Wed

4th Jun

2008

ROK Entertainment Group to acquire diamond mine and divest subsidiary

Global mobile entertainment group in talks to acquire Sierra Leone diamond mine as part of the divestment of its online diamond retail subsidiary

London, United Kingdom (4 June 2008): ROK Entertainment Group Inc. (OTCBB: ROKE), the global mobile entertainment group, announces that its subsidiary, ROK Diamonds, has entered into a letter of intent with Australian-listed Mineral Commodities Limited (“MRC”) for the purchase of the Kariba Kono diamondiferous gravel dump in Sierra Leone.

This is the first stage of the divestment of ROK Diamonds from ROK Entertainment Group.

MRC’s Kariba Kono (SL) Limited holds the processing rights to the No 11 Oversize Tailings Dump in Sierra Leone and the immediate area around and under this dump.

The acquisition of Kariba Kono would result in the vertical integration of the online diamond retailer, ROK Diamonds, and a mining source of high quality gemstones, which would represent very attractive synergies to both parties.

ROK Diamonds, as the new combined entity, will be spun off from REG and listed as an independent quoted company. ROK Diamonds will be self-financing and will not require any cash from REG. REG will retain a 26% equity stake in ROK Diamonds and one seat on the Board of the enlarged ROK Diamonds.

This disposal process is expected to be completed in Q2 FYE 31st March 2009. Completion of the transaction is subject to the parties entering into a definitive share and asset purchase agreement.

The Board of REG are confident that this disposal method will generate significantly more value to REG shareholders than a simple sale of the operation.

About ROK Entertainment Group Inc.

ROK Entertainment Group Inc., founded in 2004, is a global mobile entertainment group.

With approximately 200 staff worldwide, ROK has filed more than 40 international patents for its suite of innovative mobile technologies.

With 3 billion mobile handsets in use worldwide, the mobile TV industry is a multi-billion dollar business.

ROK TV enables the streaming of live and on-demand TV to mobile phones over mass-market 2.5G, as well as over 3G and Wi-Fi.

Forward-Looking Statement

The information contained in this new release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in these statements. Forward-looking statements regarding the timing of developing, testing and releasing existing and new products, of marketing and selling them, of deriving revenues and profits from them, as well as the effects of those revenues and profits on the Group's margins and financial position, are uncertain because many of the factors affecting the timing of those items are beyond the Group's control.

 

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