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CONTRACTOR AGREEMENT

between

GALPUTS MINERALE (PROPRIETARY) LIMITED

and

DURNPIKE INVESTMENTS (PROPRIETARY) LIMITED

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TABLE OF CONTENTS

|1  | INTERPRETATION               | 1
|-- | ---------------------------- | -
|   |                              |  
|2  | INTRODUCTION                 | 3
|   |                              |  
|3  | DURATION                     | 4
|   |                              |  
|4  | MINING SERVICES              | 4
|   |                              |  
|5  | ENVIRONMENTAL REHABILITATION | 5
|   |                              |  
|6  | ARBITRATION                  | 5
|   |                              |  
|7  | BREACH                       | 6
|   |                              |  
|8  | APPLICABLE LAW               | 6
|   |                              |  
|9  | ASSIGNMENT                   | 6
|   |                              |  
|10 | GENERAL                      | 7
|   |                              |  
|11 | COSTS                        | 8

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AGREEMENT

Between

GALPUTS MINERALE (PROPRIETARY) LIMITED

And

DURNPIKE INVESTMENTS (PROPRIETARY) LIMITED

|1.      | INTERPRETATION     
|------- | -------------------
|        |                    
|        | In this agreement 
|        |                    
|1.1     |                    
|        |                    
|1.2     |                    
|        |                    
|1.2.1   |                    
|        |                    
|1.2.1.1 |                    
|        |                    
|1.2.1.2 |                    
|        |                    
|1.2.1.3 |                    
|        |                    
|1.2.2   |                    
|        |                    
|1.2.2.1 |                    
|        |                    
|1.2.2.2 |                    

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|1.2.2.3 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Galputs  Certain Portion
        of Portion 2 of the Farm Galputs No 104, District of Namaqualand, Province
        of the Northern Cape;                                                                                                                                                                                                  
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.2.2.4 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | mining operations  the
        exploration and mining of diamonds;                                                                                                                                                                                                                                                                         
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.2.2.5 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | parties  Durnpike and
        Galputs Minerale;                                                                                                                                                                                                                                                                                            
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.2.2.6 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | prime rate  the publicly
        quoted prime bank overdraft rate as charged and calculated by Durnpikes
        bankers in respect of overdraft facilities from time to time, compounded
        monthly in arrear, as certified by any manager of such bank, whose appointment
        and authority it shall not be necessary to prove;
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.2.2.7 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | RSA  Republic of South
        Africa;                                                                                                                                                                                                                                                                                                     
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.2.2.8 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | signature date  the date
        of signature of this agreement by the last of the signatories;                                                                                                                                                                                                                                            
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.3     |  | where any term is defined within
        the context of any particular clause in this agreement, the term so defined,
        unless it is clear from the clause in question that the term so defined
        has limited application to the relevant clause, shall bear the meaning
        ascribed to it for all purposes in terms of this agreement, notwithstanding
        that the term has not been defined in this interpretation clause;
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.4     |  | if any provision in a definition
        is a substantive provision conferring any right in imposing any obligation
        on any party, then notwithstanding that it is only in the interpretation
        clause effect shall be given to it as if it were a substantive provision
        in this agreement;                                                                                                                                  
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                               
|1.5     |  | when any number of days is
        prescribed such number shall exclude the first and include the last day
        unless the last day falls on a Saturday, Sunday or public holiday in the
        RSA, in which case the last day shall be the next succeeding day which
        is not a Saturday, Sunday or public holiday in the RSA;                                                                                                        

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|1.6 |                                                                                                                                                                                                                                                                            | the use of a specified example/s (whether
        or not after the word including or such as) shall
        not be construed as limiting the meaning of the general wording preceding
        it and the eiusdem generis rule shall not be applied in the interpretation
        of such general wording or such specific example/s. Accordingly, without
        limiting the generality of the aforegoing, wherever the words includes
        or including are used in this agreement, the words without
        limitation shall be deemed to follow them; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|1.7 |                                                                                                                                                                                                                                                                            | the rule of construction that the contract
        shall be interpreted against the party responsible for the drafting or
        preparation of the agreement shall not apply.                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2   | INTRODUCTION                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                            | It is recorded that                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2.1 |                                                                                                                                                                                                                                                                            | Galputs Minerale was granted and is in possession
        of a mining licence in respect of Galputs;                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2.2 |                                                                                                                                                                                                                                                                            | Durnpike has expertise and experience in
        conducting the mining operations as an independent contractor;                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2.3 |                                                                                                                                                                                                                                                                            | the parties entered into an oral agreement
        in terms of which Galputs Minerale agreed to appoint Durnpike as an independent
        contractor to conduct the mining operations at Galputs;                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2.4 |                                                                                                                                                                                                                                                                            | the parties wish to reduce to writing the
        terms under which Durnpike conducts, and will continue to conduct, the
        mining operations, and do so in this agreement.                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|3.  | DURATION                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The agreement between the parties
        commenced on or around 1 August 2004 and shall, save as otherwise provided
        herein, continue for an indefinite period until either party gives not
        less than 180 days written notice of termination to the other.

