African Diamonds corporate presentation August 2010

1. African Diamonds plc
AFD is developing the world class AK6
diamond mine in Botswana in Joint Venture
with Lucara Diamond Corporation
August 2010

2. 2
Important Notice
♦ This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for
any securities in African Diamonds plc nor shall it or any part of it form the basis of, or be relied on in connection with, or
act as any inducement to enter into, any contract or commitment whatsoever. No reliance may be placed for any purpose
whatsoever on the information or opinions contained in this presentation or on any other document or oral statement or on
the completeness, accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty
or other assurance, express or implied, is made or given by or on behalf of African Diamonds plc or any of their
respective directors, employees or advisers, as to the accuracy or completeness of the information or opinions contained
in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for any such
information or opinions or for any errors, omissions, misstatements, negligence or otherwise contained or referred to in
this presentation. The contents of this presentation have not been approved by an authorised person within the meaning
of the Financial Services and Markets Act 2000.
♦ This presentation does not constitute an offer to the public as referred to in section 85 of the Financial Services and
Markets Act 2000 (as amended) of the United Kingdom and accordingly has not been nor will it be approved by any
competent authority in the United Kingdom. This presentation is not a prospectus within the meaning of the Prospectus
(Directive 2003/71/EC) Regulations 2005 of Ireland and therefore has not been approved by the Irish Financial Services
Regulatory Authorities being the competent authority for the purposes of Directive 2003/71/EC in Ireland. This
presentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies and
Miscellaneous Provisions Act 2005 of Ireland.
♦ This Presentation has been prepared by the Directors of African Diamonds plc and is being issued solely to and directed
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♦ This presentation contains forward looking statements. Forward looking statements appear in a number of places in this
presentation and include statements regarding African Diamond plc’s intent, belief or current expectations with respect to
its results of operations and financial conditions. By their very nature forward looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward
looking statements will not be achieved. African Diamonds plc is under no obligation, and disclaims any obligation, to
update or alter the forward looking statements included in this presentation, whether as a result of new information, future
events or otherwise after the date of this presentation.

3. 3
Introduction
♦ African Diamonds (AIM: AFD) is a Botswana focused
diamond explorer and developer who discovered, in 2004,
the AK6 hard rock kimberlite mine.
♦ This high value diamond mine developed by African
Diamonds (40%) and their partner, Lucara Diamond
Corporation (part of Lundin Group – 60%) will come on
stream in 2011.
♦ At full production, AK6 will each year produce around
700,000 carats of diamonds (+1.5mm) expected to realise
over US$175M in revenue.

4. 4
Executive Summary of the AK6
Project
♦ Using 100% equity, unescalated NPV at an 8% rate of discount is US$172
million.
♦ The project IRR is calculated to be 38.4%
♦ The mine will process a total of 37.8 million tonnes, and strip 90.9 million
tonnes of waste to recover 6.94 million carats of diamond
♦ The mine will be developed in two phases:
– Phase 1 will treat 2.5 million tonnes per annum from 2012 to 2015
– Phase 2 will treat 4 million tonnes per annum from 2016 to 2022.
♦ The capital expenditure will be
– Phase 1 – US$120.2 million
– Phase 2 – US$ 36.1 million
♦ The average operating cost will be US$ 17.51 per tonne treated

5. 5
Diamond Market
♦ Fundamental change in world economy
since Q4 2008
♦ Dramatic short to medium term impact on
diamond industry
– Rough prices dropped by 40-65% from
highs of mid-2008
– Mine closures & production cut backs
– Termination or curtailing of the majority of
exploration projects in Q1 2009
– Lack of new discoveries reducing long term
supply
♦ Sustained recovery:
– Rough prices began to recover in April 2009
– Significant supply shortfall expected in 2012
going forward which will drive demand
– Destocking of cutting centres and return of
bank finance are stimulating cutting centre
demand for rough
– Rough prices are close to their all time high.

