Withdrawal of Rockwell Minority Directors’ Circular and Proxy Demanded

TORONTO, Canada - Pala Investments Holdings Limited (”Pala”) today demanded that the Minority Directors, being Mr. David Copeland, Dr. John Bristow and his younger brother Mark Bristow (the “Minority Directors”), withdraw and reissue their Proxy Circular dated May 20, 2009 (the “Circular”), and accompanying form of Proxy (the Green Proxy) for the upcoming Rockwell Diamonds Inc. (”Rockwell”, TSX: RDI, JSE: RDI, OTCBB: RDIAF) shareholders’ meeting to be held on June 17, 2009 (the “Meeting”), in Vancouver, British Columbia.

The Minority Directors have wilfully created a situation that is confusing and detrimental to Rockwell shareholder interests by issuing their Circular proposing its own set of resolutions and failing to address the properly proposed business which Pala has called the Meeting to conduct.

Pala recognizes the ability of the Minority Directors to oppose the resolutions properly set forth by Pala. However, the Minority Directors’ Circular, with its mismatched resolutions, is written in such a way that it undeniably creates confusion among shareholders as to exactly what resolutions are before the Meeting.

“The Minority Directors have no standing or right under British Columbia law to create a proxy form adding additional resolutions to the Meeting while failing to include the resolutions properly set forth by Pala .” stated Jan Castro, Managing Director of Pala Investments AG, the exclusive advisor to Pala. “Pala has complied with the requirements of British Columbia law and we expect the Minority Directors to do the same.”

As part of Pala’s written demand it advised the Minority Directors that if they fail to withdraw and reissue their Proxy Circular and accompanying form of Proxy, Pala will have no choice but to ask for relief from the British Columbia Supreme Court.

Pala’s Proxy Circular was distributed to shareholders on May 20, 2009, and is available on www.sedar.com.

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.

Certain statements in the press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as ” may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate “, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from the expectations of Pala include, among other things, general business and economic conditions globally or in particular geographic regions in which Rockwell and its subsidiaries conduct business, the inability to attract and retain qualified employees, competition, regionally and internationally, changes in law, disruptions in business operations due to reorganization activities , and interest rate and foreign currency fluctuations. Such forward-looking statements should therefore be construed in light of such factors, and Pala is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Information concerning Rockwell contained in this press release and has been taken from, or is based upon, publicly available information and records on file with Canadian securities regulatory authorities and other public sources. Rockwell has not reviewed this press release and has not confirmed the accuracy and completeness of the information in respect of Rockwell contained herein. Although Pala has no knowledge that would indicate that any statements contained herein concerning Rockwell taken from or based on such documents and records are untrue or incomplete, neither Pala, nor any of its affiliates, nor any of their respective directors or officers, assumes any responsibility for the accuracy or completeness of such information or for any failure of Rockwell or its directors or officers to disclose events or facts which may have occurred or which may affect the significance or accuracy of any such information but which are unknown to it.

For further information: Colin Murray, Pala Investments AG, +41-41-560- 9070; Craig Rogers, Northern Securities, +1-(416)-644-8187; Katie Clark, Edelman Public Relations, +1-(416)-979-1120 ext. 231

Source: Pala Investments Holdings Limited

For further information: Colin Murray, Pala Investments AG, +41-41-560-9070;
Craig Rogers, Northern Securities, +1-(416)-644-8187; Katie Clark, Edelman Public Relations, +1-(416)-979-1120 ext. 231