Development

The Jericho Project was safely constructed in less than 12 months from the commencement of site mobilization to first diamond production without a lost time accident. Engineering commissioning was completed in early February and plant throughput is currently ramping up. The diamond process plant is scheduled to reach the nominal production rate of 2,000 tonnes per day by April 2006. The Jericho pit mining operations have also been increased to operational levels to maintain a steady flow of kimberlite resource material to the processing plant. Most of the material processed to date was not included in the Company’s resource and reserve estimates as it is at the contact zone at the top of the kimberlite orebody and is a combination of overburden and kimberlite material and is accordingly not representative of the resources. Tahera anticipates that production and sales from the pre-production phases will be reported in the Company’s first quarter report, scheduled for release in May 2006.

The winter road used to mobilize bulk supplies to the Jericho diamond mine is operational. Tahera expects to mobilize approximately 450 truck loads of materials and supplies to the mine-site during the month of March to sustain the operation for 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 a core delineation drilling program. The core drilling component of the program started in January, and the large diameter drill rig is expected to commence drilling in March.

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. Please refer to Tahera’s previous news releases for further information regarding the Muskox kimberlite.

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

2005 Year-end Results

Financial Statement Highlights (in thousands of Canadian dollars, except for per share data):

At December 31, 2005, Tahera’s cash and cash equivalents balance was $15,445,000, a decrease of $42,444,000 from the balance at December 31, 2004. Capital and other non-current assets, as outlined below, increased by $110,188,000 during 2005, primarily due to the capitalized costs associated with the construction and development of the Jericho diamond mine. The Company recorded a net loss for the year of $2,771,000 ($0.00 per share), as compared to a loss of $2,542,000 ($0.01 per share) for the year ended December 31, 2004. Operating expenses increased to $3,988,000 for the year, compared to $2,889,000 for the prior year. The net loss for 2005 included writedowns of exploration and development projects of $350,000, whereas no similar writedowns were recorded in 2004.

Financial Statement Highlights (in thousands of Canadian dollars, except for per share data):

Tahera has scheduled a conference call at 11:00 a.m. Eastern Standard Time on Friday March 10, 2006. Analysts and investors are invited to participate in the call by dialing 416-644-3431 or toll-free 1-800-814-4941. To access a conference replay dial 416-640-1917 or toll-free 1-877-289-8525 and enter pass code 21179381, followed by the number sign.

Please refer to Tahera’s website (www.tahera.com) to view the complete year-end financial statements and management’s discussion and analysis. Additional information related to Tahera is also available on the Company’s website or on the SEDAR website at www.sedar.com.

Forward-Looking Statements
The above contains forward-looking statements. These forward looking statements are based on opinions and estimates of management at the date the statements are made. They 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. Factors that could cause such differences include: changes in world diamond markets, equity markets, costs and supply of materials relevant to the operation of the Jericho diamond mine, and changes to regulations affecting the Jericho diamond mine. 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.

On Behalf of the Board,

R. Peter Gillin Chairman and CEO

Tahera Diamond Corporation

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