VANCOUVER, Jan. 6 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the

"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that it has now

completed approximately $7.4 million of the planned $12.5 million of

financings announced December 2, 2009. The shares issued under this financing

will be subject to four month resale restricted periods from their issuance

dates in December 2009 and January 2010. The Company also intends to increase

the originally planned $12.5 million of financings by approximately $2.2

million, and it has received Toronto Stock Exchange approval for such

increase. The Company expects to complete the remaining financings in January

2010.

The remaining portion of the Company's recapitalization will be sought

through a rights offering planned for January 2010. Completion of at least

$3.1 million of this rights offering is guaranteed by another new principal

investor, Daboll Consultants who are associated with the Steinmetz Diamond

Group.

Appointment of New Director

Together with completion of the initial part of the financing, Rockwell

has appointed Mr Yong Guo as a director of the Company. Mr Guo is the managing

partner of Godia Capital Partners ("Godia"), one of the first Chinese private

equity funds created to focus on investment opportunities in resource projects

in Africa. Mr Guo and his investment partners also have a sound knowledge of

the emerging Chinese diamond manufacturing sector and, over the past year,

have done an extensive assessment of mining opportunities in southern Africa.

Mr Guo has been involved in the successful launch and management of Omaha

Capital China and CMT China Value Partners, two venture capital funds focussed

on early growth investment opportunities in China. He is also the Vice

President of Business Development for ChinaEDU, Beijing, a leading on-line

education company in China, and iSoftStone Technology, Beijing, a successful

IT outsourcing company in China. Mr Guo holds a Bachelor of Computer Sciences

from Southeast University, Nanjing, China, and a Master of Computer Science

from Syracuse University in the USA.

President and CEO John Bristow commented "We are pleased to have

completed the majority of our planned financing. These funds provide the basis

on which we can strengthen our balance sheet, modernize and re-commission the

processing plant at Wouterspan - the Company's fourth operation which has been

on care and maintenance since January 2009, take advantage of increasing

diamond prices, and re-commence our growth plans. We welcome Mr Yong Guo to

our board and look forward to his assistance in tapping into the Chinese

investment markets and identifying opportunities in the rapidly expanding

Chinese diamond manufacturing and retail sector."

<<

John Bristow

President and CEO

No regulatory authority has approved or disapproved the information

contained in this news release.

Forward Looking Statements

>>

This release includes certain statements that may be deemed

"forward-looking statements" or "forward-looking information" (together,

referred to as "forward-looking statements"). Other than statements of

historical fact, all statements in this release that relate to the financing

and rights offering are forward-looking statements. Although Rockwell believes

the expectations expressed in such forward-looking statements are based on

reasonable assumptions, such statements are not guaranteed, and the terms and

timing of the financing and rights offering may differ materially from those

in the forward-looking statements. Factors that could cause actual results to

differ materially from those in forward-looking statements include the actions

and approvals of securities regulatory authorities, including the securities

regulatory authorities in each province and territory of Canada, the Toronto

Stock Exchange and the Johannesburg Stock Exchange, the availability of

capital and financing, and general economic, market or business conditions.

Investors are cautioned that any such statements are not guarantees and the

actual terms of the financing or rights offering may differ materially from

those outlined in the forward-looking statements.

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/For further information: on Rockwell, please visit the Company's website

at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or

within North America at 1-800-667-2114/