African Diamonds PLC

1
African Diamonds PLC
July 2007

• An AIM listed diamond explorer and emerging
  producer

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 at persons who have
  professional experience in matters relating to
  investments falling within Article 19(1)(a) of
  the Financial Services and Markets Act 2000
  (Financial Promotion) Order 2001 ("FPO") or (b)
  high net worth entities and other persons to whom
  the presentation may otherwise lawfully be
  communicated, falling within Article 49(1)(a) of
  the FPO (all such persons together being referred
  to as "Relevant Persons"). In consideration of
  the receipt of the presentation each recipient
  warrants and represents that he or it is a person
  falling within that description. Delivery of this
  information to any other person or reproduction,
  in whole or in part, without the prior consent of
  African Diamonds plc is prohibited.
• This information is being supplied to you, in
  whole or in part, for information purposes only
  and not for any other purpose. In particular,
  the distribution of this document in
  jurisdictions other than United Kingdom or
  Ireland may be restricted by law and persons into
  whose domain this document comes should inform
  themselves about, and observe, any such
  restrictions. Any failure to comply with these
  restrictions may constitute a violation of laws
  of any such other jurisdictions.

3
Overview of the diamond industry

• Retail market remains strong (6-7 p.a.)
• Low growth in supply (2-3 p.a.)
• Growing gap between supply and demand,
  particularly in the larger better quality goods
• Few large discoveries
• Long lead times on mine development
• Upward pressure on rough and polished prices

Reproduced with kind permission of WWW
International Diamond Consultants Ltd Allan
Hochreiter Pty Ltd
4
Highlights

• Exploring what in our view is the best Diamond
  Address in the world i.e. the Orapa region of NE
  Botswana
• Focus on Botswana
• JV with De Beers
• Near-term producer AK6 kimberlite
• At an advanced feasibility study stage, with
  production planned to start 2009
• Advanced project AK8 kimberlite
• Mini-bulk sampling BK3, BK6, BK7, BK13, AK9
  AK10 kimberlites
• Early stage exploration PL36/2006 (Folio 12)
• Two new Prospecting Licenses 120-km west of Orapa
  Mine at Kedia
• Corporate
• Strong management team
• Portfolio of projects spanning the delivery
  pipeline
• Sound institutional shareholdings
• Other Diamond Growth Activities
• Bugeco SA in JV with De Beers in the DRC (AFD
  35.42)
• West African Diamonds PLC in Sierra Leone and
  Guinea (AFD 15)
• Wati Ventures Pty Ltd in the Orapa region of
  Botswana (AFD 25) 1.35 of AK6 and two new
  kimberlite discoveries BK54 and BK55 as well as
  DK3 and DK4

5
Corporate

• Listed on AIM (London) in July 2003 and on the
  Botswana Exchange in March 2004.
• 76.1M shares issued 79M fully diluted.
• Market cap 76M _at_ 1.01
• Range in last 12 months 0.92 - 1.78
• Directors, family and associates 25.
• Institutions hold 20, of whom the major
  investors are Black Rock (5) and JP Morgan
  (10).
• De Beers hold 6 Firestone Diamonds hold 6.
• c. 1,500 shareholders (c.300 in Botswana).
• Broker/Nomad Panmure Gordon
• Liquid, 6 market makers
• Debt free, with 3.5M in cash and limited
  outgoings.

6
Management

• James Finn (48) Finance Director
• 20 years experience in exploration companies.
• Currently Director of 5 AIM companies.
• Degrees in Accounting and Management.

• John Teeling (61) - Executive Chairman
• 30 years resources experience.
• 20 years African management experience.
• Established a number of AIM companies.
• Doctorate from Harvard.

• James Campbell (42) 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.

• David Horgan (47) 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 Pan Andean Resources plc.

• Alex Van Zyl (63) 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.

7
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
• The rule of law operates commercial terms are
  clear.
• It is the largest diamond producer by value in
  the world.
• There are 4 large operating diamond mines in
  Botswana
• 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 90.
• The Letlhakane mine producing 250M a year of gem
  stones is located close to the AK6 discovery.
• Damtshaa, the newest mine is adjacent to the AFD
  Folio 12 licences.

8
Joint Venture with De Beers

• Boteti Joint Venture formed 2004
• One of the first junior companies to get involved
  in the Orapa area in the New Wave of diamond
  exploration
• Share 49/51, changing to 30/70 on completion of
  the first Bankable Feasibility Study (BFS)
• De Beers pay 100 of all costs until BFS
  thereafter each side pays its way.
• All diamond production contracted to the Diamond
  Trading Company (DTC).
• Mines with annual revenue of less than 70M will
  be operated by African Diamonds who will receive
  70 of the net operating profits. Diamonds still
  go to the DTC.
• Work to date
• gt 500 holes totalling, gt 50 kms have been drilled
• 1 significant economic discovery made AK6
• 1 kimberlite pipe is being evaluated AK8
• 6 kimberlite pipes have been bulk sampled BK3,
  BK6, BK7, BK13, AK9, AK10
• 15 kimberlite pipes are being re-assessed.
• Many anomalies still to be resolved.

