RBC Diamond Day May 2008. 1 Disclaimer This presentation and the information contained herein are not an offer of securities for sale in the United States.

RBC Diamond DayMay 2008

2

Disclaimer

This presentation and the information contained herein are not an offer of securities for sale in the United States. This presentation is an advertisement and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of Namakwa Diamonds Limited (“Namakwa” or the “Company”) nor should it or any part of it form the basis of or be relied on in connection with, any contract or commitment whatsoever.

Statements contained within this presentation may contain forward-looking comments, which involve risks and uncertainties that may cause actual results to vary from those contained in the forward-looking statements. In some cases, you can identify such forward-looking statements by terminology such as 'may', 'will', 'could', 'forecasts', 'expects', 'plans', 'anticipates', 'believes', 'estimates', 'predicts', 'potential', or 'continue'. Forward projections reflect management's best estimates based on information available at the time of issue.

This Presentation and its contents are confidential and may not be further distributed or passed onto any other person or published or reproduced, in whole or in part, by any medium or in any form for any purpose.

3

Overview

Namakwa Diamonds Limited / NADIssuer / Ticker

Full listing on London Stock Exchange main boardListing location

Shareholder Base

Expand existing producing mining operations Bring into production selected development projects Pursue further growth and consolidation opportunities Increase beneficiation inventory and expand diamond trading operation Repay existing debt and finance general corporate activities

Use of proceeds

Listing Date December 2007

Founders, Management and Employees retain circa 20% 20 UK Institutional Shareholders 3 Swiss Institutional Shareholders 1 North American Shareholder Recent inclusion in indices results in increasing institutional interest

Market Cap* £200.25m

Outstanding Shares 116.386m (125,5 million including the “A” shares in issue)

* as of April 28, 2008

4

Namakwa’s Non-Executive Board

Name Position Roles and Prior Experience

Hans Smith Chairman & Independent Non-Executive Director

Chairman of nomination committee and member of audit committee, remuneration committee and health and safety committee

Previously CEO and Executive Chairman of Iscor and Non-Executive Chairman of Kumba Resources. Served on the board of Western Areas

Thomas Kruger Deputy Chairman & Executive Director

Founder of Namakwa Diamonds 30 years’ experience in South African diamond industry and founding member

of the South African Rough Dealers Association

Edward Haslam Senior Independent Non-Executive Director

Member of audit committee and nomination committee Serves as Chairman of Talvivaara and Non-Executive Director at Aquarius

Platinum (Chairman of remuneration committee and member of audit committee). Previously CEO of Lonmin

John Coulter Independent Non-Executive Director

Chairman of audit committee and member of nomination committee and remuneration committee

Served as CEO of Brait, CEO of JP Morgan South Africa and Chairman of JP Morgan Investment Banking in CEEMA

Currently CEO of Morgan Stanley South Africa and Morgan Stanley Investment Banking in CEEMA

Alex Davidson Independent Non-Executive Director

Member of health & safety committee Serves as Executive President, Exploration and Corporate Development of

Barrick Gold Corporation

Con Fauconnier Independent Non-Executive Director

Chairman of remuneration committee and health & safety committee and member of nomination committee

Previously CEO of Exxaro Resources and CEO of Kumba Resources

Board is committed to be fully UK combined code compliant within 12 months of listing

5

Strong, Experienced Management Team

ApproximateExperience

Prior Experience

Average of almost 20 years experience

Name Position

Corporate

Nico Kruger 10 years CEO Corporate finance and investment banking in diamond related projects

Jean Nel 10 years CFO Corporate finance at Investec Bank and SA resource sector

Jacques Conradie 16 years Financial Manager Financial director of African Portland Industrial Holdings

Mining

Altie Krige 26 years COO Geologist and director of land operations at Trans Hex

Richard Hall 22 years Chief Geologist Exploration manager at De Beers, Namaqualand Mines, considered to be the single biggest alluvial mining operation in the world

Noel Botha 23 years Chief Metallurgist Metallurgical manager at De Beers and Trans Hex

Keith McCulloch 32 years General Manager Mining General mining manager at Trans Hex, experience in Angola

