1

South America’sLargest Diamond

ProducerMay 2008

2

All monetary amounts in U.S. dollars unless otherwise stated.This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of Vaaldiam. Forward-looking statements include, but are not limited to, statements with respect to estimated production, synergies and financial impact of completed proposed acquisitions; benefits of the acquisitions and the development potential of Vaaldiam’s properties; the future price of diamonds; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures, success of exploration activities; permitting time lines and permitting, mining or processing issues; currency exchange rate fluctuations; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Vaaldiam to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events during construction, expansion and start-up; variations in ore grade, tones mined, crushed or milled; variations in relative amounts of refractory, non-refractory, non-refractory and transition ores; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; the businesses of acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected; not realizing on the anticipated benefits from the acquisitions or not realizing on such anticipated benefits within the expected time frame; risks related to international operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of diamonds and gold; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate an anticipated; accidents, labour disputes and other risks of the mining industry; delays in the completion of development or construction activities, as well as those factors discussed in or referred to in the current annual Management’s Discussion and Analysis and current Annual Information Form of Vaaldiam filed with the securities regulatory authorities in Canada and available at www.sedar.com. Although management of Vaaldiam has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Vaaldiam does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Cautionary Statement

3

South America’s largest diamond producer

Producer of high value diamonds - average value $280 per carat

Two debt free mines in production

Focused on low cost, low risk diamond production in Brazil

Investing cash flow in kimberlite development & exploration

Targeting 500,000 carats annual production by 2011

Consolidator of the emerging diamond sector in Brazil

Increasing demand & prices for diamonds

Vaaldiam’s Duas Barras Mine under the lights

Vaaldiam Resources – Strategic Plan

All Currency Figures US$ Unless Otherwise Noted

4

Why Brazil?

Long history of high quality diamond production

Similar diamond geology to southern Africa and Canada

Under-explored for diamonds

Low mineral exploration and mine development costs

Excellent infrastructure

S&P Investment-grade credit rating

Low political risk

Stable mining and environmental legislation

5

Exploration Expenditure ComparisonBrazil vs Canada

0

50

100

150

200

250

300

350

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

CanadaAfricaBrazil

Source: Trends in Cdn Mineral Exploration & Pers. Communication with Operating Companies in Brazil; Ontario Ministry of Northern Development and Mines

Diamond Exploration Expenditures ($US Millions)

6

Production & Advanced Exploration

7

Producing Mines

Duas Barras

Chapada

Annual Production

60,000 to 83,000 cts

Diamond Value

US$ 165 / ct

Cash Cost of Production

US$ 75 / ct

Mine Life 8 Years

Annual Production

33,000 to 37,000 cts

Diamond Value

US$400 /ct

Cash Cost of Production

US$ 290 / ct

Mine Life >6 Years

8

Producing Mines (cont’d)

Duas Barras

Chapada

Mine Opening September 07

Sales to End Q1

US$ 4.9 M

Capital Cost US$ 3.8 M

Mine Opening March 07

Sales to End Q1

US$ 11.9 M

Capital Cost US$ 8.5 M

9

Chapada’s Productionis “Special”

30.95 Carat Diamond

10

Key Partners in the Diamond Market

Chapada Diamonds

Duas Barras Diamonds

LEVIEVRETAILSTORESLondon

New YorkDubai

Moscow&

Other Clients

MANUFACTURERSAntwerp

IsraelIndiaChina

Run of Mine

Production

Polished Diamond

s

Sorted Rough

Diamonds

Run of Mine

Production

11

Investing in Organic Growth

Mine Capex & Resource Expansion

Braúna Feasibility StudyPimenta Bueno/Ariquemes Bulk SamplingCatalão Resource Definition

Overhead & Other

$3.3 M

$1.0 M

$0.7 M

$0.8 M

$1.7 M

$ 10 Milli

on Opera

ting

Cash Flow Pro

jected fo

r

2008C$7.5 M

Inve

sted In

2008 Exploration & Development

12

2008 Exploration Targets Four-fold Increase of Diamond Resource

C$ 7.5 Million in 2008

Braúna Feasibility 2,600,000 carats

Duas Barras Expansion

150,000 carats

Additional Carats to Resource in

2008

2,750,000 carats

43-101 Resource @ YE 2007

701,840 carats

Projected 43-101 Resource at YE

2008

3,451,840 carats

Est. Exploration Cost of Additional

Resources$ 2.75 per carat

To increase our

resource base

13

New Production Expected in 2009

On-track to be South America’s first kimberlite diamond mine after +250 years of alluvial diamond production

