Tahera Diamond Corporation provides an overview of its 2005 exploration plans. During the Jericho Diamond Mine development phase, Tahera continues to be an active diamond explorer over its prospective landholdings both near the Jericho site and elsewhere in Nunavut and the Northwest Territories. The Company’s strategy is to focus on increasing the diamond reserve base within an economic radius of the Jericho Diamond Project, as well as to advance the Company’s other significant exploration projects.

Tahera estimates that the total exploration budget for 2005, separated into a winter and summer component, will be approximately $6 million, which is almost double the 2004 exploration expenditures. The winter program, which comprises approximately half of the expenditures, will include exploration on the Polar Project claims (De Beers JV), where exploration activities will focus on further evaluation of the economic potential of the Muskox kimberlite, and exploration for new kimberlites. The Muskox kimberlite is located only 14 kilometres west of the Jericho kimberlite. An evaluation program centered on the Anuri kimberlite is also planned during the winter program, as well as a regional exploration program in the area. The limited drilling completed on the Anuri kimberlite to date indicates that the kimberlite has considerable tonnage and economic grade potential. A large diameter core drilling program is planned to provide a better understanding of the geology, diamond grade potential, and geometry of the kimberlite. The 2005 summer program will include further exploration on the Jericho Claims (i.e. Bird Lake Dyke system), and follow-up exploration on the winter program projects. Exploration will also be conducted on new properties that were acquired during 2004. An assessment of the results of these exploration programs will determine the rational and extent of any further increase in exploration expenditures during 2005.
Mr. Eugene Flood, P. Geol., is Tahera’s qualified person as defined in National Instrument 43-101 for its exploration programs.

Financing

Following the recent equity and debt financings, Tahera believes that it is fully financed to complete construction of the Jericho Diamond Project. The Company is targeting completion of all permitting activities in early 2005, and plans to commence construction in early 2005.

A significant portion of Tahera’s exploration expenditures prior to the commencement of commercial production will be financed utilizing flow-through share issuances at attractive prices when the opportunity is available to the Company. Tahera intends to complete an approximate $3,000,000 financing by way of a private placement of flow-through common shares to finance a portion of its 2005 exploration program. Each flow-through common share will have a subscription price of $0.45 per share, resulting in a total of approximately 6,700,000 flow-through common shares being issued. The financing, which is expected to close on December 14, 2004, is subject to regulatory approval.

About Tahera Diamond Corporation
Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond Company focused on developing its wholly-owned Jericho Diamond Project as CANADA'S NEXT and NUNAVUT'S FIRST DIAMOND MINE. Tahera recently entered into an arrangement with Tiffany & Co., one of the world’s leading jewelers, with respect to a diamond purchasing, marketing, and finance agreement for the Jericho Diamond Project. Tahera has several other very prospective diamond projects in Canada's prolific Slave Craton. The common shares of the Company trade on the TSX under the symbol 'TAH'.

Tahera Diamond Corporation
R. Peter Gillin – Chairman and CEO
Grant Ewing – Executive Vice President, Corporate Development

Investor Relations:
Tel: (416) 777-1998 Fax: (416) 777-1898 Toll free: (877) 777-2004
Email: investor_relations@tahera.com  
Website: www.tahera.com