Tahera Diamond Corporation receives court approval for Plan Sponsorship Agreement

TORONTO, Sept. 29 /CNW/ - Tahera Diamond Corporation (TSX-TAH) (the "Company") announces that it has received approval from the Ontario Superior Court of Justice for the previously announced Plan Sponsorship Agreement with 0835732 BC Ltd. (the "Plan Sponsor"). The Plan Sponsorship Agreement contemplates a number of transactions described in the Company's September 26, 2008 press release including the compromise of certain of the Company's liabilities pursuant to a plan of arrangement (the "CCAA Plan") under the Companies' Creditors Arrangement Act (the "CCAA"), and will ultimately result in the Plan Sponsor acquiring 100% of the equity of the Company via a concurrent reorganization pursuant to the Canada Business Corporations Act (the "CBCA"). The Plan Sponsorship Agreement is subject to a number of conditions, including the completion of satisfactory due diligence by the Plan Sponsor on or before October 31, 2008. No value will remain available to shareholders as a result of this transaction.

The Court approval received today also provides for the extension of Tahera's stay period granted pursuant to its original CCAA filing on January 16, 2008, until November 30, 2008.

As a result of entering into the Plan Sponsorship Agreement, the remaining directors of the Company have elected to resign from their positions. The Company would like to thank Jonathan Goodman, Colin Benner, Richard Molyneux, and Peter Gillin for their dedication and commitment to the Company. Peter Gillin has been appointed Chief Restructuring Officer pursuant to the Court order to oversee the completion of the CCAA Plan and the concurrent reorganization under the CBCA. As a result of the appointment of Mr. Gillin as Chief Restructuring Officer, it is expected that all the officers of the Company will resign their officership positions.

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 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
    

Contacts

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