EDN Elkedra

    MEDIA RELEASE MONDAY, 12 MARCH 2007

                              ELKEDRA DIAMONDS NL                              

ELKEDRA PLANS SPIN-OFF OF ITS URANIUM AND BASE METAL PROSPECTS

Elkedra Diamonds NL is pleased to announce that it has made an in principle
decision to spin-off its uranium and base metal prospects in the Georgina Basin
in Australia into a new company. It is then proposed that the new company will
complete an initial public offering and apply for listing on the Australian
Stock Exchange.

Elkedra is focussed primarily on growing its successful diamond production and
exploration business which comprises the company's Chapada diamond mine in
Brazil and exploration tenements in Brazil and Australia. Elkedra's directors
consider the proposed spin-off of its non-diamond exploration assets is in the
best interests of its shareholders as the new company will be able to focus its
management time and its funds to advancing the assets through appropriate
exploration programmes.

The new company's tenement package is expected to comprise approximately
8,000 km2, nearly all of which is located in the Northern Territory. Work
undertaken by Elkedra while exploring for diamonds in the Georgina Basin since
2002 and other available exploration data has confirmed that these tenements
contain highly prospective uranium and base metal targets which warrant further
exploration. Elkedra will retain the diamond rights on the tenements it
transfers to the new company.

Elkedra plans to hold a substantial investment in the new company which,
subject to ASX and shareholder approval, it intends to distribute in specie to
Elkedra shareholders within 12 months of a successful float.

Elkedra is currently obtaining the commercial and legal advice necessary as a
prerequisite to achieving this objective and will make further announcements as
the precise details of the proposed spin-off are finalised.

                                     ENDS                                      

Released by:                                                      On behalf of:
                                                                               
Nicholas Read                                                       Mr Don Best
                                                                               
Read Corporate                                               Executive Chairman
                                                                               
Telephone: (08) 9388-1474                                   Elkedra Diamonds NL
                                                                               
                                                For further information contact
                                                                               
                                                                   Sam Randazzo
                                                                               
                                                             Executive Director
                                                                               
                                                      Telephone: (08) 6380-2855
                                                                               
                                                        Web: www.elkedra.com.au



END

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