Muskox Kimberlite
Tahera Diamond Corporation plans to conduct a large-scale Muskox kimberlite evaluation program commencing in February 2006. An 800 to 1,300 tonne kimberlite sample will be extracted by large diameter reverse circulation drilling, and 3,000 to 5,000 metres of delineation core drilling will be completed. The budget for the 2006 program is approximately $13 million. The 2006 program should provide Tahera with sufficient data to conduct an assessment of the diamond grade potential and diamond value potential of the kimberlite. The goal of the evaluation program is to develop a mineral resource estimate for the Muskox kimberlite over the next 24-month period.

The kimberlite is comprised of at least two volumetrically significant units: the MKU-A unit and the MKU-B unit, both of which are highly diamondiferous. The MKU-A unit has been interpreted as magmatic kimberlite and the MKU-B unit has been interpreted as volcaniclastic kimberlite. Each unit comprises approximately one-half of the volume of the pipe. The kimberlite occupies a surface area of approximately 4 hectares, making it in excess of 2 times the size of the Jericho pipe. Current tonnage estimates for the Muskox kimberlite are approximately 12 to 14 million tonnes to a depth of 250 metres, however further delineation is required to determine an accurate figure. The Muskox kimberlite lies approximately 14 kilometres west of the Jericho pipe, which is well within trucking distance of the Jericho mine-site (see press release dated October 18, 2005 for recent Muskox exploration results).

The Muskox kimberlite is part of the Company’s joint venture with De Beers Canada Inc. under which Tahera has the option to earn a 50 - 75% interest (see press release dated June 8, 2004).

Tahera retained Mineral Services Canada Inc., a geological consulting company that specializes in evaluation of kimberlites, to conduct a review of the Muskox kimberlite data that was generated during Tahera’s 2005 exploration program. Based on a preliminary assessment of the microdiamond grade and size distribution information, Mineral Services concluded that the MKU-A unit shows potential for macrodiamond grades in excess of 1 carat per tonne. Data for samples of MKU-B material indicate a lower diamond grade potential for this unit. The microdiamonds from both units were found to be of exceptional quality however the relationship between microdiamond and macrodiamond population characteristics is undetermined.

Although the sample size is small, the Mineral Services preliminary review indicates that the Muskox kimberlite has good diamond grade potential. These results suggest higher grade potential than that indicated by a small bulk sampling program undertaken by De Beers in 1997 (see SEDAR filed technical report dated March 31, 2005). While the reasons for this discrepancy are unclear, the recent microdiamond results are sufficiently compelling to justify additional bulk sampling to more reliably determine the diamond grade of the Muskox kimberlite. The quality of the Muskox microdiamonds is encouraging but further work is required to determine potential macrodiamond values. Mineral Services will continue to work with the Company during the Muskox kimberlite evaluation program.

Other Exploration
Tahera’s total exploration budget for 2006 is approximately $15 million. In addition to the Muskox program, Tahera will continue to explore its other advanced exploration properties, and investigate new diamond exploration opportunities in Canada.

Mr. Eugene Flood, P. Geol., is Tahera’s qualified person as defined in National Instrument 43-101 for its exploration programs. The Muskox kimberlite sample collected during Tahera’s 2005 exploration program was processed at the Saskatchewan Research Council Geoanalytical Laboratory (“SRC”) in Saskatoon, Saskatchewan.

Flow-Through Financing
Tahera also announced today that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., pursuant to which the syndicate has agreed to purchase 13,235,300 flow-through common shares from treasury at a price of $0.68 per share for gross proceeds of approximately $9 million. Closing is anticipated to occur on or about December 15, 2005, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The proceeds from this financing will be utilized to fund the 2006 exploration program on the Company’s diamond projects in Nunavut.

Forward Looking Statements
The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

Tahera Diamond Corporation
R. Peter Gillin - Chairman and CEO
Grant Ewing - Executive Vice President

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