UPDATE TO SHAREHOLDERS

Shareholders are referred to the SENS announcement dated 2 April 2012 and 14 September 2012 referring to the second provisional liquidation application against Angel Diamonds (Pty) Ltd (“Angel Diamonds”)(Case Number CIV/PET/01/2011) and the Judgement against Messrs Mosebo and Engelbrecht with costs and they have to provide security for costs for an amount of R250 000 in Case Number CIV/APN/664/2010 (“the Case”), respectively.

The application for provisional liquidation of Angel Diamonds was dismissed in the High Court of Lesotho today.

Angel Diamonds has requested the immediate hand over of the movable equipment and rough diamond stock from the provisional liquidators.

Angel Diamonds will also proceed with a Review Application in the High Court of Lesotho to direct that the previous Minister of Natural Resources had acted incorrectly in granting Reskol Diamond Mining (Pty) Ltd a Mining Lease (“ML”), within a period of three months, when Angel Diamonds’ ML application of 12 December 2008 has not been considered in good faith.

Shareholders will be advised of future developments.

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