Shear Diamonds Ltd.

Shear Diamonds Ltd.

May 31, 2011 10:56 ET

Shear Diamonds Announces Engagement of DRA Americas to Evaluate Jericho Diamond Recovery Plant

EDMONTON, ALBERTA--(Marketwire - May 31, 2011) - Shear Diamonds Ltd. (TSX VENTURE:SRM) is pleased to announce that it has engaged the services of DRA Americas ("DRA") to evaluate the existing diamond recovery plant at the Jericho Diamond Project, Nunavut. DRA is a world leader in the design and engineering of mineral process solutions with experience specific to Canada's Northern diamond industry.

"DRA's extensive diamond industry experience gives us confidence that we can properly assess the existing diamond recovery plant at Jericho and take the appropriate next steps," says Julie Lassonde, Executive Chairman of Shear. "We look forward to working with DRA."

DRA has prepared an initial assessment based on a recent site visit. Recommendations from this assessment have been incorporated into Shear's 12 to 18 month business plan.

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.

Qualified Persons

Pamela Strand, P. Geol., Shear's President and Chief Executive Officer, and Jennifer Burgess, P. Geol. Shear's VP Exploration, are qualified persons for purposes of National Instrument 43-101 who supervised the preparation of the information forming the basis for this press release.

On behalf of the Board of SHEAR DIAMONDS LTD.

Pamela Strand, P. Geol., President & CEO

Julie Lassonde, Executive Chairman

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Shear's expectations are in its documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at Shear disclaims any intention or obligation to revise or update such statements.

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

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