SRM Shear Diamonds Ltd.

Shear Diamonds Ltd. (TSX VENTURE:SRM) today announced the successful partial
closing of its $1,050,220 private placement financing, three new corporate
officer appointments and the grant of incentive stock options.


Private Placement

Subject to final TSX Venture Exchange acceptance, Shear has partially closed a
non-brokered private placement on August 19, 2011 for hard dollar gross proceeds
of $1,050,220 with the sale of 3,750,786 common shares at a price of $0.28 per
share. The maximum size of the proposed offering is $1,500,000 at $0.28 per
share of hard dollars. The common shares of Shear ("Common Shares") were sold to
qualified purchasers in reliance upon exemptions from the prospectus and
registration requirements of applicable securities legislation. The proceeds
from the sale of the Common Shares will be utilized for working capital and
operations at Shear's Jericho Diamond Mine, Nunavut. No finders fees were
payable in connection with this private placement and insiders participated in
the financing.


Corporate Appointments

Shear is pleased to announce that it has appointed the following corporate
officers, Ms. Stephanie Autut to the position of Vice President, Environment and
Community Affairs; Mr. Richard Belfer as Acting CFO and Mr. Chris Morton as Vice
President, Operations.


Ms. Autut has worked in senior positions for the Nunavut Impact Review Board,
Nunavut Tunngavik Incorporated and the Kitikmeot Inuit Association. Notable is
her 11 years as Executive Director for the Nunavut Impact Review Board, the
agency responsible for impact assessment in Nunavut. In her current role,
Stephanie will lead the Shear team and Shear's consulting firms to develop,
execute and manage the implementation of a strategic environmental and community
affairs plan and permitting strategy. Stephanie gained her diploma in
Environmental Protection from the School of Civil Engineering at Centennial
College in Toronto, Ontario and her bachelor's degree in English and Geography
at Wilfrid Laurier University in Waterloo, Ontario. 


Mr. Belfer is a finance professional with significant experience in the mining
and consumer / industrial product industries. He joined Shear as Controller in
May 2011. Prior to joining Shear Mr. Belfer spent four years with
PricewaterhouseCoopers in assurance, tax and corporate restructuring roles in
both Canada and Australia. Mr. Belfer is a Chartered Accountant and obtained a
Bachelor of Commerce from Dalhousie University and a Masters in Business
Administration from McMaster University.


Mr. Morton is a specialist in diamond recovery and diamond processing
optimization. He has been involved in the mining industry for fifteen years and
has had many years involvement specifically in the diamond mining sector
including past employment with Rio Tinto. His passions are team building and the
collaborative development of successful projects. Mr. Morton has been a part of
the Shear team as Site & Process Manager for Shear's Jericho Mine and he
recognizes the unlimited potential of Jericho as a viable diamond production
facility and he is excited to be part of Shear Diamonds team.


Incentive Stock Options 

In addition and subject to regulatory approval, Shear announced that the Board
of Directors has granted options pursuant to Shear's incentive stock option plan
to certain directors, officers, employees and consultants to acquire an
aggregate of 3,525,000 Common Shares. The stock options are exercisable at a
price of $0.30 per Common Share, equal to the market value on August 19, 2011,
the date of their grant. The options have expiry dates of between two and five
years from the option grant date. 


About Shear Diamonds Ltd.

Shear is a Canadian-based company focused on diamond exploration in Canada's
north, where it explores established diamond districts and has discovered new
ones. Shear currently has a portfolio of eight diamond projects and holds a 100%
interest in its recently acquired Jericho Diamond Mine and surrounding
exploration assets, located in the Kitikmeot region of Nunavut. 


On behalf of the Board of SHEAR DIAMONDS LTD. 

Pamela Strand, P. Geol., President 

Julie Lassonde, CEO & Executive Chairman 

This news release may contain forward looking statements, being statements which
are not historical facts, including, without limitation, statements regarding
potential mineralization, exploration results, resource or reserve estimates,
anticipated production or results, sales, revenues, costs, "best-efforts"
financings or discussions of future plans and objectives. There can be no
assurance that such statements will prove accurate. Such statements are
necessarily based upon a number of estimates and assumptions that are subject to
numerous risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated or projected. Important
factors that could cause actual results to differ materially from Shear's
expectations are in its documents filed from time to time with the TSX or the
TSX Venture Exchange and provincial securities regulators, most of which are
available at www.sedar.com. Shear disclaims any intention or obligation to
revise or update such statements.

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