African Diamonds plc has exercised its option to increase its stake to 40% in the AK6 diamond deposit for a total cash consideration of US$8 million paid to Lucara Diamond Corporation and Wati Ventures Pty Ltd. The remainder of the equity in AK6 is held by Lucara Diamond Corporation.

John Teeling, Chairman of African Diamonds, commented: "This is another significant step on the road to becoming a significant diamond miner. By the end of 2011 African Diamonds should begin to see a flow of up to 400,000 carats per year with a value of up to US$200 per carat once full production is reached."