KIM Kimcor

RNS Number:7924D
KimCor Diamonds plc
31 May 2006

                                                                     31 MAY 2006

                              KIMCOR DIAMONDS PLC

                                   (AIM: KIM)

                          RIVIERA PROPERTY ACQUISITION


KimCor Diamonds plc ("KimCor" or the "Company"), the diamond producing and
exploration company with properties in South Africa, is pleased to announce the
signing of an exclusive option agreement with Oktodam (Pty) Ltd ("Oktodam") and
Boer Fourie (Pty) Limited ("Fourie"), private, registered South African
companies, to acquire 'Riviera' (the "Option Agreement").

KEY POINTS

   *Historical prospecting on Riviera has located the presence of kimberlite
    fissures, which are also evident as tree lines on aerial photography;

   *Targets to be investigated by percussion drill programme or trenching;

   *Option Agreement on modest rental terms;

   *Exclusive right to negotiate freehold purchase;

   *Riviera-Bellsbank region renowned for producing diamonds of exceptional
    quality; and

   *News follows less than three months after the Company's IPO.

Riviera comprises two farms covering an area of approximately 5,300 hectares and
is located within the Barkly West district of the Northern Cape, 13km from
Bellsbank mine.

The option has been acquired principally for the exploration and evaluation of
kimberlite pipes and fissures. Riviera is situated south west of Bellsbank and
Messina mines in a prospective locality where sub-parallel fissures to the
Bellsbank group are evident. The Bellsbank group of fissures have sustained
mining operations over a 60 year period based on in-situ diamond grades of
between 25 and 70cpht as per the Council of Geoscience in 'The Mineral Resources
of South Africa', Sixth Edition, P.E. Wipplinger and M.G.C Wilson.

Riviera falls within an area of high provenance for diamonds, as evidenced by
the number of nearby mines that include Messina - Dan Carl, Loxton, Frank Smith,
Sover, Newlands and the former Bellsbank mine, where KimCor is currently
constructing a plant to re-treat tailings derived from primary mining and
processing of these high-grade fissures. All the above mines are noted for their
high quality stones.

Historical prospecting on Riviera has located the presence of kimberlite
fissures, which are also evident as tree lines on aerial photography. Recently
the area has been covered by airborne magnetics and provisional interpretation
has indicated a number of additional magnetic targets that may be indicative of
kimberlite. These will be investigated in the field, by means of a percussion
drill programme or trenching. The availability of known fissures and magnetic
anomalies derived from the geophysics allows KimCor to focus rapidly on
prospective targets. Drill chips will be sampled and screened to establish the
presence of positive indicator minerals after which the targets will be trenched
for bulk sampling. As the properties are only 13km from KimCor's Bellsbank
operations, the Company will utilise its pilot plant facilities at the nearby
Bellsbank site, to enable the rapid and efficient testing of bulk samples from
Riviera.

Under the Option Agreement, KimCor will acquire the Prospecting Rights held by
Oktodam and Fourie and convert Old Order Mineral Rights to New Order Rights.
Applications along with work programmes, a budget and schedule have already been
lodged with the Department of Minerals and Energy. The conversion from Old to
New Order is largely an administrative process that changes the conditions and
obligations under the Right to reflect the South African Mineral Development
Act.

KimCor will pay Oktodam and Fourie #2,000.00 per month for the first year of the
2-year Option Agreement, rising to #3,000.00 per month in the second year. In
the event that exploration is successful, KimCor has the exclusive right to
negotiate a freehold purchase of the property and/or a production-based royalty
agreement. In this event, KimCor will apply for a Mining Right under Section 22
of the Mineral and Petroleum Resources Development Act (2002).

Commenting on today's news, Martyn Churchouse, CEO of KimCor, stated: "In only a
few months since admission to AIM, the Company has progressed on a number of
corporate fronts, including today's option agreement, which the board believes
to be of significant value to the forward looking business."

                                   ---ends---

The technical content of this press release has been reviewed by the
Non-Executive Chairman of KimCor, Professor Gordon Riddler, BSc, MBA, FIMMM,
CEng, CSci, CMkt, MCIM, MCMI who has 40 years of experience in the mining sector
and is a Fellow of the Institute of Materials, Minerals and Mining, a recognised
professional association.

Enquiries:

KimCor Diamonds plc                                           Tel: 020 7318 5780
Martyn Churchouse
Manish Kotecha
www.kimcordiamonds.com

Westhouse Securities LLP                                      Tel: 020 7601 6100
Bill Staple
Richard Morrison

Bishopsgate Communications Ltd                                Tel: 020 7430 1600
Dominic Barretto
Nick Rome




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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