Forward Looking Statement

This presentation contains “forward looking statements”. Such “forward looking statements” may include withoutlimitation (1) estimates of future earnings, the sensitivity of such earnings to diamond values and foreign exchangerate movements (2) estimates of future diamond production (3) estimates of future cash costs (4) estimates of futurecash flow, the sensitivity of such flows to diamond values and foreign exchange rate movements (5) statementsregarding, future debt payments (6) estimates of future capital expenditure (7) estimates of reserves, resources andstatements regarding future exploration results.

Where the Company expresses or implies an expectation or belief as to future events or results such expectation orbelief is expressed in good faith and believed to have a reasonable basis. However, “forward looking statements” aresubject to risks, uncertainties and other factors, which could cause actual results to differ materially from futureresults expressed, projected or implied by such “forward looking statements”. Such risks include but are not limited todiamond values, currency fluctuations, increased production costs and variances in grades or recovery rates fromthose assumed in mining plans, as well as political and operational risks in the countries and states in which theCompany operates or sells product and governmental regulation and judicial outcomes.

The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement”to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipatedevents, expect as may be required under applicable securities laws.

Competent Persons Statement

The information in the presentation that relates to exploration results is based on information complied by Mr TomReddicliffe who is a consultant to the company and a Fellow of the AUSIMM. Mr Reddicliffe has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he isundertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code of Reporting ofExploration Results, Mineral Resources and Ore Reserves’. Mr Tom Reddicliffe consents to the inclusion in the reportof the matters based on his information in the form and context in which it appears.”

2

Over the past 12 months North Australian Diamonds Ltd (NADL) has focused on pre-feasibility production trials aimed at establishing the commercial viability of its flagship Merlin Project in the Northern Territory, Australia. NADL is also active in its other tenement holdings associated with its North Kimberley, Yambarra and Arnhem Land projects, holding approximately 88,000km² in total under title.

PerthExploration

Office

North Australian Craton

MelbourneHead Office

North Kimberley1.5Mcts

Yambarra

Arnhem Land

Merlin7.2Mcts

Argyle

Ellendale

MERLIN

Southern Cluster PalSac, Launfal, Exclaibur,

Tristram

Central ClusterGawain, Ywain

Northern Cluster Gareth, Kaye, Ector,

Bedevere

OTHER PROJECT AREAS

North KimberleySeppelt 1 & 2

Ashmore

Yambarra

Arnhem Land

MERLIN ORBIT

Tintagel

Lancelot

BORROLOOLA

Borroloola

3

Merlin is well placed to become the only diamond mine in the Northern Territory and the third producer in Australia.

Total Merlin JORC compliant combined Indicated and Inferred Mineral Resource is 19 million tonnes for a contained 4.3 million carats

Total Merlin JORC compliant Probable Ore Reserve is estimated at 11.1 million tonnes for a contained 2.9 million carats

The total Merlin Diamond Mineral Resource and Ore Reserve is now the second largest in Australia

Engineering firm Consulmet has been engaged to conduct a Definitive Feasibility Study (DFS)

Pre-feasibility production trials have been successfully completed resulting in the recovery of 10,600 carats of diamonds, with the largest diamond recovered being a 24.12 carat gem quality diamond

2,590 carats of diamonds were in excess of 1ct; representing 24% of the production trial

Diamonds recovered in the production trial have been valued at over USD$330 per carat by Independent Diamond Valuers Pty Ltd

The Company has commenced exploration bulk sampling at the Borroloola Alluvial Diamond Project after it was granted Exploration Licence 24512 in September 2011

Heads of Agreement signed with Meteoric Resources to explore a number of aeromagnetic anomalies in West Arunta region of WA

Jungiila Bunajina 104.73 carats4

Ore ClassificationOre

(tonnes) Average Grade (ct per tonne)

Carats (Million carats)

