October 27, 2008 Rockwell Achieves Outstanding Premiums From The Sale Of Cut And Polished Stones
October 27, 2008, Vancouver, B.C. -- Rockwell Diamonds Inc ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the premiums achieved from the sale of three cut and polished stones through its agreement with the Steinmetz Diamond Group ("SDG"). These stones were recovered from its Makoenskloof project and Wouterspan mine, located in the Middle Orange River area of South Africa.
Three exceptional yellow gemstones, manufactured by SDG from rough diamonds produced by Rockwell, have now been sold to buyers in southeast Asia. The finished stones included:
a 102-carat, vivid yellow cut from a 212-carat, yellow rough diamond;
two matching, 10-carat, vivid yellow diamonds cut from a 36-carat yellow rough diamond.
As a consequence of the sale of these three manufactured stones Rockwell has achieved:
a 50% premium on price over and above the rough diamond value realized for the original 212-carat stone;
an 80% premium on price over and above the rough diamond value realized for the original 36-carat stone;
an increase in value realized from these stones and achieved through the manufacturing skills and marketing expertise of SDG, resulting in additional revenues of approximately US$2 million to Rockwell.
President and CEO John Bristow noted "We are encouraged by the outstanding margins that have been achieved through the cutting and polishing of Rockwell stones. We have seen margins of 10%, 17%, 50%, and 80% on four stones and are seeing the benefit of our unique long term beneficiation agreement with our partners at SDG. We have a pipeline of product going through the SDG facility and expect to see further strong returns to the Company. This additional revenue received for our beneficiated product provides Rockwell with flexibility in respect of our approach to our diamond sales in the current environment of turbulent financial markets."
For further details on Rockwell Diamonds Inc., please visit our website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
John Bristow President and CEO
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