29 December 2014 Manager Announcements Company Announcements Office Australian Securities Exchange 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sirs, Summary of Announcement Issue of Shares Details of Announcement The Directors’ wish to advise that (i) the Company has placed 5,507,692 shares at a price of 6.5 cents per share, raising $358,000; (ii) issued 20,000,000 shares to Loh Kuwei Lam as repayment of a debt of $1,300,000; and (ii) issued 53,076,923 shares to Joseph Gutnick, Mordechai Gutnick or their nominees as repayment of a debt of $3,450,000. The issues of shares referred to in (i) to (iii) were approved by shareholders at the annual general meeting held on 27 November 2014 (refer resolutions 4 to 6). At the annual general meeting held on 27 November 2014, the Company obtained shareholder approval to the placement of 200 million ordinary shares. The Company also wishes to advise that its current intention is to only issue 80 million shares of the total 200 million shares approved. Yours sincerely, PETER LEE Company Secretary Merlin Diamonds Limited ABN 86 009 153 119 Level 8, 580 St Kilda Road, Melbourne VIC 3004 PO Box 6315, St Kilda Road Central, Melbourne VIC 8008 T: +61 3 8532 2858 F: +61 3 8532 2805 W: www.merlindiamonds.com.au E: [email protected]