Waldman Diamond Company

First Rough Diamond Shipment from Magna Egoli Mine in Sierra Leone Arrives in Israel
May 30, 2004

FREETOWN, SIERRA LEONE - The first shipment of the Magna Egoli gem quality diamond mine has been shipped to Israel after an Israeli diamond manufacturer, Waldman Diamonds, secured the exclusive marketing rights for the mine's output. The highly mechanized diamond mine, located on the Sewa River, has hitherto sold its production on the local Sierra Leone market. Waldman Diamonds recognized that the high quality of the output made this production of particular interest to the Israeli industry as over 75% of the diamonds can be economically cut and polished by the Israeli diamond manufacturers.

Waldman Diamonds was able to secure the exclusive marketing rights after the Waldman Diamond Resources (WDR) company obtained an ownership stake in the mine's holding company. WDR is the mining and exploration arm of Waldman Diamonds, which manufactures and markets polished diamonds. Presently Magna Egoli is fully-owned by Israeli diamantaire Alex Waldman and a group of Israeli entrepreneurs headed by Advocate Yigal Shapira. The values of the first shipment of rough diamonds range from US$225 - US$280 per carat. Some large stones in the first parcel were approximately 5 carats each.

As Waldman Diamonds is very committed to upholding the highest ethical standards, which are exceedingly important in African post-conflict diamond producing countries, Alex Waldman stresses, "Magna Egoli is the first diamond mine in Sierra Leone where the labor conditions for the mine workers have been negotiated with the National Union of Mineworkers. This means that the earnings of the local diggers is considerably above those customary in other small-scale alluvial diamond mining operations. 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 planned exploration of a 22 square mile area north of the current mining area, which would secure continued and uninterrupted production for at least five years. The Magna Egoli mine, after its restructuring under new ownership, is expected to reach full production in July. An independent evaluation report, which was conducted earlier this year, expects that at the current price level, at full production the mine will produce well in excess of US$25 million per year, which will be marketed fully through the Israel diamond center.