Corporate Updates

9-25-08
Update on Questionable Brokerage and Clearing Firm Activity

CMKM Diamonds, Inc. has received letters from a broker requesting that larger CMKX certificates be broken down into several smaller certs. The written request contained the notation "FOR FAILS PHY". The broker confirmed that the request was to cover a fails to deliver in the stock.

In a separate incident, one major brokerage firm requested the transfer of a bulk certificate from another major brokerage firm. This request was dated June 29, 2008, over two and a half years after the Company was delisted and no longer trading.

The Company also has in its possession a letter where a clearing firm discusses the cost effectiveness of obtaining stock so that they could issue certificates to their clients, saying "Given the price of the stock, it may be more reasonable for us to go out and buy the shares to cover the short." This letter is dated almost two years after the Company was delisted and its shares no longer trading.

In a CMKM Diamonds press release dated April 20, 2007, it was confirmed that the Company "halted the transfer of a large bulk certificate to a major brokerage from a third party". The Company is continuing its investigation of this and other questionable brokerage activity.

Mark Faulk,
CEO

http://www.cmkmdiamondsinc.com/corp_...