Diamondcorp Plc Update on Industrial Action (6506W)

TIDMDCP

RNS Number : 6506W

Diamondcorp Plc

11 November 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")

INDUSTRIAL ACTION UPDATE

DiamondCorp, the Southern African diamond development and exploration company, provides the following update on industrial action by members of the Association of Mineworkers and Construction Union (AMCU) employed at the Lace diamond mine in the Free State province of South Africa.

The issue in dispute is management's refusal to employ two full-time salaried shop stewards. AMCU is the majority union at the Lace mine and already has five appointed shop stewards in the workforce. Management last week met with AMCU officials in a bid to end the strike action, but no agreement has yet been reached.

Until such time as the strike ends, tunnelling in the UK4 block and processing of kimberlite ore is continuing with non-AMCU members. Mining of the the upper leg of the decline has been temporarily suspended in order that development of the UK4 block can continue close to schedule. For each two weeks that the strike continues, it is estimated that overall progress is delayed by one week. Significant productivity gains continue to be achieved with the non-AMCU members that are working and certain workplace practices will be addressed when the striking workers return.

Installation of the underground conveyor belt is unaffected by the strike action. Final commissioning of the conveyor will be dependent upon development schedules but the commencement of mining of the UK4 block is currently still on target for the end of H1 2015.

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

Sasfin Capital (a division of Sasfin Bank Limited)