Presentation to Westwind Partners

Diamond Conference

An update on the African Diamonds /

De Beers JV in Boteti Exploration

(Botswana)

James AH CampbellB.Sc. (Hons) ARSM MBA (Dunelm) Dipl Datm (UNISA) MIMMM C.Eng C.Sci Pr.Sci.Nat

General Manager – Group Exploration

12th May 2006

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Agenda

AK6 Location

Update on the AK06 resource delivery project

Update on the mine delivery programme

Immediate next steps

3

Locality Map

JV Ground

DAMTSHAA

Update on the AK06 Resource

Delivery Project

5

Deposit level assessment

Boteti JV (DB 51%, AD 49%)

De Beers is the Operator and can earn up to 70%

by delivering the first bankable feasibility study

Surface area: 9.5Ha

Volume: 59M tons

Grade: 25cpht

Value: $138/ct (+1mm)

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Programme Schedule & Budget

AK6 Resource

Delivery Project,

Conceptual & Pre-feas.

2006 YTD Actual (USD) 2006 Forecast (USD) 2006 Budget (USD)

2006 Programme 2, 305, 129 19, 350, 000 19, 350, 000

Budget

Phased Approach

Phase 1 (planned to deliver a high confidence inferred resource): 500 carats - 70m grid centre

Large Diameter Drilling & core drilling.

Phase 2 (planned to give an indicated resource): 500 carats - 50m grid centre Large Diameter

Drilling, 4,000 carats – Bulk sampling & core drilling. An indicated resource is a requirement of a

bankable feasibility study, as required by the Boteti JV agreement

Phase 3: 1,000 carats - 25m grid centre LDD (may not be required, depending on Phase 1

and 2 results)

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Summary of Phase 1 results

Macro-diamond results issued for 12 LDD holes (82 tonnes ofDMS concentrate), 13th and last hole results to be issuedduring May 2006.

A total of 9,970 diamonds weighing 661 carats to daterecovered from 2,438 ton of in situ sample from 12 LDD holes

Diamond Characteristics

● Largest diamond recovered c. 8-carats in size

● Presence of Type II diamonds

● Low % diamond breakage

● Diamonds adhering to kimberlite during recovery, especially in theharder south lobe kimberlite

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Progress on Phase 2

Pilot Core Drilling

10 (3,472m) holes to precede Phase 2 LDD completed as planned.

All core logged and sampled for petrography, Ore Dressing Studies& density.

Some holes in south lobe indicate additional kimberlite than modelsuggests. To extend PLT016 deeper

Delineation Drilling

Vertical hole drilled north of north lobe indicates additionalkimberlite volume. Further delineation required.

Deep hole to delineate root zones of north/centre lobes & bottom ofsouth lobe in progress. Potential for additional kimberlite.

Dedicated delineation programme (>7,000m) to arrive at an indicatedlevel of confidence in geological model will commence in Q2 2006.Completion in Q3 2006.

Preliminary geotechnical drilling (4-5 holes) planned as output to pre-feasibility study.

Phase 2 Large Diameter Drilling

Re-scheduled ahead of planned bulk sampling.

In-fill drilling:10 x 23-inch LDD holes to determine grade at 50m holespacing grid.

3 holes completed in centre lobe. South lobe drilling in progress.

2 of 7 holes planned in south lobe to go 600-700m depth to confirmgrade continuity with depth.

Planned to complete drilling end August and processing endSeptember 2006.

The current 3D geological model suggests a total resource to 59Mt.

There is potential for additional kimberlite volume

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Phase 2 Bulk Sampling Strategy

Bulk sampling options to recover c.4,000 carats (2,000 carats centre & south lobes each) for revenue estimation

● Shaft & horizontal adits to targeted areas

● Surface trenching

● Drill 1.5m diameter holes using Bauer BG36 rig

● Easy-Pipe directional tunneling system

Decision about which method(s) will be based on the outcome of Phase 1 diamond revenue results post the layout in early July. In the meantime scopes of work and contract tender preparations in progress for selected technology

The current diamond size frequency distributions tend to support a difference between South and Centre lobes, therefore assortments may be different. North lobe not material.

Investigations aimed at increasing the plant top cut-off size to c. 20mm in progress. Aim is also to recover the large diamonds including the fragile Type II’s.

DMS plant upgrades to handle the bulk sample throughputs (and ensure large & Type II diamond recoveries where present) to commence after Phase 2 LDD sample processing in early September 2006.

Update on Mine Delivery Programme

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Plant Designs and Mine Planning

Plant Design Studies

Various block flow diagrams currently being considered:

● Conventional block flow diagram - baseline design

● ‘Voorspoed’ type design with High Pressure Rolls Crusher in a secondary application

● ‘Canadian’ type block flow diagram (Tahera, etc)

● Application of autogenous Milling

Capital and operating costing in progress

Option for ore processing at Letlhakane being considered

Mine Planning

Letlhakane Mine slope angles assumed for conceptual study

Geotechnical & hydro-geological modelling planned

Conventional shovel truck method. Diesel powered fleet

Continuous operations environment

Host rock mined from the upper benches of the pit will be used during construction.

Maintenance of a minimum of six months exposed kimberlite at Run of Mine (ROM) grade

Purchase and operate all the earthmoving equipment

All equipment will be maintained on a Repair & Maintenance (R&M) agreement

Multi-skilled operators to provide flexibility and contingency

Cut 1

12.9Mt ore

3.3M carats

14.7Mt waste

190m depth

Commence 2009

Cut 2

15.7Mt ore

3.0M carats

24.9Mt waste

238m depth

Commence 2012

Cut 3

10.6Mt ore

1.9M carats

56.4Mt waste

341m depth

Commence 2014

Cut 1

12.9Mt ore

3.3M carats

14.7Mt waste

190m depth

Commence 2009

Cut 2

15.7Mt ore

3.0M carats

24.9Mt waste

238m depth

Commence 2012

Cut 3

10.6Mt ore

1.9M carats

56.4Mt waste

341m depth

Commence 2014

Immediate next steps

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Immediate target next steps

Diamond Layout : early July 2006

Global (inferred) resource : end July 2006

Conceptual Study completion : Q3 2006

The Conceptual Study is being worked-on from the perspective of a stand-

alone mine

Gate to pre-feasibility

Local (indicated) resource : Q2 2007

Pre-Feasibility Study phase : 9 months (Q2 2007)

The pre-feasibility study will essentially be a suite of trade-off studies within a

settled corporate arrangement

Gate to feasibility

Feasibility Study phase : 9 months (Q1 2008)

Detailed Design Phase : 6 months (Q3 2008)

Gate to implementation

The above timeline for mine development (aside from the resource

phase) is merely a standard template

There is significant opportunity to improve timelines when the Organisation

to Organisation (O to O) partner is selected and also undertaking

activities in parallel (as opposed to in series) where possible

Questions?