Withdrawal of Rockwell Minority Directors' Circular and Proxy demanded



    TORONTO, May 27 /CNW/ - Pala Investments Holdings Limited ("Pala") today
demanded that the Minority Directors, being Mr. David Copeland, Dr. John
Bristow and his younger brother Mark Bristow (the "Minority Directors"),
withdraw and reissue their Proxy Circular dated May 20, 2009 (the "Circular"),
and accompanying form of Proxy (the Green Proxy) for the upcoming Rockwell
Diamonds Inc. ("Rockwell", TSX: RDI, JSE: RDI, OTCBB: RDIAF) shareholders'
meeting to be held on June 17, 2009 (the "Meeting"), in Vancouver, British
Columbia.
    The Minority Directors have wilfully created a situation that is
confusing and detrimental to Rockwell shareholder interests by issuing their
Circular proposing its own set of resolutions and failing to address the
properly proposed business which Pala has called the Meeting to conduct.
    Pala recognizes the ability of the Minority Directors to oppose the
resolutions properly set forth by Pala. However, the Minority Directors'
Circular, with its mismatched resolutions, is written in such a way that it
undeniably creates confusion among shareholders as to exactly what resolutions
are before the Meeting.
    "The Minority Directors have no standing or right under British Columbia
law to create a proxy form adding additional resolutions to the Meeting while
failing to include the resolutions properly set forth by Pala." stated Jan
Castro, Managing Director of Pala Investments AG, the exclusive advisor to
Pala. "Pala has complied with the requirements of British Columbia law and we
expect the Minority Directors to do the same."
    As part of Pala's written demand it advised the Minority Directors that
if they fail to withdraw and reissue their Proxy Circular and accompanying
form of Proxy, Pala will have no choice but to ask for relief from the British
Columbia Supreme Court.
    Pala's Proxy Circular was distributed to shareholders on May 20, 2009,
and is available on www.sedar.com.

    About Pala

    Pala Investments Holdings Limited, based in Jersey, Channel Islands, is a
US$1.0 billion multi-strategy investment company with a particular focus on
mining and natural resource companies in both developed and emerging markets.
Pala Investments' exclusive investment advisor, Pala Investments AG, is a
Switzerland-based team with extensive experience within the mining and natural
resource sectors. Pala Investments seeks to assist companies in which it has
long-term shareholdings by providing strategic advice and innovative financing
solutions.

    Certain statements in the press release are forward-looking statements
and are prospective in nature. Forward-looking statements are not based on
historical facts, but rather on current expectations and projections about
future events, and are therefore subject to risks and uncertainties which
could cause actual results to differ materially from the future results
expressed or implied by the forward-looking statements. These statements
generally can be identified by the use of forward-looking words such as "may",
"should", "will", "could", "intend", "estimate", "plan", "anticipate",
"expect", "believe" or "continue", or the negative thereof or similar
variations. Such statements are qualified in their entirety by the inherent
risks and uncertainties surrounding future expectations. Important factors
that could cause actual results to differ materially from the expectations of
Pala include, among other things, general business and economic conditions
globally or in particular geographic regions in which Rockwell and its
subsidiaries conduct business, the inability to attract and retain qualified
employees, competition, regionally and internationally, changes in law,
disruptions in business operations due to reorganization activities, and
interest rate and foreign currency fluctuations. Such forward-looking
statements should therefore be construed in light of such factors, and Pala is
not under any obligation, and expressly disclaims any intention or obligation,
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

    Information concerning Rockwell contained in this press release and has
been taken from, or is based upon, publicly available information and records
on file with Canadian securities regulatory authorities and other public
sources. Rockwell has not reviewed this press release and has not confirmed
the accuracy and completeness of the information in respect of Rockwell
contained herein. Although Pala has no knowledge that would indicate that any
statements contained herein concerning Rockwell taken from or based on such
documents and records are untrue or incomplete, neither Pala, nor any of its
affiliates, nor any of their respective directors or officers, assumes any
responsibility for the accuracy or completeness of such information or for any
failure of Rockwell or its directors or officers to disclose events or facts
which may have occurred or which may affect the significance or accuracy of
any such information but which are unknown to it.





For further information:

For further information: Colin Murray, Pala Investments AG,
+41-41-560-9070; Craig Rogers, Northern Securities, (416) 644-8187; Katie
Clark, Edelman Public Relations, (416) 979-1120 ext. 231

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Pala Investments Holdings Limited

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