RNS Number:9514N
KimCor Diamonds plc
14 February 2008

                                                                14 February 2008



                              KimCor Diamonds plc
                          ("KimCor" or the "Company")



                               OPERATIONAL UPDATE


                     KimCor Continues to Ramp up Production


KimCor Diamonds plc ("KimCor" or the "Company" or the "Group"), a diamond
producer and exploration company, is pleased to provide shareholders with an
operational update for the Company's projects in South Africa.


Highlights


*  Construction work for the upgrade and expansion of the SMI4 tailing
   reprocessing project is on schedule and under budget with commissioning
   scheduled for the end of February 2008;

*  Construction work for the expansion of the Newlands diamond recovery
   plant is on schedule for commissioning in early March 2008;

*  Underground development at Blaauwbosch mine remains on schedule providing 
   access to new mining levels aimed at increasing monthly production to
   11,000 tonnes per month ("tpm");

*  Production levels at Nooitgedacht alluvial mine are being increased fourfold,
   with the commissioning of a new plant operated under contract and the
   on-going expansion of the existing processing plant owned and operated by the
   Company;

*  At the Bellsbank tailing operation, the Company is currently considering a 
   proposal for the contracting out of all mining and processing activities.


SMI4

The Company remains on schedule for completion of the Phase 1 upgrade of the
SMI4 tailing plant by the end of February. The plant will process tailings at a
rate of up to 60,000tpm during March, up from the previous volume of 25,000tpm
in 2007. During March, eight 16ft diamond recovery pans will be installed
allowing production rates to increase further to a minimum level of 100,000tpm
from April this year with an expected production output of 6,000 carats per
month.

Phase 2 of the upgrade will commence post April 2008 and is expected to further
increase the plant's production capacity to 150,000tpm in August this year.


Newlands

The underground development programme initiated in September 2007 has advanced
well and Newlands is expected to achieve a steady rate of underground ore
production at an initial level of 5,000tpm with an average recoverable grade
estimated at 23 carats per hundred tonnes ('cpht').

Increased production at this rate is expected to commence early to mid March
2008, following completion of processing plant expansion. The plant expansion
will improve recoveries and enable the simultaneous processing of an additional
25,000tpm of tailing material that is stockpiled close to the plant. Test work
on this tailing material has returned an average recoverable grade in excess of
7cpht.


Nooitgedacht

Following a detailed review of the geology and resource at Nooitgedacht, the
Company has invested in additional heavy plant and machinery to mine and
transport diamondiferous gravel for processing through the Nooitgedacht
processing plant. Production levels are to be gradually increased from 12,500tpm
to the target level of 50,000tpm.

In addition, the Company has engaged the services of a new contractor to
commence processing an additional 50,000tpm from 20 February 2008. The combined
volumes mean that processing plants are operating at capacity, and the operation
is expected to process up to 1.2 million tonnes per annum of alluvial gravel.


Bellsbank

The Company is currently considering a proposal to contract out both mining and
processing at its Bellsbank tailings operation. The proposal would further
reduce the already low level cost of the operation and release key personnel to
take over the day to day management of the SMI4 plant scheduled for
commissioning at the end of February 2008.

Commenting on progress, Martyn Churchouse CEO of KimCor said "We are pleased
with the progress being made across all of our operations. The SMI4 plant should
be back production by the end of February, and the additional pans will increase
production to 100,000tpm.

At Newlands, the management has made excellent progress and remain confident
that they can maintain the new mining rate, which is double that previously
achieved.

At Nooitgedacht we will start increasing production towards the target of
50,000tpm. The new contractor is now on site and has completed plant
construction and preliminary stripping, and is due to start mining within the
week."

All grade estimates referred to in this announcement are sourced from the
competent person's report on the KimCor assets which was incorporated in the
Company's admission document dated 21 August 2007.


Enquiries:


KimCor Diamonds plc                                          Tel: 020 7290 1400

Martyn Churchouse


Strand Partners                                              Tel: 020 7409 3494

Simon Raggett
Warren Pearce
Victoria Milne-Taylor



Bishopsgate Communications Ltd                   Tel: 020 7562 3350

Maxine Barnes
Nick Rome




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

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