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DIAMONDCORP PLC - Diamondcorp announces the launch of the Diamondcorp fundraiser

Release Date: 03/12/2015 07:05
Code(s): DMC     PDF:  
Wrap Text
Diamondcorp announces the launch of the Diamondcorp fundraiser

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 Company" or “the Group”)

IDC loan reschedule approval
Proposed placing to raise up to £4 million
Operational outlook

DiamondCorp, the Southern African diamond mining, development and exploration company,
is pleased to announce that, further to the announcement of 3 November 2015, it has
received formal approval from the Industrial Development Corporation of South Africa (“IDC”)
for the rescheduling of the Group’s existing loan including, inter alia, the capitalisation of
interest previously due in 2016.

The Company is also pleased to announce the proposed placing of new ordinary shares of
0.1 pence each in the Company (the “Placing Shares”) in order to raise gross proceeds of up
to £4 million (the “Placing”). The Placing is being conducted through a bookbuilding process
which will be launched immediately following this announcement and will be made to new and
existing eligible institutional and other investors.

Highlights

- Formal approval from IDC to reschedule the ZAR220 million loan (the “Loan”) held by the
Company’s South African operating subsidiary, Lace Diamond Mine (Pty) Ltd (“LDM”) (74 per
cent. owned by DiamondCorp), as follows:

- Ongoing capitalisation of interest previously payable in 2016 and no capital repayments until
1 February 2017
- Interest and capital repayments to now be payable on a quarterly basis from 1 February
2017
- Loan interest rate will increase from 2 per cent. plus South African prime per annum to 3.2
per cent. plus South African prime per annum, commencing 31 January 2016
- Loan principal and capitalised interest will increase from approximately ZAR258 million at
the end of January 2016, to approximately ZAR311 million by 1 February 2017 (equivalent to
c.£14.4 million at current exchange rates).

- Proposed Placing of up to £4 million
- Net proceeds of the Placing, together with the proceeds from diamond sales, to be used to
fund production ramp-up from December 2015 through to becoming operationally cashflow
positive from Q3 2016
- The target quantum of the Placing includes working capital contingencies
- Certain of the Directors intend to participate in the Placing

IDC Loan reschedule

The Company is pleased to announce that it has received formal approval from the IDC for
the rescheduling of the Group’s existing Loan, including the on-going capitalisation of interest
and deferment of capital payments previously due in 2016 (due to be approximately ZAR82
million) and for interest and capital repayments to now be payable on a quarterly basis from 1
February 2017 (previously payable on a six monthly basis).
The revised Loan from 31 January 2016 will incur an interest rate of 3.2 per cent. plus South
African prime per annum (previously 2.0 per cent. plus South African prime per annum). The
South African prime rate is currently 9.75 per cent. per annum.

The aggregate value of the revised Loan principal and capitalised interest will therefore
amount to approximately ZAR311 million at 31 January 2017 (equivalent to approximately
£14.4 million at current exchange rates). This compares with the previous aggregate value of
the Loan principal and capitalised interest of ZAR258 million (equivalent to approximately
£11.9 million at current exchange rates and to approximately £19.3 million at the prevailing
exchange rate in September 2012 when the Loan was committed). The loan will now be
amortised in full by 1 November 2021, compared to 31 July 2020 as previously scheduled.

Background to and reasons for the Placing

As previously announced, in recent months underground tunnel development at the 290m
level of the Lace mine had been proceeding slower than originally planned in fractured ground
close to old workings and in heavily diluted low-grade K6 kimberlite. Some zones had also
been found to contain kimberlite of a quite friable nature and required additional support to
ensure safety from potential falls of ground. Whilst these ground conditions are a positive for
fragmentation and caving when mining commences, they increased the time and cost
involved during development.

Since then, ground conditions have steadily improved as the K6 kimberlite transitioned into
higher grade, more competent K4 kimberlite in the central section of the pipe and for the
months of October and November, kimberlite development rates achieved management’s
planned monthly call. In conjunction with its mining consultants, the Company has revised the
tunnel layout on the 310m production level in order to reduce rock stresses without impacting
mining rates, and minimise the chances of incidents similar to that at the 290m level occurring
going forward.

