DiamonEx Limited Annual report & accounts

AIM Release DiamonEx Limited Annual Report DiamonEx Limited is pleased to announce that its Annual Report for 2007 is now available for download from its website: 2007 Annual Report. It is with great pleasure that the Company presents the 2007 Report on the eve of it becoming a significant diamond producer. Plant construction is now well advanced and initial mining for stockpiling of diamondiferous ore has commenced. While progress has been somewhat slower than anticipated last year, plant commissioning is expected in early 2008, and your company will be selling its first parcel of diamonds in March 2008. To assist in marketing its diamonds, the company has engaged the services of WWW International Diamond Consultants whose principals have between them over 50 years' experience in the diamond industry. This experience covers every aspect of the diamond business from sorting, buying and valuing diamonds to marketing, security, cutting and polishing. As such they are a valuable adjunct to DiamonEx management and will enable your company to achieve the highest possible prices for its diamonds. During the year the company also completed its funding package for the mine. This consists of a Euro 5 million (A$8.3 million) loan from The European Investment Bank and a BWP50 million (A$9.7 million) in fixed rate convertible bond facility arranged by Fleming Advisors (Pty) Ltd in Botswana, with the balance of funding coming from equity. The underwritten bond by Fleming Advisors highlights the support DiamonEx continues to receive from the Botswana investment community as well as the Botswana public. Fleming Advisors' sister company, Fleming Asset Management, has been a long time shareholder and supporter of DiamonEx, as have three other Botswana institutions, namely Investec, Stanbic and BIFM. Of the 2000 shareholders on our register, 1200 are resident in Botswana, accounting for approximately 26% of the issued capital of the company. In August of this year, DiamonEx had a successful equity raising in London as a precursor to its Alternative Investment Market (AIM) listing. This saw eight institutions from London and Europe take equity positions in your company including a 9.9% investment by JP Morgan, one of the largest resource based institutions in the world. These investments highlight the confidence placed in the Lerala Diamond Mine The AIM listing will provide additional access for institutional investors in the broader European market which is more familiar with investment opportunities offered by projects in Africa. Notice of Annual General Meeting DiamonEx Limited is also pleased to give notice that the Annual General Meeting of members of DiamonEx Limited ABN 26 091 951 978 will be held at their registered office, Level 1, 349 Coronation Drive, Milton Qld Australia, on Friday 30th November at 4pm Brisbane time. A full copy of the Notice of Meeting and items of business are available from the Company's website: Notice of AGM Financial Statements The Company's Financial Statement are attached. The notes to these statements can be found in the Annual Report which is available for download from the Company's website at: 2007 Financial Statements Paul Crawford Company Secretary 31 October 2007 Enquiries: Dan O'Neill (Managing Director) Greg King (Chairman) +61 7 37208944 (Office) +61 7 37208944 (Office) +61 7 37208988 (Fax) +61 7 37208988 (Fax) +61 407596942 (Mobile) +61 411473730 (Mobile) Email: diamonex@diamonex.com.au Email: diamonex@diamonex.com.au Will Souter or Rob Adamson Richard Hail RFC Corporate Finance Ltd (Nomad) Fox-Davies Capital Ltd (AIM Broker) Tel: +612 9250 0050/+612 9250 0041 Telephone: +44(0) 20 7936 5200 Email: will.souter@rfc.com.au Email: Richard.Hail@fdcap.com Email: rob.adamson@rfc.com.au INCOME STATEMENT FOR YEAR ENDED 30 JUNE 2007 Economic Parent Entity Entity Note 2007 2006 2007 2006 $ $ $ $ Revenue and other income 2 123,170 46,603 434,957 240,714 Exploration & evaluation expenditure (621,492) - (621,492) - Administrative expenses (1,190,276) (820,955) (1,026,890) (701,370) Employee benefit expense (277,506) (184,842) (277,506) (184,842) Occupancy expenses (109,216) (75,679) (92,542) (60,925) Finance costs (7) - (7) - Loss before income tax expense 3 (2,075,327) (1,034,873) (1,583,480) (706,423) Income tax expense 4 54,554 - 54,554 - Loss for the year (2,129,881) (1,034,873) (1,638,034) (706,423) Loss attributable to members of the parent entity (2,129,881) (1,034,873) (1,638,034) (706,423) Earnings per Share Basic earnings per share (cents per share) 7 (2.41) (1.73) Diluted earnings per share (cents per share) 7 (2.41) (1.70) Dividends per share (cents per share) - - The accompanying notes form part of these financial statements. BALANCE SHEET FOR YEAR ENDED 30 JUNE 2007 Economic Entity Parent Entity Note 2007 2006 2007 2006 $ $ $ $ CURRENT ASSETS Cash and cash equivalents 8 880,890 3,081,816 689,367 2,985,261 Trade and other receivables 9 355,026 81,440 45,053 3,892,900 Other 10 34,637 13,794 10,651 13,794 Total Current Assets 1,270,553 3,177,050 745,071 6,891,955 NON-CURRENT ASSETS Trade and other receivables 9 - - 8,464,735 - Property, plant and equipment 11 962,080 67,484 118,147 138,799 Financial assets 12 - - 3,277,478 13 Exploration and evaluation asset 13 608,494 4,836,765 337,211 2,239,924 Mine development asset 14 10,748,145 - 2,790,414 - Total Non-Current Assets 12,318,719 5,004,249 14,987,985 2,378,736 TOTAL ASSETS 13,589,272 8,181,299 15,733,056 9,270,691 CURRENT LIABILITIES Trade and other payables 15 948,854 2,502,693 493,684 2,475,784 Total Current Liabilities 948,854 2,502,693 493,684 2,475,784 TOTAL LIABILITIES 948,854 2,502,693 493,684 2,475,784 NET ASSETS 12,640,418 5,678,606 15,239,372 6,794,907 EQUITY Issued capital 16 19,411,030 9,340,389 19,411,030 9,340,389 Reserves 17 (1,519,023) (540,075) 11,858 - Accumulated losses (5,251,589) (3,121,708) (4,183,516) (2,545,482) TOTAL EQUITY 12,640,418 5,678,606 15,239,372 6,794,907 The accompanying notes form part of these financial statements. ---END OF MESSAGE---