Shear Diamonds Ltd. (TSXV:SRM) announced a best effort private placement of conventional common share units and flow-through common share units for gross proceeds of $5,000,000 on March 2, 2012. The company will issue conventional common share units and flow-through common share units at $0.36 per unit and $0.40 per unit respectively. M Partners will serve as placement agent to the company and will receive compensation comprised of a cash commission and compensation warrants. M Partners will have an overallotment option, exercisable in whole or in part until closing of the transaction to increase the size by up to $2,000,000, provided that in any event not more than $3,000,000 of flow-through units can be purchased. Each conventional unit will consist of one common share of the company and one half of one conventional unit warrant. Each whole conventional unit warrant will entitle the holder to acquire one common share at a price of $0.55 per share for a period of 18 months following the closing of the transaction. Each flow through unit will consist of one flow through common share and one half of one flow through unit warrant. Each whole warrant will entitle the holder to acquire one common Share at a price of $0.60 per share for a period of 18 months following the closing of the transaction. Closing of the transaction is expected to occur on or about March 15, 2012. All securities issued will have a hold period expiring four months and one day from closing.