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West African Diamond - AGM Statement

RNS Number:7199I West African Diamonds PLC 29 November 2007 WEST AFRICAN DIAMONDS PLC 29th November 2007 AGM STATEMENT At the AGM to be held later today, Chairman John Teeling will cover the following information: Pilot gold production has commenced on Plant 11 tailings deposit Full scale diamond and gold production expected to commence within the next 4-6 weeks Expansion of the kimberlite Pipe 3 in Sierra Leone and discovery of a satellite kimberlite. Four large stones recovered from the Bomboko alluvial deposit in Guinea. Gold exploration to commence on a greenstone belt in Sierra Leone during the current dry season. Acquisition of Fastrack assets and appointment of Hennie Wessels as Chief Operating Officer ('COO') has accelerated WAD's development. West African Diamonds plc ('WAD') is a diamond exploration and development company focused on Sierra Leone and Guinea. WAD has an exciting portfolio of projects, ranging from pilot production to early stage exploration - giving investors access to the full range of the resource value chain. . Plant 11, Koidu, Sierra Leone (60% WAD): Pilot gold production has now started on this large approximately 7M tonne plus undersize tailings deposit. This process which has already produced gold is designed to fully test the plant, before moving to full diamond and gold production within the next 4-6 weeks. Contracts have already been arranged for the sale of both gold and diamonds once full scale production commences. Outstanding progress has been made on this project. In less than 12 months a plant has been designed and constructed in South Africa, transported to Koidu and assembled. The plant is currently in the final stages of commissioning, with pilot gold production currently underway. Full throughput of 150 tonnes per hour is expected before the end of the year. Output is expected to be approximately 0.4g/tonne gold worth $9 a tonne of ore and diamonds worth $3 a tonne of ore. The acquisition of Fastrack assets in Sierra Leone in July 2007 greatly facilitated the development of Plant 11. In addition to equipment, WAD was able to acquire the services of Hennie Wessels, an experienced West African hand. He is bringing the project rapidly on stream. Bomboko Alluvials, Guinea (100% WAD): Four large diamonds (9.2, 4.5, 4.2 and 3.8 carats) have recently been recovered from the continuing bulk sampling of this estimated 750,000 carat alluvial diamond deposit. The Board intends to begin small-scale mining on the Bomboko in early 2008. Pipe 3, Sierra Leone (100% WAD): From a kimberlite pipe with very limited economic value, WAD has increased the recoverable grade almost fourfold by the application of modern Dense Media Separation ('DMS') technology and appropriate process controls. Further, a recent geophysical survey has postulated a doubling of the size of the available kimberlite, with the discovery of a satellite kimberlite very close by to Pipe 3. Approximate calculations suggest a target mineable deposit of 350,000 tonnes grading up to 19 carats per hundred tonnes and in excess of USD228 per carat. Economic options are currently being assessed. Droujba, Guinea (100% WAD): This is an area of Guinea well known for diamonds contained in alluvials, kimberlite dykes and pipes. WAD obtained a licence over the area in April 2007 and has reviewed all available data. There is significant short term potential in the alluvials, while the geology and economics of the kimberlite dykes and pipes need to be assessed. Significant exploration resources will be devoted to this area in the coming year, starting with a comprehensive ground geophysical survey which is an advanced state of planning. Exploration, Nimini Hills Sierra Leone (100% WAD): Early reconnaissance sampling for gold in the Nimini Hills of Sierra Leone included encouraging results of 63 and 73g/tonne. Detailed follow-up sampling has been planned in an attempt to discover shear hosted hydrothermal gold mineralized systems. Finance: A limited amount of new funding was raised at listing followed by a #846,000 placing in September 2007. These funds are adequate to bring Plant 11 into production, to upgrade mining at Bomboko, to bring Pipe 3 to a feasibility decision and to conduct our ongoing exploration. Contracts for the sale of diamonds and gold from Plant 11 have been signed. Revenue should emerge in Q1 2008. Future: We believe that WAD has significant potential. The company will be a diamond and gold producer with a portfolio of projects spanning the full development horizon: from early stage exploration to production and sales. There is an experienced team in place, more than capable of developing the portfolio. We are constantly evaluating new projects in diamonds and in metals, not only in West Africa but elsewhere in Africa, as we are always looking to add value to our portfolio; through acquisition and by monetizing our asset base through development. We are well on the way toward realising the potential of our assets. This release has been approved by Alex van Zyl, Technical Director, West 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 Plc 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 AGMFEDFMASWSELF

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