Concurrently, the Company also experienced certain delays to the installation and
commissioning of the 400 tonne per hour conveyor belt at the mine as a result of new
regulations issued by the Department of Mineral Resources with respect to the number of
anti-roll back idlers required in conveyor belt systems. Whilst the conveyor belt was
successfully commissioned within budget in mid-November, the delays contributed to
increased operational expenses in tunnel development on the 290m and 310m levels.

Since mid-November, tunnelling on the 290m level has been progressing in competent high-
grade K4 kimberlite and at the originally planned rate. In particular, blasting of the slot
between the 290m and 310m production level is on schedule for commencement in
December and is expected to provide the initial ramp up in mining tonnages and diamond
recoveries from the UK4 block.

The Directors, having consulted with the Company’s geological and mining consultants, now
consider that most of the key operational challenges experienced in the last few months have
now been overcome. However, the overall development and production schedule has been
delayed by approximately four months and at an increased operational cost.

In particular, the delay to the commencement of the slot resulting from making the 290m level
safe, and slower than planned development in highly diluted K6 kimberlite on the 310m level,
means that the Company has been behind schedule on diamonds recovered from
development. This delay combined with management's preference for not selling sub-optimal
diamond parcels (typically those containing less than 10,000 carats) in a weak diamond
market has put pressure on LDM's, and therefore DiamondCorp’s, immediate cashflow
particularly as debt repayments from IDC had been scheduled to commence from January
2016. A formal request to reschedule the interest payments from the IDC Loan was submitted
in November and has now been formally approved by the IDC as detailed above.

Taken together, the slower than planned development rate at higher cost in difficult ground,
including the consequential impact of fixed electricity and labour costs, combined with delay
to diamond sales, has used up cash contingencies originally envisaged in July 2015. A
reconciliation between the budgeted and actual expenditures since this date is provided in
Data Tables, Part 1 to this announcement.

The Directors examined and pursued various options for raising additional capital without
further recourse to shareholders. However, none of the options were available at reasonable
cost or in a timely manner. Concurrent with the formal IDC Loan rescheduling, the Directors
have resolved to raise additional capital by way of the Placing in order to fund the Company
through to becoming operationally cashflow positive from Q3 2016 and with working capital
contingencies.

Use of proceeds

The net proceeds of the Placing will be used, together with the proceeds from diamond sales,
to fund production ramp-up through to becoming operationally cashflow positive from Q3
2016, including the following:

- Development of the 475m level tunnel (c. £2.00 million)
- Processing costs: (c. £0.65 million)
- G&A costs for Lace Mine: (c. £0.65 million)
- UK bond coupons: (c. £0.33 million)
- Laurelton/Tiffany loan coupons: (c. £0.58 million)
- General corporate costs: (c. £0.40 million)

The target quantum of the Placing includes working capital contingencies.

Operational outlook

Conditional upon completion of the Placing, the Directors anticipate a ramp up in K4
kimberlite tonnage (estimated to be more competent and of higher grade than K6 kimberlite)
to 30,000 tonnes from July 2016, as detailed in Data Tables, Part 2.

The tonnage ramp-up will have a corresponding impact on the volumes of carats recovered,
cashflow and project cashflow. Based on a 1.00mm bottom screen size, the Directors
currently estimate that for the year of 2018, the Lace Mine will mine and process
approximately 1 million tonnes of K4 and K6 kimberlite, recover approximately 466,000 carats
of diamonds and result in operational cashflow after tax and interest of approximately ZAR362
million. External debt repayments in the same year are estimated to be ZAR81.5 million. A
table of these metrics to 2041 (which are based on 1.00 mm bottom screen sizes, certain
grade and carat value assumptions and incorporates the recent IDC Loan reschedule, but
does not assume the potential positive impact of a waste sorter or DiamondCorp plc
overheads) is provided in Data Tables, Part 3. The Directors are however considering
changing the bottom screen size to 1.25 mm which would result in lower diamond recoveries
and reduced processing costs, but an increase in the price received per carat. This decision
will be taken following the completion of bulk testing activities currently underway. The
potential net impact on cashflow from increasing the bottom screen size is estimated by the
Directors to be relatively neutral.

