Agenda• Team and Partners• Why Diamonds• Past Performance (general)• The GIA• Asset Backed Security• Inspection, Storage and Insurance• The Offer• How We Do It• Historical Returns (actual)• The Ellendale Mine• The Argyle Mine• Exit Strategy• The Media• Summary

Team and Partners

Pure Diamonds www.purediamondinvestments.co.uk

• Single Diamonds• Funds• SIPP

Supplier/s

• 3rd Generation diamond manufacturer• Cutting facilities in S. Africa, Russia, New York, Antwerp and Tel Aviv• Suppliers to the world's top jewellers and the diamond trade

Team and Partners

Why Diamonds

• Finite Resource• No New Mines• Supply and Demand• BRIC Economies• Commodity• Tangible• Price Independent

Why Diamonds‘There haven’t been any new big mines discovered during the past 20 years and the current mines are all ageing. So when welook at the next 10 years, there’s no doubt demand is going to outweigh supply’ (source: Varda Shine, CEO of Diamond Trading Company 2012)

Consumer demand is likely to be driven particularly by emerging markets, including china and India with combined diamond consumption to reach 36% of global total by 2020, surpassing the USA (which already consumes around one third of the world’s diamonds) to become the major importers. (source: Global diamond report 2012/ Bain and co)

“There has simply been no significant discovery since the early 90’s, and that’s despite an awful lot of effort going into exploration” (source: BMO Capital)

Prices of half carat diamonds have risen by 49% since 2001. one carat diamonds have risen by 88% in the same period. Meanwhile three carat diamonds have gone up by 238% over the same timeframe. (source: financial times 7th September 2012)

“A decade long diamond investment outpaced returns in the yen, euro, Nasdaq or Dow Jones,” according to Martin Rapaport (Diamond Price Statistics Annual Report. Released Feb2012)

Diamond supply has fallen nearly 30% since 2007 and demand has risen by the same percentage in that same five-year period.” (De Beers CEO Philippe Mellier, August 2012)

Why Diamonds

Prices for rough diamonds increased by 31% in 2011. Polished stone prices rose 24%. (source: Bain and Co Report: The Global Diamond Industry)

The fundamental forces point to a bright outlook for the diamond market.(source: Bain and Co. press release 13th December 2012)

Why Diamonds

Why Diamonds

Over the past 35 years, Natural Fancy Coloured Diamonds have never decreased in price.(source: diamonds.net)

Why Diamonds

Diamond supply has fallen nearly 30% since 2007 and demand has risen by the same percentage in that same five-year period.(source: De Beers CEO Philippe Mellier, August 2012)

Why Diamonds

A decade long diamond investment outpaced returns in the yen, euro, Nasdaq or Dow Jones…(source: according to Martin Rapaport, Diamond Price Statistics Annual Report. Released Feb2012)

Past Performance

Source: PDH’s own historical information, PDH suppliers and auction house results

Ave 27% per annum across all colours

The GIA

• Established in 1931, the Gemological Institute of America (GIA) is the world's foremost authority on diamonds, coloured stones, and pearls.

• The GIA exists to protect all purchasers of gemstones, by providing the education, laboratory services, research, and instruments needed to accurately and objectively determine gemstone quality

The GIA

The Four C’s• Colour. The GIA Colour Scale extends from

D(colourless) to Z (light yellow or brown).• Clarity. The GIA Clarity Scale includes eleven clarity

grades ranging from Flawless to I3.• Cut. The GIA Cut Scale ranges from Excellent to Poor.• Carat. One carat equals 200 milligrams in weight

The GIA

Asset Backed Security

Inspection, Storage and Insurance

Malca Amit Vault

Malca Amit Vault

Malca Amit Vault

The Offer

• Invest from £10,000 plus• SIPP Approved• Target Return 13% + p.a.• Share of uplift• 5 year term (3year option)

How

• Buying Power and Selection• No new mine discoveries – colours/quality/time• Supply and demand – weak and high• Exit strategy – 3 categories

