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

• 13 July 2017 Substantail shareholder notice > Read more

• 12 July 2017 Appendix 3B - New Issue Announcement > Read more

• 12 July 2017 Commencement of drilling at Merlin > Read more

• 3 July 2017 Discovery of pink diamonds > Read more

• 28 June 2017 Drilling program to commence at Merlin > Read more

• 27 June 2017 Appendix 3B - New Issue Announcement > Read more

• 14 June 2017 Results of general meeting > Read more

• 11 May 2017 Notice of general meeting > Read more

• 28 April 2017 Quarterly Report 31 March 2017 > Read more

• 29 March 2017 Merlin completes Entitlements Offer of $5.5m > Read more