6. 6
Botswana is an African success story:
it has progressed from one of the
poorest countries in the World at the
time of independence in 1966 to a
middle-income country
– Africa's least corrupt country
– Third freest economy in Africa
– Consistently one of the highest sovereign
credit ratings in Africa

7. 7
Still the Best Address in Diamonds:
Botswana
♦ Since gaining independence in 1966 it
has become one of the richest and most
stable African countries. It is called the
‘Switzerland of Africa’:
♦ It is the largest diamond producer by
value in the world
♦ There are 4 large operating diamond
mines in Botswana, all run by
Debswana:
– The Orapa mine, producing 17M carats a
year, is the second largest diamond mine
in the world
– Jwaneng is the richest mine of any type
in the world, with a P/R ratio in excess of
80%.
– The Letlhakane mine producing $250M a
year of gem stones is located close to
the AK6 discovery.
– Damtshaa (4 kimberlites), currently on
care and maintenance

8. 8
The AK6 Discovery
♦ First drilled in 1969
♦ Re-assessed by AFD &
De Beers in 2004
– New geophysics & drilling
technology
♦ Mining License approved by
Government of the Republic of
Botswana (‘GRB’) in 2008
♦ De Beers sold their share in
Boteti to Lucara in 2009
♦ The AK6 mine is the only
significant commercial hard-rock
diamond discovery in recent
years

9. 9
Joint Venture on AK6 with Lucara
Diamond Corp
♦ The Boteti joint venture company, which holds the AK6
Mining Licence, has the following ownership -
- African Diamonds 40%
- Lucara 60%
♦ Lucara, is part of the Lundin Group which is a 15 company
$10 billion resource group.
♦ African Diamonds has the right, subject to government
approval, to market their percentage of diamond output,
which will amount to up to c 300,000 carats a year.
♦ Lucara are the operator.

10. 10
The AK6 Resource
Bulk Sampling on AK6
♦ Updated resource statement

11. 11
AK6 Current Status
Feasibility Study approved by the board of Boteti
• 15 year mining license
• EIA and EMP approved in 2008
• Production expected to commence in Q4 2011
• No government equity in project
• 10% gross diamond value royalty
• Variable tax rate according to the 12th Schedule of Botswana Income Tax Act
• Diamond marketing arrangement concluded with the GRB
Mining License
• Paved roads
• Water (via underground boreholes and pit dewatering)
• Power (Botswana government pledge to provide power from national grid)
Excellent infrastructure

12. 12
AK6 Development Plan
Parameters Description
Mine Life Open Cast 11 yrs
Mining Scenario Phased open pit development with contract mining
Phase I Production
Phase II Expansion
2.5Mt/yr starting 2011
4Mt/yr starting 2016
Indicated Resource 51Mt @ 16cpht (+1.5mm) @ USD243/ct
Production envelope Top size: 30mm
Bottom size: 1.5mm
Capital Expenditure (June 2010)
Phase I
Phase II
Feasibility Study estimates
Paradigm Project Management Pty Ltd
US$120M (inc 13% contingency)
US$36M (inc 20% contingency)
Positive reviews by DRA and SNC Lavalin
Operating Costs (June 2010) US$17.20/tonne (LOM)
Financial summary (unescalated costs
& 2.5% real diamond price growth)
NPV(8%) $US172m, IRR 38.4%
Implementation partner DRA Africa Pty Ltd

13. 13
AK6 Treatment
Plant Flowsheet
♦ Primary mineral sizer
♦ Autogenous mill
♦ Pebble crushing
♦ Spiral classifier and
screen
♦ Dense Media Separation
♦ Magnetic separation
♦ X-ray machines
♦ Handsorting
One recycle load only

