Tahera Diamond Corporation announces today that it has filed a preliminary short form prospectus in connection with a distribution to its shareholders of rights exercisable to subscribe for units each consisting of one common share of the Company and one-half of one warrant (the "Rights Offering"). The Rights Offering is subject to receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange.

Each common shareholder will receive one right for each common share held on the record date. The record date, the expiry date, the subscription price, the number of rights required to purchase one unit (the "Basic Subscription Privilege") and other terms of the Rights Offering will be determined prior to the filing of a final short form prospectus. The Company will make a further announcement with respect to these matters at the time of the filing of the final short form prospectus.

Holders of rights who fully exercise their rights under the Basic Subscription Privilege will be entitled to subscribe pro rata for additional units, if available, not subscribed for initially, on or before the expiry date.

The net proceeds of the Rights Offering are intended to be used to fund capital and operating expenditures of the Company in connection with improvements at the Jericho Diamond Mine, winter road re-supply, existing payables to supplier and for general working capital purposes.

GMP Securities L.P. has been appointed as dealer manager to assist in connection with this Rights Offering.

Kingsdale Shareholder Services has been retained as Information Agent regarding the Rights Offering. Within North America Kingsdale can be contacted toll free at 1-866-588-6864 or by email: contactus@kinsdaleshareholder.com. Outside of North America Kingsdale can be reached by calling collect to 416-867-2272.

Further details can be found in the preliminary prospectus, which will be available for review at www.sedar.com.

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's diamond purchase and marketing arrangement with Tiffany & Co., one of the world's leading jewelers, ensures that the Company receives competitive market prices for its Jericho diamonds.

Tahera Diamond Corporation

R. Peter Gillin - Chairman and CEO

%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