RNS Number:2233G
KimCor Diamonds plc
17 July 2006

                                                                    17 JULY 2006

                              KIMCOR DIAMONDS PLC
                                   (AIM: KIM)

                               OPERATIONAL UPDATE

KimCor Diamonds plc ("KimCor" or the "Company"), the diamond production and
exploration company with properties in South Africa, is pleased to provide an
update on progress at the Bellsbank Dump Processing Plant, the Van Zoelens
Exploration Licence and at the Riviera Exploration Licences.


Bellsbank Dump Processing Plant

Excellent progress has been made at the Company's Bellsbank dump processing
operation and the plant is expected to begin commissioning in early August 2006.

Historically Bellsbank has a demonstrable track record of producing diamonds of
exceptional clarity and quality. The Directors believe that gems of a similar
quality will be produced from the soon to be commissioned plant. The recoverable
grades at the Bellsbank dumps, anticipated to be around 15cpht are, in the
Directors' opinion, high in comparison to other dump projects

Full details of the plant construction progress can be viewed on the Company's
website at www.kimcordiamonds.com.


Van Zoelens Exploration Licence

On 30 June 2006 a helicopter borne low-level high resolution magnetic survey was
flown over the 642 hectare Van Zoelens exploration licence. The survey was
undertaken by GAP Geophysics, a South African contractor, and comprised a low
level (30 metre) survey with a 50 metre line spacing.

Results and interpretation of the survey are expected to be delivered by the
contractor in approximately four weeks time. Once the results are available, the
Company anticipates commencing ground follow-up of targets identified by the
survey.


Riviera Exploration Licences

An airborne magnetic survey has been completed on the Riviera property, over
which the Company recently announced the signing of an option agreement. The
property, which is located only 13 km from the Company's Bellsbank dump
processing operations, comprises of two adjacent farms covering a total surface
area of 5,300 hectares.

KimCor is pleased to announce that interpretation of the airborne data has
revealed a significant number of magnetic anomalies reminiscent of the
signatures often indicative of kimberlite pipes and fissures. A total of 15
targets which warrant detailed follow-up have been identified.

The Company continues to actively search for new opportunities in Southern
Africa with a view to expanding its portfolio of attractive exploration, near
term production and producing assets.


Commenting on progress KimCor's CEO, Martyn Churchouse, said: "I am delighted
with the progress KimCor is making on all fronts. The construction team at
Bellsbank has done an excellent job and the Board looks forward to announcing
the commissioning of the new processing plant. On the exploration front, the
Company is progressing work on its Van Zoelens property.

"The Riviera results are exciting and we are pleased to be making quick progress
in assessing the opportunities available so soon after announcing the option
agreement."


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.


KimCor Diamonds plc                                           Tel: 020 7290 1400
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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