Rockwell Granted New Prospecting Permits in Area of Existing Operations

Rockwell Granted New Prospecting Permits in Area of Existing Operations

Thursday, August 7th 2008

Rockwell Diamonds Inc. reports on eight new prospecting permits granted by the South African Department of Minerals and Energy (“DME”). These new prospecting permits are located in the Middle Orange River area in the Northern Cape Province of South Africa, and include a number of permits which are adjacent to the Company’s Wouterspan and Saxendrift operations.

Lanyonvale Project: The Lanyonvale properties are situated adjacent to and downstream of Rockwell’s Wouterspan Mine on the Middle Orange River. A program of reverse circulation drilling and 3D modelling is underway to assess the extent of gravel horizons that have already been identified on these properties. Drilling and bulk sampling work is planned to confirm the presence of diamonds in the gravel horizons, with the objective of extending the resources for the Wouterspan operation.

Douglas Project Area: These properties are located upstream of the confluence of the Vaal and Orange Rivers, outside of the town of Douglas. There have been alluvial operations around the town of Douglas for the last 100 years. Follow up work would include assessing the current potential of the properties.

Makoenskloof Area: This property is situated on the north bank of the Middle Orange River, downstream of Makoenskloof where Rockwell performed bulk sampling in 2007, producing some diamonds. The new property is located adjacent to a private operation owned by another party that is known for the recovery of large diamonds.

Diamond Valley: This property is located some 10 kilometres south of the modern day Orange River and at the same general elevation as the Company’s Saxendrift project located about 15 kilometres to the west. Field mapping and a program of reconnaissance drilling is planned to make an initial assessment of this property.

Saxendrift: These properties are adjacent to the lower (Terrace C) of the three terraces that are located on the contiguous mineral right portions that collectively comprise the Saxendrift property package. The Company already holds rights to the property that hosts the upper terraces A and B which have a history of historical diamond production. With the granting of this new right, Rockwell now has access to the three main terraces contained within the Saxendrift project area, with the potential to add further gravel resources at Saxendrift. Terrace C is located approximately 20 to 40 metres above the current river, whereas Terrace A is some 120 metres above the present day river, and Terrace B is situated between A and C. Rockwell is currently constructing a new processing plant on Terrace A.

All of these properties are known to contain alluvial gravel deposits. The Company has designed prospecting programs and will be proceeding with collation of historical diamond information (where available), field mapping, and reverse circulation (“RC”) drilling work. RC drilling is aimed at confirming and delineating the presence and extent of alluvial gravel deposits and ascertaining the stratigraphy and composition of gravels deposits. Should the structure, composition and extent and volume of gravels be found to be of sufficient volume and geological interest, then follow up programs involving excavation of pits, trenches and bulk samples would be considered. Properties with gravel resources that are small and deemed to be less geologically favourable in terms of diamond potential would be returned to the DME.

President and CEO John Bristow noted that, “These new prospecting permits provide the Company with the means to extend the diamond bearing gravel resources around its existing operations, and identify new project areas of interest in the Middle Orange River area.”

Further to the Company’s July 25, 2008 news release in respect of Industrial action at its Wouterspan mine, all necessary steps are being taken to resolve this matter. Rockwell will advise shareholders as soon as appropriate information is available regarding actions and time lines to resolve this situation.

For further details on Rockwell Diamonds Inc., please visit the Company’s website at or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

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