Tahera Diamond Corporation

This is a Canadian diamond mining company headquartered in Toronto, Ontario. Tahera currently has a diamond marketing alliance with Tiffany & Co.

Mining

Taheras wholly-owned Jericho project represents Canadas third, and Nunavuts first, diamond mine. Tahera declared commercial production at the Jericho Diamond Mine on July 1st, 2006, and the Company held the official opening ceremony for the mine on August 17th, 2006.

Strategy of Tahera Diamond Corporation

The Company's strategy is to optimize production from its Jericho Diamond Mine, and sustain a robust mining operation for the full mine-life.Tahera will focus its exploration efforts on increasing diamond reserves in the area that is within economic trucking distance of the Jericho processing plant.

R. Peter Gillin - Chairman and Chief Executive Officer of Tahera Diamond Corporation

Mr. Gillin was President and Chief Executive Officer of Zemex Corporation, a public company that produced diversified industrial minerals and recycled aluminum, until May 2003 when it was acquired by an international industrial products and mining group. Mr. Gillin is a career investment banker serving as Vice-Chairman of N M Rothschild & Sons Canada Limited until 2002, and prior to 1996 as Managing Director at Scotia Capital.

Jericho Diamond Mine - Chronology of Construction Events

Following completion of the permitting and regulatory approval process in early 2005, Tahera commenced mobilization of construction materials and supplies to the Jericho mine-site. The mobilization was completed in an eight-week window, using the seasonal winter road from Yellowknife, Northwest Territories to the Jericho mine-site in Nunavut. Approximately 550 truckloads of construction materials, supplies and fuel were mobilized to the site.

Construction began in March 2005 with the establishment of a camp, workshop, and diesel and explosive storage facilities. Tahera relied on several experienced consulting companies to ensure successful completion of mine construction during 2005. Hatch Ltd. managed the design and procurement of the diamond plant and infrastructure, and Clark Builders Inc. acted as the general contractor, responsible for erection of the diamond plant, fuel storage facility, power generators, camp, water services and processed kimberlite disposal system. Nuna Logistics Inc. a majority Inuit owned company with extensive experience in northern Canada, was retained as the mining contractor for the mining project.

Over the summer months, Tahera took advantage of the long Arctic summer days, making substantial progress in both plant facilities construction, as well as pre-stripping of the open-pit. Construction of the Jericho Diamond Mine was substantially completed by year-end.During the period the 2006 winter road was open to the Jericho site, Tahera received only 60% of its planned loads including over half of its planned fuel supply.

In early April 2006, Tahera announced physical completion of construction of the Jericho Diamond Mine. Tahera began production of rough diamonds during the first quarter.

Tahera achieved commercial production on July 1st, 2006. As a result, pre-production operating costs offset by proceeds from diamond production continued to be capitalized to construction in progress until June 30, 2006.

2006 Overview: Jericho Diamond Mine

Completed construction of the Jericho Diamond Mine and related infrastructure in 2006 for a total capital cost of $116 million.

In total, 539,000 tonnes of kimberlite ore were processed through the plant in 2006, resulting in production of 296,000 carats for a grade of 0.55 carats per tonne. These diamonds were sold for an average of $93.00 USD per carat at an average exchange rate of 1.12, resulting in total value of production of $31 million CAD.

Experienced start-up difficulties, which persisted through to year-end. Shorter than expected winter road access resulted in a fuel and explosives shortage, which restricted the mine plan and thereby negatively impacted ore exposure, and carat production.

The average recovered grade was 76% of the SRK estimated resource and reserve grade of 0.75 cpt for the material mined in 2006. Tahera believes that the estimated actual recovered grade per geological unit was 89% to 95% of the revised modeled grade when applying a predictive block model using vertical grade variations.

Based on the above analysis, the grades recovered are considered normal variations from the overall modeled resource grade, and lie within the expected confidence levels for the reserve and resource estimates. Management believes that the life of mine expected grade of the Jericho kimberlite resource and reserve material is 0.85 cpt as per the SRK resource and reserve estimates.

A 59-carat gem stone, which sold for $450,000 USD, was the most valuable diamond recovered in 2006. Also, three low quality stones in excess of 100 carats each were recovered.

Subsequent to the year-end, Tahera has shipped the full requirements for fuel and other supplies to the Jericho mine-site on the 2007 winter road, and commenced measures to improve performance of the Jericho Diamond Mine operations utilizing the Teck technical support agreement