Tom ReddicliffeTom ReddicliffeExecutive DirectorExecutive Director

20:20 Diamond Day20:20 Diamond DayTuesday 29Tuesday 29thth January 2008January 2008

•• Incorporated:Incorporated: 19911991•• Shares Listed: Shares Listed: ASX ASX •• Code: Code: NAD NAD

•• Issued Capital: Issued Capital: 1,070 million1,070 million

•• Unlisted Options: Unlisted Options: 17.45 million17.45 million

•• Market CapitalisationMarket Capitalisation: : A$20 millionA$20 million

CORPORATE INFORMATIONCORPORATE INFORMATION

SHAREHOLDINGSSHAREHOLDINGS (as at 1st January 2008)

•• Top 5 = 28.20% Top 5 = 28.20% (1 to 5)

•• Top 40 = 44.26% Top 40 = 44.26% (1 to 40)

•• Top 100 = 52.51% Top 100 = 52.51% (1 to 100)

•• Total holders = 7,400Total holders = 7,400

ShareholdingDistribution

Top 5

Top 100Top 40

Remainder

North Australian CratonCOMPANY FOCUSCOMPANY FOCUS

Diamond/kimberlite occurrence

500 km

North AustralianCraton

Significant diamondoccurrence

Operating diamond mine

NADL tenement

Brisbane

Perth

Darwin

CairnsBroome

♦ Wide spread occurrence of diamonds and kimberlites

♦ Discoveries in Canada precipitated a rapid decline in exploration activity in the early 1990’s

North Kimberley1991-20041.57 Mcts

Yambarra2007-ongoing

Arnhem Land2005-ongoing

Merlin2004-ongoing

3.5 Mcts

ArgyleMerlin

Ellendale

500 km

IS CANADA MORE PROSPECTIVE?IS CANADA MORE PROSPECTIVE?

Australia7,700,000 km²

Canada9,900,000 km²

North Australian Craton1,990,000 km² Slave Craton

300,000 km²

MerlinD flawless

White gems

ArgylePinks

19 Mcts

EllendaleFancy yellows

350,000 cts

Diamond mineSignificant diamondoccurrence

Superior Craton1.4 Mkm²

14.5 M ctsJericho : 375,000 cts

Ekati : 3 MctsDiavik : 9.8 Mcts

Snap Lake : 1.4 Mcts

Gem Diamonds Rio Tinto NADL

Acquired by NADL in late 2004

VictorFort a la Corne

AUSTRALIA

♦ Low political risk

♦ Good infrastructure

♦ Low operating costs

♦ Under explored / not unprospective

♦ Deep weathering poses significant challenges for the use of geophysical techniques

approx 200m

Launfal

Sacramore

Palomides

Plant siteExcalibur

Merlin Southern Cluster Pipes

PalSac

Perceval

Kaye

Excalibur

Bedevere

Gareth

YwainGawain

Tristram

PalomidesSacramore

Launfal

Ector

Admin Office& Camp

ProcessingPlant

Mining Lease

Pipe LocationsMERLIN DIAMOND PROJECTMERLIN DIAMOND PROJECT

2 km

PalSac

♦ 12 diamond bearing pipes

♦ Open pit trial mining commenced 1998

♦ Grades between 6cpht to 81cpht

♦ 19.45 Mt for 3.5 Mcts

PAST PRODUCTION HISTORYPAST PRODUCTION HISTORY

♦♦ 2.4 Million tonnes 2.4 Million tonnes

♦♦ 507,000 carats recovered 507,000 carats recovered ♦♦ Av. Value US$108/ctAv. Value US$108/ct

♦♦ 5 year operation5 year operation♦♦ Closed 2003Closed 2003

♦ Pits optimised & mined♦ No JORC mining reserve ♦ Limited resource drilling

10.54ct stone valued atUS$48,961 (US$4,645/ct)

GradeGrade

Diamond ValueDiamond Value

Size of ResourceSize of Resource

Diamond Size Range Diamond Size Range

and Quality Knownand Quality Known

PAST PRODUCTION HISTORYPAST PRODUCTION HISTORYAfter 5 years of trial mining;

NADL evaluation commenced 2005

No primary crushingEVALUATION EVALUATION –– Diamond LiberationDiamond Liberation

Average 15cpht

HPGR == High Pressure Grinding Roll

Sizer rejects: mined but not processedGawain Pipe

Gra

de (

Ct/b

cm)

Diamond Size Category (carats)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

+10 +5 +2 +0.66 +0.2 +0.07 -0.07

NADL HPGR Test

Previous operations

Application of HPGR technology leads to 41% average increase in grade

Gawain Pit80

60

40

20

0 0.17 0.21 0.25 0.29

26.02cpht

0.33 0.410.37

NADL Bulk Sample

Grade (carats/tonnes)

Dep

th (m

)