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|4.    | MINING SERVICES                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      | In terms of the oral agreement referred to above
                                                                                                                                                                                                                                                                                                                                                                                               
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|4.1   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|4.2   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|4.3   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|5     | ENVIRONMENTAL REHABILITATION                                                                                                                                                                                                                                                                                                                                                                                                                     
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      | Durnpike is and shall continue
        to be liable for all environmental and rehabilitation obligations in relation
        to the mining operations at Galputs. Durnpike indemnifies Galputs Minerale
        for all loss, liability, damage or expense which Galputs Minerale may
        suffer as a result of or in connection with any failure to comply with
        all environmental rehabilitation obligations in relation to Galputs.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6.    | ARBITRATION                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6.1   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6.2.1 |                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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|6.2.2 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | irrevocably authorize any of the other of
        them to apply, on behalf of both parties in writing, to the secretariat
        of AFSA in terms of article 23(1) of the aforesaid rules for any such
        arbitration to be conducted on an urgent basis.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|6.3   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | This 6 shall not preclude any
        party from obtaining interim relief on an urgent basis from a court of
        competent jurisdiction pending the decision of the arbitrator.                                                                                                                                                                                                                                                                                                                                                                                                                     
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|6.4   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Notwithstanding anything to
        the contrary aforegoing or stipulated by AFSA the arbitration will be
        held in Sandton with a view to achieving an expeditious result and the
        arbitration will be conducted in camera, the parties and the participants
        in the arbitration being obliged to maintain the utmost confidentiality
        with regard to all matters relating thereto or arising therefrom, save
        as otherwise expressly and peremptorily required by law and save as may
        be necessary to enforce any partys rights in terms of this agreement.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|7     | BREACH                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|      | Should either party (the
        defaulting party) breach any provision of this agreement and fail
        to remedy such breach within seven days after receiving written notice
        from the other party (the aggrieved party) requiring the defaulting
        party to remedy such breach, then the aggrieved party shall be entitled,
        without prejudice to the aggrieved partys other rights in law, to
        cancel this agreement or to claim immediate specific performance of all
        of the aggrieved partys obligations whether or not due for performance,
        in either event without prejudice to the aggrieved partys right
        to claim damages.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|8     | APPLICABLE LAW                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                
|      | This agreement (including its
        validity, existence and implementation, the interpretation and application
        of its provisions, the respective rights and obligations of the parties
        in terms of and arising out of the conclusion, breach and termination
        of the provisions of this agreement), shall be interpreted and governed
        in all respects by the laws of the RSA.                                                                                                                                                                                                                                                                                  

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|9      | ASSIGNMENT                                                                                                                                                                                                                                              
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                         
|       | No party shall have the right
        to cede, assign, delegate, sub-contract or in any way alienate (collectively
        assign) any of its rights or obligations under this agreement
        without the prior written consent of the other party.
|       |                                                                                                                                                                                                                                                         
|10     | GENERAL                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                         
|10.1   |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.2   |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.3   |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.4   |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.5   |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.5.1 |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.5.2 |                                                                                                                                                                                                                                                         
|       |                                                                                                                                                                                                                                                         
|10.6   |                                                                                                                                                                                                                                                         

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|11 | COSTS                                                                                                                                         
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                               
|   | Durnpike shall bear and pay the costs of and incidental
      to the negotiation, drafting, preparation and execution of this
      agreement.

|Signed at Johannesburg on 22 November 2006 |  |                                               
|------------------------------------------ |  | ----------------------------------------------
|                                           |  |                                               
|for                                        |  | Durnpike Investments (Proprietary) Limited    
|                                           |  |                                               
|                                           |  | /s/ J.W. Bristow                              
|                                           |  |                                               
|                                           |  | who warrants that he is duly authorized hereto
|                                           |  |                                               
|Signed at Johannesburg on 22 November 2006 |  |                                               
|                                           |  |                                               
|for                                        |  | Galupts Minerals (Proprietary) Limited        
|                                           |  |                                               
|                                           |  | /s/ J Brenner                                 
|                                           |  |                                               
|                                           |  | Who warrants that he is duly authorized hereto

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