DON Diamonex

    Quarterly Activities Report for the period ended 30 June 2008
             



DIAMONEX LIMITED

AIM Release
31 July 2008


QUARTERLY ACTIVITIES REPORT
FOR THE FORTH QUARTER ENDING 30 JUNE 2008


Last phase commissioning nearing completion

First diamond sale scheduled for August

Ramping to full production


The 100% owned Lerala diamond mine in eastern Botswana, has an
established 3.7 million carat diamond resource and is scheduled to
produce an average of 330,000 carats per year for 10 years.

PRODUCTION

The Lerala Diamond Mine (DiamonEx 100%)

The commissioning phase for the  Lerala Mine commenced in April  with
full-scale production of  diamonds scheduled for  August 2008.  First
diamonds will be processed and ready for sale in August 2008  through
WWW International Diamond  Consultants - one  of the world's  leading
diamond marketing and valuation companies (WWW IDC).

Commissioning of  the  Mine marks  the  final phase  of  an  18-month
construction project. The commissioning process has gone well with no
major issues emerging. It has overrun  in time due to some  technical
issues in plant operation but on the whole the plant has tested well.
The Lerala mine has a brand new purpose built Media Separation  Plant
(DMS), with 200  tonne per  hour through-put  capacity that  utilises
state of  the art  HPGR  crushing technology.   The Company  is  also
preparing for its  first diamond  sale, now  planned for  the end  of
August.  Under its mining lease covenants to the Botswana  Government
DiamonEx must  offer its  goods to  Botswana registered  cutters  and
polishers. Simultaneous with the Botswana offering, the Company  will
be offering its goods for sale internationally, in Antwerp, with  the
best price in a closed tender process securing the diamonds.

Highly regarded diamond valuation  agents, WWW International  Diamond
Consultants, who represent  and act for  the world's leading  diamond
companies and Governments,  have been engaged  by DiamonEx to  market
its diamonds. This dual sales process  is part of a major  initiative
of the Botswana Government to grow the diamond beneficiation industry
in Botswana.  Importantly  however, this sales  process ensures  that
the best possible price for the diamonds is achieved by allowing  the
world market to bid alongside the Botswana diamond cutters.
The installation  of  12 synchronised  400  kVa generators  (4.8  MW)
ensures the  Lerala Mine  will be  unaffected by  electricity  supply
problems experienced in Southern Africa.
The economics of the Lerala Mine continue to look strong. Any drop in
sales revenue  from the  weakening US  dollar is  offset by  an  even
weaker Botswana pula  resulting in lower  operating costs. Since  the
company completed its  feasibility study  in 2005, there  has been  a
constant increase in  rough diamond prices  with WWW IDC  forecasting
continuing long term growth taking into account the down turn in  the
US economy.

EVALUATION

Sloan Mineral Rights, Northern Colorado, USA (Diamonex 100%)

The permitting process to allow   work to proceed has been  initiated
with the Laramie  County, and  the company has  engaged Fort  Collins
based mining services company Tetra Tech, as its consultants in  this
matter.

It is  anticipated that  this process  will be  completed during  the
third quarter


EXPLORATION

Exploration activities continued  on the company's  Jwaneng and  Tuli
properties in Botswana.


CORPORATE

Funding

During the  quarter the  company raised  AUD$1.52 Million  through  a
Shareholder Share Purchase Plan.


OUTLOOK FOR THE NEXT QUARTER

The company's primary focus  for the last  quarter of this  financial
year is to commission and commence full production at the Lerala Mine
and to be cash flow positive by the end of 2008.

For and on behalf of the Board


Paul Crawford
Company Secretary


For further information contact:


Dan O'Neill                       Mark Gray
Managing Director                 Corporate Development
Tel:    + 61 7 37208944           Tel:     + 61 7 37208944
Fax:    + 61 7 37208988           Fax:     + 61 7 37208988
Mob:    + 61 407596942            Mob:     + 61 412899979
Email:  diamonex@diamonex.com.au  Email:   diamonex@diamonex.com.au

Will Souter or Rob Adamson        Richard Hail
RFC Corporate Finance Ltd (Nomad) Fox-Davies Capital Ltd (AIM Broker)
Tel:    + 612 9250 0050           Tel:     + 44 20 7936 5200
        + 612 9250 0041
Email:  will.souter@rfc.com.au    Email:   Richard.Hail@fdcap.com
        rob.adamson@rfc.com.au


The information in this report that relates to Exploration Results is
based on information compiled  by Mr Dan O'Neill  who is a member  of
the Australian Institute of Geoscientists and a full time employee of
DiamonEx Limited.   Mr  O'Neill has  sufficient experience  which  is
relevant to the  style of  mineralisation and type  of deposit  under
consideration and  to  the activity  which  they are  undertaking  to
qualify as Competent Persons  as defined in the  2004 Edition of  the
'Australasian Code  for  Reporting of  Exploration  Results,  Mineral
Resources and Ore Reserves.'  Mr O'Neill consents to the inclusion in
the report of the  matters based on his  information in the form  and
context in which it appears.

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