Alan CampbellAlan CampbellManaging DirectorManaging Director

2828thth February 2006February 2006

Status Status UpdateUpdate

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Forward Looking Statements

This presentation contains “forward looking statements”. Such “forward looking statements” may include without limitation (1) estimates of future earnings, the sensitivity of such earnings to diamond values and foreign exchange rate movements (2) estimates of future diamond production (3) estimates of future cash costs (4) estimates of future cash flow, the sensitivity of such flows to diamond values and foreign exchange rate movements (5) estimates of future capital expenditure (6) estimates of reserves, resources and statements regarding future exploration results.

Where the Company expresses or implies an expectation or belief as to future events or results such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, “forward looking statements” are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forward looking statements”. Such risks include but are not limited to diamond values, currency fluctuations, increased production costs and variances in grades or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which the Company operates or sells product and governmental regulation and judicial outcomes.

The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, expect as may be required under applicable securities laws.

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Contents

1. Strategic Objectives

2. Projects

a) Merlin Diamond Mine and Orbit Tenements

b) Arnhem Land

3. Capital Structure, Share Price and Share Holders

4. Comparison with industry – market capital and ore value

5. Corporate Directory

6. NADL Positioned for Growth

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Strategic Objective•• Profitably mine the Merlin deposits and Profitably mine the Merlin deposits and

secure long term increasing value to NADL secure long term increasing value to NADL shareholdersshareholders

Objectives and aims:Objectives and aims:

Focus on MerlinFocus on MerlinManage the risks to ensure success by incremental development tManage the risks to ensure success by incremental development to produce o produce steadily increasing carats and revenuessteadily increasing carats and revenuesDevelop Develop brownfieldbrownfield and grassroots exploration potential within the mine and grassroots exploration potential within the mine lease and orbit tenementslease and orbit tenementsInvestigate alluvial diamond deposit potential Investigate alluvial diamond deposit potential

Second Order Aims:Second Order Aims:Grassroots exploration plays in Arnhem Land and the KimberleyGrassroots exploration plays in Arnhem Land and the Kimberley

Project Areaswww.nadl.com.au

125 km

Broome

Darwin

Arnhem Land

EllendaleKimberley

Diamond Co

ArgyleRio Tinto

Mt Harriet

AriesThundelarra

Timber CreekTawana

North Kimberley

Merlin

Arnhem Land

NADL / Rio Tinto DataLicense Agreement Area

Diamond Pipe

Project Areas

Seppelt

Merlin

WA

Darwin

NT

Perth

Qld

Sydney

NADL Tenement Interest = 27,500kmNADL Tenement Interest = 27,500km²²

Abner Range Gravity Diamonds

Gravity Diamond JV

Alloy Resources JV

Merlin Projectwww.nadl.com.au

Access Road

NADL Tenement

Merlin Mining Lease

Drainage

15 km

Cape Crawford

Diamond Pipes

Borroloola

Gly

de

Riv

er

Mining Lease

McArthur River Mine(Pb/Zn)

Tintagel ProspectEvidence fornew diamondbearing pipes

Gravity Diamonds Abner Range Discovery

Legend

NADL Tenement Interest = 4,150kmNADL Tenement Interest = 4,150km²²

Darwin

Alice Springs

Tennant Creek

Nhulunbuy

Borroloola

Merlin

Distance from Coast (kms)

350

20

300

250

200

150

100

50

040 60 60 100 120 140 160 180 200 220

Alluvial Diamond PotentialAlluvial Diamond Potential

Sea

River ProfileTerrain Profile

Tintagel Prospect

MerlinWave Hill

Landsurface

Alluvial Diamond

Potential

Alluvial Deposits

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Merlin Diamond Mine

ExcaliburExcalibur

Launfal & Launfal NorthLaunfal & Launfal NorthSacramoreSacramore

TristramTristram(not mined)(not mined)

PalomidesPalomides

GawainGawainYwainYwain

GarethGarethEctorEctor

KayeKaye

EEmmu Pipesu Pipes

BedevereBedevere(not mined)(not mined)