Details of the Placing

The Placing will be conducted in accordance with the terms and conditions set out in
Appendix I. The Placing will be effected by way of an accelerated bookbuilding to be
managed by Panmure Gordon (UK) Limited ("Panmure Gordon"). The bookbuilding process
will commence with immediate effect. The timing of the closing of the book, pricing and
allocations is at the absolute discretion of Panmure Gordon. The price at which the Placing
Shares are to be placed (the "Placing Price") and the number of Placing Shares will be
agreed by the Company with Panmure Gordon at the close of the bookbuilding period. Details
of the Placing Price and the number of Placing Shares will be announced as soon as
practicable after the close of the bookbuilding process. The Placing Shares will, when issued,
be credited as fully paid and will rank equally in all respects with the existing ordinary shares
of the Company, including the right to receive all dividends and other distributions declared,
made or paid in respect of such shares after the date of issue of the Placing Shares.

Certain of the Directors have indicated an intention to participate in the Placing.

It is intended that the Placing will be conducted in two stages, with up to 32,337,000 First
Tranche Placing Shares being placed using the Directors' existing authority to allot shares for
cash on a non-pre-emptive basis, as granted at the Company's AGM on 25 June 2015, and
the Second Tranche Placing Shares being placed conditionally upon, amongst other things,
the passing of the Resolutions at the General Meeting to be held on or around 23 December
2015. The Placing in respect of the First Tranche Placing Shares is conditional only on
Admission, with the Placing in respect of the Second Tranche Placing Shares being
conditional upon, amongst other things, the passing of the relevant Resolutions at the
General Meeting, Admission becoming effective and the placing agreement between the
Company and Panmure Gordon not being terminated prior to Admission. A Circular to
Shareholders in connection with the General Meeting is expected to be published on 7
December 2015, subject to approval from the JSE.

Application will be made for the First Tranche Placing Shares and the Second Tranche
Placing Shares to be admitted to trading on the AIM Market of the London Stock Exchange
plc (“AIM”) and the Alternative Exchange of the JSE Limited (“AltX”). Settlement for and
Admission of the First Tranche Placing Shares and the Second Tranche Placing Shares is
expected to take place on 9 December 2015 and 24 December 2015, respectively.

The Company reserves the right to settle certain applicable investors’ participation(s) by way
of a direct subscription with the Company, having consulted with Panmure Gordon.

This Announcement should be read in its entirety. In particular, your attention is drawn to the
"Important Information" section of this Announcement, to the detailed terms and conditions of
the Placing and further information relating to the bookbuilding process described in Appendix
I. By choosing to participate in the Placing and by making an oral and legally binding offer to
acquire Placing Shares, investors will be deemed to have read and understood this
Announcement in its entirety and to be making such offer on the terms and subject to the
conditions in it, and to be providing the representations, warranties, acknowledgements and
undertakings contained in Appendix I.


Contact details:

DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862 097

UK Broker, Sole Placing Agent & Nominated Adviser
Panmure Gordon (UK) Limited
Dominic Morley / Adam James
Tel: +44 20 7886 2500
Contacts for the Bookbuild:
Jamie Campbell (Specialist Sales): 020 7886 2736
Tom Salvesen (Corporate Broking): 020 7886 2904

JSE Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
SA Corporate Adviser
Qinisele Resources Proprietary Limited
Dennis Tucker / Andrew Brady
Tel: +27 11 883 6358

3 December 2015

Important Information

This Announcement contains (or may contain) certain forward-looking statements with
respect to certain of the Company's plans and its current goals and expectations relating to its
future financial condition and performance and which involve a number of risks and
uncertainties. The Company cautions readers that no forward-looking statement is a
guarantee of future performance and that actual results could differ materially from those
contained in the forward-looking statements. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current facts. Forward-looking
statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate",
"intend", "plan", "goal", "believe", or other words of similar meaning. By their nature, forward-
looking statements involve risk and uncertainty because they relate to future events and
circumstances, including, but not limited to, economic and business conditions, the effects of
continued volatility in credit markets, market-related risks such as changes in the price of
commodities or changes in interest rates and foreign exchange rates, the policies and actions
of governmental and regulatory authorities, changes in legislation, the further development of
standards and interpretations under International Financial Reporting Standards ("IFRS")
applicable to past, current and future periods, evolving practices with regard to the
interpretation and application of standards under IFRS, the outcome of pending and future
litigation or regulatory investigations, the success of future explorations, acquisitions and
other strategic transactions and the impact of competition. A number of these factors are
beyond the Company's control. As a result, the Company's actual future results may differ
materially from the plans, goals, and expectations set forth in the Company's forward-looking
statements. Any forward-looking statements made in this Announcement by or on behalf of
the Company speak only as of the date they are made. Except as required by the Financial
Conduct Authority (the "FCA"), the London Stock Exchange or applicable law, the Company
expressly disclaims any obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained in this Announcement to reflect any changes in
the Company's expectations with regard thereto or any changes in events, conditions or
circumstances on which any such statement is based.

