Rights Offering Update

Potential Acquisition Announced

VANCOUVER, March 11 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has received a number of enquiries from shareholders who have not received their rights or who are unsure about how to exercise them.

Shareholders are reminded that the rights offer circular can be downloaded from www.SEDAR.com where it was filed on February 4, 2010. Shareholders with questions are encouraged to call their stockbrokers if their Rockwell shares are lodged at a brokerage. Brokers should have received formal notification of the rights and they will automatically sell them on behalf of ineligible persons. Directly-registered shareholders should have received their rights in the mail, unless they are in the US. Questions can be directed to the Company at the phone number below and as well to Computershare, the depositary agent for the rights offering at Tel: 1-800-564-6253. The Company understands that there have not been significant enquiries from its shareholders who hold their shares on the JSE Limited in South Africa but, should any such shareholders have any queries, they may approach their brokers or at Computershare South Africa at Tel: 0861 100 933.

In other developments, the Company has signed a term sheet with Etruscan Diamonds Limited whereby the Company proposes to purchase Etruscan's Blue Gum diamond operation in the Ventersdorp region, South Africa. The acquisition is for 74% of the operation with the balance owned pursuant to South Africa's Black Economic Empowerment regime. The price to be paid to Etruscan is an amount not exceeding ZAR 33.5 million (approximately C$4.65 million) payable in Rockwell shares valued at C$0.068 each. The Company will also assume certain non-material property maintenance obligations effective immediately and other financial obligations upon completion of the acquisition.

The Blue Gum alluvial diamond deposit hosts estimated mineral resources of 25 million cubic metres (indicated) with a grade of 2.37 carats/100 cubic metres and 15 million cubic metres (inferred) with a grade of 2.37 carats/100 cubic metres as at October 2009.

Completion of the acquisition is subject to a number of conditions including South African mining ministry consent, securities regulatory approvals including TSX, satisfactory due diligence and project development financing and electric power negotiations. The Rockwell shares to be issued will be subject to escrow, resale and voting restrictions and will not materially affect control. Completion is targeted for the third calendar quarter.

Tania Marshall, PhD., Pr.Sci.Nat., an independent Qualified Person, is responsible for the resource estimate. Dr Marshall has reviewed this news release and is responsible for the technical content.

John Bristow

President and CEO

    
     No regulatory authority has approved or disapproved the information
                       contained in this news release.


                         Forward Looking Statements

    This release includes certain statements that may be deemed
"forward-looking statements" or "forward-looking information" (together,
referred to as "forward-looking statements"). Other than statements of
historical fact, all statements in this release that relate to the proposed
acquisition, financing and rights offering are forward-looking statements.
Although Rockwell believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guaranteed, and the terms and timing of the financing and rights offering may
differ materially from those in the forward-looking statements. Factors that
could cause actual results to differ materially from those in forward-looking
statements include the actions and approvals of securities regulatory
authorities, including the securities regulatory authorities in each province
and territory of Canada, the Toronto Stock Exchange and the Johannesburg Stock
Exchange, the availability of capital and financing, and general economic,
market or business conditions. Investors are cautioned that any such
statements are not guarantees and the actual terms of the financing or rights
offering may differ materially from those outlined in the forward-looking
statements.

     Information Concerning Estimates of Indicated and Inferred Resources
    

This news release also uses the terms 'indicated resources' and 'inferred resources'. Rockwell Diamonds Inc advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

SOURCE Rockwell Diamonds Inc.

For further information: For further information: on Rockwell Diamonds Inc., please visit the Company's website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114


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