Tirisano Placed on Care and Maintenance Amid Persistent Industrial Action and to Preserve Cash Resources

Tirisano Placed on Care and Maintenance Amid Persistent Industrial Action and to Preserve Cash Resources PR Newswire VANCOUVER, British Columbia, December 12, 2012 VANCOUVER, British Columbia, December 12, 2012 /PRNewswire/ -- Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI) announces its decision to place its operations at the Tirisano Mine on care and maintenance following persistent industrial relations issues and ongoing losses incurred by the mine. The term 'care and maintenance' is used when a mine has stopped production and is temporarily closed for technical, environmental, financial or labour relations reasons (Minerals Act, 1991). The Tirisano Mine, last week, was impacted by a second unprotected (illegal) strike within a period of four months. It has also been subjected to persistent industrial relations issues relating to pay increases despite the fact that the mine has continued to operate at a loss and these issues being dealt with in full compliance to the Labour Relations Act ("LRA") of South Africa. The mine's challenges have been exacerbated by operational complexities as well as a slower than anticipated recovery in the price of smaller diamonds that make up much of Tirisano's production profile, that led to the persistent poor financial performance.