This Announcement is for information purposes only and shall not constitute an offer to buy,
sell, issue, or subscribe for, or the solicitation of an offer to buy, sell, issue, or subscribe for
any securities, nor shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction.

This Announcement does not contain an offer or constitute any part of an offer to the public
within the meaning of Sections 85 and 102B of the Financial Services and Markets Act 2000,
as amended ("FSMA") or otherwise. This Announcement is not an "approved prospectus"
within the meaning of Section 85(7) of FSMA and a copy of it has not been, and will not be,
delivered to the FCA in accordance with the Prospectus Rules or delivered to any other
authority which could be a competent authority for the purpose of the Prospectus Directive. Its
contents have not been examined or approved by the London Stock Exchange plc, nor has it
been approved by an "authorised person" for the purposes of Section 21 of FSMA.

This Announcement has been issued by and is the sole responsibility of the Company. No
representation or warranty, express or implied, is or will be made as to, or in relation to, and
no responsibility or liability is or will be accepted by Panmure Gordon or by any of its
respective affiliates or agents as to, or in relation to, the accuracy or completeness of this
Announcement or any other written or oral information made available to or publicly available
to any interested party or its advisers, and any liability therefore is expressly disclaimed.
    Panmure Gordon, which is authorised and regulated in the United Kingdom by the FCA, is
    acting as placing agent for the Company and for no-one else in connection with the Placing,
    and Panmure Gordon will not be responsible to anyone other than the Company for providing
    the protections afforded to its customers or for providing advice to any other person in relation
    to the Placing or any other matter referred to herein.

    The distribution of this Announcement and the offering of the Placing Shares in certain
    jurisdictions may be restricted by law. No action has been taken by the Company or Panmure
    Gordon that would permit an offering of such shares or possession or distribution of this
    Announcement or any other offering or publicity material relating to such shares in any
    jurisdiction where action for that purpose is required. Persons into whose possession this
    Announcement comes are required to inform themselves about, and to observe such
    restrictions.

    This Announcement, including the Data Tables and the Appendix, is not for distribution or
    dissemination, directly or indirectly, in or into the United States or any jurisdiction into which
    the same would be unlawful. No public offering of securities of the Company will be made in
    connection with the Placing in the United Kingdom, the United States, the EEA, Switzerland
    or elsewhere.

    This Announcement is not intended to constitute an offer or solicitation to purchase or invest
    in the Placing Shares.

    Persons (including, without limitation, nominees and trustees) who have a contractual or other
    legal obligation to forward a copy of the Appendix or this Announcement should seek
    appropriate advice before taking any action.

    The Placing Shares to which this Announcement relates may be illiquid and / or subject to
    restrictions on their resale. Prospective purchasers of the Placing Shares should conduct their
    own due diligence on the Placing Shares. If you do not understand the contents of this
    Announcement or its Appendix you should consult an authorised financial adviser.

    The information in this Announcement may not be forwarded or distributed to any other
    person and may not be reproduced in any manner whatsoever. Any forwarding, distribution,
    dissemination, reproduction, or disclosure of this information in whole or in part is
    unauthorised. Failure to comply with this directive may result in a violation of the United
    States Securities Act of 1933 (as amended) ("US Securities Act") or the applicable laws of
    other jurisdictions.

    Neither the content of the Company's website nor any website accessible by hyperlinks on
    the Company's website is incorporated in, or forms part of, this Announcement.