Surface Enrichment

39.71cpht

Previous mining Grade Increase

EVALUATION EVALUATION –– Diamond RecoveryDiamond Recovery

X-ray rejects: submerged in pit

19% Merlin diamonds low/non fluorescing

Optical sorter : 13,000cts recovered ‘Yellow’ gem diamonds in x-ray rejects

Average priceachieved for

yellowsUS$1,454/ct

Large diamondsrecovered:

17.19cts14.21cts10.91ctc10.27cts

Application of optical sorting & magnetic separation technology

0

20

40

60

80

100

120

140

160

Jun-99 Nov-99 Jun-00 Feb-01 Apr-Dec 02

Date of Sale

PPC

Ach

ieve

d (U

S$)

EVALUATION EVALUATION –– Diamond ValueDiamond Value

Av. US$128/ct

History of Sales

180

2003 2007

NADL Sales : US$150-180/ct(2006 / 2007 Sales)

Average US$108/ct

‘Specials’ removed prior to sale

US$146/ct

20% increase since 2003(within market increase)

Evaluation results achieved to date demonstrated:Evaluation results achieved to date demonstrated:♦♦ Improved gradesImproved grades♦♦ Improved recoveriesImproved recoveries♦♦ Improved diamond valuesImproved diamond values

POTENTIAL MINING PROJECTPOTENTIAL MINING PROJECT

0mSacramore

PalSac Pipe

Potentialopen pit dual

cut back

160mRequirement:Requirement:♦♦ Resources to underpin Resources to underpin

1.4 M tonne operation 1.4 M tonne operation producing 400,000 carats producing 400,000 carats annuallyannually

Palomides

Potential Revenue (gross) US$60-70 M per annum

Operating costs ~ US$100/ct

A large scale, long term mining project is potentially viable

Underground to 600m

Gawain Pipe

PalSac Pipe

0mEVALUATIONEVALUATION

0m

Resource Definition

Current Indicated and Inferred Resource6.7 M tonnes for 1,346,000 carats

Inferred

Current Indicated Resource1 M tonne for 420,000 carats

RESOURCE

360m

Open pit

Deepest drill depthwith kimberlite

contact

Open pits

250m

60m

590m

Indicated

440m

Deepest drill depthwith kimberlite

contact

600m

28cpht(further testing required)

80m

38cphtTargeting :12 Mt for 3.5 Mcts

2,400m drilled in late 2007, drilling to recommence in February

MLN1154

Gawain

PalSac

Targeting :2.5 Mt for 1 Mcts

Evaluation Work

Trial Production

Resource Drilling

Feasibility Study

Decision to Mine

2004

2006

2007

2009?

WAY FORWARDWAY FORWARD

HA

RR

Y W

INST

ON

Dia

vik

(40%

)

MERLIN FUTURE POTENTIALMERLIN FUTURE POTENTIAL

Diamond Producers / Operation

Tot

al P

rodu

ctio

n in

Car

ats /

Yea

r

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,00051,000,000

38,3

60,8

10

26,3

00,0

00

7,24

0,00

0

3,92

0,00

0

3,50

0,00

0

3,00

0,00

0

620,

000

175,

000

116,

200

30,0

00

23,9

60

10,2

78

DE

BEE

RSva

rious

ALR

OSA

vario

us

RIO

TIN

TOA

rgyl

e &

Dia

vik

(60%

)M

IBA

Mbu

jiM

ayi

BH

P va

rious

OD

EBR

ECH

Luza

mba

375,

000

TAH

ERA

Jeric

ho

350,

518

GG

DM

A

312,

341

SIER

RA

LEO

NE

artis

inal

min

ing

KO

PAN

E D

IAM

ON

DS

Liqh

obon

gPE

TRA

DIA

MO

ND

SH

elam

, Sed

ibeg

, Sta

r

TRA

NS

HEX

NA

MA

KW

A D

IAM

ON

DS

VA

ALD

IAM

RES

OU

RC

ES

IND

IAPa

nna

Merlin has the potential to be a significant producer of top

quality high value gem diamonds

GEM

DIA

MO

ND

SEl

lend

ale,

Let

šeng

& C

empa

ka44

1,00

0

250,

000

END

IAM

AC

atoc

a+

vario

us

MerlinUS$150-180/ct

ROUGHROUGHDIAMONDDIAMONDVALUEVALUE

US$/carat

Min

e

0 100 200 300

Gem quality,large diamondsdrives Merlin

diamond value

400 500 600 700 800

44ct : Palomides

Similar to Canadian Similar to Canadian product but product but

enhanced by good enhanced by good quality large stonesquality large stones

♦♦ High value white diamondsHigh value white diamonds•• Producer of high value D flawless gemsProducer of high value D flawless gems

•• Producer of large diamonds Producer of large diamonds -- llargestargeststone recovered 104.73ctsstone recovered 104.73cts

