CMKM Diamonds Inc. (fka CMKX)

[janice shell]

FRIZZELL LAW FIRM
602 S. Broadway
Tyler, Texas 75701
[phone]

Greetings CMKX Owners Group members,

Please be advised that this update is my communication to those shareholders that joined Phase II of the CMKX Owners Group and other shareholders that elected to continue receiving updates after the conclusion of Phase I. First let me say I apologize in advance for any of you who read this on the boards who are on the mailing list and did not get this update. Unfortunately our e-mail looks like spam to some ISP’s, and in turn is blocked. Our IT Guy suggests adding our e-mail to your whitelists or address books which may in turn clear the updates for delivery.

This is not an official response of the company or Urban Casavant. I do not represent the company nor do I represent Urban Casavant. These are my comments to shareholders who have joined the CMKX Owners Group and contributed to the expenses of this investigation. Do not interpret any of my comments as that of CMKM Diamonds, Inc.

I am simply a member of the CMKM Task Force. As such, I am assisting Mr. Maheu, Mr. Stoecklein and Mr. Casavant in notifying the shareholders of the Entourage distribution. This office has agreed to collect the data being sent in by the shareholders for the sole purpose of arriving at a list of bona fide shareholders. Because of my position on the Task Force and somewhat regular contact with Urban, Mr. Stoecklein and Mr. Maheu, this office and the staff compiling the cert pull information have become the call center for questions about the company. We are glad to answer as many of your questions as possible and be a sounding board for those of you who want to vent about the company, but please remember we do not run the company nor do we have all the information you are seeking. I receive many rude and sarcastic emails about the company and I simply delete most of them. If I receive an email or a phone call that is a legitimate inquiry or a question that I can answer, I will do so. Questions such as “When will this mess be over with?” or “How much am I going to get for my stock?” or “Is this company a scam?” do not get responses from me.

We are too busy trying to find out how 60 or 70 thousand accounts became 30 or 40 thousand accounts in a relatively short period of time. We are very concerned with the obstinate refusal of brokerage houses to send their CMKM customers proof of certified share positions. Even the DTCC is invoking a slightly uncommon procedure to send its certs out to its participants because of the reluctance by certain brokers to retrieve certs they have on deposit at the DTCC. While I am discussing the DTCC, several of you e-mailed about certain language in the first letter that was sent to participating brokers which stated “Upon Surrender of CMKM Diamonds Inc. Common Shares”. My office has obtained clarification from the DTCC and the wording was simply an oversight on their part. The language should have stated “A stockholder will retain their CMKM shares upon receiving the Entourage Certificates.”

We are also trying to come up with creative ways of encouraging several thousand shareholders that still maintain positions in street name to force the brokers to cert their shares. My job as far as being a member of the CMKM Task Force is well defined. I can not ignore the implications of our findings as the cert information comes into this office. As we total up the certed shares, there is an inescapable conclusion that something is amiss. (I expect my normal complaints from those that say I speak in code. .However, there is no code or intent to have you read between any lines.) I am glad to explain issues in my updates but I make an effort to simply state the facts and I do not intend hidden meanings.

I have been getting a flood of emails lately from shareholders wanting to know about the inner workings of CMKM and various questions concerning contact from the company. Some of the emails are expressing frustration about the lack of information and knowledge they are receiving from the company about company matters. I fully understand your frustrations. There is information I would love to have about the company, but my position on the Task Force has never been a ticket to unlimited information about the company. You should recall that Urban and the company are both still under investigation by the SEC and Urban has very competent counsel that guides him in his communications with shareholders. I am a shareholder as well as a member of the Task Force.

The CMKM Task Force has contracted with a third party mailing company to distribute a notice to some current shareholders that may not have received notice of the requested distribution of Entourage stock. This mailout will go to selected shareholders that are not currently on the master shareholder list which the Task Force has obtained from the Transfer Agent. The Task Force has received evidence that many accounts containing CMKX stock were unilaterally sold from shareholder’s account in 2005 and 2006. We have learned there are shareholders who had their positions liquidated as worthless securities. We know there are a large number of “Fails to Deliver” in this stock so we (Task Force) have decided to go beyond what would be considered the normal process of notification. The current NOBO/OBO list provided by ADP does not contain all the shareholders that are probably entitled to this distribution in my opinion.

While I feel there is a substantial “failure to deliver” position in many firms in this stock, I recently ordered the removal of several short share estimates that have been on the Task Force website for several months. Do not read into this act anything of significance. Information changes by the day, and we are realizing that it will be almost impossible to find all shareholders of this stock. I see no reason to give the detractors any more ammunition to support their commentaries.

This mail out will go out to approximately 36,000 account holders. We are requesting formal notification by ADP services to all OBO accounts. OBO accounts are shareholders that object to giving their names and information, so we have to depend on ADP to notify these accounts of our distribution and the request for certs. Our mailing will include approximately 7000 Canadian and other foreign accounts. We have information of shareholders in 60 foreign countries, but we have no reliable way to accurately identify these shareholders and their respective holdings. We will continue to do work in this area. We need the help of shareholders who know others around the world to put the word out.

We have gone to great lengths to put together a mailing list that we believe will reach an enormous amount of shareholders that are either not aware of this need to pull physical certificates or that may have had their holdings liquidated or sold without their consent. To do this we have created a master list from a June 2005 NOBO list, January 2006 NOBO list and a Canadian NOBO list. From these we have deducted duplicates and people that have already pulled their certificates as of the 3-15-06 shareholder list.

We will be posting the contents of this letter on the CMKX Owners Group website and the CMKM Task Force website today. The letters should be in the mail tomorrow. We are also evaluating rate sheets and deciding the most effective news print media to use to supplement our direct mailing. The legal notice will essentially have the same information as the mail out, and will fulfill any required legal notification.

I have been authorized to release a current Securities Position Report from the DTCC. Many of you will write me and ask “What does this mean?”. It simply means this is the current position these companies have in street shares held on deposit at the DTCC. You can draw whatever conclusions you wish based on this information. You can see the report on the www.cmkxownersgroup.com web site, or go to http://www.cmkxownersgroup.com/spr%204-14-06.pdf

Folks, we are embarking on new territory here. No company has ever challenged the market to become transparent as you are doing. Call your fellow shareholders who are not cooperating. Explain as best you can the need to unite for a bit longer. This group can have a profound effect on the stock market if this group stays together and works together in the face of a well coordinated group of bashers and detractors to our efforts. Why do you think the bashers and detractors continue their assault on a non trading revoked company?

I am not sure of Mr. Stoecklein’s plans for an official release from the company. Mr. Maheu is to begin his deposition today with the SEC. I will be in contact with his Mr. Stoecklein’s office either tomorrow or Monday regarding an official press release by the company.

Onward!

Bill

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