    Data Tables

    Part 1: Budget vs actual use of funds in H2 2015

                                 Budget            Actual         %    Comment

Cash on hand July 2015          £4,973,000      £4,973,000
Tunnel development             (£1,533,000)     (£3,088,000)    201% Slow advance and additional support
Conveyor belt                   (£450,000)       (£448,000)     100% On budget but delayed by new SA
                                                                     regs
Capital items                   (£496,000)       (£496,000)     100%
Bond coupon payments             (£76,000)        (£76,000)     100%
G&A                             (£250,000)       (£216,000)     86% Continued reduction in overheads
                               (£2,805,000)     (£4,324,000)
Contingency                     £2,168,000       £649,000
Diamond sales                   £2,159,600           £0                Sub-optimal parcel (<10,000 cts)
Cash on hand                    £4,327,600        £649,000
Metres of development                  590             272      46%
Cost/m GBP                         £2,598          £11,365      437%
Tonnes processed (YTD)             36,842           14,672      40%
Carats recovered (YTD)             10,684            2,378      22%
Grade (cpt) (YTD ave)                0.29             0.16      56% Heavy waste dilution in K6 on
                                                                  southern side of pipe. Mix of K4 and
                                                                  K6 was planned

    As at 30 September 2015, the Company had net debt of £19.6 million (unaudited) and cash
    and cash equivalents of £1.7 million (unaudited).

    Part 2: Estimated K4 kimberlite tonnage ramp-up

                          Month                K4 kimberlite (tonnes)
                          November 2015        1,750
                          December 2015        3,281
                          January 2016         3,281
                          February 2016        2,734
                          March 2016           7,094
                          April 2016           15,500
                          May 2016             15,500
                          June 2016            18,500
                          July 2016            30,000
                          August 2016          30,000
                          September 2016       30,000
                          October 2016         30,000
                          November 2016        30,000
                          December 2016        30,000

    Part 3: Lace Mine Cashflow Model
    Management unaudited estimates (flat real)
    Key assumptions: USD/ZAR 13.7; $150/ct kimberlite diamond price, 1.00 mm bottom screen
    size, South African Prime rate of 9.75 per cent.
    (Estimates incorporate the recent IDC Loan reschedule but do not assume the potential
    positive impact of the installation of a waste sorter)

                 Fiscal       Carats (‘000)   Project cashflow        External debt
                 Year                              after tax and       repayments
                                               interest (ZARm)             (ZARm)
                 2015               7,420                   -                      -
                 2016             138,000          74,427,335           10,229,475
                 2017             242,236          87,631,387           79,888,166
                 2018             465,851         362,798,213           81,525,836
                 2019             499,582         331,025,713           83,315,947
                 2020             495,000         425,741,795           85,265,046
                 2021             506,400         567,229,960           72,376,815
                 2022             456,000         504,078,478                    -
                 2023             421,816         379,727,425                    -
                 2024             422,400         325,784,091                    -
                 2025             456,000         487,149,071                    -
                 2026             454,565         519,276,343                    -
                 2027             506,400         571,193,134                    -
                 2028             503,040         566,718,823                    -
                 2029             499,680         562,244,513                    -
                 2030             496,320         557,770,202                    -
              2031               492,960         553,295,892                     -
              2032               489,600         548,821,582                     -
              2033               540,000         536,992,851                     -
              2034               523,200         460,013,403                     -
              2035               516,480         567,686,659                     -
              2036               502,516         577,501,110                     -
              2037               509,760         575,667,444                     -
              2038               506,400         571,193,134                     -
              2039               503,040         566,718,823                     -
              2040               499,680         562,244,513                     -
              2041               499,680         564,237,492                     -



Appendix I: Terms and Conditions of the Placing

IMPORTANT INFORMATION FOR PLACEES ONLY REGARDING THE PLACING.

THIS   ANNOUNCEMENT,      INCLUDING   THIS  APPENDIX    (TOGETHER,   THE
"ANNOUNCEMENT") AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED
AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN
OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. PERSONS INTO
WHOSE POSSESSION THIS ANNOUNCEMENT COMES ARE REQUIRED BY THE
COMPANY AND PANMURE GORDON TO INFORM THEMSELVES ABOUT AND TO
OBSERVE ANY SUCH RESTRICTIONS.

THIS ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER OR INVITATION
TO UNDERWRITE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN
THE COMPANY.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX,
BUSINESS AND RELATED ASPECTS OF A SUBSCRIPTION FOR THE PLACING
SHARES.

