Tahera Diamond Corporation announces update on Plan Sponsorship Agreement

TORONTO, Nov. 3 /PRNewswire-FirstCall/ - Tahera Diamond Corporation (TSX-TAH) ("Tahera" or the "Company").

Tahera announces that 0835732 BC Ltd. (the "Plan Sponsor") has given the Company notice that the Plan Sponsor's conditions were not satisfied by October 31, 2008 as provided for in the Plan Sponsorship Agreement dated September 26, 2008 between the Company and the Plan Sponsor and, accordingly, the Plan Sponsorship Agreement terminated, in accordance with its terms, with effect at the end of the day on October 31, 2008. It is believed that the current difficult market conditions were a factor in the decision.

Tahera, in conjunction with its advisor, Blair Franklin Capital Partners, will continue to re-assess all strategic alternatives that may be available to the Company.

It is anticipated that there will be no value for holders of Tahera's common shares at the conclusion of the CCAA proceedings.

FORWARD LOOKING STATEMENTS

Certain information regarding the Company in this news release including management's assessment of future plans and operations and the timing thereof, may constitute forward-looking statements under applicable securities laws and may necessarily involve risks including, without limitation, risks associated with mineral exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity and diamond prices, currency fluctuations, imprecision of reserve and resource estimates, environmental risks, competition from other producers, inability to retain services, delays resulting from or inability to obtain required regulatory approvals, the ability to access sufficient capital and the uncertainty involved in Court proceedings and the implementation of the CCAA Plan. As a consequence, the Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward looking statements will transpire or occur, or, if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as of the date this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

    Tahera Diamond Corporation
    R. Peter Gillin - Chief Restructuring Officer

SOURCE Tahera Diamond Corporation