DiamonEx Limited (ASX:DON) AIM
RELEASE
22 August 2008


LERALA DIAMOND MINE COMMISSIONING UPDATE
- Plant commissioning now complete
- Diamond recovery has commenced
- Plant currently processing over 100 tonnes per hour
- Full production of 200 tonnes per hour and Name Plate handover
expected end   Q3/early Q4
- First diamond sale expected September

DiamonEx Limited (ASX/AIM/BSE "DON"),  the emerging diamond  producer
in Botswana, announces that Plant commissioning at its Lerala Diamond
Mine Processing Plant ("Plant") is complete, and recovery of diamonds
has commenced.

The Plant  is currently  operating at  approximately 100  tonnes  per
hour, with a programme  to get to the  full production target of  200
tonnes per hour over the coming months.

The Plant has performed well in the commissioning phase with expected
teething problems, as well as  minor disruptions. There has been  one
major issue  in the  Plant  design to  emerge out  of  commissioning,
relating to the performance of the Pan Plant.

The Plant recovers diamonds  through dense media separation  ("DMS").
The Plant  has however,  also been  designed with  Pans to  create  a
pre-concentrate of fine crushed ore which  is sent direct to the  DMS
for diamond recovery, while the remainder of the ore is sent back  to
the tertiary crusher for re-processing before entering the DMS.   The
utilisation of both Pans and DMS in this fashion is quite unique. Not
only does this reduce the capital  cost of the Plant by reducing  the
size of the DMS, but  most importantly it maximises diamond  recovery
by minimising loss.  This  is a new  system, and despite  unscheduled
delays in  the commissioning  process, the  Pans are  now working  to
expectation, enabling  the  Company to  begin  to ramp  to  the  full
production target.

Other delays in commissioning included power supply disruptions  from
the  Plant's  diesel  generators   which  delayed  commissioning   by
approximately ten days. This issue has since been resolved.

The Company has commenced  the recovery of diamonds  but it will  not
have a  parcel  of sufficient  size  to  justify a  sale  in  August.
Therefore, the Company has decided to postpone the first diamond sale
to the  end of  September. August  historically achieves  the  lowest
average prices for rough diamond sales,  and as a result the  Company
is likely  to achieve  higher prices  in a  more competitive  bidding
environment in September.

Managing Director, Dan O'Neill, said, "As can be expected we have had
to confront a number of issues during the commissioning process.  All
the issues to date have been resolved and we are pleased to  announce
recovery of diamonds has commenced. Commissioning of the Plant is now
complete and  the  Company is  now  focused  on ramping  up  to  full
production of 200 tonnes per hour  and improving our rate of  diamond
recovery".

For and on behalf of the Board




Paul Crawford
Company Secretary

For further information contact:

Dan O'Neill
Managing Director
Tel: +61 7 3720 8944
Mob: +61 407 596 942
Email: diamonex@diamonex.com.au

Mark Gray
Corporate Development
Tel: +61 7 3720 8944
Mob: +61 412 899 979
Email: diamonex@diamonex.com.au

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

Jos Simson or Leesa Peters
Conduit PR - Investor Relations
Tel: +44 20 7429 6603
        +44 78 9987 0450
Email: jos@conduitpr.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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DiamonEx Limited

http://www.diamonex.com.au/

ISIN: AU000000DON1

Stock Identifier: AIMX.DON


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