Tahera to restructure its proposed offering



    /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
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    TSX: TAH

    TORONTO, Dec. 17 /CNW/ - Tahera Diamond Corporation ("Tahera or the
"Corporation") announced today that it has decided to proceed with a best
efforts offering of units ("Units") of the Corporation in lieu of its proposed
rights offering. The Corporation will file an amended and restated preliminary
prospectus in connection with the offering. It is expected that the offering
will be subject to a minimum offering of at least $40 million. In connection
with the offering, the Corporation plans to provide its shareholders who wish
to participate in the offering, with an opportunity to purchase Units, subject
to compliance with the securities laws of such shareholders home
jurisdictions. GMP Securities L.P. will continue to be engaged in this
transaction.
    The proceeds of the offering, if successful, will allow the Corporation
to take advantage of the up-coming winter road re-supply and further develop
and implement operational improvements at the Jericho Mine.
    In connection with the offering, Tahera will be entering into conversion
agreements with Tiffany & Co. and Nuna Logistics, on terms similar to those
entered into in connection with the rights offering.
    The proposed financing was restructured, as the rules of the Toronto
Stock Exchange would not permit a rights offering to be conditional upon a
minimum amount being raised.
    Tahera's Units offering will be subject to obtaining all regulatory
approvals.

    Tahera Diamond Corporation
    R. Peter Gillin - Chairman and CEO

    
          CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
    

    This document may contain "forward-looking information". In certain
cases, forward-looking information can be identified by the use of words such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
information involves known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information. Such
factors include, among others, risks related to future prices of diamonds;
possible variations in mineral resources and/or mineral reserves, grade or
recovery rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; delays or failure in obtaining financing; unexpected climate
conditions, as well as those factors discussed in the section entitled
"Narrative Description of the Business - Risk Factors" in the Annual
Information Form and in the "Risk Factors" section of the prospectus relating
to the rights offering. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking information, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
information.

    %SEDAR: 00003313E




For further information:

For further information: Investor Relations, Tel: (416) 777-1998, Fax:
(416) 777-1898, Toll free: (877) 777-2004, Email:
investor_relations@tahera.com, Website: www.tahera.com

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TAHERA DIAMOND CORPORATION

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