Persons (including individuals, funds or otherwise) who have chosen to participate in the
Placing, by making an oral or written offer to subscribe for Placing Shares will be deemed to
have read and understood the Announcement, including this Appendix in its entirety and to be
making such offer on the terms and conditions, and to be providing the representations,
warranties, acknowledgements, and undertakings contained in this Appendix.

In this Appendix, unless the context otherwise requires, "Placee" means a person (including
individuals, funds or others) by whom or on whose behalf a commitment to subscribe for
Placing Shares has been given. In particular, each such Placee represents, warrants and
acknowledges that:

- it will acquire, hold, manage or dispose of any Placing Shares that are allocated to it for the
purposes of its business;
- in the case of any Placing Shares acquired by it as a financial intermediary, as that term is
used in Article 3(2) of the Prospectus Directive, (i) the Placing Shares acquired by it in the
Placing have not been acquired on behalf of, nor have they been acquired with a view to their
offer or resale to, persons in any Member State of the European Economic Area which has
implemented the Prospectus Directive other than Qualified Investors or in circumstances in
which the prior consent of Panmure Gordon has been given to the offer or resale; or (ii)
where Placing Shares have been acquired by it on behalf of persons in any member state of
the EEA other than Qualified Investors, the offer of those Placing Shares to it is not treated
under the Prospectus Directive as having been made to such persons;
- (a) (i) it is not in the United States and (ii) it is not acting for the account or benefit of a
person in the United States, unless in the case of this clause (ii), it is acting with full
investment discretion for such person or, if such person is a corporation or partnership, the
person agreeing to purchase the Placing Shares is an employee of such person authorised to
make such purchase; (b) it is a dealer or other professional fiduciary in the United States
acting on a discretionary basis for a non-US person (other than an estate or trust) in reliance
on Regulation S; (c) it is otherwise acquiring the Placing Shares in an "offshore transaction"
meeting the requirements of Regulation S under the US Securities Act of 1933, as amended
(the 'Securities Act”); or (d) it is a "qualified institutional buyer" (a "QIB") (as defined in Rule
144A under the Securities Act) and it has duly executed an investor letter in a form provided
to it and delivered the same to Panmure Gordon or its affiliates;
- it is acquiring the Placing Shares for its own account or is acquiring the Placing Shares for
an account with respect to which it exercises sole investment discretion and has the authority
to make and does make the representations, warranties, indemnities, acknowledgements and
agreements contained in this Announcement; and
- it understands (or, if acting for the account of another person, such person understands) the
resale and transfer restrictions set out in this Appendix.

The Company and Panmure Gordon will rely upon the truth and accuracy of the foregoing
representations, acknowledgements and agreements.

Details of the Placing
Panmure Gordon has entered into an agreement with Diamondcorp                   (the "Placing
Agreement") under which, subject to the conditions set out in that agreement, Panmure
Gordon has agreed to use its reasonable endeavours to procure subscribers for the Placing
Shares at the placing price that is to be determined as set out below with certain institutional
and other investors.

The Placing is conditional upon the Placing Agreement becoming unconditional in all
respects.

The Placing Shares will, when issued, rank pari passu in all respects with the existing issued
Ordinary Shares, including the right to receive dividends and other distributions declared,
made or paid following Admission.

Applications for admission to trading
Applications will be made to the London Stock Exchange for admission of both the First
Tranche Placing Shares ("First Admission") and the Second Tranche Placing Shares
('Second Admission") to trading on AIM and on the alternative exchange of the JSE. It is
expected that First Admission will become effective and that dealings in the First Tranche
Placing Shares will commence on AIM at 8.00 a.m. on 9 December 2015 and that Second
Admission will become effective and that dealings in the Second Tranche Placing Shares will
commence on AIM at 8.00 a.m. on 24 December 2015.

Participation in, and principal terms of, the Placing
Panmure Gordon is arranging the Placing as agent for and on behalf of the Company.
Participation in the Placing will only be available to Placees who may lawfully be, and are,
invited to participate by Panmure Gordon.

