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NEW AFRICAN MINING AG Tender Sales Results

10. July 2008 - Kimberley, South Africa—New African Mining AG (NAM) (Symbol: NWA.F; WKN: A0MSTM), the Kimberley-based diamond miner is pleased to announce excellent results from its second tender auction, held on 26 June 2008. The sale on tender of a portion of production realised a total of USD 196,000. Prices were comfortably above expectations in a well-attended sale which attracted an international audience. NAM tendered only 770 carats of production 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 103.33 and USD 352.82, a 29% and 60% improvement on sales projections, respectively. The best individual stone, from Simolotse, weighed 8.372 carats and sold at USD 19,289 or USD 2304 per carat. Significantly, a single stone from the Kamfersdam operation, at 4.744 carats, achieved a price of USD 16,647 or USD 3,509 per carat. [This is exceptional for a tailings deposit].

A special tender of 143 carats of selected stones from Simolotse production was completed on 3 July. The tender was attended by selected buyers and realised USD 73, 000 in sales at a very good average of $ 509, 71 per carat. The best individual stone of this tender was 5.57 carats which sold for $ 12,627, or $ 2,267 per carat.

The rising trend in monthly production is expected to be maintained as plant modifications planned for both operations are completed.

Chairman David Hargreaves commented: “Tender sales results so far have been above expectations and bodes well for the revenue projections of the company. We are building towards our interim target of becoming one of the larger, mid tier operators. Constant improvements and capital investments are made in mining and processing capacities to ensure our development as a Company.”

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 operations and planned acquisitions of diamond tailing dumps and old proven diamond mines.

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