DIAMONDCORP PLC - Corporate and Operational Update

Corporate and Operational Update

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”, “the Group” or “the Company”)

Corporate and Operational Update

The Group announces the following update in regards DiamondCorp and the business rescue
proceedings (“Business Rescue”) of the Company’s operating subsidiary, Lace Diamond
Mines (Pty) Ltd (“LDM”).

   The 310m production level is clear of the flood water and the mine’s pumping system is
   now working on a normal basis.

   The longhole drill rig has been moved to higher ground within the mine and is awaiting
   remediation of the access ramp before being brought to surface for despatch to Sandvik
   for rebuild. Options and timelines for ramp repair are being assessed by LDM
   management.

   The Business Rescue Practitioner, Daniel Terblanche of Deloitte, and the management of
   LDM are engaged in discussions with all stakeholders in accordance with the provisions
   of section 129 of the South African Companies Act, 71 of 2008, including but not limited
   to: trade creditors, the Industrial Development Corporation of South Africa (“IDC”) as the
   primary lender; bond holders; Laurelton Diamonds, Inc; the mine’s workforce including
   the Association of Mineworkers and Construction Union (AMCU); and Soapstone
   Investment Ltd and DiamondCorp plc, being themselves the largest creditors to LDM.
   The Board of DiamondCorp plc is also in continuing discussions with the Company’s
   creditors.

   LDM is in the process of claiming against its insurance policy in respect of the storm
   damage and remediation.

   5130 carats of diamonds recovered prior to the mine closure are currently being tendered
   for sale in Johannesburg.

   Management, alongside PwC, continue to evaluate the Group’s financial projections with
   a view to determining the resultant additional capital requirement that is anticipated to be
   required in the event of a successful conclusion of the Business Rescue proceedings.

   The Company’s shares remain suspended on AIM and AltX.

The Company will provide further updates in due course.


Contact details:

DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Chris Ellis, Interim Non-Executive Chairman
Tel: +44 (0) 20 3151 0970
UK Broker & Nomad
Panmure Gordon (UK) Limited
Adam James/ Atholl Tweedie
Tel: +44 20 7886 2500

JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068

SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358


This announcement contains inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No 596/2014 ("MAR").

29 November 2016
United Kingdom

Date: 29/11/2016 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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