The Placing Price and the number of Placing Shares to be issued will be agreed between
Panmure Gordon and the Company following completion of a bookbuilding exercise by
Panmure Gordon (the "Bookbuild"). The Placing Price and number of Placing Shares will be
announced on a Regulatory Information Service following the completion of the Bookbuild.

Panmure Gordon will determine in its absolute discretion the extent of each Placee's
participation in the Placing, which will not necessarily be the same for each Placee and this
will be confirmed orally by Panmure Gordon as agent of the Company ("Confirmation"). No
element of the Placing will be underwritten. Confirmation will constitute an irrevocable legally
binding commitment upon that person (who will at that point become a Placee) to subscribe
for the number of Placing Shares allocated to it at the Placing Price on the terms and
conditions set out in this Appendix (a copy of the terms and conditions having been provided
to the Placee prior to or at the same time as such oral confirmation) and in accordance with
the Company's articles of association. For the avoidance of doubt, the Confirmation
constitutes each Placee's irrevocable legally binding agreement, subject to the Placing
Agreement not having been terminated, to pay the aggregate settlement amount for the
Placing Shares to be subscribed for by that Placee regardless of the total number of Placing
Shares (if any) subscribed for by any other investor(s).

Panmure Gordon reserves the right to scale back the number of Placing Shares to be
subscribed by any Placee in the event of an oversubscription under the Placing. Panmure
Gordon also reserves the right not to accept offers for Placing Shares or to accept such offers
in part rather than in whole.

Each Placee will be required to pay to Panmure Gordon, on the Company's behalf, the
Placing Price for each Placing Share agreed to be acquired by it under the Placing in
accordance with the terms set out herein. Each Placee's obligation to acquire and pay for
Placing Shares under the Placing will be owed to Panmure Gordon and the Company. Each
Placee has an immediate, separate, irrevocable and binding obligation, owed to Panmure
Gordon, to pay to it (or as it may direct) in cleared funds an amount equal to the product of
the Placing Price and the number of Placing Shares for which such Placee has agreed to
subscribe. Each Placee will be deemed to have read and understood the Appendix in its
entirety, to the participating in the Placing upon the terms and conditions contained in the
Appendix, and to be providing the representations, warranties, agreements,
acknowledgements and undertakings, in each case as contained in the Appendix. To the
fullest extent permitted by law and applicable Financial Conduct Authority ("FCA") rules (the
"FCA Rules"), (i) neither Panmure Gordon, (ii) nor any of its directors, officers, employees or
consultants, nor (iii) to the extent not contained within (i) or (ii), any person connected with
Panmure Gordon as defined in the FCA Rules ((i), (ii) and (iii) being together "affiliates" and
individually an "affiliate"), shall have any liability to Placees or to any person other than the
Company in respect of the Placing.

Irrespective of the time at which a Placee's participation in the Placing is confirmed,
settlement for all Placing Shares to be acquired pursuant to the Placing will be required to be
made at the same time, on the basis explained below under "Registration and Settlement".

Completion of the Placing will be subject to the fulfilment of the conditions referred to below
under "Conditions of the Placing" and to the Placing not being terminated on the basis
referred to below under "Termination of the Placing Agreement". In the event that the Placing
Agreement does not become unconditional in any respect or is terminated, the Placing (save
to the extent already completed) will not proceed and all funds delivered by the Placee to
Panmure Gordon in respect of the Placee's participation will be returned to the Placee at the
Placee's risk without interest, (save where Placing Shares have been validly issued to
Placees).

By participating in the Placing, each Placee agrees that its rights and obligations in respect of
the Placing will terminate only in the circumstances described below and will not otherwise be
capable of rescission or termination by the Placee.

By participating in the Placing, each Placee is deemed to have read and understood this
Announcement, including the Appendix, in its entirety and to be making such offer on the
terms and conditions, and to be providing the representations, warranties,
acknowledgements, and undertakings contained in the Appendix.

