Merlin Diamonds : operations progress report – 21/02/2018

Merlin Diamonds Limited

ABN 86 009 153 119

21 February 2018

Manager Companies Australian Securities Exchange Level 6, 20 Bridge Street Sydney NSW 2000

By E-Lodgement

Progress Update

Merlin Diamonds Limited ABN 86 009 153 119

Level 1A

42 Moray Street Southbank, VIC, 3006

Telephone: +61 3 8532 2858

www.merlindiamonds.com.au

Directors

Mr Mordechai Gutnick Chairman & Managing Director

Mr Henry Herzog Non-Executive Director

Dr David S Tyrwhitt Non-Executive Director

Senior Management

Mr Peter Lee

CFO & Company Secretary

HIGHLIGHTS AT THE HOME OF LARGE HIGH-QUALITY

DIAMONDS

Merlin Operations

•  Tomra visited site and fully commissioned all size fractions on XRT machine.

Merlin Diamonds Limited February 2018 Progress Update

Merlin Diamonds Limited

ABN 86 009 153 119

•  Additional personal have been trained up on the XRT.

•  XRT continues processing material.

•  New large scrubber is in the process of being ordered, anticipating it to be full commissioned by 1 June 2018. To aid in the processing of the clayey kimberlitic materials.

•  Small scrubber previously purchased by Merlin, resurrected from the AuDax/HPGR circuit and currently being tied in with the XRT and dewatering screen. With potential to process ore directly from high grade Gawain and Ector pits.

•  Dewatering Gawain, Ywain, Ector and Kaye. With priority to Gawain and Ector which will be de-watered by the end of March 2018.

•  Upgraded video surveillance cameras and installed state of the art security systems.

Merlin Diamonds Limited February 2018 Progress Update

Merlin Diamonds Limited

ABN 86 009 153 119

Merlin Diamonds Limited February 2018 Progress Update

Merlin Diamonds Limited

ABN 86 009 153 119

Merlin Diamonds Limited February 2018 Progress Update