EDMONTON, ALBERTA--(Marketwire - March 15, 2011) - Shear Diamonds Ltd. (TSX VENUTRE:SRM) today announced completion of the processing of the mini bulk sample from the Anuri kimberlite at the Rockinghorse Project located 90 kilometres northwest of Shear's Jericho Diamond Mine in Nunavut. An overall sample grade of 0.35 carats per tonne ("cpt") was recovered from 25.6 dry tonnes of Anuri kimberlite using a 0.85mm bottom cutoff. The five largest recovered stones weigh 0.54, 0.54, 0.29, 0.28 and 0.26 carats. The Anuri Property is a joint venture between Shear (75%) and Rio Tinto Exploration Canada Inc. (25%). A $173,000 budget has been approved for the Rockinghorse Project for the first six months of 2011.

These diamond results are from 17 HQ core holes drilled at the Anuri kimberlite in 2007 by previous operators. Shear staff in conjunction with Mineral Services Canada of North Vancouver completed a geological review of the drill core prior to sampling and split the sample into three samples representing different geologic domains. Sample grades are based on diamonds recovered on a 0.85mm square mesh sieve size or larger. Historic results suggesting a recoverable diamond grade between 0.24cpt and 0.44cpt, based on modeled diamond size/frequency distributions of much smaller samples treated by caustic fusion have been confirmed.

"Anuri is one of the more advanced staged kimberlites on our recently acquired properties in the North Slave that was drilled in 2007 but never sent for processing. The diamond parcel will be examined by Rio Tinto to assess overall quality of the small parcel and to determine the next steps in the continued evaluation at Anuri. Anuri is one of over 20 known kimberlites in the North Slave and the most advanced at the Rockinghorse Project. As part of our exploration strategy for 2011, we plan to continue to explore and advance high diamond potential kimberlite targets such as Anuri while exploring near mine targets in the immediate vicinity of the Jericho Diamond Mine," says Shear President and CEO Pamela Strand.

The Anuri kimberlite is dominated by two volcaniclastic kimberlite infill phases underlain by hypabyssal kimberlite in one of the two volcanic lobes that coalesce to form the steep sided volcanic vent with dimensions of 150 metres by 300 metres. Preliminary volume modeling undertaken by previous operators to 200 metres depth estimates the Anuri kimberlite at 9.5 million tonnes.

Complete diamond recoveries were as follows:

¹ The five largest diamonds weighed 0.54 ct, 0.54 ct, 0.29 ct, 0.28 ct and 0.26 ct.

Samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") and run through their 5 tonne per hour Dense Media Separation ("DMS") Plant using a 0.85mm cutoff. A heavy mineral concentrate was generated and then passed through a two-stage X-ray sorter with a grease table audit of the X-ray rejects. Resulting concentrates were hand sorted and weighed in a secure glove box facility. The recovered diamonds will be described, categorized and assessed for any breakage. The largest stones have been described as clear/colourless, off white/colourless and off white/transparent. For photographs of the diamonds, please visit www.shearminerals.com.

An audit of the DMS concentrate was completed using caustic fusion methods at the SRC. A total of 30 stones were recovered from the 101.75 kg concentrate sample, yielding a total diamond weight of 0.74 carats. The audit confirms poor liberation of smaller diamonds in the 0.85 – 1.70mm sieve classes that were not recovered in the first pass of processing. Audit results do not significantly change the overall grade of the Anuri kimberlite and are not included in the above table of results.

About Shear Diamonds Ltd.

Shear is a Canadian-based company focused on diamond exploration and development in Canada's North, where it explores established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, including three advanced projects with development potential. Shear holds a 100% interest in its recently acquired Jericho Diamond Mine and surrounding exploration assets, located in the Kitikmeot region of Nunavut.

Qualified Persons

Pamela Strand, P. Geol., Shear's President and Chief Executive Officer, and Jennifer Burgess, P. Geol. Shear's VP Exploration, are qualified persons for purposes of National Instrument 43-101 who supervised the preparation of the information forming the basis for this press release.

On behalf of the Board of SHEAR DIAMONDS LTD.

Pamela Strand, P. Geol., President & CEO

Julie Lassonde, Executive Chairman 

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Shear's expectations are in its documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Shear disclaims any intention or obligation to revise or update such statements.