Feasibility study underway

Production targeted for mid-2009

Targeting annual production of 300,000 carats per year

High quality diamonds recovered from bulk samples including pink diamonds

Diamond value estimated at US$125 to $165 per carat 1

Excellent potential for +20 million tonne resource and long-life U/G operation

Excellent infrastructure = low capital & operating costs

Projected Inferred Resource to -200 m

11.2 M tonnes

Projected Average Recovered Grade

23 cpht

Projected Diamond Resource

2.6 M carats

Braúna Kimberlite Project

1. Preliminary company estimate based on diamonds recovered from

bulk samples

N.B. Resource estimate is not yet 43-101 compliant

Cpht = carats per 100 tonnes

14

Brauna Kimberlite System

15

Braúna 3 Kimberlite Pipe View Facing Northeast

16

Braúna Resource Potential 1

Note 1: Resources are not yet 43-101 compliant. Brauna 3 & Brauna 7 estimates were calculated from solid modelling by Wardrop Engineering Inc. of the detailed drilling completed by Vaaldiam in 2007. Volume estimates for Brauna 8, 11 and 21 are based on surface trenching, mini-bulk sampling and limited drilling. Density conversion factors ranging from 2.75 to 2.76 are based on actual rock density measurements.

Kimberlite BodyTotal Potential

Volume (tonnes)to -200 metres

Average GradeBased on Sampling

(cpht)

Total Projected

Carats

Brauna 3 5,554,094 21 1,166,360

Brauna 7 1,100,000 5 55,000

Brauna 8 2,160,000 48 1,036,800

Brauna 11 1,350,000 19 256,500

Brauna 21 1,000,000 7 70,000

TOTAL 11,164,094 23 2,584,660

17

Diamond Production Profile

Source: Vaaldiam management estimates

Tota

l C

ara

ts P

rod

uce

d

(00

0’s

)

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011

BraúnaChapadaDuas Barras

42

95

244

425 425

18

Operating Cash Flow Projection

Source: Vaaldiam management estimates

Op

era

tin

g C

ash

Flo

w (

$M

illi

on

s)

0369

12151821242730333639424548

2007 2008 2009 2010 2011

BraúnaChapadaDuas Barras

26.6

2.5

10.8

45.7

44.9

19

Advanced Stage Exploration

46 kimberlite pipes

24 pipes sampled & diamond bearing with grades up to 18 cpht

Large tonnage potential : drilling outlined +200 Mt in 5 pipes

Bulk sampling underway to define diamond grade in priority pipes

Rio Tinto has back-in rights on Pimenta Bueno licences for 60% and VAA carried at 40%

Excellent tin and base metal potential on Ariquemes

9 kimberlite pipes discovered to date

High value alluvial production from district

23.6 cpht grade from Rio Tinto mini-bulk sample from 1 ha Catalão pipe

Bulk sampling & resource definition drilling planned for 2008

Advanced stage development; approximately 1 year behind Braúna time-line

Rio Tinto has back-in rights on Catalão licences for 60% and VAA carried at 40%

Catalão Kimberlite Project

Pimenta Bueno/Ariquemes

20

Candle Lake Kimberlite ProjectFort a la Corne, Saskatchewan

Two large diamond-bearing kimberlites - Fort a la Corne kimberlite trend

Macro-diamond grades up to 24 cpht

Large tonnage potential : > 100 Mt in C29/30 pipe alone

503 tonne sample – results due in Q2 2008

Conceptual Mine Study underway ahead of development of a 43-101 compliant resource

Excellent possibility for Joint Venture development or outright sale for value

21

Our Goal :500,000 Carats Annual Production By 2011

500,000 carats / year in sight!

Projected Production by 2010: Duas Barras 83,000 carats Chapada 37,000 carats Brauna 300,000 carats Total 420,000 carats

500,000 carats / annum in 2011 is a realistic target – achieved through organic growth from:

Chapada Mine expansion – short term, 90% of property holdings unexplored

Braúna Mine development – short term, feasibility underway Catalão kimberlites – medium term Duas Barras Mine – medium term, expansion through

acquisitions in district Pimenta Bueno/Ariquemes kimberlites – medium to long term

22

Upcoming News

Q-2 2008: Production results & Operational Update from Duas Barras and

Chapada mines Macro diamond results from Candle Lake mini-bulk sampling

program Update on Bulk Sampling program & Feasibility at Braúna Bulk sampling results from Pimenta Bueno Exploration update on Catalão kimberlite program

23

South America’s largest diamond producer from two mines

Producer of high value diamonds - average value $280 per carat

Re-investing positive operating cash flow in low cost, low risk kimberlite development & exploration in Brazil

Strong treasury to support organic growth

Targeting 500,000 carats of annual production by 2011

Undervalued - Trading at just two times 2010 operating cash flow

Consolidator of the emerging diamond sector in Brazil

Vaaldiam’s Duas Barras Mine under the lights

Vaaldiam – Investment Highlights

24

27 carat diamond from the Chapada Mine

Shares Outstanding

Largest Shareholder

Market Capitalization (C$M)

Cash (C$M)

Debt (C$M)

52 Week High/Low

Trading Symbol

$1.10/$0.40

213.8 Million

$ 64.0 Million

42.9 Million (20%)

$96 M

$6.3 Million

None

VAA - TSX

VAALDIAM

Corporate Information

Fully Diluted Cash (C$M)

25

South America’sLargest Diamond

Producer