first quarter of 2009,  at  which
time  prices  had  fallen  to  approximately 50% of those achieved in the previous  year  and,  subject  to
resilience  of price recovery, it is likely to be economic to recommence diamond production  at  the  small
scale  Satellite Plant at Liqhobong. Production would focus on the K2 and K5 facies of the Main Pipe  which
are  known  to  contain  high value and bonanza stones. Production would also provide further  value-adding
information  better to allow the Company to understand pricing and the incidence of high  value  stones.  A
significant proportion of sales revenues received from production until early December 2008 were from  high
value  diamonds.  The $86 per carat run of mine valuation obtained in September 2008 does not  include  the
positive  impact  of  large and bonanza stones, which could provide material economic  enhancement  to  the
project value.

    *   The project to connect grid electricity to Liqhobong is essential to the ability of the Company to
        expand production and it is planned that construction of the power line will commence in 2010, to allow
        connection of electricity to site in 2011.  This power supply will greatly enhance the project value of

    *   The Main Pipe kimberlite of 90.7 million tonnes, with a recently announced increased overall grade
        of 34.3 carats per hundred tonnes, is considerably larger than previously estimated and the Company is
        therefore reviewing the optimum way of mining and recovering the diamonds, as part of the remaining work
        required under the Definitive Feasibility Study.

Frank  Scolaro  Chairman of the Company commented today: "The continued interest from various organisations
in  the  Company  and  its main asset at Liqhobong is further independent support to  its  potential  as  a
significant producer of diamonds. The Company is continuing and opening new discussions to explore the best
way of funding and developing its assets to maximise shareholder value."

About Kopane

Kopane  is a diamond producer, developer and explorer with core projects at Liqhobong in Lesotho,  Southern
Africa. As a result of the successful development of the operations at Liqhobong and the delineation  of  a
substantial  geological resource in the Main Pipe, LMDC was, in February 2007, granted  a  20  year  mining
licence for the Main Pipe by the GoL. The Liqhobong operations are operated by Liqhobong Mining Development
Company ("LMDC") which is 75% owned by Kopane and 25% by the Government of Lesotho ("GoL").

LMDC  produced  over  350,000  carats of diamonds since operations commenced  at  the  end  of  2005  until
suspension of production in December 2008. The principal development project is the Main Pipe which has the
potential to produce at a rate of one million carats per annum.

Kopane also has a joint venture to explore for diamonds in Finland, managed and financed by Mantle Diamonds

The Company is listed on AIM (and is also traded through the Plus Market), ticker symbol: KDD.

For further information contact:                     
Kopane Diamond Developments Plc                      Threadneedle Communications
Frank Scolaro, Chairman                              Laurence Read/Beth Harris
James Cable, Finance Director                        +44 (0) 207 653 9850
+44 (0) 20 7963 9590

Matthew Robinson/Ed Frisby
+44 (0) 20 7600 1658

e-mail: [email protected]
website: www.kopanediamonds.com

Kopane Diamond Developments PLC