Diamondcorp Plc LACE MINE AND CORPORATE UPDATE (9258L)

TIDMDCP

RNS Number : 9258L

Diamondcorp Plc

19 August 2013

DiamondCorp plc

JSE share code: DMC & AIM share code: DCP

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

("DiamondCorp", "the Group" or "the Company")

Lace mine AND corporate update

DiamondCorp, the Southern African diamond development and exploration company, is pleased to provide the following update on project finance with respect to the 47 Level block cave development at the Lace mine, and on-going efforts to minimise corporate overheads.

IDC Project Finance Facility

The Company's 74%-owned subsidiary, Lace Diamond Mines (Pty) Limited ("Lace") has successfully drawn down the first tranche of the R220 million project finance facility from the Industrial Development Corporation of South Africa. The first tranche of R30 million was received on schedule in accordance with the loan documents signed in September 2012.

As previously announced, the loan is secured over the assets of Lace and is guaranteed by the Company. It includes representations and warranties from Lace and the Company which are usual for transactions of this nature. The term of the loan is 7 years with an interest rate of 2% over the South African Prime Rate (which is currently 8.5%), such interest to be capitalised for the first two years from 15 August 2013 and payable semi-annually in arrears thereafter. There is a two year moratorium on loan repayments.

Underground development at the Lace mine continues on schedule and within budget. The processing plant has been fully commissioned and tailings re-treatment is underway. The first 5,000 carat parcel of diamonds recovered from tailings is being prepared for marketing and sale in October.

Relocation of Finance Function and Corporate Update

During August, the Company relocated its finance function from London to the Lace mine in South Africa, to better align the finance, administration and operational functions. As part of the move, the Company has appointed Ms Sanette de Wet as its Chief Financial Officer. Ms de Wet is an accountant with more than 10 years' experience in financial management and audit of public and private companies and was previously the Financial Manager of Specialised Metallurgical Projects (Pty) Limited. Ms de Wet will manage the existing finance team in place at the Lace Mine. In addition to operational efficiencies, the relocation will result in significant cost savings.

The Company wishes to thank the previous London-based CFO Mr John Forrest and the Financial Controller Mr Ian Lynch for their services since the formation of the Company.

In London, DiamondCorp can confirm that Panmure Gordon (UK) Limited will act as sole UK Broker in addition to its current role of nominated adviser.

In a continued effort to reduce corporate costs, the Company has made other savings and continues to explore further corporate overhead cost efficiencies.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 212 2930

+44 20 3151 0970

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James/Hannah Woodley

Tel: +44 20 7886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)

Kim Dawson