Diamondcorp Plc LACE MINE NOVEMBER DIAMOND SALE (4498U)

TIDMDCP

RNS Number : 4498U

Diamondcorp Plc

03 December 2013

3 December 2013

DiamondCorp plc

AIM share code: DCP & JSE share code: DMC

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 NOVEMBER DIAMOND SALE

DiamondCorp, the Southern African diamond development and exploration company, is pleased to announce completion of the first sale of diamonds recovered from tailings re-treatment activities at the Lace diamond mine in the Free State province of South Africa.

The November diamond sale included the first diamonds sold to Tiffany & Co. subsidiary Laurelton Diamonds, Inc. under the Company's Offtake Agreement.

A total of 6442.04 carats were sold for gross proceeds of $278,574.30, representing sales proceeds of $43/carat.

The diamonds sold comprised 5,026.72 carats recovered prior to and during the commissioning of the Lace recovery plant, and 1,415.32 carats run of mine recovered after plant modifications were made to increase the bottom screen cut size in the plant.

The diamonds recovered after the modifications comprised a coarser stone size distribution and achieved a price of $63/carat. Management considers this price to be a fair benchmark for the economics of the tailings retreatment operation in 2014.

Overall diamond market conditions are subdued and prices are soft in small size fractions. Nonetheless, management forecast that tailing retreatment operating costs can be reduced from R32 per tonne to R22 per tonne once three shifts are operating. As a result, the Company is proceeding with a ramp up to a three-shift operation by the end of January 2014.

Plans are in place to increase tailings throughput to more than 150,000 tonnes per month in the first half of 2014 by the introduction of in-pit screening. If recoveries remain in the order of 5 carats per hundred tonnes (cpht) the in-pit screening has the potential to increase production to 7,500 carats per month which will allow a significant proportion of the tailings to be re-treated prior to the underground mine achieving full production.

Income from the Lace beneficiation joint venture with Distinctive Choice 1235 cc netted $20,361 in October.

Development of the underground mine at Lace, operated by DiamondCorp's 74% subsidiary Lace Diamond Mines (Pty) Limited is fully financed for the 47 level block cave. Mining remains on track and within budget. In head office, management have made extensive cost savings which have enabled the Company to defer any fund raising to cover corporate overheads until 2014.

Contact details:

DiamondCorp plc

Paul Loudon, CEO

Tel: +27 (0) 828 246 897

Euan Worthington, Chairman

Tel: +44 (0) 7753 862 097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James

Tel: +44 (0) 207 886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)