Rex Diamond Mining Corporation

Rex Diamond Mining Corporation

May 02, 2008 14:38 ET

Rex Diamond Mining Corporation: Shareholders Approve Sale of Subsidiaries

TORONTO, ONTARIO--(Marketwire - May 2, 2008) - Rex Diamond Mining Corporation (the "Corporation") announces that the shareholders approved the sale of Rex Mining Company NV ("Rex NV") and Rex Diamonds NV, its Belgian entities, to Serge Muller, an officer, director and shareholder of the Corporation at the annual and special meeting of shareholders on Wednesday April 30, 2008.

The shares of Rex NV and Rex Diamonds NV will be acquired for a consideration of $743,111 subject to adjustments, to be satisfied by the assumption of $491,097 of the debt of the Corporation owed to Rex NV, subject to adjustments and all of the $252,014 debt of Rex Mining Corporation Limited (South African entity) owed to Rex NV. Upon completion of the transactions, $250,000 will remain as debt the Corporation owes to Rex NV. The main benefit of this transaction is the elimination from the Corporation's consolidated financial statements, of a net of $3,640,841 of debt (being $3,890,841 of debt owed by Rex NV to Serge Muller less the $250,000 of debt of the Corporation that will remain owing to Rex NV).

The sale of Rex NV and Rex Diamonds NV is expected to close on May 9, 2008 with an effective date of March 31, 2008.

The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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