Corporate update 2-8-09

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www.cmkmdiamondsinc.com/Shareholder_index.html


2-8-09
CMKM Diamonds, Inc. has recently taken a number of steps to encourage the Department of Justice, Federal Bureau of Investigation, and the Internal Revenue Service to finally issue indictments and commence criminal proceedings against former CEO Urban Casavant and insider John Edwards and their cohorts, who blatantly stole $250 million from the Company and its shareholders.

Over the last two weeks, CMKM and its shareholders have contacted hundreds of public officials, including congressmen, federal regulators, criminal agencies, and people within President Obama’s administration. Although our letter was addressed to President Obama, our hope was that anyone in a position of authority would hear our plea for justice. One CMKX shareholder, a United States Air Force pilot who was just one of dozens of soldiers who were ruthlessly targeted in this massive fraud, worded it this way in his email to public officials: “The SEC, DOJ, FBI, etc. have dragged out this case for years and have no sense of urgency”.

While the Company cannot say for certain whether or not there was any “sense of urgency” in the past, we can confirm that the Company and its shareholders’ efforts have not fallen on deaf ears. Of particular significance was a single email directed to 20 people within the DOJ, FBI, IRS, SEC, and FINRA, containing the CMKM Plea for Justice, along with an introductory email, which said, in part:

I am aware of a joint Task Force consisting of the DOJ, FBI, and the IRS, assisted by the SEC, that has been investigating this massive fraud for the past few years. I know that our criminal agencies are overworked and underfunded, but this fraud is a travesty. These shareholders have been waiting for years to see criminal charges filed against those who blatantly stole hundreds of millions of dollars from them. Current management at CMKM Diamonds has in the past assisted the various agencies in their efforts, but I would like to extend that offer once again, We have hundreds of thousands of pages of bank account records, transfer agent records, and trading records, as well as other evidence that might be helpful to your efforts. Please contact me if I can be of assistance, and I would appreciate a reply so that I can at least be assured that this investigation has not been abandoned.

And please......PUT THESE CRIMINALS IN PRISON!!

When that email was sent out, the Company received a phone call from a member of the Task Force less than two hours later, asking us to assist them in their investigation. We are doing everything within our power to help them expedite their investigation, and will continue to do so. It is my belief that they are continuing their efforts with a renewed sense of urgency.

While we provide assistance to the Task Force, we believe it is in the best interest of CMKM Diamonds and its shareholders to continue to encourage a swift conclusion to the investigation, while at the same time being careful not to impede their progress. This is why we have followed up our letter by posting a petition to the DOJ, FBI, and IRS Task Force investigating CMKM Diamonds. Inc (CMKX). We intend to send them a preliminary copy as soon as we reach a thousand signatures, but we hope to have many more in the near future. We encourage all shareholders and other advocates for justice in our financial system to sign the petition and help us distribute it to others who might join our fight.

The Company has also mailed a Letter of Request to the Task Force asking that all CMKM Diamonds, Inc. (CMKX) shareholders be added to a victims’ list under the Victim Notification System (VNS). All recognized victims on the list have certain rights as specified in the “Help for Victims of Crime” brochure published by the Department of Justice, including “The right to proceedings free from unreasonable delay”. We have included a list of all shareholders who we have been able to identify through the cert pull conducted in late 2005 and 2006. Although this list is incomplete, it will give the FBI (during the investigation phase) and the DOJ (once charges have been filed) a starting point in contacting victims in the CMKM Diamonds, Inc. fraud case.

As we move forward with our civil lawsuits and other company business, CMKM Diamonds, Inc. will also continue to work with all federal agencies to ensure that all those who conspired to steal an estimated $250 million are punished to the fullest extent of the law. I would like to thank our Advisory Committee, Board of Directors, Corporate Counsel, and our dedicated shareholders for their untiring efforts in this cause.

Mark Faulk, CEO