Andre Appel 26 years Regional Manager NW Engineering Manager, Business Unit Manager and General Manager Trans HexEngineering Manager First Uranium

Beneficiation

Tom Kruger 30 years Deputy Chairman & Founder Founding member of the South African Rough Dealers Association with extensive experience in South African rough diamond trading

Heno Kruger 12 years Head of Beneficiation Beneficiation business at Namakwa

Andries Janzen 27 years Head of Cutting & Polishing Managing director at Ochta Diamonds, founded Elite Diamonds in 1980 and currently manages Elite Diamonds

Louis Janzen 6 years Sales of Polished Diamonds Works at Elite Diamonds focusing on acquisition of polished diamonds

Fred Strous 13 years Global Manager: Rough Diamonds Manager of buying stations in the DRC and in Angola for R. Steinmetz & Sons

6

Focus on Large, Gem Quality Fine Diamonds

7

Focus on Large, Gem Quality Fine Diamonds

8

Namakwa’s Consistent Strategy for Growth

Huge opportunities in familiar territories (i.e. North West Province of SA)

BEE adds impetus in SA

Grow in each segment of diamond value chain

Small scale alluvial operations

Long-life mining assets

Beneficiation operations

Vision Summary

Consolidate

Vertical Integration

Gem Quality Focus

Afro-centric

Key differentiator

Increased margins

Trading knowledge adds value across operations

Blends stability with ability to capture opportunities

Direction of integration crucial to success – i.e. beneficiation mining

Focus on mining assets with high quality product, short lead times and favourable capital intensity

Grow beneficiation business

with additional capital

extending retail distribution

Stable and attractive pricing due to strong demand and inconsistent supply

Significant deposits of target stones

Focus on southern Africa – well known and respected family

Commitment to country of origin beneficiation

Well established local presence (30+ years)

9

Favourable Market Dynamics at IPO

80

100

120

140

160

180

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2005

In

dex

ed P

erfo

rman

ce Supply of rough diamondsDemand for diamond jewellery

Supply / Demand

Source: WWW International Diamond Consultants 2007 (Supply of rough diamonds and demand for diamond jewellery rebased to 100 in 2005)

Strong Price Environment

8090

100110120130140150160

2002 2003 2004 2005 2006 2007

Pri

ces

(Reb

ased

to

100

in

Ja

n 2

003)

Rough Index

Polished Index

80

90

100

110

120

130

140

150

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ind

exed

Per

form

ance

Rough + 10 ct

Rough 3-6 gr

Rough Price Index Polished Price Index

80

90

100

110

120

130

140

150

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ind

exed

Per

form

ance

Polished + 5 ct

Polished + 50 pts

10

Favourable Market Dynamics Post IPO

High quality gem diamonds continued price increase during the reporting period Price increase of 30.2% for polished diamonds above 3 carats and 57.9% for polished diamonds above 5 carats over 12

months until 29 February 2008

Strong price environment expected to continue for rough and polished diamonds through 2008

Disproportionate increase in prices of large and high quality diamonds

Average price for rough diamonds recovered through mining operations was US$700 – substantially ahead of expectations

Substantial exposure to rising price of large stones – 80% of US$ value of the inventory at the end of the reporting period comprised of 5 carats and larger diamonds

Average Price: Feb 2007 – Feb 2008 Polished Diamonds Price Trend by Size*

% Change Year-on-Year

1.3 5.8 4.6 1.5

30.2

51.6 57.9

0

20

40

60

80

0.5 1.0 1.5 2.0 3.0 4.0 5.0Size of Polished Diamond (Carats)

