ROCKWELL DIAMONDS INCORPORATED - Rockwell Provides Further Update On Three Subsidiaries In Business Rescue

Rockwell Provides Further Update On Three Subsidiaries In Business Rescue

ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of British Columbia, Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African Registration number 2007/031582/10)
Share Code on the JSE Limited: RDI
ISIN: CA77434W2022
Share code on the TSXV: RDI
CUSIP Number: 7743W103
(“Rockwell”)

Rockwell provides further update on three subsidiaries in business rescue


September 15, 2017, Toronto, ON -- Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX:
RDI; JSE: RDI) provides a further update as to the developments with respect to its three subsidiaries
in South Africa which are currently in business rescue. These subsidiaries are Rockwell Resources
RSA (Pty) Ltd (Rockwell RSA), HC van Wyk Diamonds Ltd (HC van Wyk) and Saxendrift Mine (Pty) Ltd
(Saxendrift).

The Company has had several discussions with three parties regarding a rescue transaction, resulting
in a letter from counsel for one of the interested parties to Metis Strategic Advisors, the business rescue
practitioners (BRPs), on September 13, 2017. The letter informed the BRPs that an offer was to be
expected, it was in excess of liquidation value, and they were invited to a meeting to finalize this for
September 18, 2017. The BRPs have been involved in such discussions for some weeks.
Notwithstanding this, the BRPs made a motion yesterday in the Kimberley High Court to place the three
subsidiaries back in provisional liquidation and informed us today that they have started the process to
place the Wouterspan mine on care and maintenance, a decision which will be reviewed should an
acceptable transaction as described above be received. The court date is set for Friday, 22 September
2017.

This application follows a month in August when operations under the BRPs’ direction at the Company’s
Wouterspan mine were breakeven before BRP costs, where grade was 0.77 cts per 100 cubic meters,
prices achieved exceeded plan, but volumes remained below plan at 77,000 cubic meters. Budget was
for 175,000 cubic meters, and the operations had never reached plan under the BRPs’ three months of
direction.

The Company is unclear why the BRPs chose not to wait to file such motion based on the outcome of
the final discussions regarding a proposed transaction, when written assurance had been provided that
the offer would exceed liquidation value. The Company plans to continue the discussions on September
18, 2017, and is advised that one BRP has agreed to attend while the other is not available for personal
reasons. The Company will provide a further update after such meeting.

For further information on Rockwell and its operations in South Africa, please contact

 Stephen Le Roux           Operations Manager MOR                  +27 (0)82 300 4184

 David Tosi                PSG Capital – JSE Sponsor               +27 (0)21 887 9602



About Rockwell Diamonds

Rockwell is engaged in the business of operating and developing alluvial diamond deposits. The Company
also evaluates consolidation opportunities that have the potential to expand its mineral resources and
production and provide accretive value to the Company.

Rockwell has set a strategic goal to become a mid-tier diamond production company with specific focus on
the Middle Orange River region in South Africa.

As at the date of this document, Rockwell’s subsidiary in South Africa (Rockwell Resources RSA Pty Limited)
and its two subsidiaries (HC van Wyk Diamonds Limited and Saxendrift Mine Pty Limited) were being
operated under Business Rescue Management as ordered by the Court, following an application by creditors
of the three South African subsidiaries on May 18, 2017.

Rockwell’s common shares trade on the Toronto Stock Exchange and the JSE Ltd under the symbol “RDI”.
Trading of Rockwell’s shares remains suspended at the request of the Company.


No regulatory authority has approved or disapproved the information contained in this news
release.

Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking
information" within the meaning of applicable securities law. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or conditions "may" or "will" occur.
Although the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in the forward-looking statements.

Factors that could cause actual results to differ materially from those in forward-looking statements
include uncertainties and costs related to the transaction and the ability of each party to satisfy the
conditions precedent in a timely manner or at all, exploration and development activities, such as
those related to determining whether mineral resources exist on a property; uncertainties related to
expected production rates, timing of production and cash and total costs of production and milling;
uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and
title for development projects; operating and technical difficulties in connection with mining
development activities; uncertainties related to the accuracy of our mineral resource estimates and
our estimates of future production and future cash and total costs of production and diminishing
quantities or grades of mineral resources; uncertainties related to unexpected judicial or regulatory
procedures or changes in, and the effects of, the laws, regulations and government policies affecting
our mining operations; changes in general economic conditions, the financial markets and the
demand and market price for mineral commodities       such as diesel fuel, steel, concrete, electricity,
and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with
respect to the value of the US dollar, Canadian dollar and South African Rand; changes in accounting
policies and methods that we use to report our financial condition, including uncertainties associated
with critical accounting assumptions and estimates; environmental issues and liabilities associated
with mining and processing;     geopolitical uncertainty and political and economic instability in
countries in which we operate; and labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we operate our mines, or environmental
hazards, industrial accidents or other events or occurrences, including third party interference that
interrupt operation of our mines or development projects.

For further information on Rockwell, Investors should review Rockwell's home jurisdiction filings that
are available at www.sedar.com.

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