Tahera Diamond Corporation announces that it has entered into an agreement with a syndicate of underwriters led by Dundee Securities Corporation, including GMP Securities Ltd. and National Bank Financial Inc. with respect to a $3.41 million private placement financing of flow-through common shares. The private placement will result in the issue of 7,100,000 flow-through common shares at a subscription price of $0.48 per share. The underwriters have the option to increase the size of the financing by 2,150,000 flow-through common shares at any time prior to closing. Closing is anticipated to occur on or about June 30, 2005. The proceeds from this private placement will be utilized to fund the remaining 2005 exploration program on the Company’s diamond projects in Nunavut and the Northwest Territories.

Exploration Update
Tahera has completed its spring 2005 exploration program. The program focused on further assessment of the economic potential of both the Muskox and Anuri kimberlites. Both kimberlites are significantly diamondiferous based on sampling campaigns conducted to date. During the program, selected exploration targets on the Company’s properties were tested, and various geophysical surveys were completed.

Seventeen drill holes were completed on the Polar Project joint venture property. Four of the drill holes targeted the non-magnetic phase of the Muskox kimberlite which had received only limited drilling in the past. Approximately five tonnes of kimberlite was recovered. A significant portion of this material will be processed by caustic dissolution over the coming weeks. It is expected that results from this program will be available during the third quarter. Based on the results of this work, a decision regarding a large bulk sampling program will be made. The remaining 13 drill holes (306 metres) completed tested targets on the Polar Project claims. No new kimberlites were intersected.

A similar evaluation program was completed on the Anuri kimberlite (Rockinghorse Property joint venture). Five drill holes were completed to test under-sampled areas of the Anuri kimberlite, resulting in the collection of approximately two tonnes of kimberlite. A significant portion of this material will be processed by caustic dissolution, with results expected during the third quarter. These results will be used to formulate the next evaluation program for this prospective kimberlite. Two exploration holes (42 metres) were completed to test targets on the property. No new kimberlites were intersected.

Two drill holes (68 metres) were also completed in the Hood River area. A lake-based airborne EM anomaly with till support was drilled on the Tenacity South property (Strongbow JV) and a second drill hole tested a magnetic high on Tahera’s adjacent Hood River property. Kimberlite was not intersected in these holes.

Detailed planning for the next exploration program is underway. The Company’s primary exploration focus is to increase the reserve base within trucking distance of the Jericho mine-site, and to advance its other highly prospective diamond exploration properties.

Mr. Eugene Flood, P. Geol., is Tahera’s qualified person as defined in National Instrument 43-101 for its exploration programs.

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. In addition, 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