Diamondcorp Plc Industrial Action Lace Mine (1256V)

TIDMDCP

RNS Number : 1256V

Diamondcorp Plc

23 October 2014

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 Company")

INDUSTRIAL ACTION LACE MINE

DiamondCorp, the Southern African diamond development and exploration company, regrets to announce that members of the Association of Mineworkers and Construction Union (AMCU) employed at the Company's Lace diamond project in the Free State province of South Africa commenced strike action at 06h00 this morning.

The matter in dispute is management's refusal to employ two full-time salaried shop stewards. The Commission for Conciliation, Mediation and Arbitration has granted AMCU a certificate for the strike, which means it is a legal and protected strike under the South African Labour Relations Act. However, the 'no work, no pay' rule will apply. AMCU is the majority union at the Lace mine.

Paul Loudon, DiamondCorp CEO said: "Management is disappointed that AMCU leaders have decided to encourage AMCU members at Lace into industrial action which in the end provides no financial benefits to the mine workforce but is instead self-serving only to the union leadership. Management's position is clear: a mine development project of less than 260 workers does not require and cannot afford two full-time shop stewards. We feel sorry for the hardship this action will cause for the Lace workers involved and their families."

Until such time as the strike ends, development tunnelling in the Upper K4 mining block and processing of development kimberlite will continue with non-AMCU members. Contractors installing the underground conveyor belt system are not affected by the strike.

Further announcements will be made in due course regarding the strike action and its impact on the Company's operations and timeline.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 216 1300

Euan Worthington, Chairman

Tel: +44 7753 862 097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James

Tel: +44 20 7886 2500

JSE Designated Advisor