Rockwell Executive Directors Cite Strong Fundamentals in Final Appeal for Support

    VANCOUVER, June 12 /CNW/ - The Executive Directors of Rockwell Diamonds
Inc. (TSX: RDI; JSE: RDI; OTCBB: RDIAF) today made a final appeal for voting
support and reiterated their belief that Rockwell shareholders will see
through Pala Investment Holdings Limited's thinly disguised cashless take-over
and understand that there is a hidden agenda. The Executive Directors trust
that shareholders understand the fundamental strengths of Rockwell's business
and will not turn over control to Pala's hand-picked nominees in order to give
them a mandate to dismantle shareholder protections.

    John Bristow, CEO and an Executive Director, commented

    "Shareholders will take comfort when we formally file updated independent
geological reports within the next 45 days. These reports will show that
management continues to technically define and upgrade resources, replacing
mined resources. The Company's overall mineral resources have remained mostly
unchanged even after 2008 mining at Wouterspan, Holpan, Klipdam and Saxendrift
while resources in the indicated category at Holpan/Klipdam showed a 100%
increase as a result of confirmatory drilling early in the year. At
Saxendrift, geological compilation, re-modelling and reclassification resulted
in a 92% increase in indicated resources (with only a 45% reduction in
inferred resources for a significant net overall increase). A recompilation of
data and re-modelling of mineral resources for the Niewejaarskraal project
resulted in 42% increase in overall mineral resources (although the 30%
previously classified as indicated was downgraded to the inferred category.
See summary table below.)
    Diamond sales are ongoing and the international diamond market is showing
signs of improvement in terms of trading activity and firmer sales prices, and
the Company continues to meet its financial commitments and has room left in
its credit line, all contrary to what Pala would have shareholders believe.
    Following the credit crunch and the precipitous decline in diamond prices
through late 2008, we as Executive Directors have been open in saying that
Rockwell should raise funds to bolster its balance sheet. Our situation is no
different from that of other alluvial producers who have, with few exceptions,
been severely impacted by the precipitous decline in prices. In this respect,
we were astonished that the audit committee which includes Pala's general
counsel would publicly decry rather than welcome the fact that Haywood
Securities Inc. has offered to support the Fair Rights Offering as a
competitive back-stop to that offered by Pala."

    David Copeland, Chairman and an Executive Director, added

    "It is clear that Pala initiated this second contest, at a great cost to
our shareholders, in another attempt to seize control of your diamonds using
the guise of leadership when Pala already purports to speak to the majority of
the board while providing no details of the "restructure" plans referred to in
its circular. Pala complains about leadership without offering anything to
explain what Pala would have done differently over the recent market
difficulties despite having its general counsel on Rockwell's board and so
shareholders must be only too aware that they have heard nothing about that
from the majority directors who have let Pala do their talking for them.
    Two of your three Executive Directors draw no compensation other than
ordinary directors fees and this fight has never been about anyone keeping
their jobs - it is about the need to ensure the long term success of Rockwell
and in the process stop an aggressive minority shareholder from taking
advantage of tough times in the diamond business to seize control of what
they, and other shareholders, recognize as a professionally assembled
portfolio of very valuable assets that produce a unique array of scarce and
valuable fancy and large gemstone quality diamonds."

    The Executive Directors of Rockwell have established a purpose-specific
web site where additional information, including the Executive Directors'
Information Circular and Proxy, is available to shareholders relating to the
issues concerning the Special Meeting at



    Tania Marshall, Pr.Sci.Nat, an independent Qualified Person, is
responsible for the estimates for Holpan/Klipdam, Wouterspan, Saxendrift and
Niewejaarskraal. Dr Marshall has reviewed the technical information in this
release. Technical Reports by Dr. Marshall and Rockwell's in-house Qualified
Person will be filed at within 45 days.
    For further details on the mineral resources at Kwartelspan and
Zwemkuil-Mooidraai, see Rockwell News Release dated March 12, 2007.

                  Mineral Resources as at February 28, 2009

                                                                (carats per
                                                   Volume        100 cubic
    Property                    Category       (cubic meters)      meters)
    Wouterspan                 Indicated          5,025,500         0.70
                                Inferred         37,774,000         0.70
    Holpan                     Indicated          1,137,300         0.74
                                Inferred          5,937,000         0.74
    Klipdam                    Indicated          1,135,200         0.91
                                Inferred          2,816,000         0.91
    Saxendrift                 Indicated          5,063,099         1.01
                                Inferred          4,358,143         0.72
    Niewejaarskraal             Inferred         20,630,500         0.84
    Zwemkuil-Mooidraai          Inferred          1,640,000         0.95
    Kwartelspan                 Inferred          1,384,577         1.50

    The comments of 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 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 to the contested special shareholders meeting.
    Questions relating to the Executive Directors' positions in respect of
the special meeting should be directed to the Laurel Hill Advisory Group by
email at or by phone Toll Free at 1-888-882-6737
in North America, 00-800-8655-1111 in Europe or 0-800-982-179 in South Africa
or Collect at 1-416-637-4661.

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

    Forward Looking Statement

    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 Rockwell expects are forward-looking statements. Although
Rockwell 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,
and general economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees of future performance and those
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 and Rockwell's home
jurisdiction filings that are available at

    Information Concerning Estimates of Indicated and Inferred Resources

    This news release also uses the terms 'indicated resources' and 'inferred
resources'. Rockwell Diamonds Inc advises investors that although these terms
are recognized and required by Canadian regulations (under National Instrument
43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and
Exchange Commission does not recognize them. Investors are cautioned not to
assume that any part or all of the mineral deposits in these categories will
ever be converted into reserves. In addition, 'inferred resources' have a
great amount of uncertainty as to their existence, and economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of feasibility
or pre-feasibility studies, or economic studies except for Preliminary
Assessment as defined under 43-101. Investors are cautioned not to assume that
part or all of an inferred resource exists, or is economically or legally

For further information:

For further information: Laurel Hill Advisory Group by email at or by phone Toll Free at 1-888-882-6737 in North
America, 00-800-8655-1111 in Europe or 0-800-982-179 in South Africa or
Collect at (416) 637-4661

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