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Rockwell Receives Premium Price for 189.68 Carat Stone: US$10,291,050

October 8, 2008

VANCOUVER, Oct. 8 /PRNewswire-FirstCall/ — Rockwell Diamonds Inc. (“Rockwell” or the “Company”) (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the successful sale of its large 189.68 carat white stone and the sale of run-of-mine production for the period June 1st to August 31st 2008 representing the Company’s second quarter fiscal 2009 operating period.

The sale of the latest large stone (189.68 carats) recovered from the Klipdam mine realized a price of US$10,291,050 which equates to a value of US$54,255 per carat. Concurrently with the sale of the 189.68 carat white stone, the Company also realized US$4,928,166 for the sale of 3,945.84 carats of run-of-mine production from its Wouterspan, Holpan, Klipdam and Saxendrift operations.

The Company realized total revenue of US$15,219,216 from its latest diamond sale, representing an average price of US$3,680 per carat for the latest sale results. The Company’s average sale price for the first two quarters of fiscal 2009 now stands at US$2,491 per carat.

       President and CEO John Bristow stated "We are particularly satisfied       by the outstanding price of US$10,291,050 or US$54,255 per carat       achieved for this latest large stone of over 100 carats, the fourth       for the year, recovered from the Klipdam operation. This exceptional       sales price is most encouraging especially in the context of the       turbulence in international capital markets and indications that this       is impacting on world diamond prices.        Following from these excellent latest diamond sales results for       production for the period June 1st to August 31st 2008, during       September the Company achieved strong production results at operating       costs which are far lower costs than those experienced during our       previous quarter. Our strong September production reflects the       positive resolution of the industrial action and is testament to our       focus on across the board mining and production improvements to       ensure sustainable long-term cost savings and reduced unit costs. The       strong decline in oil prices and declining steel prices should       provide further benefit to the Company is terms of lower operating       costs."

Run-of-mine diamond production during the period June 1st to August 31st 2008 was 4,266.27 carats, representing approximately 65% of budgeted production. Loss of production was due to industrial action during July and August which was reported in previous Company news releases. Operating cash costs for this period (exclusive of Saxendrift costs) were US$4.65 per tonne, reflecting lower than normal throughput due to industrial action. Operating costs inclusive of Saxendrift were US$5.62 per tonne. September cash operating costs are forecast to be lower than US$4.00 per tonne.

Rockwell realized total revenue of US$4,928,166 for the sale of run-of-mine production of 3,945.84 carats which together with the sale of the large stone realized revenue of US$15,219,216.

There was strong interest in the Rockwell sale reflecting continued high demand for Rockwell rough diamonds. Sales details for production from the individual operations are tabulated below.

Average prices achieved for the different operations were in line with the overall qualities of goods offered up for sale and in all cases the reserve prices were met. Saxendrift production was primarily from lower grade middlings gravels with a lower average diamond size than for June production and this is reflected in lower average price compared to previous sales results. Some softening of prices of smaller and intermediate sized goods in line with seasonal trends, the removal of speculative premiums experienced at the start of this year, and softer international prices were also apparent in the sales results.

              -----------------------------------------------              OPERATION          SALES         AVERAGE PRICE                               (CARATS)       (US$ PER CARAT)              -----------------------------------------------              Wouterspan        704.15             1,624              -----------------------------------------------              Holpan            670.82               965              -----------------------------------------------              Klipdam         1,630.63             7,102              -----------------------------------------------              Saxendrift      1,129.92             1,634              -----------------------------------------------              TOTAL           4,135.48            $3,680              -----------------------------------------------   

The distribution of diamonds larger than 10 carats sold in this latest sale by Rockwell was as follows:

                      -   25 stones of 10 - 20 carats                      -   11 stones of 21 - 30 carats                      -   2 stones of 31 - 40 carats                      -   2 stones of 41 - 50 carats                      -   1 stone of 50 - 60 carats                      -   1 stone of 60 - 70 carats                      -   1 stone of 100 - 200 carats     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 20-F filing with the United States Securities and Exchange Commission http://www.sec.com/ and the Company’s home jurisdiction filings that are available at http://www.sedar.com/.

Rockwell Diamonds Inc.

CONTACT: on Rockwell Diamonds Inc., please visit the Company’s websiteat http://www.rockwelldiamonds.com/ or contact Investor Services at (604) 684-6365 orwithin North America at 1-800-667-2114




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