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TSX: TAH

TORONTO, Dec. 17 /CNW/ - Tahera Diamond Corporation ("Tahera or the "Corporation") announced today that it has decided to proceed with a best efforts offering of units ("Units") of the Corporation in lieu of its proposed rights offering. The Corporation will file an amended and restated preliminary prospectus in connection with the offering. It is expected that the offering will be subject to a minimum offering of at least $40 million. In connection with the offering, the Corporation plans to provide its shareholders who wish to participate in the offering, with an opportunity to purchase Units, subject to compliance with the securities laws of such shareholders home jurisdictions. GMP Securities L.P. will continue to be engaged in this transaction.

The proceeds of the offering, if successful, will allow the Corporation to take advantage of the up-coming winter road re-supply and further develop and implement operational improvements at the Jericho Mine.

In connection with the offering, Tahera will be entering into conversion agreements with Tiffany & Co. and Nuna Logistics, on terms similar to those entered into in connection with the rights offering.

The proposed financing was restructured, as the rules of the Toronto Stock Exchange would not permit a rights offering to be conditional upon a minimum amount being raised.

Tahera's Units offering will be subject to obtaining all regulatory approvals.

Tahera Diamond Corporation

R. Peter Gillin - Chairman and CEO

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This document may contain "forward-looking information". In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to future prices of diamonds; possible variations in mineral resources and/or mineral reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays or failure in obtaining financing; unexpected climate conditions, as well as those factors discussed in the section entitled "Narrative Description of the Business - Risk Factors" in the Annual Information Form and in the "Risk Factors" section of the prospectus relating to the rights offering. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.