GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

August 16, 2007 17:23 ET

Great Western Diamonds Corp. Closes Private Placement

SASKATOON, SASKATCHEWAN--(Marketwire - Aug. 16, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Great Western Diamonds Corp. ("GWD" or the "Company") (TSX VENTURE:GWD) is pleased to announce that it has closed its previously announced marketed private placement (the "Offering") for total gross proceeds of $2,198,250. The Company issued 4,885,000 flow-through common shares ("Flow-Through Shares") at a price of $0.45 per Flow-Through Share. Wellington West Capital Markets Inc. (the "Agent") acted as agent in respect of the offering.

Gross proceeds from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses which will be renounced to subscribers in the 2007 taxation year, consisting primarily of exploration activities at the Company's Candle Lake and Centennial diamond properties in Saskatchewan.

The Agent received a cash commission equal to 6% of the gross proceeds of the Offering and has been granted compensation options entitling the Agent to purchase, until August 16, 2009, up to 293,100 common shares, being 6% of the number of Flow-Through Shares sold under the Offering, at an exercise price of $0.45 per share.

The Flow-Through Shares are subject to resale restrictions for a period of four months and one day from the date of issuance.

Great Western Diamonds Corp. is an exploration and mine development company that is operated on a vision of growth and substantial enhancement of shareholder value based on a balance of management experience, technical expertise, and expansion of operations. GWD currently is focused on the 100%-owned Candle Lake Diamond Project in central Saskatchewan where an aggressive, results-driven evaluation program is targeted on reaching an advancement decision on the Candle Lake kimberlites by the end of 2008. While Candle Lake is the core diamond project, the Company continues to build a balanced and geographically diverse project portfolio with both advanced and grass-root diamond properties in Canada and Brazil.

Brent Jellicoe, P.Geo, President & CEO

All email inquiries should be made to info@gwdc.ca (website: www.gwdc.ca) Direct mail: Great Western Diamonds Corp., 226 Cardinal Crescent, Saskatoon, SK S7L 6H8

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

(The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release)

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