♦♦ Merlin evaluation remains on trackMerlin evaluation remains on track•• Targeting 14.5 Mt for 4.5 Targeting 14.5 Mt for 4.5 MctsMcts

•• Resource drilling to recommence Resource drilling to recommence February, completed 2008February, completed 2008

•• Feasibility studies 2008/2009Feasibility studies 2008/2009

♦♦ Prospective orbit tenementsProspective orbit tenements•• Evidence of additional pipesEvidence of additional pipes

MERLIN PROJECTMERLIN PROJECTMerlin evaluation remains on track

10.60ct stone sold forUS$153,170 (US$14,450/ct)

20 km

MERLIN EXPLORATIONMERLIN EXPLORATIONNADL tenement

Major drainage

Glyde R

iver

McA

rthur

Rive

r

75 diamonds5.3 carats

15 diamonds4.78 carats

Bulk sample

Merlin mining lease

Tintagel: unsourced alluvial diamonds alludes to primary source

Borroloola: diamond bearing alluvials

Lancelot: significant diamond and indicator mineral anomaly

7 diamonds0.225 carats

75 diamonds5.3 carats

7 diamonds0.225carats

Focus on the North Australian CratonEXPLORATION AREASEXPLORATION AREAS

NADL Tenement Interest = 36,600 km²

NADL tenement

200 km

Aboriginal Land: limited previous

exploration

North Kimberley ProjectNorth Kimberley Project4.8Mt contained 1.57Mcts

Yambarra Project

Reconnaissance sampling

Arnhem Land ProjectReconnaissance sampling

Aboriginal Land

Merlin

♦♦ 5 million carats resource 5 million carats resource Merlin/KimberleyMerlin/Kimberley

♦♦ Potential revenues from the Potential revenues from the 100% owned Merlin 100% owned Merlin Diamond MineDiamond Mine

♦♦ Experienced technical team Experienced technical team with long term presence on with long term presence on the North Australian the North Australian CratonCraton

♦♦ Large prospective land Large prospective land package in excess of 36,000 package in excess of 36,000 kmkm²²

♦♦ Holds 25% of ASX listed Holds 25% of ASX listed Top End Uranium LtdTop End Uranium Ltd

POSITIONED FOR GROWTHPOSITIONED FOR GROWTH

Australia’s Largest Diamond104.73cts

Recovered from Merlin Valued at US$525,000 (2002)

Jungiila Bunajina

NADL vs. PEERSNADL vs. PEERS

Diamond Company / Operation

Mar

ket C

apita

l US$

Market Cap v Resource Value

Resource V

alue US$

Producer

ExplorerResource value

Evaluation

Petra

Dia

mon

ds4

min

es

Afr

ican

Dia

mon

ds

Pang

eaD

iam

ondf

ield

s

Wes

t Afr

ican

Dia

mon

ds

Kop

ane

Dia

mon

ds D

evel

opm

ents

Liqh

obon

g

Dia

mon

ExLe

rala

Lonr

hoM

inin

gSc

hmid

tsdr

ift

Nor

th A

ustra

lian

Dia

mon

dsM

erlin

Taw

ana

Res

ourc

es

Res

ourc

e an

d In

vest

men

t NL

Para

mou

nt M

inin

g C

orpo

ratio

n$-

$100 M

$200 M

$300 M

$400 M

$500 M

$600 M

$-

$400 M

$800 M

$1,200 M

$1,600 M

$2,000 M

Merlin : targeting 4.5 Mcts

Africa

3.5 Mcts

NADL vs. PEERSNADL vs. PEERSMarket Cap v Resource Value

Producer

ExplorerResource value

Evaluation

$-

$50 M

$100 M

$150 M

$200 M

$250 M

$300 MM

ount

ain

Prov

ince

Dia

mon

dsG

ahch

oK

ue

Stor

now

ayD

iam

ond

Cor

pora

tion

Ren

ard

Dia

mon

ds N

orth

Res

ourc

es

Dia

mon

dex

Res

ourc

es

Pele

Mou

ntai

n R

esou

rces

Shea

r Min

eral

s

Tahe

raD

iam

ond

Cor

pora

tion

Jeric

ho

Met

alle

xV

entu

res

Arc

tic S

tar D

iam

ond

Nor

th A

ustra

lian

Dia

mon

dsM

erlin

Maj

esco

rRes

ourc

es

$-

$200 M

$400 M

$600 M

$800 M

$1,000 M

$1,200 M

$1,400 M

$1,600 M

$1,800 M

Diamond Company / Operation

Mar

ket C

apita

l US$

Resource V

alue US$

Merlin : targeting 4.5 Mcts

3.5 Mcts

Canada

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) statements regarding, future debt payments (6) estimates of future capital expenditure (7) 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.

THANK YOUTHANK YOU

Forward Looking Statement

Questions ?