Corporate Governance

Corporate Governance Statement

The Directors of North Australian Diamonds Limited support the establishment and ongoing development of good corporate governance for the Company and the consolidated entity. In August 2002 the Australian Stock Exchange established a Corporate Governance Council (CGC) and in March 2003 the CGC put forward a number of best practice recommendations.

These best practice recommendations are embodied in ten corporate governance principals which have been broadly adopted by the ASX and the Financial Community generally. The recommendations are not prescriptions and are intended as guidelines only.

The Board has sought to apply the recommendations to the extent relevant to the consolidated entity's size and scale of operations. This Statement sets out the corporate governance practices in place which comply with the recommendations of the Corporate Governance Council unless otherwise stated.

The Board has adopted the following policies:

• Board Charter
• Code of Conduct
• Audit Committee Charter
• Nomination Committee Charter
• Remuneration Committee Charter
• Communication with Shareholders Policy
• Continuous Disclosure Policy
• Trading in Securities Policy
• Risk Management Policy