Shear Diamonds Ltd. announced the appointment of Mr. Manuel Rappaport to its board of directors. Mr. Rappaport is a well-respected, experienced financial consultant with over 15 years in the diamond industry. He is currently a Financial and Operational Consultant for Tache Company N.V. Mr. Rappaport is also the Director of Banyan Consulting BVBA, an independent consulting company, specialized in the diamond sector. He has held various positions within the diamond industry from manager, to consultant and chief financial officer.

The company also provided processing and operations update with respect to the high grade concentrate stockpiles at its Jericho diamond mine. On August 13, 2012, the company delivered its third parcel of diamonds to Tache. The third parcel amounted to 22,289.36 carats. The average grade achieved during this cycle was 7.61 cpt. This was expected as the grade variability in the recovery rejects pile is high. In addition, Shear has been drawing its material from stockpiles that have a frozen core, and thus there is a significantly higher moisture content which in turn affects the grade achieved per tonne. The company achieved an average rate of 80 tonnes per day while in 24 hour production. Tache had advanced $850,000 to the company for the shipment of the parcel received on August 13, 2012. In addition, the company has drawn an additional $650,000 from its revolving line of credit with Tache in July. Tache will reconcile a final payment to the company once prices per carat can be ascertained based on the formula provided in the marketing agreement. Effective August 20, 2012, the company has temporarily halted production so that it can complete necessary repairs on the thickener cone which is used in the recovery process. The company expects repairs to take approximately three weeks and that normal production will resume at that time. The company plans to deliver the fourth parcel in mid-September.