North Australian Diamonds Limited

Market Update

Both the rough and retail diamond markets have proved to be remarkably resilient despite being heavily impacted by global economic trends.

Demand for rough diamonds now exceeds supply, with the difference expected to continue over the coming years and result in further price increases. The prognosis for rough diamond prices over the next ten years is very favourable with annual increases of 5% predicted due to declining production from current world reserves and increasing diamond demand.

Rappaport has reported increases of 15-20% across most categories of good quality gem diamonds for the first quarter of 2011, which further confirms the increasing demand. These price movements translate to prices in excess of US$330/ct for Merlin ' Run of Mine' diamonds.

Sources: RBC Capital Markets, March 2010 & BMO Capital Markets, March 2010

World Diamond Council

Rapaport

Diamond News Agency

Diamond Investing News

Jewellery Outlook

• 7 February 2012 Appendix 3B - Issue of Shares > Read more

• 31 January 2012 Quarterly Activities Report for the period ended 31 December 2011 > Read more

• 25 January 2012 Appendix 3B - Issue of Shares > Read more

• 16 December 2011 Appendix 3X - Dr D S Tyrwhitt > Read more

• 16 December 2011 Appointment of Dr David Tyrwhitt as a Director > Read more

• 25 November 2011 Annual General Meeting November 2011 > Read more

• 25 November 2011 Results of Annual General Meeting 2011 > Read more

• 31 October 2011 Quarterly Activities Report for the period ended 30 September 2011 > Read more

• 25 October 2011 NADL Annual Report 2011 > Read more

• 24 October 2011 Notice of 2011 Annual General Meeting > Read more