Waldman Diamond Company

Waldman Diamond Company (Israel) moves upstream, securing marketing rights to Sierra Leone diamond mine
May 30, 2004

RAMAT GAN, ISRAEL - The Waldman Diamond Group, the international diamond manufacturing and trading firm that is headquartered in Israel, has announced that it has secured the exclusive marketing rights for the output of the Magna Egoli mine, an alluvial mining operation in Sierra Leone that produces gem quality diamonds. Waldman Diamonds was able to secure the exclusive marketing rights after Waldman Diamond Resources (WDR), which is the WDC Group's mining and exploration arm, obtained an ownership stake in the mine's holding company.

This month, the WDC Ramat Gan office received the first shipment from this highly mechanized diamond mine, which is located on the Sewa River. The values of this particular shipment of rough diamonds ranged from US$225 to US$280 per carat. Some of the larger stones in the parcel weighed approximately five carats each.

Before Waldman acquired its marketing rights, the production of the Magna Egoli mine was sold on the local Sierra Leone market. But Waldman Diamonds recognized that the high quality of the output made this production of particular interest to the Israeli industry, since more than 75 percent of the rough diamonds can be economically cut and polished by the Israeli diamond manufacturers.

When operating in a post-conflict diamond producing country like Sierra Leone, it is imperative to uphold the highest ethical standards, Alexander Waldman, the company's CEO, emphasized. "Magna Egoli is the first diamond mine in Sierra Leone where the labor conditions for the mine workers have been negotiated with the country's National Union of Mineworkers," he stated. "This means that the earnings of the local diggers are considerably above those customary in other small-scale alluvial diamond mining operations. Consequently, this has earned our operation respect and gratitude on the highest governmental levels. Our model is now being followed by other mining companies."

Magna Egoli's mining plan includes the exploration of a 22 square mile area north of the current mining area, securing an uninterrupted production for at least five years. After its restructuring under the new ownership, the mine is expected to reach full production in July 2004. An independent evaluation report, which was conducted earlier this year, indicated that, at the current price level, when under full production the mine will produce well in excess of US$25 million per year, all of which will be marketed through the Israel diamond center.