9
Why the Orapa Area?

• AK6 discovered by De Beers in 1969 from follow-up
  of geophysical surveys
• Declared to be low interest due to small size
  (c.3.3 ha Figure 1) and a preliminary assessment
  of the diamond grades (3cpht).
• The area was revisited in 1998 due to improved
  exploration technologies geophysical surveys and
  drilling undertaken (Figure 2)
• 2003/2004 100-tonne (5 x 12 holes) bulk
  sampling across kimberlite to test for
  macro-diamonds
• Modeled global grade of 25cpht diamond value of
  US138/ct (1mm)
• 2004/2005 6.5-inch Percussion drilling (44
  holes, 6,376m) to delineate surface outline
• Surface area of 9.5Ha and 40M tons (10M carats)
  at deposit level to 400m
• Results led to current Feasibility Study
• Hypothesis there are perhaps more AK6s to be
  found!

Figure 1 Early plan of AK6 showing locations of
drill holes pits.
Figure 2 Ground geophysical survey over AK6.
10
Botswana License Areas
AK6
The 3,743 km2 yellow ground is the AFD/DB joint
venture. Of the 70 diamondiferous kimberlites
in the Orapa area, the AFD/DB joint venture
control 28 with outstanding applications for
additional pipes.
11
New Kedia PLs

• Two new PLs (1,488 km2) just awarded to Kukama
  Mining Exploration (100 AFD),120-km West of
  Orapa PL84/2007 85/2007

12
Feasibility Studies AK6

• High Inferred Resource Declared (0-400m, 1mm)
• 9.5 Hectare kimberlite pipe
• 11.4M carats
• 51.6M tonnes average grade 24cpht
• Average modelled 130/ct (from LDD) with
  potential to increase
• Further valuations during 2007
• Significant of high value Type II diamonds
• gt USD1,500M in the ground
• gt400m additional deposit potential
• 400-756m (Feb 07 model) 22.28M tonnes
• Outstanding work
• 14,000 tonnes trench complete, sample processing
  in progress
• 69 Type II 10.71ct stone recovered in first
  trench sample
• 30 carats recovered greater than 5mm (15 for
  the LDD programme)
• Indicated Resource Q3 2007

Development of Geological Model
CS1 model based on Phase 1 drilling
Bulk Sampling on AK6
13
Feasibility Studies AK6

• Conceptual Study complete
• Phased 2.7 4.2M tpa
• First phase capital cost USD120-140M
• Operating costs USD8-12/ton
• Revenue (June 2007 valuation) gtUSD31/ton
• Production 2009
• Feasibility Study well advanced completion end
  August 2007
• Application for Mining Lease will be submitted
  end September 2007

Mine Layout
Public Participation
Open Cast Mine Plan
14
Evaluation Projects AK8

• Potential satellite producer for AK6 or stand
  alone operated by African Diamonds
• 10 km away from AK6 10km away from the Orapa
  Mine.
• Resource (1mm)
• 5 Hectare kimberlite pipe
• Average grade 4-9 cpht
• 2.5 Hectare southern lobe estimated grade of
  9-16 cpht
• 15M tonnes to 300m
• Modelled diamond of USD60/carat
• Current phase of work
• Core holes drilled (east lobe). 526kg submitted
  for micro-diamond analysis, 124 diamonds
  recovered probable grade (1mm) of c.9 cpht.
• Macro diamond results are awaited from one 23
  large diameter drill hole in the south lobe and
  two 12.25 holes in the east lobe
• Further results will be available Q4 2007

Geological Model
15
Mini-Bulk Sampling BK3, BK6, BK7 (PL36 Folio
12)

• BK3 (8.5 Hectares)
• Outlined by pitting in 1969 as 0.6 ha pipe
• 1997 electro-magnetic work indicated 9 ha pipe
• Garnet mineral chemistry very similar to BK9
  BK12 (Damtshaa Mine)
• 5 holes each had 300kg of kimberlitic chip
  material sent for micro diamond analysis
• 5 x 12.25 mini bulk sample holes completed
  (889m) and 105 tonnes of kimberlitic material
  recovered and sent for further processing
• BK6 (3.5 Hectares)
• Delineated by drilling in 1969 as 0.6 ha pipe
• 1997 electro-magnetic work indicates kimberlite
  gt0.6 Ha
• 1998, four delineation holes drilled confirming
  size to be lt6 Ha from geophysics estimate
• 4 holes each had 300kg of kimberlitic chip
  material sent for micro diamond analysis
• 4 x 12.25 mini bulk sample holes completed
  (638m) and 106 tonnes of kimberlitic material
  recovered and sent for further processing.
• BK7 (2.5 Hectares)
• Discovery similar to BK6, outline by percussion
  drilling to be 0.5ha
• 1997 EM work, 7 holes drilled, 2 intersected
  kimberlite at 40m and 75m
• 4 holes each had 300kg of kimberlitic chip
  material sent for micro diamond analysis
• 4 x 12.25 mini bulk sample holes completed
  (689m) and 115 tonnes of kimberlitic material
  recovered and sent for further processing.

