ELEVRA LITHIUM LIMITED — Capital/Financing Update 2007

Jul 22, 2007

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DiamonEx

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Limited
ABN 26 091 951 978
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Level 1 349 Coronation Drive Milton Qld 4064 Australia Telephone: +61 7 3720-8944 Facsimile: +61 7 3720-8988 e-mail : diamonex@diamonex.com Postal Address: PO Box 1357 Milton Qld 4064

ASX ANNOUNCEMENTS AUSTRALIAN STOCK EXCHANGE

23 July 2007

SHARE PLACEMENT CONFIRMED

• Placement to international institutional investors confirmed

• EGM called to approve share issue that finalises funding for the Lerala project

• First diamond production from Lerala on schedule for early 2008

Diamonex Limited today announced a successful share placement of approximately $8 million through London-based broker Fox-Davies Capital Limited to international institutional investors, completing funding arrangements to bring the Lerala diamond mine in Botswana into production.

Approval is being sought at a general meeting of shareholders to be held on 20 August 2007 for the placement of up to 27 million new shares at an issue price of A$0.31. A notice of meeting has been mailed to shareholders.

A total of 25,258,212 shares were placed by Fox-Davies at A$0.31 per share, to raise $7,830,046. An initial placement of 9,758,212 shares has been allotted. Allotment of the balance of shares is subject to shareholder approval.

Announcing the placement, DiamonEx Chairman Mr Greg King said:

“DiamonEx welcomes this further demonstration of confidence by large, highly regarded investors in the international resources industry.

“Our main focus now is to complete the Lerala project whose construction is already well advanced. Mining is scheduled to start late in 2007, and first production is due in early 2008 whereupon Lerala is scheduled to produce an average of 330,000 carats per year for 10 years.”

The placement confirmed today was foreshadowed in an announcement on 13 July 2007 of final funding arrangements that will be utilised to complete the Lerala project and provide funding for exploration and working capital and comprises:

• the approximate $8m placement by Fox-Davies;

• the underwritten BWP 50 million (approx. A$10 m) fixed rate convertible bond arranged by Fleming Advisors (Pty) Limited; and

• a 5 million Euro senior loan facility with the European Investment Bank.

For further information, contact:

Dan O’Neill (Managing Director) +61 407596942 (Mobile) diamonex@diamonex.com.au (Email) Daniel Fox-Davies (Fox-Davies Capital) +44 (0)207 936 5220 (Office) +44 (0)207 936 5201 (Fax) sales@fdcap.com (E-mail)	Greg King (Executive Chairman) +61 411473730 (Mobile) diamonex@diamonex.com.au (Email) Glen Parsons (RFC Corporate Finance Ltd) +61 2 92500000 (Office) +61 2 92500001 (Fax) glen.parsons@rfc.com.au (E-mail)

Appendix 3B – New Issue Announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

DIAMONEX LIMITED

ABN

26 091 951 978

We (the entity) give ASX the following information:

Part 1 - All issue

1 Class of securities issued or to be issued 2 Number of securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the securities 4 Do the securities rank equally in all respects from the date of allotment with an existing class of quoted securities? 5 Issue price or consideration 6 Purpose of the issue 7 Dates of entering securities into uncertificated holdings or despatch of certificates. 8 Number and class of all securities quoted on ASX 9 Number and class of all securities not quoted on ASX 10 Dividend policy on the increased capital (interests)	Ordinary Shares	Ordinary Shares
	9,758,212
	As perexisting ordinaryfully paid shares
	Yes
	$0.31
	Continue development of the Lerala Diamond Mine andworkingcapital
	23 July 2007
	Number	Class
	117,871,075	Ordinary shares
	Number Class
	2,000,000	Options exercisable at 35 cents on or before 29 December 2011
	Not Applicable

Appendix 3B – New Issue Announcement

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required?

• 12 Is the issue renounceable or non-renounceable?

• 13 Ratio in which the securities will be offered

• 14 Class of securities to which the offer relates 15 Record date to determine entitlements

• 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?

• 17 Policy for deciding entitlements in relation to fractions

• 18 Names of countries in which the entity has security holders who will not be sent new issue documents

• 19 Closing date for receipt of acceptances or renunciations

• 20 Names of any underwriters

• 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue

• 23 Fee or commission payable to the broker to the issue

• 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders

• 25 If the issue is contingent on security holders’ approval, the date of the meeting

• 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled

• 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders

• 28 Date rights trading will begin (if applicable)

• 29 Date rights trading will end (if applicable)

• 30 How do security holders sell their entitlements in full through a broker?

Appendix 3B – New Issue Announcement

31 How do security holders sell part of their entitlements through a broker and accept for the balance? 32 How do security holders dispose of their entitlements (except by sale through a broker)? 33 Despatch date

Part 3 - Quotation of securities

• 34 Type of securities ( tick one )

(a) X Securities described in Part 1

• (b) All other securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the securities are equity securities, the names of the 20 largest holders of the additional securities, and the number and percentage of additional securities held by those holders 36 If the securities are equity securities, a distribution schedule of the additional securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 A copy of any trust deed for the additional securities

Entities that have ticked box 34(b)

38 Number of securities for which quotation is sought 39 Class of securities for which quotation is sought 40 Do the securities rank equally in all respects from the date of allotment with an existing class of quoted securities? If not, please state: • the date from which they do • the extent to which they participate for the next dividend, or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now 42 Number and class of all securities quoted on ASX (_including_the securities in clause 38)
	**Number **	Class

Appendix 3B – New Issue Announcement

Quotation agreement

• 1 Quotation of our additional securities is in ASX’s absolute discretion. ASX may quote the securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those securities should not be granted quotation.

• An offer of the securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any securities to be quoted and that no-one has any right to return any securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the securities to be quoted, it has been provided at the time that we request that the securities be quoted.

• If we are a trust, we warrant that no person has the right to return the securities to be quoted under section 1019B of the Corporations Act at the time that we request that the securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before quotation of the securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Notice pursuant to subsection 708A(5)(e) of the Corporations Act 2001 (Cth) (Act)

1. Diamonex Limited advises that on 23 July 2007 it allotted and issued the following securities:

2. 9,758,212 fully paid ordinary shares issued at 31 cents

3. As required by subsection 708A(6) of the Act the directors of the Company advise that:

4. (i) the Company issued the shares without disclosure to investors under Part 6D.2 of the Act;

5. (ii) this Notice is being given pursuant to subsection 708A(5)(e) of the Act;

6. (iii) as at the date of this Notice, the Company has complied with:

   • (a) the provisions of Chapter 2M of the Act as they apply to the Company, and

   • (b) section 674 of the Act; and

7. (iv) as at the date of this Notice, the Company is not in possession of any excluded information as defined in subsections 708A(7) and 708A(8) of the Act.

Sign here: Date: 23 July 2007 (Director/Company Secretary)

Print name: PAUL CRAWFORD