CMKX - CMKM Diamonds Inc. - CEO Faulk - Company Website Update

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"The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares." - Leslie Hakala, SEC
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CMKM Diamonds, Inc. Shareholders' Corner

3-25-09

The Company has had numerous inquiries from shareholders about the status of certain CMKM Diamonds, Inc. stock. The Company's viewpoint on this issue was addressed in the 9-2-08 Shareholders' Corner update:

There has been a lot of speculation and concern about whether certain shareholders are bonafide. With over 50,000 shareholders, it is impossible to say at this time with any degree of certainty whether or not individual certs are bonafide. Determining who are our actual shareholders are and who holds bonafide shares is a process that unfortunately will take considerable time, and could ultimately involve regulators and/or a legal process. However, as the Company has stated many times, we will do everything within our power to assure that anyone who purchased shares in good faith is bonafide. If you have bought shares in good faith from your broker, and have received a certificate for those shares from our transfer agent, then most likely your shares are bonafide.

Because of ongoing concern about this issue, I sent an email to the SEC detailing questions about shares of CMKM Diamonds, Inc. stock held by our shareholders. Both my email and their response is reposted below. I'll keep everyone updated on any further information and/or clarification we receive from the SEC. As always, all shareholders should be aware of their right to seek legal advice from their own attorney on any issue pertaining to their CMKM Diamonds, Inc. stock:

The company has been receiving numerous inquiries from our shareholders about the status of their shares of CMKM Diamonds stock. Some of the answers to these questions might seem obvious, but I do not feel comfortable in making assumptions when it comes to the SEC's position on issues pertaining to stock. We would greatly appreciate some guidance from the SEC on this matter. I guess the best way to address this is to simply lay out the questions that shareholders have submitted (condensed and paraphrased for the sake of expediency), and ask you to address them as best you can:

In the case of CMKM Diamonds, Inc., company officers and insiders, according to the SEC, approved the issuance of hundreds of billions of unrestricted shares "based on obviously incomplete and suspicious, and in some cases, forged documentation" (Item 35). In general, are shares issued and sold into the market through allegedly fraudulent means such as those cited in the CMKM example considered to be unrestricted and/or registered shares once they are purchased in good faith by shareholders from brokers, especially those who have applied for and received stock certificates through their brokers from the transfer agent?

Are shares originally issued through fraudulent means (as referenced in the prior question) subsequently purchased by shareholders in good faith and held in electronic form at their brokers considered to be unrestricted and/or registered shares?

At what point do said affected shares become registered and/or unrestricted shares?

Are the "up to 622 billion shares of purportedly unrestricted stock" (Item 4) issued by former company insiders in an "unregistered distribution" (Item 4), as cited by the SEC in Case 2:08-cv-00437, part of the 703 billion issued and outstanding shares, or are they above and beyond that number?

Again, I would appreciate any guidance on this issue from the SEC, so that we can respond properly to shareholders' inquiries.

Feel free to call me if you have any questions, or if we can assist you in your ongoing efforts to help us find justice in the ongoing CMKM Diamonds, Inc. investigations. As always, we are willing to cooperate in any way possible.

Sincerely,
Mark Faulk
CEO, CMKM Diamonds, Inc.

This is the response I received today from SEC attorney Leslie Hakala:

Thanks for your email. Answering your last question: The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares.
Unfortunately, we can’t give legal advice to investors, so we are not comfortable responding to the other questions. I have, however, passed the questions on to others in our Washington headquarters, and will let you know if they can provide any guidance.

Regards,
Leslie