DON Diamonex

    Sales Update
             



DiamonEx Limited

AIM Release
3 November 2008

LERALA MINE SALES UPDATE

In the Company's quarterly report, released on 31 October 2008,
DiamonEx advised that the initial sale of 10,613 carats of diamonds
from its Lerala Diamond Mine in Botswana achieved an average price of
US$20 per carat for the whole run of mine parcel. This is much less
than the preliminary valuation of the parcel and reflects the current
difficult market conditions.

WWW International Diamond Consultants, the Company's sales agent and
advisor, reported that the value achieved for the first tender of
Lerala production was deeply disappointing but not surprising in the
context of the current market, where trading in rough diamonds has
effectively ground to a halt as the general economic uncertainties
and in particular the liquidity shortages have taken effect. However,
once the extraordinary and unforeseen economic turmoil has worked its
way through the system, WWW is confident that the long term prognosis
for the diamond industry remains favourable

DiamonEx is currently undertaking a detailed assessment of short,
medium and long term forecasts of diamond prices and assessing the
potential impact of the market price volatility on the profitability
and the continuing operations of the Lerala Diamond Mine.

Historical prices of Lerala diamonds, together with data compiled
during the feasibility study indicate that current prices are not
representative of longer term diamond price expectations.

The results of this assessment will be advised to the market in due
course.

The next diamond sale is scheduled for mid-November. The Company will
proceed with this sale.



For further information contact:

Dan O'Neill
Tel:       + 61 7 37208944
Managing Director
Fax:      + 61 7 37208988
Email: doneill@diamonex.com.au            Mob:     + 61 4 07596942

Mark Gray
Tel:       + 61 7 37208944
Corporate Development                           Fax:      + 61 7
37208988
Email: mgray@diamonex.com.au            Mob:     + 61 4 12899979

Will Souter or Rob Adamson
RFC Corporate Finance Ltd (Nomad)
Tel: +61 2 9250 0050
        +61 2 9250 0041
Email: will.souter@rfc.com.au
            rob.adamson@rfc.com.au

Richard Hail
Fox-Davies Capital Ltd (AIM Broker)
Tel: +44 20 7936 5200
Email: Richard.Hail@fdcap.com


About DiamonEx:

DiamonEx is an emerging diamond  producer having developed a  330,000
carat per year diamond mine at Lerala, in eastern Botswana.  The mine
is 100% owned and is  located in an area that  produces up to 30%  of
the worlds diamonds by value.  The company also owns 15,000 sq km  of
mineral rights  in  Botswana  which  it  is  actively  exploring  for
diamonds, as well as a 9.3 hectare diamondiferous kimberlitic pipe in
northern Colorado, USA,  which it is  currently evaluating for  grade
and value.   DiamonEx  is listed  on  the Australian  Stock  Exchange
(ASX), the Alternative  Investment Market  in London  (AIM), and  the
Botswana Stock Exchange (BSE).

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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.

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