Tahera obtains receipt for amended and restated preliminary prospectus


    TSX: TAH

    TORONTO, Dec. 19 /CNW/ - Tahera Diamond Corporation ("Tahera or the
"Corporation") announced today that it has obtained a receipt for its amended
and restated preliminary prospectus in connection with its best efforts
offering of units ("Units") of the Corporation at a proposed price of $0.065
per Unit. Each Unit will consist of one common share of the Corporation and
one warrant. Each warrant will be exercisable for one common share at a
proposed price of $0.13 per share for a five year period from the closing of
the offering. GMP Securities L.P. has been engaged as agent in connection with
the offering. The offering will be subject to a minimum offering of at least
$40 million. In connection with the offering, the Corporation plans to take
steps to ensure that its shareholders who wish to participate to the offering
are given an opportunity to purchase Units, subject to compliance with the
securities laws of such shareholders home jurisdictions.
    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 continue its operational improvements at the Jericho Mine.
    Tahera also announced that it has entered into conversion agreements with
Tiffany & Co. (Tiffany) and Nuna Logistics Limited (Nuna) on terms
substantially similar to those previously announced in connection with the
rights offering. Pursuant to the agreement with Tiffany, Tiffany has agreed to
convert a portion of the debt into that number of Tahera common shares equal
to 19% of the issued and outstanding common shares following the closing of
the Offering and after giving effect to the conversion transaction. As part of
this agreement, Tiffany has agreed to amend the credit facility with Tahera,
to defer the requirement for scheduled repayments of principal and interest
under the credit facility from December 31, 2007 to January 31, 2008. Assuming
the minimum offering and the conversion transaction are completed, the first
payment outstanding under the credit facility shall be deferred to March 31,
    In addition, the Company's mining contractor, Nuna Logistics Limited
(Nuna) has agreed to convert $3.15 million of the amount Tahera currently owes
to it into Tahera common shares. As part of the agreement, Nuna has agreed to
make certain concessions with respect to labour and equipment costs.
    Each of the conversion transactions will be effected based on a
conversion price relative to the market price of the Tahera common shares less
a 25% discount, but at a price no less than the subscription price of a common
share in the offering. Both conversion transactions are contingent on Tahera
being successful in raising a minimum of $40 million in the offering, entering
into definitive agreements and obtaining regulatory approvals.
    Tahera's units offering is subject to obtaining all regulatory approvals
and pricing may be revised based on the context of the market at the time of
filing a final short form prospectus with respect to the Units. There are many
risk factors associated with the offering and the Company's business and
operations, which are described in details in its amended preliminary
prospectus and its other filings available at www.sedar.com.

    Tahera Diamond Corporation
    R. Peter Gillin - Chairman and CEO


    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 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

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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