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DMC - DiamondCorp plc - Operations Update DiamondCorp plc JSE share code: DMC AIM share code: DCP ISIN: GB00B183ZC46 (Incorporated in England and Wales) (Registration number 05400982) (SA company registration number 2007/031444/10) (`DiamondCorp` or `the Company`) OPERATIONS UPDATE DiamondCorp plc, the African diamond mine development and exploration company, is pleased to provide an update on activities at the Lace mine in South Africa and kimberlite exploration in Botswana. LACE MINE The Company advises that SA Diamond Exchange has undertaken a revaluation of the 2,168 carats recovered from the bulk test at the Lace Mine last year and estimated a price of $172 per carat in the current market. This represents an 7.5 per cent increase from the $160 per carat valuation of the first 1,850 carats from the bulk test announced last October. The increase in value is a reflection of slightly better overall diamond quality in the final 318 carats, as well as a moderate firming of prices for Lace diamonds since the market correction in September 2011. In light of the prices for Lace diamonds, tailings retreatment has recommenced on an initial single shift basis. This will be monitored over the next 60 days to confirm that an increase to two shifts will generate a positive contribution to cashflow. In the meantime, SRK Consulting is on track this month to complete the Independent Engineering Report on the 47 level block cave proposed for the Lace mine. The SRK report is required to progress negotiations with several potential project finance providers looking to finance the underground development which is designed to mine 1.2 million tonnes of kimberlite and produce up to 500,000 carats of diamonds per annum. Construction of a new heavy equipment maintenance and rebuild workshop has been completed and major rebuilds of the Lace mine underground mining fleet have started in readiness for rapid re-commencement of underground development once project finance is secured. DiamondCorp is pleased to report the current group cash balance is approximately GBP2 million with no debt, allowing project financing negotiations to be undertaken in a considered manner. BOTSWANA KIMBERLITE EXPLORATION Preliminary results of kimberlite samples recovered from the five large diameter (455mm) drill (LDD) holes undertaken on kimberlite J-01 are now available. The samples totalling 388.34 tonnes were processed through a modified circuit on the 65tph dense media separation plant at the company`s Lace Mine in South Africa. The circuit was modified specifically to treat the LDD samples from Jwaneng. Each borehole was treated as a separate sample with the plant being purged between samples. Each sample was spiked with tracers to monitor plant performance. All tracers were recovered. A total of two macro diamonds (diamonds larger than 0.5mm in size) totalling 0.114 carats have been recovered to date. In light of the low recovered grades from both J-01 and the previously low recoveries announced from J-05, DiamondCorp has decided not to proceed with further exploration on this property and will hand all rights back to the tenement holder Geoperspectives (Pty) Limited. Commenting on the results, DiamondCorp`s managing director Paul Loudon said: "Despite being located near to the richest diamond mine in the world and the encouraging mineral chemistry displayed by these kimberlites, mini bulk tests suggest they do not contain macrodiamond grades sufficient to support a large-scale commercial diamond mine. Management remain in active discussion with numerous parties regarding additional kimberlite projects in Botswana and other diamondiferous regions of southern Africa." London 10 February 2012 The Competent Person responsible for the technical information contained in this announcement is Mr Paul Zweistra (Pr. Sci. Nat., Registration number 400016/93) a full-time employee of VP3. VP3 and Mr Zweistra have given their permission for their work to be quoted in this announcement and have reviewed the information contained herein. AIM Nomad: Fairfax I.S. plc AIM Brokers: Fairfax I.S. plc, Ocean Equities Ltd JSE Sponsor: PSG Capital (Pty) Limited DiamondCorp plc, Paul Loudon +44 20 3151 0970/+27 56 212 2308 Ewan Leggat/Laura Littley, Fairfax I.S. plc +44 207 598 5368 Guy Wilkes, Ocean Equities Limited +44 207 786 4370 John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602 Charmane Russell/Marion Brower, Russell & Associates +27 11 880 3924 Date: 10/02/2012 12:00:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
