Rockwell Initiates Installation Of Turnkey Security System And Network At Its South African Diamond Operations

July 3, 2007, Vancouver, B.C. — Rockwell Diamonds Inc. (“Rockwell” or the “Company”) (TSXV: RDI; OTCBB: RDIAF) has signed a major contract with technology security company i to i technologies (“i to i”) to establish a comprehensive, fully integrated turnkey security operation for its South African mining operations.

The contract, concluded in June 2007, will provide a holistic approach to the security, monitoring and documenting of Rockwell’s unique high value product by applying a dynamic combination of trained specialists and security personnel, technology and processes control. The company has invested in a comprehensive security solution encompassing closed circuit television (CCTV), Access Control, Biometrics, incident by exception detection, and trend monitoring systems. i to i will provide a team of specially trained managers, control room operators, protection personnel and maintenance teams who are independent of Rockwell personnel. A range of process components will be integrated in a control room environment with multiple tiers, as well as remote view control rooms that will, in essence, allow the Company to monitor all operations and drive a holistic security process on its operations from anywhere in the world.

Roll-out of the state-of-the-art system is already underway with teams actively working at Rockwell operations in the Northern Cape Province. Once fully implemented, the Company expects to benefit from an improvement in the overall security, audit process and handling of its unique product through improved deterrence, monitoring, and rapid reaction procedures to thereby reduce risk in respect of its unique diamond product. In addition, the new systems and processes will enhance overall security of its premises, equipment and personnel, as well assist with human resources management. The consequence of this will also be a safer working environment, cost savings through reduced shrinkage of plant, equipment and spares, and greater cost effectiveness of the overall security process. In time the system will also be capable of monitoring plant and equipment performance resulting in more rapid response time to plant and equipment faults and hence provide further costs savings.

i to i specializes in providing comprehensive solutions to business risks. It focuses on developing, installing and managing business risk solutions through an advanced Image-to-Intelligence process. This system allows i to i to create a powerful command and control centre at the client’s sites. A single point access to site information and control systems provides advanced features such as resource management with interactive site maps and data processing capabilities with rules-based event reactions and trend analysis. i to i is active in a range of businesses including mining (e.g. Lonmin Platinum, AngloGold, and the Trans Hex diamond mining group), retail, industrial, gaming, financial institutions, healthcare and others.

With respect to technical aspects, Barkly West (which is near to the Holpan and Klipdam mines) and the Saxendrift mine on the Middle Orange River will be the primary hubs in the new Rockwell security initiative. Control rooms at these two locations will link to the different operations located throughout the Northern Cape into a central control room. Managers will be able to remotely access process control, video images, as well as automatic updates, emails, reports and SMS generated alarms.

State of the art Biometrics, CCTV and Access Control is being implemented, including thermal imaging cameras, along with state digital recorders and alarm gateway equipment. Coupled to this is the installation of an incident monitoring program, guard tracking, management system of control room operators and guards. Maintenance personnel located permanently on the various sites will ensure that the technology is kept fully functional. Installation of a modern information technology platform and telephony are included in the overall contract entered into with i to i.

A customised information management system will allow analysis of the efficiency of the control room operators, who will undergo on-going training by experts in their fields and performance monitoring and assessment. They are furthermore assessed in terms of performance on a daily basis. This allows efficient reporting by well-trained operators in such a manner that reports are generated for statistical analysis.

Collectively the system will allow rigorous monitoring, incident reporting, statistical analysis, high quality documentation (including image storage) and rapid reaction from the control room and security managers and teams stationed at strategic locations. An advantage of the system is that monitoring procedures and interrogation can be undertaken from almost anywhere in the world. Comprehensive monitoring and back-up of key equipment and software is also in place to prevent tampering with equipment and information.

The upgrading and installation of fully hands-off glove boxes in the recovery plants at all its operations is also underway and represents a further component of the complete revision and enhancement of the Company’s security initiative.

An additional component of this initiative is that i to i, which is a fully empowered company with accredited training capability will utilize Rockwell’s training centre at its Holpan mine north of Kimberley to train security personnel and supervisors thereby adding important elements to the Social and Labour Plan commitments made by both Companies to the development of human resources in the Northern Cape.

President and COO John Bristow commented that:

“The installation of the i to i technology driven security system is part of a commitment made by the Company to all its stakeholders, including investors and employees, to implement innovative procedures and technology to reduce the risk of losing product and to create a safe working environment. With the problems of skills shortages in South Africa, qualified people are difficult to find. Consequently we have looked to reduce the human element where possible and to implement enhancements to the security process via utilizing fewer well trained and motivated managers and employees, working in combination with technology that provides a comprehensive and efficient risk management solution.”

For further details on Rockwell Diamonds Inc., please visit the Company’s 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 COO

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Forward Looking Statements
This release includes certain statements that may be deemed “forward-looking statements”. Other than statements of historical fact all statements in this release that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that each Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. There is no certainty of the financing completing. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, availability of capital and financing, geopolitical uncertainty and political and economic instability, and general economic, and market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Rockwell, Investors should review Rockwell’s annual Form 20-F filing with the United States Securities and Exchange Commission www.sec.com and the Company’s home jurisdiction filings that are available at www.sedar.com.