Rockwell Executive Directors to Defend Shareholder Democracy Against Threatened Pala Court Challenge



    VANCOUVER, May 28 /CNW/ - The Executive Directors of Rockwell Diamonds
Inc. (TSX: RDI; JSE: RDI; OTCBB: RDIAF), David Copeland, P.Eng, Chairman, Dr.
John Bristow, CEO and Dr. Mark Bristow, today responded to the May 27, 2009
news release of Pala Investment Holdings Limited in which Pala indicates that
the Executive Directors do not have the standing to add anything to the agenda
for the June 17, 2009 special shareholders meeting.
    The Executive Directors issued an information circular on May 22, 2009,
soliciting proxies to defeat Pala's two initiatives including removing the
Executive Directors from office and terminating the previously
shareholder-approved Shareholders Rights Plan. However in addition to
defeating this thinly disguised cashless take-over by Pala, the Executive
Directors are seeking shareholders' approval for a Fair Rights Offering and a
denial of Pala's costs relating to the unnecessary special meeting. The
shareholders should not have to bear the burden of the costs associated with
this latest take-over attempt. Consequently, the Executive Directors have
instructed their legal counsel to appear in British Columbia Supreme Court to
defend the right of the Executive Directors to take their case to
shareholders.
    Mr. Copeland commented "The Rockwell Board supported the idea that the
Executive Directors have the right to appeal directly to shareholders to offer
a competing financing strategy to the Pala-backed rights offering. Based on
the feedback we are getting, Rockwell shareholders are very concerned about
Pala's offer of a rights-offering back-stop, and shareholders would much
prefer to see a third party guarantee the rights offering as proposed in our
Fair Rights Offering. It is clear Pala is attempting to stifle shareholder
democracy by pushing an agenda with only negative options for our
shareholders. The Executive Directors will continue to fight for Rockwell
shareholders. It is obvious Pala underestimates Rockwell shareholders and
their understanding of exactly what is at stake on June 17."
    The Executive Directors have established a purpose-specific web site,
www.executivedirectorsrockwell.com, where information is available for all
shareholders relating to the issues concerning the Special Meeting. This site
will be updated regularly and kept current leading up to the Special Meeting
on June 17, 2009.

    
       THE FUTURE OF ROCKWELL DIAMONDS INC. WILL BE DETERMINED BY THE
           OUTCOME OF THIS VOTE. DO NOT ALLOW A DISSIDENT MINORITY
         SHAREHOLDER TO TAKE CONTROL OF ROCKWELL AND YOUR INVESTMENT
                          VOTE ONLY THE GREEN PROXY
    

    The Executive Directors urge you to support their continued stewardship
of the Company by voting AGAINST the special resolution to remove them from
office and by voting FOR a Fair Rights Offering, which will provide balance to
the Company's shareholder constituents, by using the GREEN form of proxy.

    For further information, contact:

    
    The Laurel Hill Advisory Group by email at
    rockwellinfo@laurelhillag.com or by phone at:

                                Toll free            Or Collect

    North America               1-888-882-6737

    Europe                      00-800-8655-1111     1-416-637-4661

    South Africa                0-800-982-179
    

    The comments by the Executive Directors in this news release and on the
website are solely their own and not of any other director. For general
information about Rockwell please visit its own website at
www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or
within North America at 1-800-667-2114. Investor Services deals with Company
information and is not authorized to discuss matters or answer questions
relating the contested special shareholders meeting. Questions relating to the
Executive's Director's positions in respect of the Meeting should be directed
to Laurel Hill Advisory Group as per above.

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





For further information:

For further information: The Laurel Hill Advisory Group by email at
rockwellinfo@laurelhillag.com or by phone at: North America, Toll free
1-888-882-6737; Europe, Toll free 00-800-8655-1111; South Africa, Toll free
0-800-982-179; Or Collect (416) 637-4661

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ROCKWELL EXECUTIVE DIRECTORS

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