1.3 5.8 4.6 1.5

30.2

51.6 57.9

0

20

40

60

80

0.5 1.0 1.5 2.0 3.0 4.0 5.0

% c

hang

e ye

ar-o

n-ye

ar

* As per the International Diamond and Jewellery Exchange

11

Well Positioned to Exploit Favourable Market Dynamics

Focus on gem quality fine diamonds

83% of Namakwa’s mining revenues are generated by 27% of produced carats

2006 World Production Namakwa Production and Purchases¹

Fine Carats Fine Carats

Fine Dollars Fine Dollars

+10ct 1%+5ct 3%

+2ct 8%

3-6gr 17%-3gr71%

+10ct6%

+5ct 5%

+2ct 16%

3-6gr42%

-3gr31%

+10ct5%

+5ct 12%

+2ct29%

3-6gr30%

-3gr24% +10ct

58%

+5ct 13%

+2ct 12%

3-6gr 13%

-3gr4%

Source: WWW International Diamond Consultants Ltd, 2007

¹ Analysis undertaken by WWW International Diamond Consultants between 28 th March and 13th July 2007

12

Vertical Integration Adds Value

5.0

7.5 0.6 13.11.1

4.5 18.5

68.5

(0.2)

Dir

ec

t M

inin

gC

os

ts

Min

es

Va

lue

Ad

de

d

Inv

en

tory

De

ple

tio

n

Ro

ug

h D

iam

on

dS

up

ply

De

ale

r M

arg

ins

Cu

ttin

g &

Po

lish

ing

Inv

en

tory

Ov

erh

an

g

Va

lue

 of 

Dia

mo

nd

So

ld t

o R

eta

il

Re

tail

Sa

les

of

Dia

mo

nd

Je

we

llery

Dia

mo

nd

Va

lue

Ch

ain

($

bn

)

Diamond Mining Peers Beneficiation

Source: IDEX 2006

Benefits

Capture larger share of the value chain

+

Provide greater volume and range of diamonds for

beneficiation

+

Expand diversified distribution channels

+

Strengthen long-term relationships

Capture Product Premium&

Higher MarginsNamakwa

$13.1bn $55.4bn

13

1 Recovered grade equivalent to 0.865 cpht for indicated resources and 0.895 cpht for inferred resources 2 Santechifunga licence expires in Q1 CY2008. Namakwa is unlikely to apply for the renewal of this licence3 Recovered grade of 0.114 ct/m2

4 Recovered grade of 0.147 ct/m2

Diverse Portfolio of Mining Assets at IPO

South Africa North West Province Indicated 122,137,840 0.01731 2,110,196

Inferred 115,732,000 0.01791 2,071,647

Albetros Indicated 5,322,735 0.094 500,337

Inferred 2,282,700 0.131 298,212

Angola Tchipoia Inferred NA

Santechifunga2 Inferred NA

Cuangula Inferred NA

DRC Kasai and Indicated 183,690 13.79 1,266,688Tshikapa Rivers

Inferred 7,992,200 1.747 5,206,054

Namibia Tidal Diamonds Indicated NA NA3 212,009

Inferred NA NA4 4,891,258

Total Indicated 4,089,230

Inferred 12,467,171

Indicated & Inferred 16,556,401

Country Project AreaResource

ClassificationVolume

Gravel (m3)Recovered

Grade (ct/m3)Attributable Carats (ct)

Ave Diamond Value (USD/ct)

Source: Venmyn Rand (Pty) Ltd – December 2007

600

394

400

175

400

150

150

175

1414

Consolidation Opportunities

Independent status, relationships and experience in beneficiation support mine sourcing, acquisition and execution capabilities

Management’s track record of purchasing production from mines across southern Africa, enhanced by advanced geological techniques

Consolidating contiguous properties

Have developed attractive land position in North West Province

North West Province (SA): Pre-Consolidation Phase North West Province (SA): Consolidation Phase

May 2007 February 2008

1515

South African AssetsNorth-West Province Resource NodesConsolidation Phases: post-IPO

Phase 1-x1 mine plus 1 prospect

Phase 2-x3 addnl. operating mines

Phase 3-x46 addnl. package-deal & option properties-all proven diamondiferousPhase 4-additional option

properties

‘Bamboesspruit

Run’

‘Soutpan Run’

‘Sewefontein Run’

‘Mooifontein Run’

Western-Node

Central Node

South Western-Node

Northern Node

South-Eastern Node

Southern Node

North-Eastern Node

North West Province Resource Nodes Consolidation Phases: Post-IPO

16

How We Have Unlocked Value

Acquisition of North West four producing assets, grouped in nodes

Namakwa’s four producing nodes increased production over 20 times since April 2007

