Daboll Consultants Ltd.

cnw






VANCOUVER, June 26, 2013 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI) announces that it has executed an
addendum with its principal shareholder, Daboll Consultants Ltd., which
extends and amends the parties' June 2, 2011 US$2 million convertible
loan agreement ("Loan").


The Loan repayment date was extended by two years to June 2, 2015 and
the conversion right has been amended so that the Loan is convertible
at the prevailing market price of the Company's shares over its 2 year
remaining term with a floor price of C$0.16 per share (maximum
12,235,686 shares) provided that the Loan may be converted into no more
than 10% of the Company's share capital as of the date of conversion
unless a larger number of shares has been authorized by a prior vote of
disinterested Rockwell shareholders. Rockwell has agreed to solicit
such disinterested shareholder approval at its July 26, 2013 annual and
special shareholders meeting. The addendum also extends the current
diamond marketing and beneficiation agreements with Daboll's affiliate
Steinmetz Diamonds until 2018. This conversion option in the amending
addendum is subject to the acceptance of the Toronto Stock Exchange and
JSE Limited as of the date hereof.


"This extension reinforces our long standing partnership with Steinmetz
Diamonds, both as our strategic marketing partner and Rockwell's
largest shareholder," explains Rockwell President and CEO James
Campbell. "The strength of this partnership stems from our unique
positioning in the diamond industry: Rockwell produces large, high
valued investment diamonds and Steinmetz Diamonds focuses on
beneficiation and sales in this segment. The majority of our production
profile comprises the rare investment grade rough diamonds that
Steinmetz Diamonds is renown for polishing and marketing at the high
end. Both parties have derived significant value from this partnership
to date and we are confident that it will continue to add value going
forward."


About Rockwell Diamonds:


Rockwell is engaged in the business of operating and developing alluvial
diamond deposits, with a goal to become a mid-tier diamond production
company. The Company has two operational mines, which it is
progressively optimizing, as well as a third mine which will come into
production in the first quarter of 2013. Rockwell also has two
development projects and a pipeline of earlier stage properties with
future development potential. The operations are based on high
throughput processing capability and Saxendrift, the flagship mine has
among the lowest unit costs in the industry, as a result of
implementing fit for purpose technologies.


The Company is known for producing large, high quality gem stone
diamonds comprising a major portion of its diamond recoveries and has a
beneficiation joint venture that enables it to participate in the
profits on the sale of the polished diamonds.


Rockwell also evaluates merger and acquisition opportunities which have
the potential to expand its mineral resources and production profile
and would provide accretive value to the Company.


No regulatory authority has approved or disapproved the information
contained in this news release.





Forward Looking Statements


Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized
by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments 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 uncertainties and costs related
to exploration and development activities, such as those related to
determining whether mineral resources exist on a property;
uncertainties related to expected production rates, timing of
production and cash and total costs of production and milling;
uncertainties related to the ability to obtain necessary licenses,
permits, electricity, surface rights and title for development
projects; operating and technical difficulties in connection with
mining development activities; uncertainties related to the accuracy of
our mineral resource estimates and our estimates of future production
and future cash and total costs of production and diminishing
quantities or grades of mineral resources; uncertainties related to
unexpected judicial or regulatory procedures or changes in, and the
effects of, the laws, regulations and government policies affecting our
mining operations; changes in general economic conditions, the
financial markets and the demand and market price for mineral
commodities such as diesel fuel, steel, concrete, electricity, and
other forms of energy, mining equipment, and fluctuations in exchange
rates, particularly with respect to the value of the US dollar,
Canadian dollar and South African Rand; changes in accounting policies
and methods that we use to report our financial condition, including
uncertainties associated with critical accounting assumptions and
estimates; environmental issues and liabilities associated with mining
and processing; geopolitical uncertainty and political and economic
instability in countries in which we operate; and labour strikes, work
stoppages, or other interruptions to, or difficulties in, the
employment of labour in markets in which we operate our mines, or
environmental hazards, industrial accidents or other events or
occurrences, including third party interference that interrupt
operation of our mines or development projects.





SOURCE: Rockwell Diamonds Inc.



For further information:



For further information on Rockwell and its operations in South Africa, please contact

James Campbell CEO +27 (0)83 457 3724

Stephanie Leclercq Investor Relations +27 (0)83 307 7587