RNS Number:5928J
KimCor Diamonds plc
28 September 2006

                                                               28 SEPTEMBER 2006

                              KIMCOR DIAMONDS PLC

                                   (AIM: KIM)

          ACQUISITION OF STAKE IN DIAMOND CUTTING AND POLISHING BUSINESS

KimCor Diamonds plc ("KimCor" or the "Group") is pleased to announce the
acquisition of a 50% equity holding in Anmic (Pty) Ltd ("Anmic"), a long
established South African diamond cutting and polishing business. As part of the
acquisition KimCor has an option to acquire the outstanding 50% of Anmic during
the next 12 months.

Highlights:

   *KimCor gains full benefit from the value of diamonds at the point at
    which they are sold in their uncut form;
   *KimCor will pay Anmic a nominal sum of #5,000 cash; and
   *Anmic has established business relationships with selected diamond
    dealers in the United States and Europe.

Under the agreement Anmic will purchase uncut stones from a licensed
intermediary (which is a wholly owned subsidiary of KimCor) in compliance with
South African legislation at the anticipated value of the cut diamond following
the benification process less costs. This arrangement will allow the Group to
benefit from the additional value of its cut and polished diamonds but at an
earlier point in the chain, namely that at which it sells its uncut stones.

By way of consideration KimCor will pay Anmic a nominal sum of #5,000 cash to
reflect the fact that Anmic receives value through exclusive access to Bellsbank
diamond production. In addition Metal Resources Limited will be paid #90,000 for
the provision of advisory and deal structuring services relating to the 
acquisition to be settled in either cash or through the issue of equity.

Anmic

Anmic was originally established as a Closed Corporation in 1990, and has since
been operated as a diamond cutting and polishing business in South Africa,
working on behalf of third parties on a commission basis as well as purchasing
uncut stones on the open market.

Anmic has established business relationships with selected diamond dealers in
both the United States and Europe for polished diamonds bigger than 0.8Cts, and
also in Cape Town, South Africa for polished diamonds smaller than 0.8Cts.

Martyn Churchouse, Chief Executive Officer, commented: "This innovative
agreement allows us to gain full benefit from the value of diamonds at the point
at which we sell them in their uncut form. I expect the agreement to add value
to our Bellsbank resource while bringing into the Group expertise at the top end
of the diamond chain. While we see ourselves primarily as a diamond miner and
explorer we see this as an opportunity, at a relatively low cost, to increase
shareholder value."

                                   ---ENDS---


Enquiries:

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

Hanson Westhouse LLP                                          Tel: 020 7601 6100
Bill Staple
Martin Davison

Bishopsgate Communications Ltd                                Tel: 020 7430 1600
Nick Rome
Fran Read




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

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