Pala Announces Proposed Board for Rockwell Diamonds

TORONTO--(BUSINESS WIRE)--Pala Investments Holdings Limited (“Pala”) today announced a proposed slate of directors for Rockwell Diamonds Inc. (“Rockwell”, TSX: RDI, JSE: RDI, OTCBB: RDIAF) to be voted upon at the shareholder meeting to be held on June 17, 2009.

Pala believes that the new board of directors greatly increases the experience base and capabilities represented on the board. In addition to the existing directors who Pala proposes remain, the new directors bring valuable South African mining and alluvial diamond mining experience, as well as valuable business restructuring knowledge that will position Rockwell to make the necessary management and operational changes to succeed in the future.

Pala proposes the following list of directors for consideration by shareholders. Additional information will be provided in a meeting circular to be filed on www.sedar.com and distributed to shareholders shortly after the May 14, 2009, record date.

Proposed Directors

Chairman – Marthinus (Matie) Von Wielligh

Mr. Von Wielligh is an experienced South African mining executive responsible for the successful management of several of South Africa’s most high-profile mining operations. During a career spanning over 30 years in the mining industry, he has held numerous senior roles, including General Manager of Kumba’s Resources iron ore division (now Kumba Iron Ore, listed on the JSE [JSE:KIO] and a subsidiary of Anglo American plc), General Manager of Iscor Heavy Minerals and Managing Director of Sishen Iron Ore Company, South Africa’s largest iron ore producer. Mr. Von Wielligh has lead a diverse range of highly-challenging corporate and operational projects during his career, including the expansion project at the Sishen mine, the Ticor Heavy Minerals Project, Kumba’s acquisition of Ticor SA, an Australian listed company, the financing of Ticor’s Heavy Minerals Project, the development of the social investment programs for Thabazimbi, Sishen and Sishen South mines and the JSE-listing of Afrimat Limited [JSE:AFT], a producer of construction and building materials.

Mr. Von Wielligh is currently the chairman of Afrimat and a director of several private South African mining companies. He holds a BSc in mechanical engineering from the University of Pretoria, an MBA from the University of Stellenbosch, and is a graduate of the Stanford Executive Program. Mr. Von Wielligh is a member of the South African Institute of Directors and a fellow of the South African Institute of Mining and Metallurgy.

Executive Director (Interim – CEO) – Phillip Reynolds

Philip Reynolds’ role as Interim-CEO will be to turnaround and restructure Rockwell’s business and to identify his long-term successor to drive the ongoing successful operation of Rockwell’s assets. He is one of South Africa’s most well respected and experienced experts in turnaround and reorganization. Mr. Reynolds established the Reorganization Services department of Deloitte & Touche in South Africa and will retire from Deloitte & Touche in June, having been a partner for 12 years and a partner at Ernst & Young for 18 years prior to joining Deloitte. He has assisted in the reorganization of numerous clients during that time, including Manganese Mining Company, Rand Mines, The Super Group, Babcock Borsig-Steinmuller, Stock & Stocks, Regal Bank, Murray & Roberts and Sasol. Mr. Reynolds holds a B.Com from the University of Witwatersrand, is a Chartered Accountant, a director of the recently formed Turnaround Management Association of South Africa and an honorary member of the Association of Insolvency Practitioners.

Director – Sandile Zungu (of the black empowerment group, African Vanguard)

Sandile Zungu is founder, Chairman and majority shareholder of Zico, a broad-based black empowerment company. Mr. Zungu spent six years in engineering and production at Richards Bay Minerals, Engen Refinery, National Sorghum Breweries and South African Breweries. He subsequently joined the corporate finance division of African Merchant Bank, following which he played a key role in the formation of Sarhwu Investment Holdings growing it from a zero asset base to more than R400 million in the net asset value. Thereafter he assumed the role of Executive Director for Strategy and Empowerment at New Africa Investments Limited. He created Zico in 2002, a broad based and diversified industrial holding organization with interests in financial services, media, health care, and resources, the latter being held in AVR. AVR is Rockwell's empowerment partner and holds 26% of the prospecting and mining rights held in South Africa, with Rockwell holding the remaining 74%. Mr. Zungu completed a mechanical engineering degree at the University of Cape Town and an MBA at the Graduate School of Business, University of Cape Town.

Director – Hennie Van Wyk

Hennie Van Wyk has agreed to join the board in order to take an active role in Rockwell’s near-term restructuring by applying his expansive operational expertise and knowledge of Rockwell’s particular assets to the challenges facing Rockwell. Mr. Van Wyk has over 15 years of experience in the South African alluvial diamond mining industry. He is one of the most renowned and innovative forces in South African alluvial diamond mining, having spent his whole career in the alluvial terraces of the Middle Orange and Vaal Rivers. Mr. Van Wyk has an unparalleled knowledge of all Rockwell’s mining operations and processing plant, having founded HC Van Wyk Diamonds in 1994, which successfully owned and operated the Holpan and Klipdam mines prior to their acquisition by Rockwell. After Rockwell’s acquisition, Mr. Van Wyk subsequently joined Rockwell’s senior management team as Operations Director in 2006 and continued to manage the development and operation of those same mines. He also oversaw the design and development of all of Rockwell’s processing plants and continues to be a sizeable shareholder of Rockwell. Mr. Van Wyk has since left Rockwell due to his frustrations over the way senior management were operating the company.

Director – William (Bill) Fisher

William (Bill) Fisher is a Professional Geologist with 30 years experience in the mining business. He has served as a director of public companies since 1995, recently as chairman and director of Aurelian Resources which was sold in 2008 to Kinross Gold for over Cdn$1 billion. He served as Vice President, Exploration for base metal major, Boliden responsible for the exploration programs related to the company’s 12 mines and exploration programs in 9 countries. As CEO of GlobeStar Mining, he developed the Cerro de Maimon copper/gold mine from exploration through to construction, supervising feasibility studies, financing, and project development of the mine. Mr. Fisher has been involved in diamond exploration and mining for much of his career. As a production geologist in Angola for de Beers and in Guinea, West Africa for AREDOR, he was responsible for mine and grade control of alluvial, colluvial and open pit kimberlite operations. He has explored for diamonds in Angola, Democratic Republic of Congo, Tanzania, Guinea, Brazil, Canada, Australia and Finland. He is currently a Director of Rockwell Diamonds, Karmin Exploration, Treasury Metals and PC Gold. Mr. Fisher holds a Bachelor of Science degree in Geology from Kingston University, London UK.

Director – Terrence Janes

Terry Janes has worked for 35 years in the mining industry, the last 30 with BHP Billiton and its predecessor companies. In 1993 he became involved in the evaluation and subsequent development of the Ekati Diamond Mine in the Northwest Territories, Canada. He was responsible for the completion of the Environmental Impact Statement and the project Feasibility Study. In 1997 he moved to Antwerp, Belgium to establish and manage BHP Billiton's diamond marketing office through which the rough diamond sales were conducted. In 2000, he was appointed Vice President Marketing, Diamonds and subsequently, Marketing Director, Diamonds. Mr. Janes was responsible for the establishment of a multi-channel marketing model designed to optimize pricing and create value-added opportunities which also included the selling of branded polished diamonds. Mr. Janes holds B.A.Sc. and M.A.Sc. Degrees in geological engineering from the University of Toronto.

Director – Greg Radke

Gregory Radke has worked for more than 15 years in international finance, including extensive experience with both private and public companies in diverse capital markets such as New York, London, Singapore, Hong Kong and Tokyo. He is currently General Counsel for Pala Investments AG, the exclusive advisor to Pala Investments Holdings Limited, a multi-strategy investment fund with a focus on mining and natural resources. Mr. Radke received his J.D. from Columbia University and his B.A., magna cum laude, from Harvard University.

Rockwell Rights Offering

On April 30, 2009, Pala announced that it had requested that Rockwell hold a shareholders’ meeting in order to approve a rights offering to all shareholders in order to meet Rockwell’s ongoing financing requirements.

In an article published April 29, 2009, in Mining Weekly, Rockwell’s Chief Executive Officer, John Bristow, reiterated Rockwell’s intention to embark on a capital raising exercise. Given the current depressed share price and the highly dilutive nature of any other type of equity financing, Pala believes that the only equitable approach to an equity raising effort is to proceed via a rights offering available to all Rockwell shareholders, providing all shareholders with the choice to participate in the financing and avoid potential dilution.

Mr. Jan Castro, Managing Director of Pala AG, said, “During a March 5, 2009, conversation with the current Chairman of Rockwell, Mr. David Copeland, stated that Rockwell’s board of directors may consider an equity financing by way of private placement. This was repeated to me in conversations that I had with Mr. John Bristow, Rockwell’s CEO, over the course of March and April. I made it clear to both gentlemen that Pala strongly preferred a financing in the form of a rights offering that would allow each shareholder the opportunity to avoid the highly dilutive effects of the sizeable financing that will be necessary to keep the Rockwell running through 2009.”

About Pala

Pala Investments Holdings Limited, based in Jersey, Channel Islands, is a US$1.0 billion multi-strategy investment company with a particular focus on mining and natural resource companies in both developed and emerging markets. Pala Investments’ exclusive investment advisor, Pala Investments AG, is a Switzerland-based team with extensive experience within the mining and natural resource sectors. Pala Investments seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.