I spoke to Chris a couple of days ago, in order to clarify the manner in which the distribution of DDI would be done. He confirmed for me that the distribution will be done electronically, directly into the shareholder's account(s), where KWG shares are being held.

The statement that was made as part of the NR (distribution will be completed by the 28th of Dec) was in reference to an accomodation that is being made for those shareholders who actually have the certificates in their possession. It is my understanding that these shareholders will receive the certificates for the DDI shares or a notice of distribution, which will give them a choice to receive the certificates or the shares via direct deposit into an account of their choice.

It is also my understanding that this is not part of an IPO, nor will there be any extra shares issued along with the initial distribution. Kwg is not holding back any shares of DDI, given that this was part of the requirement to obtain the "return of capital" advance ruling from Revenue Canada. Therefore it goes without saying (funny we always say it anyways) that the shares will be tradeable upon distribution.

On a side note, Chris also confirmed with me that he is working hard to execute (as forecasted) the bulk sample on their claims near the DeBeers Victor mine, with full support from DeBeers may I add...this should go a long way in supporting / increasing shareholder value in DDI.

Please someone correct me if I have misunderstood or misinterpreted the information currently available to KWG shareholders about the distribution of DDI shares.

Best of luck to all KWG and DDI longs...worldwide demand for diamonds is forecasted to increase significantly and consistently until 2020.

LP