Mr. James Campbell reports

ROCKWELL WELCOMES AFRICAN RENAISSANCE AS ITS BEE PARTNER FOR ITS MIDDLE ORANGE OPERATIONS

Rockwell Diamonds Inc. has reached agreement with African Renaissance Holdings Ltd. as its new black institutional investor, which will acquire a 30-per-cent equity stake in the company's Middle Orange operations (1) as its black economic empowerment partner, as required by South African law. Subsequent to the announcement during early December, 2013, ARH has fulfilled most of the conditions precedent and has already supported the company in relevant matters.

ARH was established early in 1994 to champion active participation and ownership by black South Africans in strategic economic sectors. Following a restructuring of its shareholder constellation, ARH, currently chaired by Bobby Makwetla, will pursue its successful investment record in both listed and unlisted entities in sectors including telecommunications, mining, diamonds and related services. "Following an exhaustive process to identify a new partner who shared our approach and vision and wanted to work with us to deliver on our objectives, we identified ARH, who has an established track record in value-creating BEE transactions. We are excited about this new partnership and confident that together this transaction will add significant value to our business going forward," said James Campbell, chief executive officer, Rockwell. "Rockwell has always been committed to participating in the economic transformation in South Africa. We consider the finalization of this strategic partnership as an important milestone in our voyage towards building a leading value-focused African diamond business with a strong social licence to operate in partnership with all our stakeholders. Further contributing to this was our recent achievement of one million hours of lost-time-injury-free operations across the whole group in mid-January. This is the first time that we have achieved this landmark at a company-wide level since mid-2012, demonstrating the strength of our safety practices."

(1) Northern Cape operations comprise the Saxendrift, Saxendrift Hill complex, Saxendrift extension and Niewejaarskraal mines, as well as the Wouterspan project, among others.

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