24 October 2007

AIM RELEASE

KIMBERLEY DIAMOND COMPANY NL (the Company) (AIM: KDC)
GEM DIAMONDS AUSTRALIA PTY LTD TAKEOVER OFFER

Gem Diamonds Australia Pty Ltd has increased its substantial holding in the
Company's issued capital to 40.43% (173,464,505 ordinary fully paid shares)
and, in accordance with the provisions of the Corporations Act 2001, has lodged
the appropriate Forms 604 with ASX and ASIC.

J Mathie
COMPANY SECRETARY

The Company's Nominated Advisor is RFC Corporate Finance Ltd, contact Steve
Allen or Stuart Laing - phone +618 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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