16
Mini-Bulk Sampling BK13, AK10, AK9

• BK13 (1.7 Hectares)
• Discovered 1970
• Very low Indicator recoveries, mineral chemistry
  rating needs to be upgraded.
• 3 core holes each had 245kg of kimberlitic chip
  material sent for micro diamond analysis
• 4 x 12.25 mini bulk sample holes completed
  (679m) and 83.7 tonnes of kimberlite recovered
  and sent for further processing.
• Poor diamond results geological model currently
  being re-assessed.
• AK10 (3 Hectares)
• Upgraded from 0.01Ha
• 2003 limited mini bulk sampling (12.25"
  drilling) 19 stones, 2.235 carats
• Southern extension is poorly constrained on
  western side
• 6 core holes being drilled with three holes
  completed totalling 795m
• 5 x 12.25 mini bulk sampling holes completed and
  107 tonnes of kimberlite recovered and sent for
  further processing.
• AK9 (3 Hectares just upgraded from 1.5
  Hectares)
• Delineation drilling to 60m did not go through
  basalt
• 2004 mini bulk sampling yielded 90 tonnes of
  kimberlite and 43 stones totalling 2.3 carats
• Detailed geophysical delineation suggest the
  kimberlite body is larger at depth (gt5ha)
• 4 x 12.25 mini bulk sampling holes completed and
  110 tonnes of kimberlite recovered and sent for
  further processing.

Magnetics RTP Vertical Derivative
17
Exploration Projects

• Large scale exploration programme continues
• Several new potential targets to be drilled
• Complete Boteti Technical Review almost complete
  report Q4 2007

Possible application of new prospecting technology
15 kimberlite pipes to be re-assessed AK12,
AK13, BK27, BK29, BK44, BK28, BK39, BK45, BK47,
AK24, BK46, BK51, BK5, BK44 BK10
18
Diamond Growth OpportunitiesBugeco (DRC)

• AFD owns 35.42 of Bugeco SA, a private Belgian
  company with a JV with De Beers.
• The DRC is one of the last places left in the
  world that has elephant hunting potential for
  high-value discoveries.
• Bugeco secured 49 exploration licences (17,480
  km2) in Kasai Oriental in June 2003, now reduced
  to 22.
• A JV was signed with De Beers in May 2005, giving
  them a 70 option on Bugeco
• De Beers carries out all exploration activities
  in the joint venture area at no cost to Bugeco.
• Two new high interest kimberlite clusters have
  been discovered with 10 kimberlite pipes (gt25Ha
  in total size) showing good mineral chemistry and
  the existence of micro-diamonds.
• The pipes will be bulk sampled in 2007

Kimberlite Pipe Geophysical Signature
DRC
Airborne Geophysics
19
Diamond Growth OpportunitiesWest African
Diamonds PLC

• Corporate
• Strong management team appointment of new COO
• Portfolio of projects spanning the delivery
  pipeline
• Solid relationships both at a business and
  political level
• Sound institutional shareholding
• Near-term production
• Plant 11 Undersize Dump 7Mt gold diamond
  deposit, 150tph plant coming on stream Q3 2007.
• Bomboko alluvials gt25cpht and potentially gt0.75M
  carats. Mining to commence H2 2007
• Advanced projects
• Droujba 6-Ha kimberlite pipe, gt2M cts to 120m
  (gt80cpht).
• Kimberlite Pipe 3 re-assessment during Q2-Q3
  2007 good results
• Kimberlite dykes 14-km of strike mapped
• Early stage exploration
• EPL11 gold diamond opportunities
• Fangamadou diamond ruby opportunities
• Growth opportunities
• ex-DB assets in Guinea people equipment
• Newly acquired assets Plant 6 Dumps production
  equipment

Over 1,100 cts _at_ USD228/ct from Pipe 3
20
Summary
INCREASING KNOWLEDGE, CONFIDENCE BANKABILITY
GRASS ROOTS EXPLORATION
PRODUCTION
RESERVES
RESOURCES
DEPOSITS
AK6
The Orapa area has Orapa, Letlhakane Damtshaa
Mines, soon to be followed by AK6 and perhaps
more from the Boteti JV
BK13 AK10 AK9
Boteti PL36 gt 100 anomalies
BK3 BK6 BK7
AK8
Bugeco (DRC)
West African Diamonds PLC
gt6,000 kimberlites
850 Diamondiferous Kimberlites
50 Economic Kimberlites
Less than 20 of Kimberlites contain diamonds
only 1 of kimberlites are significant mines
21
Any Questions?

• Please visit
• http//www.afdiamonds.com
• http//www.westafdiamonds.com
• http//www.bugeco.com

AK6 Final Geological Model