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

• 21 February 2018 Merlin operations progress report > Read more

• 31 January 2018 ASX Quarterly Report December 2017 > Read more

• 17 January 2018 Appendix 3B - New Issue Announcement > Read more

• 17 January 2018 Placement of shortfall from entitlements issue completed > Read more

• 8 January 2018 Placement of shortfall from Entitlements Offer > Read more

• 20 December 2017 Appendix 3B - New Issue Announcement > Read more

• 20 December 2017 Placement of shortfall from Entitlements Offer > Read more

• 11 December 2017 Merlin to process +20mm oversize material using Tomra XRT sorter > Read more

• 1 December 2017 XRT Tomra Machine on site > Read more

• 1 December 2017 Entitlements Issue - Acceptances and Shortfall > Read more