KDC Kimberley Dia

    ASX/AIM/MEDIA Release 7 May 2007

                          KIMBERLEY DIAMOND COMPANY NL
           
              APPOINTMENT OF GORDON GILCHRIST AS EXECUTIVE DIRECTOR             

      ELLENDALE PRODUCTION UPDATE AND CAPITAL RAISING TO FURTHER REDUCE DEBT     

                                  KEY POINTS                                   

  * Gordon Gilchrist, the previous Managing Director of Argyle Diamond Mines
    and subsequently Managing Director of Rio Tinto Diamonds, will be appointed
    to the Kimberley Diamond Board of Directors as an Executive Director.
   
  * Record production throughputs achieved at Ellendale last week when, for the
    first time, 22,648 tonnes were processed in a day (over 8 million tonnes on
    an annualised basis).
   
  * Strong production during April with 416,000 tonnes processed at 7.6cpht to
    produce 35,000 carats following record production of 40,000 carats in
    March.
   
  * A$14.39 million capital raising completed with proceeds partially applied
    to further bank debt reduction, with net debt reduced to A$23.8 million.
   
Kimberley Diamond Company NL (ASX: KIM, AIM: KDC) is pleased to announce the
appointment of Mr Gordon Gilchrist, one of the international diamond industry's
most experienced and accomplished executives, to its Board as an Executive
Director.

Mr Gilchrist is 62 years of age and has extensive experience in the resource
industry, both in Australia and internationally. He is well known in the
international diamond industry as the long-serving Managing Director of Argyle
Diamond Mines based in Perth, Western Australia from 1993 to 2002. In this
position, he was responsible for implementing a significant strategic
redirection of the Argyle Diamond Mines business, with a focus on enhancing
operations at a number of levels at Australia's largest diamond mine.

Mr Gilchrist's most recent position was that of Managing Director of Rio Tinto
Diamonds, based in Antwerp, Belgium, where he was responsible for the
establishment of a new business unit for single channel sorting, pricing and
sales of rough diamonds from Rio's mines in Australia, Canada and Zimbabwe.
Under Mr Gilchrist's tenure, this business increased its worldwide sales to
over US$1 billion.

Earlier in his career, Mr Gilchrist held a number of senior positions in the
resource sector including as President and CEO of An Mau Steel, based in Taiwan
from 1991-1993, General Manager Sales and Marketing for Pasminco based in
Melbourne (1989-1991).

Mr Gilchrist holds an MA in Physics and Diploma of Education from Oxford
University and an MBA from London Business School. Mr Gilchrist will have to
sell his overseas residence before returning to Perth to take up his executive
role with Kimberley Diamond Company. He is an Australian citizen who only moved
overseas to take up his role as Managing Director of Rio Tinto Diamonds, and
looks forward to returning to live in Perth where he was resident for many
years.

Kimberley's Executive Chairman, Mr Miles Kennedy, said the appointment of
Mr Gilchrist would significantly enhance the Company's depth of expertise at
Board level and add considerable value to its international marketing strategy.

"Securing someone of Mr Gilchrist's calibre and experience to join Kimberley's
Board represents a very significant achievement," Mr Kennedy said. "Most
importantly, his position as Executive Director means that he will play a very
active and hands-on role in the further development and enhancement of our
Company."

"With our long-term production ramp-up at Ellendale nearing completion, it is
important that we take a strategic view of the longer-term growth drivers of
our business," Mr Kennedy added, "and I believe Mr Gilchrist's appointment,
with all his experience and depth of knowledge of the industry, can only be of
benefit to us. I regard it as very significant that he believes strongly in the
potential of this Company.

"Mr Gilchrist's appointment will be conditional upon shareholders approving the
grant to him of three million options exercisable at 80 cents each in the
capital of the Company and a Notice of Meeting in this regard will be
despatched shortly. Mr Gilchrist's appointment will help us to significantly
expand and enhance our capabilities in the area of international marketing,
which is a key focus for any rough diamond producer."

ELLENDALE PRODUCTION UPDATE

Kimberley recently announced strong production increases at Ellendale, with
record production of 40,000 carats achieved for the month of March. The Company
is on track to achieve steady state production at both the Ellendale 9 and
Ellendale 4 operations, which will see combined carat production from the
Ellendale Field increase to over 600,000 carats per annum.

Production reached 461,000 tonnes for the recovery of 35,000 carats at a grade
of 7.6cpht during April 2007. Overall grade has reduced slightly from prior
months, driven by an increased proportion of the lower grade, high value
Ellendale 9 throughput from the improving East Plant. Kimberley recently
announced an increased annualised diamond production rate gain of over 30
percent on the March quarter average. As previously announced, continued
improvements in unit operating costs are being seen as a result of increased
production levels. Record daily production was achieved last week with 22,648
tonnes of ore processed, equating to annualised production of 8 million tonnes.

$14.39 MILLION CAPITAL RAISING TO REDUCE DEBT

The Company is also pleased to announce that it has issued 20,558,500 fully
paid ordinary shares (Shares) pursuant to a placement with sophisticated
investors at a price of $0.70 per share.

Following this placement the Company will hold $6.4 million in its debt service
reserve bank account. On or before 1 July 2007, the Company's scheduled Project
Facility repayment of $5.0 million will be made from this account. A further
$1.3 million will be used towards new environmental bonding required for the
expanded Ellendale 9 East Plant. The Company has also allocated $2.0 million to
plant remediation works at the Ellendale 9 East Plant where Kimberley expects
to complete the reinstallation of scrubbers to complete the production ramp-up
to 450 tonnes per hour operation (3.3 million tonnes per annum).

The balance of the funds will be used to supplement working capital for
improving the Ellendale Operation and to assist towards financing a build up of
diamond inventory for a planned significant sales campaign during June 2007.

Kimberley also advises that it has revised arrangements with its bankers.
Adjustments have been made to the Project Finance Facility, which recognise the
current construction activities at the Ellendale 9 East Plant and adjustment to
the associated timing of financial compliance testing. As part of the revised
arrangements, the Company will issue one million, three year, unlisted options
to Societe Generale exercisable at A$0.80 per option.

An Appendix 3B with respect to the new securities is attached hereto. The
Company gives notice under subsection 708A(5)(e) of the Corporations Act 2001
(Cwlth) (Act) in respect of the subject securities that:

  * they were issued without disclosure to investors under Part 6D.2 of the
    Act;
   
  * as at the date of this notice, the Company has complied with the provisions
    of Chapter 2M of the Act as they apply to the Company and section 674 of
    the Act; and
   
  * as at the date of this notice, there is no excluded information which is
    required to be set out in this notice pursuant to sections 708A(7) and 708A
    (8).
   
                                     ENDS                                      

Released by:                                                      On behalf of:
Nicholas Read                                          Miles Kennedy - Chairman
Read Corporate / Jan Hope & Partners               Kimberley Diamond Company NL
Telephone: (+61-8) 9388 1474                       Telephone: (+61-8) 9321 5887

and                                                                            

AIM NOMAD                                                                      
RFC Corporate Finance Ltd                                                      
Stuart Laing                                                                   
Telephone: (+61-8) 9480 2500                                                   

KIMBERLEY DIAMOND COMPANY NL ABN 91 061 899 634
                                                                               
12 WALKER AVENUE WEST PERTH 6005 WESTERN AUSTRALIA PO BOX 806 WEST PERTH
WESTERN AUSTRALIA 6872
TEL (+61-8) 9321 5887 FAX (+61-8) 9321 5884 EMAIL general@kimres.com.au WWW
www.kimberleydiamondco.com.au



END

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