Shear Diamonds Ltd. provided processing and operations update with respect to the high grade concentrate stockpiles at its Jericho diamond mine: On May 29, 2012 Shear delivered its first parcel of diamonds to Tache company N.V. Shear's diamond marketing partner, for sale into end markets. This first parcel amounted to 11,317.98 carats. Pending ultimate determination of the prices to be paid by Tache for the parcel, Tache has made an initial payment of $500,000 to Shear. Tache will reconcile a final payment to shear once prices per carat can be ascertained based on the formula provided in the marketing agreement. While it is anticipated that the ultimate amount to be paid by Tache will exceed the initial payment made to shear by Tache, recent significant reductions in world rough diamond market prices have resulted in an expected ultimate price for the parcel being significantly lower than world market prices existing until very recently. Although, shear has had considerable success in starting up and steadily improving processing, it had to temporarily suspend processing for two full days and reduce processing for an additional two days to address clean-up requirements for wind dispersed fine processed kimberlite which came to light as a result of spring thawing. Processing has now fully resumed. On the recommendation of operations personnel, the processing rate has been slowed to more fully maximize the processing yield.