Communicators

New African Mining AG achieved USD 320,000 sales results in first tender auction

04. June 2008 - Kimberley, South Africa—New African Mining AG (NAM) (Symbol: NWA; WKN: A0MSTM), the Kimberley-based diamond miner is pleased to announce excellent results from its first tender auction, held on 30 May 2008. Realisations were comfortably above expectations in a well-attended sale which attracted an international audience.

NAM tendered a total of 1610 carats from its two operating units, the Simolotse underground mine and the Kamfersdam tailings reprocessing unit. Company launch estimates for these diamond sales were USD 80 and USD 220 per carat respectively, but the realisations were USD 90.17 and USD 274.69, a 12% and 24% uplift, respectively. The best individual stone, from Simolotse, weighed 7.92 carats and sold at USD 27,981. Significantly, a single stone from the Kamfersdam operation, at 4.59 carats, achieved a price of USD 14,119 or USD 3,076 per carat. [This is exceptional for a tailings deposit].

Chairman David Hargreaves commented: “Our result at the tender auction represents a significant milestone for our young company. We have become a producer in a short space of time and are now ready to capture other exciting production and near-production
opportunities. Next month we expect to increase significantly the number of carats offered on tender and to build rapidly towards our interim target of becoming one of the larger, midtier operators. Full credit goes to the entire team, but particularly operations management who have overcome considerable obstacles in bringing us to production. Relations with the National Union of Mineworkers are excellent. We look forward to building this into a company of which workers, shareholders and the whole of South Africa can be proud.”

The next tender sale will be on 23 June 2008.

About New African Mining

New African Mining is in the business of mining and selling rough diamonds. The
company’s focus is on developing and maintaining a regular cash flow from its two existing dumps and planned acquisitions of diamond tailing dumps and old proven diamond mines.

For further information, please contact:

Value Relations GmbH
Tel: 069/959246-17
www.info@vrir.de