WITHDRAWAL OF ASX QUOTATION

    ELKEDRA DIAMONDS NL

                                                        Level 1, 130 Hay Street

                                                                Subiaco WA 6008

                                              PO Box 8035, Subiaco East WA 6008

                                                     Telephone: +61-8-6380 2855

                                                     Facsimile: +61-8-6380 1644

                                                 E-mail: elkedra@elkedra.com.au

                                                   Web Site: www.elkedra.com.au

18 October 2007

Dear Shareholder.

WITHDRAWAL OF ASX QUOTATION

On 29 October 2007 Elkedra Diamonds NL (ASX and AIM: EDN) ("Elkedra")
shareholders will vote on the scheme of arrangement under which Canadian-listed
diamond group Vaaldiam Resources Ltd (TSX: VAA) (Vaaldiam) is to acquire all of
the outstanding shares of Elkedra in exchange for Vaaldiam common shares.

If Elkedra shareholders approve the Scheme and the Scheme is subsequently
approved by the Supreme Court, Elkedra shares are expected to cease trading on
the ASX on 8 November 2007. Elkedra will then be delisted from the ASX.

Following the Record Date for determining entitlements (anticipated to be 15
November 2007), Vaaldiam will issue 0.52 of a Vaaldiam share for each Elkedra
share held by Elkedra shareholders. Holding statements for the new Vaaldiam
shares are expected to be despatched on 23 November 2007.

The new Vaaldiam shares are expected to commence to trade on the Toronto Stock
Exchange (TSX) on 23 November 2007.

How can shareholders deal in their NEW VAALDIAM shares?

Australian shareholders will be able to trade shares in Vaaldiam on the TSX:

 i. through Australian brokers with trading relationships and trading
    facilities in place to trade on the TSX;
   
ii. directly with brokers in Canada licensed to trade on the TSX; or
   
iii. through Patersons Securities Limited ("PSL") in Australia. Vaaldiam has
    appointed PSL to assist shareholders who are seeking to trade their
    Vaaldiam shares on the TSX.
   
For those shareholders wishing to trade their new Vaaldiam shares on the TSX
through PSL, the relevant contact details are:

Patersons Securities Limited

Level 23 Exchange Plaza

2 The Esplanade

PERTH WA 6000

Sandra Burton (08) 9263-1201 (sburton@psl.com.au)

Jane Wallace (08) 9263-1193 (jwallace@psl.com.au)

HOW TO TRANSFER/TRADE SHARES IN VAALDIAM

Elkedra shareholders receiving new Vaaldiam shares may choose between the
following options:

A Prior to cessation of Elkedra share trading on ASX (expected to be 8th
November) arrange for electronic register of their new Vaaldiam shares when
issued.

B Do nothing and await the ASX delisting of Elkedra. Shareholders will receive
a Vaaldiam share certificate upon the Scheme coming into effect representing
their new Vaaldiam shareholding..

C Sell their Elkedra shares on the ASX prior to the Scheme coming into effect
(this is expected to be on 8 November 2007).

Examining each option separately:

A. Electronically register your new Vaaldiam shareholding:

1. PSL has entered into an arrangement with Vaaldiam to assist shareholders to
register their Vaaldiam shareholdings in this manner.

2. Establish an account with PSL and follow steps outlined by them in order to
establish an account. A summary of the PSL account-opening procedure is set out
in Appendix A.

3. Complete the relevant transfer form (Appendix B)

4. PSL will then arrange for the electronic registration of the Vaaldiam shares
in Canada. PSL will hold the shares electronically in their nominee account in
trust for the beneficial owner. This option will result in the shareholder not
receiving a physical share certificate.

5. PSL will require all documentation be received by them prior to the
cessation of ASX trading in Elkedra shares (expected to be 8 November 2007).

B. Do nothing and waitdelisting to receive your new Vaaldiam share certificate

No action is required and the shareholder will receive by post their new
Vaaldiam share certificate following the delisting of Elkedra. This certificate
should be kept in a safe place.

In order to trade your certificated shareholding in Vaaldiam on the TSX you
will need to do the following:

1. Contact an Australian or Canadian broker. Many Australian brokers have
relationships with a counterparty in Canada to facilitate trading on the TSX.
(PSL has entered into an arrangement with Vaaldiam to assist its
Australian-based shareholders who require a broker to arrange trading of their
new Vaaldiam shares on the TSX).

2. Establish an account with a broker and follow the steps required by the
broker in order to open an account.

3. Provide the share certificate to the broker along with any other documents
requested by them to register your certificate for clearance. The certificate
will then be cleared into electronic format.

4. The broker cannot execute a sell order until confirmation is received that
the shares are electronically cleared into the broker's account. This process
normally takes one to two weeks.

5. Once cleared, the broker will be able to take a sell order on the
shareholder's behalf.

C. Sell your Elkedra Sharesprior to delisting on ASX

Elkedra shareholders wishing to dispose of their shareholdings prior to the
Scheme coming into effect can deal either through their own stockbroker or
through PSL.

Should you require any further information to assist you in deciding which
course to take, I recommend that you contact you stockbroker, accountant,
solicitor or other professional adviser without delay.

Yours sincerely,


Don Best

Chairman

APPENDIX A

PSL Account Establishment procedure:

What is required:

I. Full name details

2. Address details (both residential and postal if applicable)

3. Contact telephone numbers

ID Requirements: Under the Financial Services Reform Act, and in accordance
with internal account opening policies, identification is required by PSL. This
can be a current copy of your driver's license or passport.

Payment: PSL settlement for sale of shares will occur within 5 business days of
the transaction being effected and will be dispensed in Australian dollars by:

I. Posting of a cheque for thesettlement amount; or

2. Deposit of the funds into a nominated bank account.

Fees and Charges

For shareholders wishing to trade on the TSX market through PSL the following
charges will apply:

PSL charge: A$100 (I% thereafter) plus GST; PLUS

Canadian counterparty charge: < CA$5,000 = CA$125 ; >CA$5,000 = AU$200 (0.3%
thereafter)



END
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