MLN1154

1km

Production from 9 pipes:• 2.4mt mined (shallow open pit resources)• Produced 500,000cts at US$108/ct between 1998 to 2003• 2 pipes not mined

Why did Rio sell Merlin?•Served it’s purpose as a market trail•As a mine it was below Rio Tinto’s threshold level

Acquired by NADL in late 2004 as a package deal.Since closure rough diamonds prices have increases circa 24%

AustraliaAustralia’’s largest diamonds largest diamond104.73cts recovered from Gareth104.73cts recovered from Gareth

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Staged approach: a means of managing riskStaged approach: a means of managing risk•• Liberation, recoveries, grade determinationLiberation, recoveries, grade determination

Merlin Diamond Mine

Stage 1: Recovery of Diamonds from Sorthouse TailsStage 1: Recovery of Diamonds from Sorthouse Tails

Confirmation of significant loss of diamonds from previous operationsLargest stone = 14.21cts

Stage 2 : Reoptimised Pits

Pipe YwainMining grade 81cpht

approx 200m

Launfal

Sacramore

Palomides

Old plant siteExcalibur

Stage 3 : PALSAC Cutback

1.7 M tonnes380,000 cts

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Stage 3: PalSac Cutback – Higher grade ore

100m

150m

200m

250m

300m

Large Diameter drillLarge Diameter drillsamples reports highsamples reports high

diamond counts in VK1 unitdiamond counts in VK1 unit

HigherHighergrade?grade?

Shale

Sandstone

0m

50m

??

??

?

Kimberlite

VK1 Kimberlite

Country Rock

Pits

Legend

Pipes coalesce atPipes coalesce atbase of sandstonebase of sandstone

SacramoreSacramore PalomidesPalomides

VK1VK1VK1 = 10%VK1 = 10%of volumeof volume

Improved recoverydue to different kimberlite type

Optimum recovery

Surface EnrichmentClay – poor recovery

0 0.05 0.10 0.15 0.20 0.25 0.40 0.45

Grade (carats/m³³)0.50

180

160

140

120

100

80

60

40

20

0

Dep

th (m

)

SacramoreSacramore

Harder rock

0.30 0.35

60% increase in grade60% increase in grade

Increasing grade with depth

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Stage 4: Underground Mining Potential

Underground Model : Southern ClusterUnderground Model : Southern Cluster

SacramoreSacramore

PalomidesPalomides

ExcaliburExcalibur

LaunfalLaunfal

Launfal

20cpht20cphtSacramore

Launfal North

Ywain

Tristram

Excalibur

Gawain

Palomides

20cpht20cpht25cpht25cpht

24cpht24cpht

10.1 M tonne for 2.36 M carats10.1 M tonne for 2.36 M caratsover 10 year mine lifeover 10 year mine life

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Merlin In situ value exceeds US$500m

Since acquiring Merlin, work to date has increased the resource by circa 2.45mt = 14.4%

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Merlin Orbit Tenements

Merlin Pipes

Digital Terrain ModelDigital Terrain Model

Alluvial Diamonds

Alluvial Diamonds75 Diamonds

5.3 Carats

Australia’s Largest Diamond

104.73 carat

21 stones3.15cts

15 stones4.78cts

Fingerprinting indicates Fingerprinting indicates diamonds are not diamonds are not

sourced from Merlinsourced from Merlin

Kimberlite Pipe

Alluvial Sample with Diamonds

Indicator Target

Legend

Geophysical Target

25 Indicator Mineral &25 Indicator Mineral &26 Geophysical26 Geophysical

Identified for FollowIdentified for Follow--upup

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Projects: Arnhem Land

Groote

Eylandt

Carpentaria

Gulfof

Sydney

Central

Arnhem

Hwy

Darwin

Central Arnhem Hwy

WA

Darwin

NT

Closed for 5 years

Under Consideration

Aboriginal Consent

Application Tenement

Granted Tenement

Competitor Tenement

Perth

Legend

Consent Received

Kak

adu

Nat

iona

l Par

k

Area has potential for other minerals as well as Diamonds

Nhulunbuy

30 km

Arnhem Land Tenement Interest = 21,500kmArnhem Land Tenement Interest = 21,500km²²

