Tahera Diamond Corporation (TSX-“TAH”) announces that construction of its Jericho diamond mine is substantially complete and the first Jericho diamonds have been produced.

Highlights:

• Substantial completion of mine construction was accomplished by year-end 2005, and mine commissioning is underway
• The first Jericho diamonds have been produced
• An experienced mine operations team is in place to handle successful transition to an operating mine
• The mine is scheduled to achieve commercial production by April 2006
• The project had an excellent health and safety record during the construction phase

Tahera accomplished substantial completion of construction of the Jericho diamond mine in less than 12 months. A test batch of kimberlite was fed through the processing plant in late January 2006, and diamonds have been recovered. Commissioning of the process plant and production ramp-up is ongoing through the first quarter of 2006, and the process plant is scheduled to attain full production (2,000 tonnes per day) by the end of March 2006. The number of carats and value of diamonds produced will not be known until the Company completes its first sale. Tahera expects to have revenue from the sale of diamonds prior to the end of the first quarter of 2006. Production results for the first quarter of 2006 will be reported in the Company’s first quarter report, scheduled for release in May 2006.

The winter road that is used to mobilize bulk supplies to the arctic diamond mines is expected to be operational in February, approximately two weeks later than in previous years. Approximately 450 truck loads of materials and supplies are expected to be mobilized to the Jericho mine-site during February and March, 2006.

Exploration

Tahera commenced the Muskox kimberlite evaluation program in January 2006. The program will include the extraction of a kimberlite sample by large diameter reverse circulation drilling, and approximately 5,000 metres of core delineation drilling. The core drilling component of the program, which will provide geological data for final planning of the large diameter drilling program, started in January. The large diameter drill rig is expected to commence drilling in March 2006.

Results from the current program should provide Tahera with sufficient data to conduct an assessment of the diamond grade potential and diamond value potential of the MKU-A unit of the Muskox kimberlite. Limited drilling to assess the diamond grade potential of the MKU-B unit will also be performed. Depending on the sample processing rate, results are expected during the third quarter of 2006.

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

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