17 October 2007

AIM RELEASE

KIMBERLEY DIAMOND COMPANY NL (the Company) (AIM: KDC)
GEM DIAMONDS AUSTRALIA PTY LTD TAKEOVER BID

In accordance with the Corporations Act 2001, Gem Diamonds Australia Pty Ltd
(Gem) has lodged an ASIC Form 604 - notice of change of interests of
substantial holder. Gem has increased its holding in the Company to 115,375,658
shares (26.98%).

A copy of the notice can be found on the Company's website 
www.kimberleydiamondco.com.au.

J Mathie
COMPANY SECRETARY

The Company's Nominated Advisor is RFC Corporate Finance Ltd, contact Steve
Allen or Stuart Laing - phone +618 9480 2500.

KIMBERLEY DIAMOND COMPANY NL ABN 91 061 899 634
12 WALKER AVENUE WEST PERTH 6005 WESTERN AUSTRALIA
PO BOX 806 WEST PERTH WESTERN AUSTRALIA 6872
TEL (+61-8) 9321 5887 FAX (+61-8) 9321 5884 EMAIL general@kimres.com.au
WWW www.kimberleydiamondco.com.au

END
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