Mr. James Campbell reports

ROCKWELL COMPLETES C$7.8 MILLION FINANCING

Rockwell Diamonds Inc. has completed its previously announced non-brokered private placement raising $7.8-million.

The company issued a total of 10,341,969 shares with total gross proceeds to the company of $7,584,012 and 1,207,250 rand. Of the total shares issued, 10,112,017 were listed on the Toronto Stock Exchange with the balance of 229,952 being listed on the Jamaica Stock Exchange, at a price of 75 cents and 5.25 rand in Canada and South Africa, respectively. In accordance with applicable Canadian securities laws, the hold periods on the 10,112,017 shares available to trade on the TSX are four months.

The funds were raised primarily from a number of institutional investors from North America, Europe and South Africa. In addition, Rockwell's strategic diamond beneficiation and marketing partner Daboll Consultants Ltd., an affiliate of the Steinmetz Diamond Group, subscribed for $5-million. The placement received shareholder approval on Sept. 12, 2011.

The company intends to use the net proceeds of this private placement to finance the implementation of bulk X-ray plant at Saxendrift as well as the final commissioning of the plant at Tirisano which is set to go into production by the end of October, 2011. The remaining funds will be used to settle the Tirisano creditors and exploration and project development work.