“The recoveries are an important part of proving Jericho’s real potential, and speaks to the lost grade from past operations. We are excited to see that the diamond recoveries from the recovery rejects tailings pile are in line with audits done by both Tahera and Shear (refer to press release dated Februrary 8, 2011)” says Julie Lassonde, CEO and Ch air of Shear. “Diamond recoveries continue during our plant trial, which has seen periodic stoppages to address the inevitable issues which arise in recommissioning a circuit that has been dormant for the past three years. Shear’s ultimate goal is to generate cash flow from diamond sales in the coming months and continuing through all of 2012.”

The diamond recoveries total 200.85 carats from 22.1 wet tonnes of recovery reject and coarse processed kimberlite. 14 stones greater than 0.5 cts have been recovered and the four largest stones are 1.907, 0.978, 0.974, and 0.775 cts respectively.

The diamond recovery process includes on site processing of material through a crusher, sorted and fed through the WHIMS, then an X-ray flow sort and grease table followed by on site manual diamond recovery and sorting. Shear is reporting total diamond recoveries since the material being processed has already been run th rough the plant during past operations is not representative of the o verall diamond count of the Jericho Kimberlite Complex as stated in the resource.

Geology Update

Mineral Services Canada (“MSC”) was contracted to undertake a detailed geological analysis of all available historical drill core (49 drill holes in total) complemented by systematically collected thin sections and polished slabs (851 in total) for petrographic analysis. Twelve kimberlite types and 13 domains were defined. Shear believes this model better reflects the kimberlite emplacement processes at work within the Jericho Kimberlite Complex. The purpose of this exercise is to provide a basis for increased confidence in geological continuity for future mine planning.

The Jericho Kimberlite Complex is interpreted to represent a series of pyroclastic kimberlite eruptions that were emplaced in a general south to north direction from two vents known as the South/Central and North Lobes. Geologic complexity arises from the mixing of these events as well as the presence of remnants of interpreted earlier phases found in areas not previously identified by Tahera s previous geological model.

Geostrat Consulting Services (“Geostrat”) was retained to develop the 3-D Geological Model of the Jericho Kimberlite Complex using Gemcom modeling software. This process involved working closely with MSC to help develop robust geological domains that represent a volcanologically permissive model with manageable mining parcels that can be evaluated for grade modeling and/or reconciliation.

Geostrat is also working to best, back -reconcile grades from mining production to the newly interpreted 3- D Model geology, but given that insufficient data was recorded over the mine life to link recovered carats back to the mining blocks from which they came, Shear will use this information to complement the new model, with plans to complete its own due diligence in the next 12-18 months. Recommended follow up work includes collection of geologically defined bulk samples from within the pit for the purpose of grade estimation and diamond valuation plus additional drilling.

Shear also announces the departure of Jennifer Burgess, VP Exploration. The Board of Directors would like to thank Jennifer for her many years of service. Pamela Strand., P. Geol., Shear’s President and a qualified person for purposes of National Instrument 43-101 will be assuming Jennifer’s duties.