From 111 carats in April 2007 to 2,425 carats in August 2007 (almost 25,000 to 30,000 carats annualised)

Equipment capacity doubled to 2,115 tph from 1,306 tph

Significant value creation in the DRC by consolidation and resource development

Completion of vertical integration strategy and increasing beneficiation volumes and margin

Expand existing production and bring into production selected development projects

Expand production projects in the North West Province

Bring into production selected longer term development projects in South Africa, Angola, the DRC and Namibia

Again double equipment capacity to 3,915 tph

Pursue further growth and consolidation opportunities

Increase beneficiation inventory and expand diamond trading operations

Inventory scale to facilitate differentiated parcels of diamonds

Develop the cutting and polishing business

Value Creation Pre IPO Planned Value Creation Post IPO

1. Beneficiation Business Overview2. Mining Business Overview3. Interim Results Overview4. Financials and OtherAppendix: Relevant Information

18

Beneficiation Value Chain

Inefficiencies caused by limited information flow for margin protection

Margins, inventory holding period, working capital and cost increase down the chain

Beneficiation link necessary for successful integration: from mines to luxury goods

Value Chain Themes

Rough Diamond

Polished Diamond

Diamond Pipeline

Diamond Pipeline 2006

Cost ofDiamondProduction

US$5.0bn

RoughDiamondSales

US$13.1bn

Value ofPolishedEx-Production

US$18.7bn

Polished Diamond Content in Sales

US$18.5bn

Retail Sales of Diamond Jewellery

US$68.5bn

Source: IDEX 2006

19

Beneficiation Overview

Diamond value chain margins

Key differentiating factor

Value maximization

RelationshipsProduct

KnowledgeMarket Insight

Distribution Channels

InformationFlow

IncreasedMargins

IndustryIntegration

Diamond Information Chain

1. Beneficiation Business Overview2. Mining Business Overview3. Interim Results Overview4. Financials and OtherAppendix: Relevant Information

21

North West Province Overview

Location

Effective Interest1

Description

Production start date

Mining type/ Plants

Capex2

North West Province, North West South Africa

100%

Comprises of 8 regions (7 nodes and the Pypklip area). There are four producing mines in four of the nodes. Resources: 2.110 m cts indicated and 2.072m cts inferred

2006

Open cast alluvial, DMS plants

3070 - 75cts (000)

$/cts

Production

$76.0m for 2008-2012 ($38.7m in 2008)

584 602

2008 2009

Consolidation in the North West ProvincePhase 2

North West Province

Consolidation in the North West ProvincePhase 3

‘Bamboesspruit

Run’‘Soutpan Run’

Western-NodeCentral Node

South Western-Node

Northern Node

South-Eastern Node

North-Eastern Node

Southern Node

‘Sewefontein Run’‘Mooifontein Run’

Northern Node

1. Source: Venmyn Rand (Pty) Ltd2. Based on Venmyn Rand (Pty) Ltd. Capex is calculated based onl forecasted Capex in rand terms and forecasted FX rate (US$/ZAR)

South African AssetsNorth-West Province Resource NodesConsolidation Phases: post-IPO

Phase 1-x1 mine plus 1 prospect

Phase 2-x3 addnl. operating mines

Phase 3-x46 addnl. package-deal & option properties-all proven diamondiferousPhase 4-additional option

properties

‘Bamboesspruit

Run’

‘Soutpan Run’

‘Sewefontein Run’

‘Mooifontein Run’

Western-Node

Central Node

South Western-Node

Northern Node

South-Eastern Node

Southern Node

North-Eastern Node

22

DRC Overview

Tshikapa Triangle, DRC

50% to 100%

Comprises of 27 concessions which covers almost 1000 km2. There are four nodal areas for exploration.

