Rockwell Responds to Allegations That Pala Denied Right to Vote at AGM

Rockwell Responds to Allegations That Pala Denied Right to Vote at AGM

Rockwell Diamonds Inc. responds to the announcement by Pala Investments Holdings Limited that Pala was denied the right to vote its common shares of Rockwell at the Company’s annual general meeting held September 15, 2008 in London.

To vote at the AGM, as is the case at all annual meetings of public companies, a shareholder was required to either be a registered shareholder or properly instruct their broker or financial intermediary to vote at the AGM. Pala is not a registered shareholder of the Company and therefore was required to either deposit a proxy within the appropriate timeframes or deliver a letter from a registered shareholder appointing Pala as its authorized representative at the AGM. Contrary to its press release, Pala did not meet these requirements. According to the voting report prepared by the Company’s transfer agent, Computershare, Pala neither deposited a valid proxy nor delivered a letter on behalf of a registered shareholder appointing Pala its authorized representative.

The Chair of the AGM carefully considered the request of Pala to vote at the AGM and adjourned the meeting to examine, with the assistance of independent counsel and the independent scrutineer appointed at the AGM, the shareholder register of the Company and the report of proxies validly deposited with the Company. The Chair ruled that Pala had not met the requirements to vote at the meeting. Before ruling, the Chair allowed Pala and its counsel time to examine the shareholder register with a representative of Computershare and to make further submissions regarding its failure to adhere to the stated voting procedures. The Company notes that certain other shareholders, some of whom wished to cast sizeable votes in favour of the motions before the meeting, were not allowed to vote at the AGM as they also failed to comply with the applicable voting requirements.

For further details on Rockwell Diamonds Inc., please visit the Company’s website at

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