they the Company only disclosed the Information to its
legal advisors just like FDL. thats why volume is increasing.
In response to your email of 30 August 2007, please be advised as follows:
1. The Company first became aware of the information the subject of the Announcement of
29 August 2007 (the Information) during the morning of 29 August 2007. Upon receipt of
the Information, the Company immediately prepared the Announcement and disclosed it to
ASX.
2. The Company released the Information in accordance with its obligations under listing rule
3.1. The Company did not rely on any of the exceptions to listing rule 3.1 contained in
listing rule 3.1A to withhold the announcement of the Information. The Company was of
the view, and remains of the view, that the information was not sufficient to warrant seeking
a trading halt.
3. The increase in the Company’s share price during the days prior to 29 August 2007 could
not have been as a result of the loss of confidentiality of the Information by the Company.
This is because the Company was not aware of the Information prior to the morning of 29
August 2007.
During the morning of 29 August 2007 the Company only disclosed the Information to its
legal advisors.
4. The Company confirms it is in compliance with listing rule 3.1.
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FDL
flinders diamonds limited
ann., page-6
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