Rockwell Operational Update: Restructuring Underway

VANCOUVER, Jan. 12 /PRNewswire-FirstCall/ - Rockwell Diamonds Inc. ("Rockwell"
or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces an update on
its operational plans for early 2009.
Further to the previous announcement that the Company would be extending the
normal year-end shutdown to January 5, 2009, the Company has elected to extend
this shutdown period to the end of January 2009 as a consequence of continued
weakness in the diamond market. This decision follows a detailed review by
Management and the Directors of the Company of the prevailing static
conditions in the diamond market, cash flow projections, operational
parameters and costs, and technical factors such as grade characteristics of
each mining operation. Further to this review the Company is also planning to
restructure its Middle Orange River operations to reduce costs and increase
production and efficiencies.
The Wouterspan and Saxendrift operations are located near to each other on the
Middle Orange River. A new low cost, high volume plant was successfully
commissioned at Saxendrift in the latter part of 2008. Current plans are to
rationalize production at the two operations, focusing on ramping up
production at the new Saxendrift plant in February and suspending operations
at the lower grade Wouterspan operation until such time as a new high volume,
low cost, twin modular 18-foot pan plant is constructed and commissioned at
Wouterspan.
The proposed suspension of operations at Wouterspan is, unfortunately, likely
to result in the reduction of staff at Wouterspan and to this end negotiations
have been initiated with the Company's employees and the National Union of
Mine Workers, which is the labour organization representing the majority of
the Company's employees. The longer term plan is to upgrade the Wouterspan
plant as described above and to then reinitiate mining and processing.
Maintenance and modifications for further cost savings (for example,
replacement of the de-sanding unit at Holpan with a simple, effective low cost
degrit and cyclone system) are on-going at all of the Company's other
operations, which are scheduled to restart at the end of January.
President and CEO John Bristow stated "Global economic conditions have brought
diamond prices under pressure. In this environment, we continue to take steps
to improve operational efficiencies and maintain the competitiveness of the
Company. This has included the difficult decision to reduce our workforce.
Over the past twelve months the Company has successfully demonstrated
flexibility and ability to rapidly adapt to challenges which have included
power outages, spiraling fuel and steel costs, industrial action, and an
unsolicited offer for the Company. In spite of these challenges, the Company
has achieved profitability thereby setting itself apart from a number of its
peers. We are addressing these new market driven challenges and acknowledge
the performance of our employees in these tough times and, in particular,
those likely to be affected by the restructuring."
Financial results for the period ended November 30, 2008 are expected to be
published on or about January 14, 2009. The Company will host a telephone
conference call on Thursday, January 15 at 10:00 a.m. Eastern Time (7:00 a.m.
Pacific; 5:00 p.m.Johannesburg) to discuss these results. The conference call
may be accessed by dialing (877) 857-6173, or (719) 325-4788 internationally.
A live and archived audio webcast will also be available on the Company's
website at www.rockwelldiamonds.com. The conference call will be archived for
later playback until midnight, Thursday January 22, 2009 and can be accessed
by dialing (888) 203-1112 in Canada and the United States, or (719) 457-0820
and using the passcode 7449151.

John Bristow
President and CEO

No regulatory authority has approved or disapproved the information
contained in this news release.

Forward Looking Statements

This release includes certain statements that may be deemed "forward-looking
statements". Other than statements of historical fact all statements in this
release that address future production, reserve or resource potential,
exploration drilling, exploitation activities and events or developments that
each Company expects are forward-looking statements. Although the Company
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
market prices, exploitation and exploration successes, changes in and the
effect of government policies regarding mining and natural resource
exploration and exploitation, availability of capital and financing,
geopolitical uncertainty and political and economic instability, and general
economic, and market or business conditions. Investors are cautioned that any
such statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected in the
forward-looking statements. For more information on Rockwell, Investors should
review Rockwell's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.com and the Company's home jurisdiction
filings that are available at www.sedar.com.

SOURCE Rockwell Diamonds Inc.

on Rockwell Diamonds Inc., please visit the Company's website at
www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or
within North America at 1-800-667-2114