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Kopane Diamond (KDD)

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Monday 05 October, 2009

Kopane Diamond

Trading Update



                                               PRESS RELEASE

                                      KOPANE DIAMOND DEVELOPMENTS Plc

                                              (the "Company")

                                               ANNOUNCEMENT

5 October 2009

                                              TRADING UPDATE

*       60  day  exclusivity  agreement signed with a potential investor in the  Liqhobong  Main  Pipe
        development project

*       Further work being undertaken to assess full value of Main Pipe grade

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

Exclusivity Agreement
Following  discussions  regarding potential investment in the Main Pipe project, an Exclusivity  Agreement,
valid  for a period of 60 days, has been signed with an established mining company to allow them to  review
the  project in more detail. They are able to offer the technical, operational and financial capability  to
take  the  Liqhobong  Main Pipe to full scale production.  It is our view that this  strategy  provides  an
expeditious  route  to  realising  full  value for the Company without  incurring  significant  shareholder
dilution.  At this stage, the Company wishes to state that this may or may not lead to completion.

Main Pipe Grade Assessment
The Company announced on 10th September 2009 a new resource statement in respect of the Main Pipe showing a
total  resource of 90.09 million tonnes, which is an increase of 19.1% over the Interim Resource  Statement
of  2008.  The statement showed a gross diamond reserve of 29.7 million carats, at an average grade  of  33
cpht,  which  gives an estimated in situ value of $2.6 billion based on September 2008 bulk sample  diamond
values.

As  mentioned  in  our  announcement of 10 September 2009, we are of the opinion  that  the  overall  grade
estimate  of  33 cpht is the lowest estimate in a range of grade results ultimately possible  in  the  Main
Pipe due to anomalies arising from the diamond recovery analysis of the LDD samples because of the loss  of
stones  from the large diameter drilling process. Work will commence shortly by WWW International to review
grade and valuation and the results of this work will be announced in due course. The Company believes that
the  33 cpht grade could be increased, or otherwise there could be an increase in the value per carat above
the $86 run of mine valuation.

Frank  Scolaro Chairman of the company commented today: "The Company is entering an exciting phase  as  the
underlying value of our world class asset is recognised in the diamond mining community.  I am excited with
the  progress which we are making at Kopane, and am extremely encouraged by the improvements in the diamond
market leading to the return to production of many other companies in the industry.

I  am  confident  that  there  is further significant value attributable to  Liqhobong,  both  through  the
forthcoming  grade  analysis and the recovery of bonanza stones which are known to  occur  in  the  Lesotho
pipes. I intend for Kopane shareholders to reap the rewards of this upside.

I wish to thank my directors and shareholders for their continued support."

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

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

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

Kopane Diamond Developments PLC

a d v e r t i s e m e n t