Probable Ore Reserves 11.07 0.26 2.89

Indicated & Inferred

Mineral Resources19.02 0.23 4.31

TOTAL 30.09 0.24 7.20

The combined Probable Ore Reserve for all diamond

pipes at Merlin is 11.1 million tonnes for an average

grade of 26cpht representing a total contained 2.89

million carats

The combined Indicated and Inferred Mineral

Resource for all diamond pipes at Merlin is 19.02

million tonnes for an average grade of 24 carats per

hundred tonnes (“cpht”) representing a total

contained 4.31 million carats

The total PalSac combined JORC Compliant Indicated

and Inferred Resource has increased by 52% to 14.6

million tonnes

Production trials, which commenced in 2009, were

focused on the pipes Gawain, Kaye and PalSac as well

as utilising stockpiled material from previous

operations

Approximately 40,000 tonnes were processed for the

recovery of 10,600 carats of diamonds

HPGR and optical sorter trials were successful 5

0m

80m

Open pits

PALSAC PIPE

438m

868m

JORCProbable Ore Reserve 8.1Mt

2.41Mcts

1.96 Mcts

14.69Mt 4.37 million Carats

JORCInferredResource6.59Mt

6

Indicated

Mineral

Resource

(Mt)

Inferred

Mineral

Resource

(Mt)

Total (Mt) Grade

(c/t)

Carats

(Mcts)

Southern Cluster

PalSac2 6.59 6.59 0.30 1.96

Launfal2 1.58 1.70 3.28 0.25 0.82

Excalibur1 0.46 0.31 0.77 0.34 0.26

Tristram2 0.74 0.74 0.06 0.04

Sub-Total 11.38 0.27 3.09

Central Cluster

Gawain2 0.53 0.61 1.14 0.39 0.45

Ywain2 0.02 0.10 0.12 0.81 0.09

Sub-Total 1.26 0.43 0.54

Northern Cluster

Gareth1 0.13 0.14 0.27 0.22 0.06

Kaye2 2.14 2.14 0.12 0.26

Ector1 3.47 3.47 0.07 0.26

Bedevere2 0.37 0.14 0.50 0.21 0.11

Sub-Total 6.38 0.11 0.68

TOTAL 3.09 15.93 19.02 0.24 4.31

Probable Ore

Reserve (Mt) Grade (c/t) Carats (Mcts)

Southern Cluster

PalSac2 8.1 0.30 2.41

Sub-Total 8.1 0.30 2.41

Central Cluster

Gawain2 0.5 0.39 0.21

Ywain2 0.1 0.81 0.05

Sub-Total 0.6 0.44 0.26

Northern Cluster

Kaye2 0.9 0.12 0.10

Ector1 1.5 0.07 0.11

Sub-Total 2.4 0.09 0.22

TOTAL 11.1 0.26 2.89

1Resource grade based on previous mining operation recovery using a +0.95 mm slotted bottom screen and a +0.95mm cut-off.2Resource grade based on bulk sample test work using a +0.8 mm slotted bottom screen and a +0.95mm cut-off.

The Merlin Mineral Resources have been and classified andreported in accordance with The 2004 Australasian Code forReporting of Mineral Resources and Ore Reserves (JORC Code). TheMerlin Mineral Resources estimates have been prepared by T.H.Reddicliffe. T. H. Reddicliffe is a Fellow of the Australasian Instituteof Mining and Metallurgy. T.H. Reddicliffe is a consultant to NorthAustralian Diamonds Limited. T.H. Reddicliffe has sufficientexperience, which is relevant to the style of mineralisation and typeof deposit under consideration, and to the activity which they areundertaking. This qualifies T.H. Reddicliffe as a “CompetentPerson” as defined in the 2004 edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and OreReserves’.

Combined resource for the pipes included in the pre-feasibility production trials, an excess of 29 million tonnes, is compliant with JORC reporting standards and sufficient to potentially underpin a long term mining operation

Having built up a large diamond parcel, the Company is investigating value adding strategies including branding of Merlin Diamonds

Independent Diamond Valuers Pty Ltd assessed the ROM rough diamond parcel and have valued it to now be in excess of US$330 per carat

Consulmet have already completed a stage 1 study at a prefeasibility level for the Merlin project, and this information will be incorporated into a DFS

7

0

1

2

3

4

5

6

7

8

2009 2010 2011

Mill

ion

Car

ats

Merlin Diamond Reserve and Resource Growth 2009-2011

Indicated and Inferred Resource Probable Reserve

+80%

Early indications for the Merlin Diamond Project estimate cash operating costs of approximately US$160 per carat; resulting in an operating margin over US$170 per carat

The success of the pre-feasibility production trials and the project thus far has been achieved by the aggressive strategy of Joseph Gutnick and team who took control of NADL in 2009.

Borroloola is one of NADL’s most exciting prospects.

