DiamonEx To Give Up 80% Of Lerala Mine To Fleming

Fleming Asset Management Botswana ("Fleming Botswana") is acting on behalf of DiamonEx's convertible bond holders.  DiamonEx will also transfer its diamond exploration interests in the United States.

DiamonEx financed the development of its Lerala diamond mine primarily through convertible bonds and a loan from the European Investment Bank. However, the mine moved into production in 2008 just as prices for rough diamonds collapsed, immediately undermining the economics of the project.  The project was placed on care and maintenance a few months later and DiamonEx filed for protection from its creditors while it sought to restructure its debt.