"The presence of stones of this type is highly unusual given the small size of the sample and demonstrates the potential for exceptionally high value stones."

A valuation of the 3,890 carat parcel was carried out by Mr. Shlomo Tidhar of Galaxy Diamond Expertise SA ('Galaxy') in June, 2009.

The bulk sample was valued at a price of US$437 per carat, based on Galaxy's best estimate for current market prices, for an overall value of US$1.7 million. This figure compares to a price of US$422 per carat from the smaller initial sample of 1,672 carats valued in December 2008, based on the same June 2009 price book.

Galaxy noted that, "The value result for Mothae diamonds continues to be highly influenced by the presence of large, high value stones, like a stone of 24.59 carats being valued at over $320,000. The presence of stones of this type is highly unusual given the small size of the sample and demonstrates the potential for exceptionally high value stones."

A modeling exercise on the diamond parcel yielded a model price of US$549 per carat which is lower than the modeled value obtained in December 2008, due in part to lower current market prices, a reduction in the expectation of large stone frequency based on increasing sample data, and to a more conservative approach to valuing potential stones in the modeled population.

In commenting on the modeled diamond value, Galaxy noted, "It is conceded that there is much potential upside due to the possibility of obtaining high value large stones. In this context, six diamond fragments totaling 45 carats were recovered from an initially >60 carat diamond. It is estimated that if this stone had remained intact, the overall diamond parcel would have been increased by US$400,000; the value per carat for the parcel would have been US$540, with a modeled value of US$684 per carat."

Valuation updates can be viewed by clicking the below links:

• First Tender of Rough Diamonds
• December 2011 Diamond Sales
• September 2012 Diamond Sales

The information in this section which is of a scientific or technical nature has been derived in part from the technical report entitled "Mothae Kimberlite Project, Lesotho, Independent Technical Report" dated February 12, 2007 prepared by Dr. Norman Lock (BSc, PhD, CGeol FGS, MGSSA, PrSciNat) of MSA Geoservices (Pty) Ltd., who is a "qualified person" within the meaning of this term in National Instrument 43-101. A copy of the report is available on SEDAR at www.sedar.com.