Exploration moving to production, bulk sampling end 2008

Open cast alluvial, DMS plants

$34.0m for 2008-2009

Start of exploration 641DRC Concession Map

Highly prospective flats on 2306

Western-Node

South Western-Node

Northern Node

Location

Effective Interest1

Description

Production start date

Mining type/ Plants

Capex2

1. Beneficiation Business Overview2. Mining Business Overview3. Interim Results Overview4. Financials and OtherAppendix: Relevant Information

24

Strategic Highlights

Enhancement of vertically integrated model

Concluded marketing agreement with Harry Winston Inc

Provides access to retail network and end customer requirements

Margin and volume enhancement

Beneficiation margin outperformance

Leveraging in-depth knowledge of diamond value chain

Strong pricing environment for rough and polished diamonds

Economies of scale increase margin

Strengthening and broadening customer and supplier relationships

Continued consolidation progress

Acquired significant alluvial deposit close to North West Operations

Consistent with stated alluvial consolidation objectives

Namakwa Delivering on its Strategic Objectives

25

Harry Winston Agreement

Entered into marketing agreement with Harry Winston Inc. in March 2008

Namakwa to provide Harry Winston with high value polished diamonds for sale through its stores

Namakwa shares in the retail margin achieved for specific stones

Product profile suited to Namakwa’s production profile and buying expertise

26

Key Events for the Reporting Period

Completion of IPO raising £87m of primary capital before costs

North-West mining operations adversely impacted by Eskom electricity outages, unusual heavy rainfall and mining dilution

Substantial progress made in expansion of North-West mining operations

First DMS plant scheduled to recover diamonds before the end of 2008

DRC infrastructure and delineation programme on track

Achieved a trading margin of 10% for rough diamonds and 13% for polished diamonds exceeding management expectations

Improvement in quality and quantity of gem diamond inventory

Underperformance of mining segment mitigated by beneficiation operations

27

North West Production Adversely Impacted

Mining segment produced 9,517 carats at a cost of R19.01 ($2.71) per tonne

Reduced production levels partly offset by higher received prices - $700 per carat before beneficiation margin

Production impacted by Eskom interruptions, unusual level of rainfall and resulting mining dilution

Significant increase post interim period through

Installation of stand-by generators at all four mining operations

Appointment of ore quality controllers to improve quality of ore mined and processed

Scheduled introduction of DMS plants during 2008 and 2009 will increase throughput and recovery capacity

Improved roads, mining equipment and production planning measures

28

North West Expansion Progress

Namakwa’s intention to ramp up production to 100,000 carats in FY2009 has been affected by power shortages across South Africa

Namakwa expects to be able to install 3 of the 6 planned DMS plants within the stated timeline

If DMS installation is delayed:

Continue to use existing rotary pan plant fleet

Increase production by using mining contractors

Acquired mineral rights over significant alluvial deposit in the North-West Province close to current mining operations (2121 hectares)

Aim to commence production on this property before end of CY2008

Currently assessing a number of opportunities in the North West

29

DRC Development on Track

Currently engaged in resource delineation programme moving into bulk sampling and small scale production in 2009

Key Milestones:

Board sub-committee chaired by Dr. Con Fauconnier oversees capex programme

Significantly increased management capacity

Established infrastructure in DRC to provide base for development

Local contractor appointed and started work on upgrading road infrastructure

Geological contractor employed to define ore bodies on four concession nodes

Installation of small sample plants to improve grade confidence towards increased indicated resources

Earthmoving equipment procured and shipped

Alternative technology for economically mining the Lizeria being developed

Commence small scale production and bulk sampling – Due Jan 2009

30

Beneficiation Segment Outperformance

Acquired 9,533 carats of rough diamonds from South African, Indonesian and DRC based third party producers at an average price of US$ 785 p.c.

Acquired 9,517 carats from the Namakwa mining segment at average value of US$ 700 p.c.

