Tahera Diamond Corporation - Exploration update

    TORONTO, Oct. 26 /CNW/ -

    As reported in the second quarter report, the Company undertook a
bulk-sample program on the JD-03 kimberlite pipe in the first quarter of 2007.
Discovered in 1996, the 1.8 hectare body is located just 7 kilometres from
Tahera's Jericho Diamond Mine in Nunavut, Canada.
    JD-03 is a typical group one (non-micaceous) kimberlite and is
interpreted to be pyroclastic with intense serpentinization. In addition, it
contains numerous crustal xenoliths including limestone and granite.
    The goal of the 2007 bulk sample was to better understand the diamond
distribution and grade as previous results showed the potential for large
diamonds. In 1997, a single 3.63 carat stone was recovered from a 10.53 tonne
sample. The 2007 bulk sample results show an average sample grade of
0.27 carats per tonne, similar to previous grades recovered.
    In total, 3,746 diamonds larger than 0.85mm were recovered from 495.1 dry
tonnes of kimberlite. These diamonds totaled 134.7 carats and averaged
0.036 carats per stone with the largest diamond weighing 1.69 carats.
    The 2007 bulk sample was collected by drilling five large diameter
(17.5") drill holes using reverse circulation drilling methods down to a
maximum depth of 305 meters. Kimberlite tonnage estimates were calculated
using a down-hole caliper and 151 in-house density measurements. The results
presented in the table below may be considered representative of the
kimberlite as results are consistent and were collected from holes regularly
spaced within the body.

    Table 1 - Recovered Carats, Diamonds and Carats/Stones per dry Tonne per
    Drill Hole

                   Sample Dry      Carats   Diamonds  Carats Per  Stones Per
    Drill Hole ID      Tonnes   Recovered  Recovered       Tonne       Tonne
    RC07-JD3-001        108.5        28.2        753        0.26        6.94
    RC07-JD3-002         61.6        18.8        441        0.31        7.16
    RC07-JD3-003        110.8        29.0        795        0.26        7.18
    RC07-JD3-004        108.7        34.5        988        0.32        9.09
    RC07-JD3-005        105.5        24.1        769        0.23        7.29
    Total               495.1       134.7       3746        0.27        7.57
    All diamonds and diamond weights shown in the charts above are greater
    than 0.85mm. Stones recovered smaller than 0.85 mm have not been
    included. An additional 1.37 carats were not included in table above were
    recovered from 3 re-crush audits and the final process plant gravel purge
    cleanout but included for diamond valuation purposes.

    Kimberlite from the JD-03 bulk sample was processed in a
10-tonne-per-hour dense media separation ("DMS") plant with a bottom cut-off
of 1.0 millimetre (square mesh) at De Beers Canada Inc.'s Grande Prairie
facility. The resulting heavy concentrate was shipped to Kennecott Canada
Inc.'s laboratory in Thunder Bay for diamond recovery. Although neither of
these facilities are ISO/IEC 17025 accredited, industry standard chain of
custody and security protocols were followed maintaining sample integrity.
    The DMS processing flow sheet was designed for maximum liberation of
diamonds (greater than)0.85 mm, not necessarily to simulate current commercial
production methods. All feed material greater than 1 mm and less than 11 mm
was processed through the DMS, with larger material crushed to approximately
11 mm before processing. A re-crush circuit for DMS tailings was set-up at
7 mm to further liberate diamonds on five of the batches for auditing
purposes. The recovery circuit included an X-ray recovery system, with a
secondary Eriez magnetic concentration system to create a diamond concentrate
for picking. Concentrate and X-ray fractions were commonly large and therefore
some fractions were reduced using caustic fusion to reduce picking time. All
process plant bottom cut-off screens were 1mm square mesh.
    The processing and security of the bulk sample was audited at many stages
and followed a rigorous quality control program. A random diamond 'spiking'
program using marked natural stones showed 99% recovery of both the processing
plant and the recovery circuit
    Diamonds from the entire sample totaling 136.07 carats were valued by
independent and government diamond valuators at the Jericho Diamond Mine in
late October and achieved an average price of US$39 per carat; however, stones
in the +3 grainer (greater than 0.75 carats) categories had an average price
of $227 per carat. Due to the small size of the diamond parcel, the average
price per carat may not be representative of the JD-03 kimberlite. Individual
stones with value greater than 5% of the overall parcel are presented in the
table below. Detailed diamond descriptions for the entire +5 DTC parcel was
carried out by Mineral Services Canada Inc (MSC). MSC describes 76% of the
diamonds (by stone count) as having octahedral morphology, 33% of the stones
are classified as colourless (white), 69% are transparent, and 26% have high
clarity (less than 1% inclusions/fractures). No price modeling was undertaken
due to the small parcel of diamonds.

    Table 2 - Stones with value greater than 5% of overall parcel

                          Carat         US$ per
                 Stone   Weight           Carat     Value ($US)
                 1         1.64        $ 250.00       $ 410.00
                 2         1.20        $ 375.00       $ 450.00
                 3         0.78        $ 442.94       $ 345.50

    Based on the grade and value results of the 2007 bulk sample, no further
exploration work is planned on the JD-03 kimberlite at this time.
    An outline of the Company's 2008 exploration program will be provided
prior to year end.
    Mr. Dale Mah, P. Geol., is Tahera's qualified person as defined in
National Policy 43-101 for its exploration programs and has supervised the
preparation of the exploration information included in this report. Mr. Mah is
an employee of Tahera and is not considered independent of the Company.
    Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond
Company. Tahera's primary asset is its wholly-owned Jericho Diamond Mine,
which represents Canada's third and Nunavut's first diamond mine. Tahera's
diamond purchase and marketing arrangement with Tiffany & Co., one of the
world's leading jewelers, ensures that the Company receives competitive market
prices for its Jericho diamonds.

    Forward Looking Statements

    The above contains forward-looking statements that are subject to a
number of known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in our
forward-looking statements. Although we believe the expectations reflected in
our forward-looking statements are reasonable, results may vary, and we cannot
guarantee future results, levels of activity, performance or achievements.
    Note: that the potential quantity and grade that may be inferred from the
data is conceptual in nature and readers are reminded that there has been
insufficient exploration to define a mineral resource for the JD-03

    Tahera Diamond Corporation

    R. Peter Gillin - Chairman and CEO

    %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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