14. 14
AK6 Diamonds
cts/ton %cts cts/ton %cts cts/ton %cts
60ct 0.001 0.425 0.001 0.5503 0.001 0.650
30ct 0.001 0.605 0.001 0.7843 0.001 0.926
15ct 0.002 1.104 0.002 1.4305 0.002 1.689
10ct 0.002 1.004 0.002 1.3007 0.002 1.535
9ct 0.001 0.317 0.001 0.4109 0.001 0.485
8ct 0.001 0.385 0.001 0.4995 0.001 0.590
7ct 0.001 0.480 0.001 0.6216 0.001 0.734
6ct 0.001 0.615 0.001 0.7971 0.001 0.941
5ct 0.002 0.821 0.002 1.0644 0.002 1.256
4ct 0.002 1.161 0.002 1.5044 0.002 1.776
3ct 0.004 1.789 0.004 2.3192 0.004 2.738
10gr 0.001 0.750 0.001 0.9726 0.001 1.148
8gr 0.005 2.461 0.005 3.1901 0.005 3.766
6gr 0.004 2.195 0.004 2.8454 0.004 3.359
5gr 0.003 1.491 0.003 1.9318 0.003 2.280
4gr 0.006 3.090 0.006 4.0051 0.006 4.728
3gr 0.007 3.807 0.007 4.9336 0.007 5.824
+11 0.022 11.079 0.022 14.3582 0.022 16.949
+9 0.021 10.707 0.021 13.8760 0.021 16.380
+7 0.018 9.081 0.016 10.5917 0.018 13.892
+5 0.042 21.370 0.034 22.1571 0.021 16.674
+3 0.033 16.904 0.010 6.5724 0.002 1.293
+1 0.016 8.359 0.005 3.2831 0.000 0.388
0.197 100.000 0.152 100.0000 0.129 100.000
+2mm Trench
Recovery
AK6 South lobe size distribution
+1mm LDD
Recovery
+1.47mm Recovery
cts/ton %cts cts/ton %cts cts/ton %cts
60ct 0.001 0.518 0.001 0.6588 0.001 0.767
30ct 0.002 0.720 0.002 0.9163 0.002 1.067
15ct 0.003 1.289 0.003 1.6398 0.003 1.910
10ct 0.003 1.153 0.003 1.4675 0.003 1.709
9ct 0.001 0.362 0.001 0.4601 0.001 0.536
8ct 0.001 0.438 0.001 0.5574 0.001 0.649
7ct 0.001 0.543 0.001 0.6909 0.001 0.805
6ct 0.002 0.693 0.002 0.8821 0.002 1.027
5ct 0.002 0.921 0.002 1.1715 0.002 1.364
4ct 0.003 1.293 0.003 1.6450 0.003 1.916
3ct 0.005 1.976 0.005 2.5146 0.005 2.929
10gr 0.002 0.823 0.002 1.0475 0.002 1.220
8gr 0.007 2.681 0.007 3.4113 0.007 3.973
6gr 0.006 2.369 0.006 3.0138 0.006 3.510
5gr 0.004 1.597 0.004 2.0324 0.004 2.367
4gr 0.009 3.287 0.009 4.1822 0.009 4.871
3gr 0.010 4.008 0.010 5.0992 0.010 5.939
+11 0.030 11.452 0.030 14.5705 0.030 16.971
+9 0.028 10.808 0.028 13.7515 0.028 16.017
+7 0.023 8.997 0.021 10.3025 0.023 13.333
+5 0.054 20.647 0.043 21.0154 0.027 15.604
+3 0.041 15.842 0.012 6.0469 0.002 1.174
+1 0.020 7.582 0.006 2.9230 0.001 0.340
0.260 100.000 0.204 100.0000 0.175 100.000
AK6 Center/North lobe size distribution
+1mm LDD
Recovery
+1.47mm Recovery
+2mm Trench
Recovery
The valuation report noted that the diamonds from AK6 are deemed to be of very good quality and very attractive to diamond buyers from any of
the world commercial diamond centers. Colors are generally very white and the samples showed numerous examples as ‘blocky’ makeable and
strong crystal forms that tend to lead to strong polished yields which demand a premium. There was a noted presence of type II A stones
including a 12+ carat stones that had been broken into 8 or more fragments. There was a very surprising profile of large stones given the
relatively small sample size. Especially unusual was the Center/South trench sample which produced 5 stones > 3 carats from only a 94 carat
sample. This included a 10 carat stones valued at ~$17,600. This evidence tends to suggest that AK6 will produce significantly more larger,
better quality stones than currently modeled.

15. 15
AK6 Diamond Marketing
♦ Diamonds will be sold through:
– Open tender process
– Negotiated exclusivity contract
♦ Standard 10% royalty on diamond sales paid on actual sales
price
♦ Government Diamond Valuer (‘GDV’) will value Boteti goods
prior to any sale
♦ Marketing clauses in Mining License agreed with GRB
♦ Discussions well advanced with diamantaires in terms of a
marketing framework

16. 16
AK6 Project Finance
♦ Short list of 4 institutions examining the project
♦ Indicative terms received
♦ Discussions well advanced with one bank in
particular
♦ Opportunity to access preferential ECIC funding
in addition to standard project financing
♦ Possibility of expanding the overall financing
through a line of credit from diamantaire(s) both
at a Boteti and AFD level

17. 17
AK6 Opportunities
Variable Current Opportunity
Diamond Value Modelled: US$243/ct
Expected: USD250/ct+
Increased diamond price
Confirmation of rare high
value Type II diamonds
Increased stone value
Evidence of larger stones Increased revenue
Grade 16cpht (+1.5mm) Conservative estimate &
autogenous milling will liberate
more diamonds.
The grade of the South lobe
could be up to 40% higher due to
diamond breakage and lock-up in
the sampling programme
Reserve Bottom of open pit is
currently 336m
The Indicated Resource exists
down to 400m, with an Inferred
Resource down to 750m, so
plenty of opportunity to deepen
the pit

