Rockwell Responds to Hostile Bid From Pala Investments



    VANCOUVER, Sept. 9 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) is responding to the
announcement by Pala Investments Holdings Limited ("Pala") that Pala is making
an unsolicited offer to acquire all of the outstanding common shares of the
Company at a price of $0.36 per common share.
    Dr John Bristow, President and Chief Executive Officer of Rockwell,
stated: "We are disappointed that Pala has announced this unsolicited,
opportunistic offer for Rockwell and we recommend shareholders take no action
until shareholders have received further communications from the Board of
Directors of Rockwell".
    The Company's Board of Directors received an unsolicited letter from Pala
on August 29, 2008 which expressed Pala's interest in acquiring all of
Rockwell's common shares at $0.40 per share, and which set a deadline for
response of September 5, 2008. The Board of Directors immediately commenced a
review of the indication of interest in the context of the Company's
alternatives to maximize shareholder value and appointed a special committee
(the "Special Committee") of independent directors for this purpose. The
Special Committee retained RBC Capital Markets as financial advisor and
McCarthy Tétrault LLP as legal advisor.
    The Board of Directors advised Pala that they would carefully consider
the proposal with the assistance of their independent financial and legal
advisors and anticipated being in a position to respond by the end of this
week. The Special Committee indicated its willingness to meet with Pala to
receive more information concerning its proposal but Pala then declined to
meet.
    Rockwell advises shareholders to not deposit any common shares to the
Pala offer and to not take any other action concerning the offer until
shareholders have received further communications from the Board of Directors
of Rockwell. Rockwell will issue a Directors' Circular that will contain
important information for shareholders, including the Board recommendation
regarding the offer, within 10 business days.

    
    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 the 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 its 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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