During the period Namakwa sold predominantly lower value diamonds at higher than expected margins

Sold 13,098 carats of rough diamonds at an average value of US$481 per carat

Trading margin of 10% for rough diamonds and 13% for polished diamonds

AIM: Namakwa continues to increase the quality of its diamond inventory

Efforts continue to expand and further develop beneficiation operations

Namakwa experiencing higher margins than market through

Critical mass, access to funding, knowledge of industry and strong pricing environment

29 Feb 2008 31 Aug 2007

cts $/ct cts $/ct

Rough 10,564 982 7,709 537

Polished 834 3,353 1,582 2,358

1. Beneficiation Business Overview2. Mining Business Overview3. Interim Results Overview4. Financials and OtherAppendix: Relevant Information

32

Salient Profit & Loss Statement

(US$m)6 months to

29 Feb 2008

45 weeks to

31 Aug 2007

Revenue 12.4 8.4

Gross loss (1.8) (2.4)

Exploration related expenses (7.0) (11.7)

Listing expenses (4.1) -

Net finance expenses (1.2) (1.2)

Loss for period (19.4) (18.9)

33

Balance Sheet

(US$m) 28 Feb 2008 31 Aug 2007

Property, plant and equipment 43.8 35.5

Inventories (mainly diamond) 13.9 8.0

Cash 138.6 6.4

Total liabilities (15.3) (61.4)

34

Cash Flow Statement

(US$m)6 months to29 Feb 2008

45 weeks to 31 Aug 2007

Net cash used in operating activities (17.5) (15.7)

Net cash used in investing activities (14.5) (25.5)

Net cash from financing activities 164.2 47.6

35

Questions

Favourable market dynamics, notably for gem quality diamonds

Unique vertically integrated mining

group

Experienced management team

Diverse portfolio of high quality, long-life

mining assets

Alluvial mining focus

Capability to consolidate alluvial

mining (BEE compliant)

Track record of value creation

1. Beneficiation Business Overview2. Mining Business Overview3. Interim Results Overview4. Financials and OtherAppendix: Relevant Information

37

Position

37

Further Management Expertise

ApproximateExperience

Prior ExperienceName

Mining

Neil Shadwell 22 years Project Manager - DRC Engineering Manager with Ingwe Coal (BHP) and Chief Engineer ITM – Angola

Lourens Myburg 12 years Geological Manager - West Coast Geologist; Snr Geologist Namaqualand Mines

Colyn Purdon 29 years Metallurgical Manager Metallurgical Manager Sheba; Snr Manager: Metallurgical Projects, Trans Hex; Principal Engineer Bateman                     

Louis Pienaar 44 years Geological Manager - NW Marine diamonds in Namibia, Grasdrif and Oena mines, Orange River

Deon Bowers 16 years Geological Manager-NW Production Ore-Quality Controller; Senior Geologist Koingnaas Mines (De Beers)

Human Resources

Edward Monoketsi 13 years Human Resource Manager NW Snr Human Resource Office, Human Resource Superintendent, Trans Hex Group

Basil Andrews 13 years Chief Safety Officer Safety Officer, Chief Safety Officer Trans Hex Group

38

A Significant Development Project Pipeline

North West DRC

Location

Effective Interest1

North West, South Africa South West of DRC near Tshikapa town

50% – 100% 90% – 95%

Albetros Angola

Namaqualand, South Africa

North East of Angola

Namibia

55 km North of Port Luderitz, Namibia

50 – 90% 37 – 70%100%

Resources (k cts)

1,440 inferred 500 indicated and 298 inferred

1,267 indicated and 5,206 inferred

NA212 indicated and 4,891 inferred

1. Source: Venmyn Rand (Pty) Ltd.

39

Beneficiation Overview

Sourcing of Rough

Own and 3rd party Product knowledge Sorting process Categorization

determines optimal strategy for maximum value

Critical mass effects strategy

Beneficiation Strategy

Understanding demand & supply dynamics

Market intelligence for ultimate value creation

Strategy is a function of Cashflow Market

dynamics Product mix Distribution

channels Beneficiation

pressures in country of origin

Procurement knowledge

Distribution Channels

Tender process Open Market Relationship driven

sales

Wholesale Partnerships Jewellery high

diamond content Luxury goods

markets Branding

opportunities

Rough

Polished

Production Planning

Value Maximisation

Information Flow S

trat

egy

Dec

isio

n

Cu

sto

mer

s

Function of Product Type

Understand Destinations

40

Production Distribution Profile

Size Frequency Distribution Curves for the Operational Nodes Size Revenue Distribution Curves for the Operation Nodes