18. 18
AK6 Development Timeline
2010 2011 2012 2013 2015
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Feasibility Update
Development
Production
Expansion
In progress Planned/Continuing
NLobe CLobe SLobe
Mudstone
Shale
Granite
Mosolots
Sandstone
Ntane
Sandstone
Fresh
Basalt
Calcrete
W BasaltNLobe CLobe SLobe
Mudstone
Shale
Granite
Mosolots
Sandstone
Ntane
Sandstone
Fresh
Basalt
Calcrete
W Basalt

19. 19
Exploration Upside - Botswana
♦ 100% AFD owned
♦ Three advanced hard rock kimberlite
exploration projects
♦ The AK8 discovery, 10km away from AK6,
is a 5 hectare pipe grading up to 7 cpht with
20M tonnes of resources estimated.
♦ The AK9 discovery, 10km away from AK6,
is a 3 hectare pipe with limited exploration,
but good quality diamonds.
♦ BK5 kimberlite currently 3.5 hectares is
expected to grow to 7.2 hectares on further
work.
♦ Comprehensive drilling programme being
planned.
♦ The expectation is that one or more of the
above will become a stand alone mine or a
satellite feeder to AK6.
15

20. 20
Early Stage Exploration
♦ African Diamonds is active in 4 countries:
♦ Botswana: AFD holds attractive ground in the Orapa
area including 21 known kimberlites. An active drilling
programme will start in mid 2010.
♦ Zimbabwe: AFD has joint venture applications for ground
in the Marange area.
♦ Cameroon: AFD is in early moves to acquire ground in
the Keto, Mobelong and Foumbon areas.
♦ Congo: AFD holds a 35% interest in Bugeco who hold
licences containing 10 known kimberlites.

21. 21
Corporate
♦ Quoted on AIM (London) since July
2003 and on the Botswana Exchange
since March 2004
♦ 100.3M shares issued: 108.6M fully
diluted
♦ Market cap: £40M @ £0.40
– Range in last 12 months £0.21 - £0.56
♦ Directors, family and associates: 25%.
♦ Significant institutional investors:
– Investec Botswana (11.6%)
– JP Morgan (10%)
– Altus (5.4%)
– De Beers (3.4%)
– Black Rock (3%)
♦ c.1,500 shareholders (c.300 in
Botswana)
♦ Broker/Nomad: Finncap
♦ Liquid, 9 market makers
♦ Cash: USD3.6M

22. 22
Management
John Teeling (64) - Executive Chairman
•30 years’ resources experience.
•20 years African management experience.
•Established a number of AIM companies.
•Doctorate from Harvard.
James Campbell (46) – Managing
Director
•Over 20 years’ diamond experience with
Anglo American plc & De Beers.
•Had world-wide responsibility for
diamond resource delivery in De Beers.
•Previously Personal Assistant to Nicky
Oppenheimer.
•Degrees in Geology and Business.
Alex Van Zyl (66) – Technical Director
•Over 40 years’ diamond experience with
Anglo American plc and De Beers.
•Had worldwide responsibility for
diamond exploration and evaluation.
•Led the discovery of Venetia Mine.
James Finn (51) – Finance Director
•20 years’ experience in exploration
companies.
•Currently Director of 5 AIM companies.
•Degrees in Accounting and
Management.
David Horgan (50) – Director
•Holds a Law degree from Cambridge
and an MBA from Harvard.
•He is Managing Director of AIM listed
Middle East oil explorer Petrel
Resources plc and Oil & Gas producer
Hydrocarbon Exploration plc.

23. 23
Proposal
1. $20m loan to AFD to be used in CAPEX for the AK6
mine and for exploration
2. Six year term
3. 10% interest per annum rolled up
4. Bullet payment at end year 6
5. Life of Mine marketing rights on the AFD share of AK6
output
6. Similar rights on any other mines developed by AFD
during the loan life
7. Two directors on the main board (2 of 7)

24. 24
Summary
♦ JV with Lucara
♦ Mining License in place for world-class AK6 hard
rock diamond mine
♦ Updated Feasibility Study received
♦ Commissioning due to commence late 2011
♦ Diamond market improving
♦ Wholly owned prime exploration ground in
Botswana