$.05

$.04

$.04

$.04

$.03

$.03

$.03

15 Feb31 Jan30 Dec30 Nov31 Oct30 Sept31 Aug

1550

1410

1310

1210

1120

96010001040

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Capital Structure, Share Price and Share Holders

Listed on the Australian Stock Exchange :Listed on the Australian Stock Exchange : Code: NAD

817m ordinary shares817m ordinary shares20.5m options @ 7.5c 31/07/2008 :20.5m options @ 7.5c 31/07/2008 : Employee

Market capitalisation :Market capitalisation : $32 M

Share register restructured : Top 5 hold 22.74%

NADL Shareholders Percentages

22.74%

17.15%

60.11 %

Top 5Shareholders 6 to 40Other Shareholders

S & P / ASX 200M. Average

NAD Share Price

NAD Share Price 15/8/05 to 15/2/06

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NADL under valued vs. peers

NVarious - Australia/Africa30.0935Paramount Diamonds

NVarious - Australia30.015178Flinders Diamonds

NVarious - Africa50.1142Rox Resources

NVarious - Australia5.350.08563Conquest Mining

NVarious - Australia/Africa80.09780Bonaparte Diamonds

NVarious - Africa/Brazil/Australia90.069125Namakwa Diamonds

NVarious - Australia11.620.12593United Kimberley Diamonds

NVarious - Africa180.099179Mt Burgess Mining

NVarious - Australia/Brazil27.30.4469Elkedra

NVarious - Australia/Africa330.565Tawana

YAustralia - Northern Territory/Kimberley31.90.039817

North Australian Diamonds

NAustralia/Africa430.36120Gravity Diamonds

YVarious - India/Africa760.8293Dwyka Diamonds

NAustralia - Ellendale Exploration1230.69154Blina Diamonds

YVarious - Africa2071.4148Petra Diamonds

YAustralia - Ellendale 4 & 9432.41.63318Kimberley Diamonds

ProductionActivity

Market Capital

A$ million's

Price A$

On Issue (million’s)Company

$1,600$1,560

$1,260

$10,800

$10,800

$66,000

$19,610

$19,200

$13,640

$10,750

$9,280

$7,920$7,800

$7,410

$7,280

$5,520$5,490

$4,760

$4,200

$3,680

$3,400$3,300

$2,350$2.350

$2,050

$28,800

INTE

RN

ATIO

NAL

A-154 South Rio Tinto

A-418 Rio Tinto

MIR

PAND

A

UD

AC

HN

AYA

A-21 Rio Tinto

MIS

ER

Y

KOALA

A-154 North R

io Tinto

SYTYKANSKAYA

VE

N IN

C S

PEC

VENETIA

LETLHAKAN

E

SABLE

FOX

CA

TOC

A

OR

APA

JUBILEE

FINS

CH

AR

GYLE

KO

FFIEFO

NTE

IN

PREM

INC

SPEC

PR

EM

IER

KIMBER

LEY (South A

frica)

MIBA

ELLEND

ALE

US$ per 100 US$ per 100 tonnestonnes

$14,980

JWAN

ENG

US$2,700US$2,700

MerlinMerlin

Ore Value Ore Value

$3,150

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Merlin Ore value at historical prices /grades:Potential upside emerging

Merlin:

ROM average value = USD108/ct

Circa 24% increase in rough diamond prices since 2003

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Corporate Directory

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NADL Positioned for Growth1. Incremental approach has mitigated risk and delivered answers on:

• Liberation (high pressure grinding rolls crusher)

• Diamond recovery (optical sorting and non-fluorescing diamonds)

• Revised grades for Ywain and Kaye. Further testing of other pipes in progress

2. Run of mine production anticipated to produce circa 40,000cts and valued at circa A$7m in the period from Q2 to Q4 2006

3. Key factors are moving in the right direction – improved recoveries, higher grades and increasing rough diamond prices

4. Share register restructured (support from the top shareholders)

5. Opportunity to participate in the growth of the company at the current share price levels are becoming limited

On track to become AustraliaOn track to become Australia’’s s Third Diamond ProducerThird Diamond Producer