KDC Kimberley Dia

    11 October 2007
AIM RELEASE

KIMBERLEY DIAMOND COMPANY NL (the Company) (AIM: KDC)
PRODUCTION AND SALES UPDATE

  * The first pink diamond (1.58 carats) recovered at Ellendale.
   
  * Unusual recoveries - calcite-covered white diamond (10 carats) and an
    octahedral fancy yellow embedded in sandy tuff (circa 3 carats).
   
  * Production throughput of 100,000 tonnes achieved over four days in
    September (annualised 9.125 million tonnes).
   
  * Highest prices to date (in US$) for the Ellendale ROM Production.
   
Kimberley Diamond Company NL (ASX: KIM, AIM: KDC - "Kimberley") is pleased to
announce an update on the recent production results at the Ellendale Diamond
Project in Western Australia. Several interesting diamonds have been recovered
over the past fortnight, including an outstanding pink 1.58 carat diamond, the
first stone of its kind ever found at Ellendale.

Encouraging trends have been in evidence in relation to production throughput
and operating costs at both the Ellendale 9 East and Ellendale 4 plants.
Specifically, over a four-day period in September, record production throughput
of 100,000 tonnes was achieved.

A strong market and, particularly, strong demand for fancy yellow product, has
driven prices for the Ellendale production above previously achieved levels.

Significant Diamonds Recovered

A unique pink 1.58 carat diamond (shown below next to recently recovered yellow
and white diamonds), was recovered from a new mining zone at Ellendale 4.

An indicative valuation for the pink diamond is at least US$20,000 a carat for
the rough and between US$30-40,000 polished. This valuation has been provided
by Kimberley's independent valuer - IDV.

Also recovered recently from run-of-mine ore from Ellendale 9, were a 10 carat
white stone which was almost totally covered in a calcite skin (see photo 2)
(approximately 13.2 carats including the calcite skin), and a circa 3 carat
octahedral fancy yellow stone (see photo 3) within a chunk of sandy tuff.

The condition in which the diamonds in photos 2 and 3 were recovered requires
explanation and potentially raises issues for enquiry as to processing and
recovery techniques. Kimberley is currently reviewing this aspect of its
operations, including the crushing circuit and X-ray recovery units at both
plants.

Production Update

At both Ellendale 4 South Plant and the Ellendale 9 East Plant, there have been
encouraging production windows demonstrated most graphically by over 100,000
tonnes being processed during four consecutive days during September. This
equates to annualised production of 9.125 million tonnes.

Kimberley remains of the view that further capital investment will be rewarded
by greater (and consistent) throughput and lower unit operating costs.

Sales Update

Kimberley's recent sales have achieved the highest prices to date (in USD).

The upper end of the diamond market - which tended to be insulated against last
year's market fluctuations - continues to perform particularly strongly with
record demand for better quality larger and specialty diamonds. This is
strategically important for Kimberley, given that Ellendale produces a
significant proportion of the world's fancy yellow diamonds.

Industry projections show a positive long-term outlook, with diamond prices
expected to keep strengthening due to global demand for diamonds exceeding
supply over the next 10 years or until new deposits are found and reach the
production stage.

The strong AUD against the USD continues to adversely impact results and the
Company.

Blina Diamonds Discovery

Blina Diamonds NL (ASX: BDI), Kimberley's 40%-owned exploration affiliate,
recently reported the recovery of diamonds with green colouration from the E12
Alluvial Area, located within the Terrace 5 palaeo-channel system, in close
proximity to Kimberley's Ellendale 9 mining operations.

These diamonds are believed to display a surface characteristic usually caused
by radiation, resulting in the green skin colouration. The significance of the
discovery of these diamonds from Kimberley's perspective is that it provides
strong evidence for the presence of an undiscovered diamond source within close
proximity.

Gem Diamonds' Bid for Kimberley

Documents relating to the takeover bid by Gem have been circulated to
shareholders. The Board continues to recommend that all shareholders accept the
offer from Gem in the absence of a superior offer.

A copy of the above can be found on the Company's website 
www.kimberleydiamondco.com.au.

MILES KENNEDY
CHAIRMAN

The Company's Nominated Advisor is RFC Corporate Finance Ltd, contact Steve
Allen or Stuart Laing - phone +618 9480 2500.

KIMBERLEY DIAMOND COMPANY NL ABN 91 061 899 634
12 WALKER AVENUE WEST PERTH 6005 WESTERN AUSTRALIA
PO BOX 806 WEST PERTH WESTERN AUSTRALIA 6872
TEL (+61-8) 9321 5887 FAX (+61-8) 9321 5884 EMAIL general@kimres.com.au
WWW www.kimberleydiamondco.com.au

END

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