It represents a significant and unique opportunity

to explore for a large volume, high value, alluvial

diamond deposit

The two granted tenements cover an area of

approximately 1,150km², approximately 100km

north of the Merlin kimberlite field

Following 7 years in the application process the

Northern Territory Government’s Dept. of

Resources has granted Exploration Licence 24512

(EL24512)

The prospect represents the only major alluvial

concentration at a low point in this catchment

that is known to host significant diamond

deposits

The area is known to host alluvial gravels, which

drain through the MacArthur River, deriving

material from the catchment that contains the

Merlin kimberlite field and the Abner Range8

Numerous other diamond indicator minerals and diamonds have been found across the catchment

area indicating that undiscovered kimberlite pipes may exist

Since the 2006 drilling program, from which 6 diamonds were recovered, NADL has mapped

outcropping gravels that are estimated to cover approx. 5km² at surface as well as expected to

extend below, giving the potential to provide substantial volumes of diamond bearing gravels

The Northern Territory Government’s Dept. of Resources recently approved a Mine Management

Plan (MMP), enabling the Company to begin the initial work program

The work program began at the end of September 2011 and is

expected to take 7 weeks, testing approx. 5000 tonnes of gravel

deposits

Gravel will be screened on site and

then carted to the Merlin Diamond

Mine for processing and diamond

recovery

Any diamonds recovered will be

assessed for quality, value and

grade, aiding in the evaluation

of the economic potential of the

alluvial projectOutcropping gravels on EL24512

9

Excavating alluvial ground samples

at Borroloola

Further drill programs are planned for Kaye/Ector and Gawain kimberlite pipes

Exploration programs are continuing at Lancelot, Merlin and Arnhem Land

Following the approval of a MMP at Borroloola the 7 week work program has begun to assess

diamonds recovered for quality, value & grade, evaluating the projects economic potential

Heads of Agreement signed with Meteoric Resources to explore a number of aeromagnetic anomalies in West Arunta region of WA

Consulmet will carry out a definitive feasibility study, which will consider a 1.5Mtpa+ (approx. 300,000 carats per annum) diamond mining operation, as well as a potential larger scale operation

A strengthening international diamond market and the premium quality of Merlin diamonds has lead to a revaluation of the ROM rough diamond parcel, now assessed to be in excess of US$330 per carat

Cutting and polishing to be undertaken in Asia for diamonds under 1ct

Diamonds to be marketed as Australian stones under the “Merlin” brand, highlighting their unique whiteness, clarity and large size, of which they are renowned

“Super Whites” Diamonds from Pre-production Trials

9ct Yellow diamond recovered from Kaye 2010 10

Selection of diamonds from Pre-productions trials

Lancelot / Tintagel – High priority target area

Evidence of commercially sized diamonds, microdiamonds and indicator minerals strongly suggest presence of a second diamond field

Trench mapping and heavy mineral sampling has led to the identification of indicator mineral bearing eluvial material, further trenching and sampling has been completed with samples being processed

Arnhem Land / Yambarra – Under explored but highly prospective for diamond bearing Kimberlites

NADL has a contractual right to obtain an 80% interest in 2 tenements covering approx. 2,100km² of land in the prospective western region of Arnhem Land, these tenements are at the application stage

Tenements in the Daly River region of the NT are under applications and SEL26956 is considered to be highly prospective for kimberlite pipes due to evidence from previous explorers

Seppelt Pipes, North Kimberly – Mining lease continues to retain commercial potential

NADL has identified an Inferred Resource of 1.57Mcts within the Ashmore, Seppelt 1 and 2 kimberlite pipes, with Seppelt 2 having an exceptional grade of over 180cpht

Webb Project – HOA signed with Meteoric Resources to explore aeromagnetic anomalies in WA

Agreement allows NADL to explore a 500km² area in the West Arunta region of WA for diamonds

Magnetic targets may represent a kimberlite or lamproite pipe field in an area of extensive windblown sand cover

11

Very healthy market in 2011 underscored by firm retail demand in both new and established markets, namely China and India

Markets in China and India grew by 25% in 2010 and if current trends continue, together they are forecast to account for 50% of incremental demand in the world diamond markets over the next five years (Source: De Beers)

US market continues to take up 40% of global diamond consumption

Rough prices in all categories rose substantially but small gem diamonds saw exceptional growth –trend to use smalls across wide range of luxury goods, particularly watches

