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

• 31 August 2018 Two large white high quality diamonds recovered at Merlin diamond mine > Read more

• 20 August 2018 Appendix 3B - New Issue Announcement > Read more

• 31 July 2018 Quarterly Report - June 2018 > Read more

• 30 July 2018 Empire Capital Partners Research Report June 2018 > Read more

• 30 July 2018 Empire Capital Partners Research Report June 2018 > Read more

• 26 July 2018 Appendix 3B - New Issue Announcement > Read more

• 23 July 2018 Issue of shares on conversion of convertible notes > Read more

• 23 July 2018 Merlin to double processing capacity > Read more

• 17 July 2018 Pink diamonds discovered at Merlin Mine > Read more

• 11 July 2018 Mining approvals update and contractor mobilises to Merlin Mine > Read more