FACT SHEET

Diamond exploration and project development company

At a glance

Botswana Diamonds is exploring in the best diamond addresses in the world – Botswana, as well as exciting exploration projects in Cameroon and Zimbabwe. The company’s experienced team has a successful track record of discovery. This is the team that discovered 1 of the 20 kimberlite mines in the world. Botswana Diamonds is listed on AIM (Ticker: BOD) and on the Botswana Stock Exchange.

StrategyRepeat the Botswana success, where the team discovered the new Karowe diamond mine.

Secure high potential ground/projects in the best diamond provinces.

Use our expertise in palaeoplacers to develop new opportunities in Cameroon and Zimbabwe.

Utilise Joint Venture’s to maximise added value to shareholders.

ManagementJohn Teeling - Executive Chairman - 40 years’ resources experience, founded African Diamonds.

Andre Fourie – Technical Director - 18 years’ of diamond and gold experience with Anglo American and De Beers.

Robert Bouquet – Director - 17 years’ experience with De Beers and Rio Tinto Diamonds in strategic and commercial roles.

James Finn – Finance Director - 20 years’ experience in exploration companies.

David Horgan – Director – Extensive African Resource experience.

Diamond MarketChinese and Indian demand for diamonds will continue to drive the market. Rough and polished diamond prices hit new highs in April 2011. Overall rough and polished diamond prices have increased by 40% and 21%, in 2011. China, Hong Kong, Taiwan, India and Gulf are expected to account for nearly 40% of consumer demand by 2015. Current mines are ageing; as there are few new discoveries. As a result a significant supply shortfall is expected from 2012 which will drive prices. It is believed that by 2015 there will be fewer than 15 producing kimberlite mines in the world.

Key Facts

Market Cap: £4 millionShares Issued: 100.53 mListed: AIM: 1 Feb 2011 Year End: 31 December

Our Strengths

Strong African focus.

Experienced team.

Good ground position.

New approach in Botswana.

An established presence in two of the newest diamond provinces - Cameroon and Zimbabwe.

A track record of delivery.

Botsw

ana Diam

onds - January 2012

Diamond By CountryRising Demand

Contact:

Botswana Diamonds +353 1 833 2833info@botswanadiamonds.co.uk

International media enquiriesCollege Hill +44 0 207 457 2020 www.botswanadiamonds.co.uk

Botsw

ana Diam

onds - January 2012

Diamond Discoveries

Exploration has been focused on finding kimberlites in the well-known diamond provinces of Southern and Central Africa, Canada and Russia. The underexplored and unexplored portions of these traditional diamond areas, like Botswana, remain as prospective as the day they were first identified. Botswana Diamonds continues to have a strong exploration presence in the well-known kimberlite provinces in Botswana. Using its past success, the Company is searching less obvious areas with new eyes and taking an unconventional approach to finding deposits that were overlooked.

New diamond discoveries are becoming increasingly rare. As a result, new frontiers have been opened that are yielding surprising results. The recent discoveries in Zimbabwe and Cameroon are examples of this. They represent a new class of diamond deposit, i.e. palaeoplacer hosted diamond deposits. These are ancient, well preserved alluvial and marine deposits that are much older than the kimberlites deposits that are mined today. The team has recognised this potential and is at the forefront of capitalising on this blue sky potential.

Operations

BOTSWANA: THE BEST ADDRESS IN DIAMONDSBotswana is known as the Switzerland of Africa; due to its stability and ease of doing business. It also is the largest diamond producer by value in the world. The Botswana Diamonds team established African Diamonds, which discovered the AK6/Karowe mine in Orapa, Botswana. This was subsequently sold to Lucara in December 2010. AK6/Karowe will commence production in 2012 and will produce up to 1m carats a year of very high quality diamonds, including the very rare Type II. The directors of Botswana Diamonds believe that there are more diamond mines to be discovered in Botswana. Toward that end they have entered into a joint venture with an international resources company to explore in Botswana. The focus of the exploration is in North East Botswana where ground conditions have made exploration difficult. The joint venture will apply new technology with the specific intent of discovering previously unknown diamondiferous kimberlites. Botswana Diamonds will supply skills and data while the partner provides the technology and analytical techniques. Work has commenced with first results due by mid 2012.

CAMEROON & ZIMBABWE: EXCITING NEW PALAEOPLACER LOCATIONSA new diamond field is emerging in east Cameroon. The geology is not yet fully understood but is a palaeo-conglomerate hosted deposit, similar to Marange, in Zimbabwe. C & K Mining (Korean) has obtained a mining license for diamonds. A 1 million carat a year mine is under construction and due to come on stream in mid 2012. Botswana Diamonds holds over 8,000 sq km of ground adjacent to Mobilong. Exploration has discovered palaeoplacer rocks. To better focus time, energy and money the company has upgraded 400 sq km of the licence to full exploration. This ground, beside Mobilong, will be sampled for diamonds in early 2012. Artisans working the ground are reported to be recovering good quality diamonds.

Zimbabwe is the third area of interest to Botswana Diamonds. The Marange diamond field in Zimbabwe has the potential to become one of, if not, the largest diamond discoveries in the world with ground containing up to 8,000 carats of diamonds per hundred tonnes. Botswana Diamonds is awaiting presidential approval on a joint venture proposal on a Marange block. The joint venture partners are ZMDC and a local agribusiness company. Some 50 kms northeast of Marange, Botswana Diamonds has discovered diamond bearing palaeoplacer ground at Chimanimani. Local interests hold the ground. They are awaiting final approval on the licence. When approved, Botswana Diamonds expects to be become operator. Botswana Diamonds is sampling seven claims in the Murowa area close to the Rio Tinto diamond mine.