Prices for rough are on average around 50% above the August 2008 peak

Re-stocking in pipeline and strong demand causing supply shortfall in many categories

Liquidity continues to improve; lends confidence to rough market

World Diamond Jewellery Sales 2010China’s market share is set to double

12

Rest of the world 20 %

BBBB

B

Taiwan 2%

India 10%

China / Hong Kong 11%

USA 38%

Gulf 8%

Production & Demand in Rough Terms (at Jan-Apr 2010 values)

Japan 11%

13Grade CPHT

Val

ue

US$

/ct

500

400

300

200

100

20 40 60 80 100 120 140 300

OropaArgyleCatoca

VenetiaLerala

400

KoffefonteinStar

Ellendale

AK6Ekati

Petra FissuresDiavikJwaneng

MERLINKey

High Value Deposits

Deposits with ‘Large Diamonds’ or ‘Specials’

Low to Median Value Deposits

800 Letseng

Victor

Kimberley Process Statistics for Australian diamond producers shows that the realised average price per carat sits under the $30 mark. NADL, however, is reporting a valuation of $330 per carat, highlighting Merlins’ ability to produce a high proportion of large, gem quality, exceptionally white stones.

The Merlin Diamond Mine is now the second largest diamond Mineral Resource and Reserve in Australia.

27.68

19.21 21.21 19.5 22.4528.28

2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 2010 H2

Kimberley Process Statistics for Australia

USD

/ct

NADL remains on track to progress the Merlin Project towards production

Prefeasibility studies completed by AMC and Consulmet reported robust capital and operating

metrics for the Merlin Project

These results in conjunction with the current strong price and positive outlook for the diamond

price, indicates that the DFS will define a long term profitable new diamond mine for the Northern

Territory and Australia

NADL will continue to focus exploration on priority areas such as the Borroloola alluvials and the

Merlin Orbit tenements, as well as the under explored areas of Arnhem Land and Yambarra project

Merlin is renowned for its high clarity, super-white, large stones and Independent Diamond Valuers

Pty Ltd. believe that reintroducing Merlin production to the market will be well received by

Diamantaires

Diamonds recovered from recent pre-production trials 14Merlin polished diamonds 2011

Incorporated in 1991

116,906,206 ordinary fully paid shares

Share Price $0.33 (as of 23 November 2011)

ASX-Listed (NAD) with a market capital of

AU$38.6million

On market takeover bid commenced May

2009 (offer 1.2c). Completed August 2009 (offer 1.5c)

A significant restructure of the NADL board with Mr. Joseph Gutnick becoming Chief Executive Officer

in July, 2011

Legend International Holdings majority shareholder with over 50%

Shareholder Base 15 SEP 2011

Legend International Holdings Inc

50.68%

Pan Australian Nominees Pty Ltd 5.40%

CS Fourth Nominees Pty Ltd 2.92%

HSBC Custody Nominees Ltd 2.48%

NADL is on track to become a long term, high quality diamond production company

15

Mr. Joseph GutnickExecutive Chairman and Chief Executive Officer

Mr Gutnick is a leading mining industry entrepreneur. He is the President or Chairman and Chief Executive Officer of the Gutnick Network of Companies. He was responsible for overseeing the discovery of the Plutonic 11 million ounce gold deposit and the discovery, development and operation of the world class Bronzewing and Jundee gold mines in Australia. Mr Gutnick is a Fellow of the Australian Institute of Mining and Metallurgy, a Fellow of the Australian Institute of Management, a Member of the Institute of Company Directors in Australia, and a former Director of the World Gold Council. Mr Gutnick was awarded the prestigious Diggers award at the 1997 Diggers and Dealers Industry Awards.

Mr. Craig Michael Executive Director

Mr. Michael has over 10 years experience as a geology professional in the mining and resources industry. He is currently a Director of NADL, Top End Uranium, Aurum, Inc, Quantum Resources, ProIndia International, Inc. and Executive General Manager of Legend International Holdings, Inc. His previous work was with Oxiana Ltd, in South East Asia and Australia.

Mr. Henry HerzogNon-Executive Director

Mr. Herzog has over 40 years of corporate experience and has served in various positions as President, Vice President, and Director of a number of listed public companies in the mining and exploration sector, both in Australia and the United States.

16