Hi AllInvestigated into Seals' link to NADL website ::The...

Hi All

Investigated into Seals' link to NADL website ::

The valuation is by Sino Investment Services Pty Ltd (SSI) and is dated recently at 10 Nov 09.

Read these interesting key points (I was now only aware - very happy & more comfortable with NAD). Some of these info is not even reported in ASX's NAD ! ::

1. Mr. Tom Reddicliffe, ex Rio Tinto - Ashton Mining, was directly responsible for the discovery of the Merlin Mine. Tom has over 30 years of experience in the diamond industry and joined NAD in 2001 as General Manager
– exploration and evaluation and was then appointed as
Technical Director for NAD before his current appointment.

2. The Merlin project has a combined resource base of 22.46Mt of ore representing 4.0Mcts of
diamonds at a grade of 18.2cpt, which are compliant with JORC reporting standards. In addition, the management estimates a further 1.47Mcts of diamonds attributable to the Palsac/Launful underground pipe.

3. Lancelot
The Project area was acquired in 2006 and is located 40km south of Merlin. NAD commenced
drilling in mid October 2009 and has started a 2,000 metre drilling program. The drilling
program is aimed to test the early diamondiferous indications at surface, which would be
repeated at depths, and present the potential of another Merlin style property.

4. Kimberley
The Company has identified a total resource of 1.57 million carats, contained within the
Ashmore and Seppelt 1 and 2 pipes. NAD holds these resources under mining leases, and
they continue to retain commercial potential.

5. The Diamond Value Chain
The Company’s vision is to become Australia’s only vertically integrated fine gem quality
diamond producer. In realising this vision, NAD is aggressively forming solid relationships
with diamond cutters in India and China, and retail connections with appropriate Asian retail
operators to gain retail presence in order to achieve substantial value add in its product.

Should NAD achieve its vision of becoming a fully integrated diamond producer and marketer, its value will increase significantly. We have valued NAD at A$0.48 per share at a discount rate of 20%.NPV per share value for a range of discount rates:

15% Discount - $0.62
17.50% Discount - $0.52
20% Discount - $0.48

This report of SSI done in November 2009
Richard Li – Head of Corporate Research
Chandani Wanasundera - Analyst

RECOMMENDATION – Strong BUY Short Term target A$0.10
Long Term target A$0.48

Extract of key points from SSI's Nov Report

Good Luck to all holders

DYOR - IMO

AoA