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West African Diamond - Trading Statement

RNS Number:3863D West African Diamonds PLC 06 September 2007 UPDATE ON THE BULK SAMPLING OF PIPE 3 SIERRA LEONE * Bulk sampling completed on Pipe 3, Sierra Leone * Results suggest a significant increase in grade The board of West African Diamonds plc, the AIM listed diamonds and precious metals explorer and developer (AIM: WAD), is pleased to announce an update on activities on its wholly owned Pipe 3 project in Sierra Leone. The Dense Media Separator (DMS) plant has completed the audit work on Pipe 3. This builds on the results obtained from the analysis of the 20,000 tonnes of kimberlite extracted between June 2004 and October 2005. Previous processing of the kimberlite yielded 1,075.49 carats (ct) (5,670 diamonds) worth USD198 a carat at a grade of 5.26 carats per hundred tonnes (cpht). The audit work re-assessed diamond values and grades. * The diamonds from the 2004-5 exercise were re-valued in June 2007 by Overseas Diamonds N.V. at USD228ct. * 553-tonnes of tailings from the Pan Plant 2004-5 sampling campaign were re-treated through the DMS plant and produced 387 diamonds and 43.65 carats. This gives a raw tailings grade of 7.8 cpht. * 387-tonnes of stockpiled untreated kimberlite from Pipe 3 were treated through the DMS plant and realised 618 diamonds and 78.80 carats, giving a raw kimberlite grade of 19.3 cpht. The DMS plant is now being integrated with the 150 tonne per hour (tph) gold plant on our Plant 11 Tailings Resource operation. This project is moving to final commissioning, with first production likely to be in the next 4 weeks. Work in the vicinity of Pipe 3 will now focus on a volumetric assessment of Pipe 3 and the contiguous kimberlite dyke swarm. A review of the economic options and scoping study for the pipe and dykes is being undertaken. James Campbell, Deputy Chairman, commented: 'The latest results from Pipe 3 support the earlier findings that the 'raw' kimberlite probably contains about 19 cpht of high quality diamonds. At a value of over USD200 per carat, this suggests a value per tonne of ore of about USD40. With the significant increase in the in-situ value, WAD will immediately commence work on a scoping study to assess the economic viability of this increasingly attractive diamond resource.' This release has been approved by Alex van Zyl, Technical Director African Diamonds. Alex van Zyl (B.Sc. Stellenbosch, B.Sc. hons. Pretoria) spent a long career in Anglo American in the diamond division, ending up 1990 to 1997 with worldwide responsibility for diamond exploration and evaluation. He was a consultant to De Beers from 1997 to 2002. Enquiries: West African Diamonds John Teeling, Chairman + 353 1 8332833 James Campbell, Deputy Chairman +27 83 457 3724 Blue Oar Securities John Wakefield +44 (0) 117 933 0020 College Hill Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes +44 (0) 20 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange END TSTFGGGLRKMGNZM

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