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

+4.83ct-4ct8gr6gr4gr3gr2gr1gr8/8

Diamond Size

% C

arats

Southeastern Node Southwestern Node

Southern Node Central Node

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

+4.83ct-4ct8gr6gr4gr3gr2gr1gr8/8

Diamond Size

% R

evenu

e

Southeastern Node Southwestern Node

Southern Node Central Node

Source: Venmyn Rand (Pty) Ltd

41

A share salient terms

Namakwa designed the A share structure to facilitate economic participation in Namakwa by SA shareholders

In terms of South African Exchange Control Regulations South African residents are precluded from owning shares in non-South African companies (save for some exemptions not relevant to Namakwa)

Namakwa’s South African subsidiary, Namakwa Diamond Holdings (Pty) Limited issued 9,05m A shares to SA residents

The A shares mirror the economic benefits accruing to Namakwa ordinary shares save that dividends and any proceeds from a sale are paid in SA in Rands to comply with Exchange Control Regulations

From a valuation perspective Namakwa views the A shares as part of the fully diluted share capital of Namakwa and hence the number of A shares (9,1m) should be added to the ordinary shares of Namakwa (116.4m) for total fully diluted number of shares for valuation purposes (125.5m)

42

BEE Considerations

The BEE Requirements require that a New Order Prospecting Right applicant must be at least 26% owned and controlled by historically disadvantaged South Africans (HDSAs)

For New Order Mining Right applications, the applicant must show how it will reach the targets of 15% BEE participation by May 2009 and 26% by May 2014

Namakwa has a registered HDSA trust for the benefit of all HDSA employees which will be the anchor project for all South African mining operations

This structure is currently being implemented with a view of finalisation by 2008

BEE requirements for the beneficiation industry have not yet been determined – once these are clear, Namakwa will implement an appropriate structure

43

Environmental Responsibility

Responsibility for the environment is an important consideration for Namakwa

Alluvial mining does not require the use of hazardous chemicals

Environmental liabilities are significantly lower than other forms of mining

Shallow, open cast mines also mitigate ultimate environmental liability

Current environmental liability, net of ring-fenced cash, estimated by independent consultants to be $1.3m

Namakwa currently uses borehole water which is returned to mined out areas (over 80% returned to the water table)

When DMS plants are installed, water will be recirculated and only 20% of required volume will be fresh

Backfill of mined ore is part of current processes to ensure low impact mining

Source: Company

Rehabilitation of an Old Mine

44

Track Record of Value Generation Private placements of equity: US$3m (July 2006), US$3.5m (Dec 2006) and US$5.1m (Feb 2007) from

founders, investors and entrepreneurs

Used to fund acquisitions of additional mining concessions

Preference Share institutional private placement: US$45m (May 2007)

Expand trading and beneficiation business through increase in inventory and acquisition of Elite Diamonds

Supported development of Namakwa’s projects, proving the resources

Successful Initial Public Offering on the London Stock Exchange: Raised US$185m (Dec 2007)

Largest institutional holders include Och-Ziff Capital Management Group, Capital International, Blackrock, Goldman Sachs Principal Strategies and Pala Investments amongst others

Further expand and upgrade mining operations and take advantage of consolidation opportunities

Successful IPO indicative of investor appetite for vertically integrated model

~US$185m IPO Proceeds

~US$54m Pre-IPO

Financing

5.1m ct1 Resources

No Producing Assets

16.6m ct2

Resources

Increased beneficiation activity and margin

~ 30,000 ctsProduction³

1. Management estimate of attributable resources as of December 20062. Indicated and inferred resources (Source: Venmyn Rand (Pty) Ltd)3. Annualised August 2007 production

45

Alluvial Diamond Focus

Lower capital expenditure and shorter development time than kimberlite mining

Alluvial mining involves relatively shallow mining operations (<40m), with limited overburden

Cost effective machinery and plant which can be operated in remote locations with poor infrastructure

Higher than global average in-situ diamond value

Low, variable grades mitigated by broader production base and high value production

Very low environmental impact

8 years

1 year

Alluvial Kimberlite

Time to Production1

¹ Source: Company estimate