Rockwell Receives Premium Price for 189.68 Carat Stone: US$10,291,050



    Successfully completes September 2008 diamond sale

    VANCOUVER, Oct. 8 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the successful sale
of its large 189.68 carat white stone and the sale of run-of-mine production
for the period June 1st to August 31st 2008 representing the Company's second
quarter fiscal 2009 operating period.
    The sale of the latest large stone (189.68 carats) recovered from the
Klipdam mine realized a price of US$10,291,050 which equates to a value of
US$54,255 per carat. Concurrently with the sale of the 189.68 carat white
stone, the Company also realized US$4,928,166 for the sale of 3,945.84 carats
of run-of-mine production from its Wouterspan, Holpan, Klipdam and Saxendrift
operations.
    The Company realized total revenue of US$15,219,216 from its latest
diamond sale, representing an average price of US$3,680 per carat for the
latest sale results. The Company's average sale price for the first two
quarters of fiscal 2009 now stands at US$2,491 per carat.

    
        President and CEO John Bristow stated "We are particularly satisfied
        by the outstanding price of US$10,291,050 or US$54,255 per carat
        achieved for this latest large stone of over 100 carats, the fourth
        for the year, recovered from the Klipdam operation. This exceptional
        sales price is most encouraging especially in the context of the
        turbulence in international capital markets and indications that this
        is impacting on world diamond prices.

        Following from these excellent latest diamond sales results for
        production for the period June 1st to August 31st 2008, during
        September the Company achieved strong production results at operating
        costs which are far lower costs than those experienced during our
        previous quarter. Our strong September production reflects the
        positive resolution of the industrial action and is testament to our
        focus on across the board mining and production improvements to
        ensure sustainable long-term cost savings and reduced unit costs. The
        strong decline in oil prices and declining steel prices should
        provide further benefit to the Company is terms of lower operating
        costs."
    

    Run-of-mine diamond production during the period June 1st to August 31st
2008 was 4,266.27 carats, representing approximately 65% of budgeted
production. Loss of production was due to industrial action during July and
August which was reported in previous Company news releases. Operating cash
costs for this period (exclusive of Saxendrift costs) were US$4.65 per tonne,
reflecting lower than normal throughput due to industrial action. Operating
costs inclusive of Saxendrift were US$5.62 per tonne. September cash operating
costs are forecast to be lower than US$4.00 per tonne.
    Rockwell realized total revenue of US$4,928,166 for the sale of
run-of-mine production of 3,945.84 carats which together with the sale of the
large stone realized revenue of US$15,219,216.
    There was strong interest in the Rockwell sale reflecting continued high
demand for Rockwell rough diamonds. Sales details for production from the
individual operations are tabulated below.
    Average prices achieved for the different operations were in line with
the overall qualities of goods offered up for sale and in all cases the
reserve prices were met. Saxendrift production was primarily from lower grade
middlings gravels with a lower average diamond size than for June production
and this is reflected in lower average price compared to previous sales
results. Some softening of prices of smaller and intermediate sized goods in
line with seasonal trends, the removal of speculative premiums experienced at
the start of this year, and softer international prices were also apparent in
the sales results.

    
               -----------------------------------------------
               OPERATION          SALES         AVERAGE PRICE
                                (CARATS)       (US$ PER CARAT)
               -----------------------------------------------
               Wouterspan        704.15             1,624
               -----------------------------------------------
               Holpan            670.82               965
               -----------------------------------------------
               Klipdam         1,630.63             7,102
               -----------------------------------------------
               Saxendrift      1,129.92             1,634
               -----------------------------------------------
               TOTAL           4,135.48            $3,680
               -----------------------------------------------

    The distribution of diamonds larger than 10 carats sold in this latest
sale by Rockwell was as follows:

                       -   25 stones of 10 - 20 carats
                       -   11 stones of 21 - 30 carats
                       -   2 stones of 31 - 40 carats
                       -   2 stones of 41 - 50 carats
                       -   1 stone of 50 - 60 carats
                       -   1 stone of 60 - 70 carats
                       -   1 stone of 100 - 200 carats


    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". Other than statements of historical fact all
statements in this release that address future production, reserve or resource
potential, exploration drilling, exploitation activities and events or
developments that each Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments 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 market prices, exploitation and
exploration successes, changes in and the effect of government policies
regarding mining and natural resource exploration and exploitation,
availability of capital and financing, geopolitical uncertainty and political
and economic instability, and general economic, and market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those projected in the forward-looking statements. For
more information on Rockwell, Investors should review Rockwell's annual Form
20-F filing with the United States Securities and Exchange Commission
www.sec.com and the Company's home jurisdiction filings that are available at
www.sedar.com.





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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