TORONTO, Dec. 4, 2006 (Canada NewsWire via COMTEX News Network) -- CLOSES $30 MILLION EQUITY PRIVATE PLACEMENT

Tahera Diamond Corporation (TSX-TAH) announces the completion of the previously announced strategic alliance with Teck Cominco Limited and the signing of related agreements. Teck Cominco has purchased, on a private placement basis, 30 million units of Tahera at a price of $1.00 per unit for gross proceeds of $30 million. Units are comprised of a total of 30,000,000 common shares and 22,109,757 common share purchase warrants. Three series of common share purchase warrants have been issued and consist of 7,369,919 warrants exercisable at a price of $1.20 per share until November 30, 2007; 7,369,919 warrants exercisable at a price of $1.35 per share until November 30, 2008; and 7,369,919 warrants exercisable at a price of $1.50 per share until November 30, 2009.

Tahera's goal of becoming the leading Canadian-owned diamond exploration and mining company is enhanced significantly by this strategic alliance with Teck Cominco which enables Tahera to draw on the strengths of one of the world's leading mining companies. Tahera will use the proceeds from the financing to fund working capital requirements and to fund capital improvements that may be necessary to optimize production from the Jericho Diamond Mine. Teck Cominco will provide Tahera with mining and other technical advice and assistance in connection with the Jericho project.

As a result of this transaction, Teck Cominco holds approximately 16% of the outstanding common shares of Tahera (or up to 24.9% on a fully diluted basis if all warrants are exercised). In connection with the financing, Teck Cominco has been granted the right to nominate a director to the board of Tahera and the right to maintain its percentage interest in Tahera common shares.

Tahera has entered into an amending agreement for its credit facility with Tiffany & Co. which defers all scheduled repayments of principal and interest under the credit facility until September 30, 2007. In consideration for such deferral, Tahera has entered into an agreement that provides Tiffany with marketing rights for any production from the Muskox kimberlite which Tahera would be entitled to under its agreement with De Beers Canada Inc.

Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada. Its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and on the New York Stock Exchange under the symbol TCK. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold, indium and other specialty metals.

Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond company. Tahera's primary asset is its wholly-owned Jericho Diamond Mine, which represents Canada's third and Nunavut's first diamond mine. Tahera has a diamond purchase and marketing arrangement with Tiffany & Co., one of the world's leading jewellers, ensuring that the Company receives competitive market prices for its Jericho diamonds. Tahera has several other prospective diamond projects in Canada's prolific Slave Craton.

Forward-Looking Information

This press release contains "forward-looking information" that reflects Tahera Diamond Corporation's current expectations. When used in this report, words such as "estimate", "intend", "expect", "anticipate" and similar expressions are intended to identify forward-looking information, which is based on the opinions and estimates of management at the date the statements are made. By their very nature, they are not guarantees of Tahera's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause Tahera's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by forward-looking information. These risks, uncertainties and factors may include, but are not limited to the risks and uncertainties identified in Tahera's latest Annual Information Form filed on www.SEDAR.com. Actual events may differ materially from current expectations. Tahera disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Tahera Diamond Corporation

R. Peter Gillin - Chairman and CEO

Grant Ewing - Executive Vice President

%SEDAR: 00003313E

SOURCE: Tahera Diamond Corporation

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