ELKEDRA’S THIRD DIAMOND SALE Elkedra Diamonds N.L. (ASX: EDN;...

ELKEDRA’S THIRD DIAMOND SALE

Elkedra Diamonds N.L. (ASX: EDN; AIM: EDN) today announced the results of its third diamond sale
from its Chapada Alluvial Diamond Project in Brazil, South America’s largest diamond mine, achieving a
24% increase in value per carat over the valuation of the previous months production.

The Company’s diamond parcel of 1,875 carats (4,155 stones) for the valuation undertaken on 5/10/06 was
independently valued at US$429 per carat and sold to the Leviev Group, generating total revenue of
US$804,270.

This compared to the parcel of 1,774 carats (4,317 stones) for the valuation undertaken on
4/9/06 which was valued at US$346 per carat. The September valuation comfortably exceeded the value of
US$411 per carat used for calculating the JORC compliant probable reserves of the deposit.

The third sale included 3 stones over 11 carats, the largest of which was 12.2 carats. These special stones
averaged US$2,669 per carat.

Results for the three sales of diamond parcels to date are summarised as follows: