Shear Diamonds Ltd.

Shear Diamonds Ltd.

June 21, 2012 08:52 ET

Processing and Operations Update

TORONTO, ONTARIO--(Marketwire - June 21, 2012) - Shear Diamonds Ltd. (TSX VENTURE:SRM) ("Shear") is providing a processing and operations update with respect to the high grade concentrate stockpiles at its Jericho diamond mine:

  • Shear has been successfully in 24 hour operations since June 15, 2012.

  • Since commencing 24 hour operations, Shear's average production rate has been in excess of 80 tonnes per day.

  • Shear's average recovery grade for the period since May 17th, 2012 has been 10.9 carats per tonne, and recoveries since commencing 24 hour operations have been as good or better than from the prior production period.

  • In light of these achievements, and in order to assist Shear in addressing its cash flow challenges, Taché Company NV ("Taché"), Shear's diamond marketing partner, have agreed to advance Shear an additional $550,000 over the course of the next few weeks. These advances are in the nature of prepayments for future production to be sold through Taché, and are conditional on Shear continuing its processing on an acceptable basis.

  • Shear's next parcel of diamonds is due to be delivered to Taché in early July.

About Shear Diamonds Ltd.

Shear is a Canadian-based company focused on diamond exploration and development in Canada's North, where it explores established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, including three advanced projects with development potential. Shear holds a 100% interest in its recently acquired Jericho diamond mine and surrounding exploration assets, located in the Kitikmeot region of Nunavut.

On behalf of the Board of
Julie Lassonde, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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