Historical ReturnsPurchased by PDH at wholseale 19,500 23,116 Price achieved at auction

Sep-12 % increase 18.54% Sothebys New York Lot No. 261 (Dec 12)

Purchased by PDH at wholesale 36,000 46,102 Price achieved at auction

Sep-12 % increase 28.06% Sothebys Hong Kong Lot No. 1663 (Oct 12)

Purchased by PDH at wholesale 11,475 15,369 Price achieved at auction

Sep-12 % increase 33.93% Sothebys New York Lot No. 258 (Sep 12)

Purchased by PDH at wholesale 16,200 19,689 Price achieved at auction

Nov-12 % increase 21.54% Sothebys New York Lot No.359 (Feb 13)

The wholesale price per carat, and auction sale price per carat are depicted in US Dollars, which is the standard international trading currency for diamonds.

Please note that the comparison are like with like. We are comparing the same colour, intensity, clarity and carat

The Ellendale Diamond Mine

Diamond miner reassessing Ellendale mine options

“The Ellendale mine is one of the world's major sources of yellow diamonds”

"The Company is currently reviewing the resources and mine plan at Ellendale in light of the short remaining life of the mine”

Argyle Diamond Mine

Argyle Diamond Mine - Reports and publicationswww.argylediamonds.com.au

Argyle Diamond Mine ... Argyle Social & Environmental Annual Report 2000 (PDF 822 KB) ... Decommissioning and closure management plan (PDF 299 KB) ...

• The Argyle Mine, which is the world’s largest producer of natural coloured diamonds and also produces 90% of the world’s supply of Pink diamonds is scheduled for closure in 2018.

• Not only does it take ten years to develop a mine from discovery to production, but there haven’t been any major diamond discoveries since 2001. The two most recently discovered mines are in Russia and Canada and they produce only colorless (white) diamonds.

Argyle Diamond Mine

Rough and Polished

Exit Strategy• Wholesale• Trade sale

• Institutional Investor• Syndicate• Fund• Auction

• Retail

Exit Strategy• Jewellery sales for Sotheby's in 2012 surged to a record $460.5

million. • The auction house stated that revenue from its jewellery sales

was propelled by the success of private collections, exceptional diamonds and gemstones and historical jewels with noble provenance.

• Sotheby’s jewellery auctions worldwide achieved an average of 84% sold by lot. Seventy-two lots sold for more than $1 million, with six surpassing the $5 million mark.

• One highlight for the year came from a record sale of various-owner jewels at Sotheby’s Geneva, where the total achieved $108.4 million in May.

Exit Strategy

Victoria Earrings in platinum with marquise diamonds, for pierced ears. Size medium. Carat total weight 1.28.Tiffany price £6,050

Pure Diamonds made an exact copy (with 1.45 cts) of this forPure Diamonds cost £1,500

The Media

The Media

The Media

The Media

The Media

The Media

The Media

The Media

The Media

Diamond Mining• For every one million carats of diamonds mined there is only

one gem quality 1 carat diamond found• It takes five million diamonds to find one 2 carat diamond. • Two hundred tons of kimberlite will need to be mined to find

just one diamond. • 90% of diamonds that are found are only industrial quality

and of the 10% that remain less than 1 in 10,000 are fancy coloured

In Summary• Investors are able to invest in a commodity which they may not otherwise be

able to afford• Portfolio/Share of larger diamonds• Unique offering• Ethical Diamonds• Minimum investment of 10,000 GBP (Max 1,000,000)• Diamonds are a finite resource, with clear global demand• Asset backed security• Stress-free method of investing• Defined exit strategy• Secure storage and insurance• Qualified industry experts for sourcing, grading and purchase• World leading partners and suppliers.• Buying power and selection

Thank you for listening.For more information please contact us:

Pure Diamondswww.purediamondinvestments.co.uk

UK: 01603 851 230Overseas: 00 44 (0)1603 851 230

Email: enquiries@purediamondinvestments.co.uk