To the fullest extent permissible by law, neither the Company, Panmure Gordon nor any of
their affiliates shall have any liability to Placees (or to any other person whether acting on
behalf of a Placee or otherwise). In particular, neither Panmure Gordon nor any of its affiliates
shall have any liability (including to the extent permissible by law, any fiduciary duties) in
respect of Panmure Gordon's conduct of the Bookbuild or of such alternative method of
effecting the Placing as Panmure Gordon and the Company may agree.
Conditions of the Placing
The obligations of Panmure Gordon under the Placing Agreement in respect of the First
Tranche Placing Shares are conditional on, amongst other things:
 (a) the Company having complied with its obligations under the Placing Agreement (to the
     extent that such obligations fall to be performed prior to First Admission); and
 (b) First Admission having occurred not later than 8.00 a.m. 9 December 2015 or such later
     date as the Company and Panmure Gordon may agree, but in any event not later than
     8.00 a.m. on 18 December 2015.

The obligations of Panmure Gordon under the Placing Agreement in respect of the Second
Tranche Placing Shares are conditional on, amongst other things:
- the Company having complied with its obligations under the Placing Agreement (to the
extent that such obligations fall to be performed prior to Second Admission);
- First Admission having become effective;
- the passing of the Resolutions at the General Meeting of the Company being held on or
about 23 December 2015; and
- Second Admission having occurred not later than 8.00 a.m. on 24 December 2015 or such
later date as the Company and Panmure Gordon may agree, but in any event not later than
8.00 a.m. on 31 December 2015.

If (i) any of the conditions contained in the Placing Agreement in relation to the First Tranche
Placing Shares are not fulfilled or waived by Panmure Gordon by the respective time or date
where specified, (ii) any of such conditions becomes incapable of being fulfilled or (iii) the
Placing Agreement is terminated in the circumstances specified below, the Placing will not
proceed and the Placee's rights and obligations hereunder in relation to the First Tranche
Placing Shares shall cease and terminate at such time and each Placee agrees that no claim
can be made by the Placee in respect thereof.

If (i) any of the conditions contained in the Placing Agreement in relation to the Second
Tranche Placing Shares are not fulfilled or waived by Panmure Gordon by the respective time
or date where specified, (ii) any of such conditions becomes incapable of being fulfilled or (iii)
the Placing Agreement is terminated in the circumstances specified below, the placing of the
Second Tranche Placing Shares will not proceed and the Placee's rights and obligations
hereunder in relation to the Second Tranche Placing Shares shall cease and terminate at
such time and each Placee agrees that no claim can be made by the Placee in respect
thereof. For the avoidance of doubt, in the event that the Placing Agreement is terminated in
respect of the Second Tranche Placing Shares after First Admission has taken place, the
allotment and issue of the First Tranche Placing Shares will be unaffected.

Panmure Gordon, at its discretion and upon such terms as it thinks fit, may waive compliance
by the Company with the whole or any part of any of the Company's obligations in relation to
the conditions in the Placing Agreement. Any such extension or waiver will not affect Placees'
commitments as set out in this Announcement.

Neither Panmure Gordon, the Company nor any other person shall have any liability to any
Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect
of any decision they may make as to whether or not to waive or to extend the time and/or the
date for the satisfaction of any condition to the Placing nor for any decision they may make as
to the satisfaction of any condition or in respect of the Placing generally, and by participating
in the Placing each Placee agrees that any such decision is within the absolute discretion of
Panmure Gordon.

Termination of the Placing Agreement
Panmure Gordon is entitled (but after, where practicable, having consulted with the Company)
at any time before Admission, to terminate the Placing Agreement in relation to its obligations
in respect of the Placing Shares (save to the extent already performed) by giving notice to the
Company if, amongst other things:
- the Company fails, in any material respect, to comply with any of its obligations under the
Placing Agreement; or
- any of the warranties given by the Company in the Placing Agreement was untrue,
inaccurate or misleading in any material respect when made or has ceased to be true and
accurate in a material respect or has become misleading in a material respect by reference to
the facts and circumstances then subsisting; or
- an event of force majeure occurs or there is a material adverse change in the financial
position and/or prospects of the Company or any member of the Group.

Upon such termination, the parties to the Placing Agreement shall be released and
discharged (except for any liability arising before or in relation to such termination and save to
the extent already performed) from their respective obligations under or pursuant to the
Placing Agreement subject to certain exceptions.

By participating in the Placing, Placees agree that the exercise by Panmure Gordon of any
right of termination or other discretion under the Placing Agreement shall be within the
absolute discretion of Panmure Gordon and that it need not make any reference to Placees
and that it shall have no liability to Placees whatsoever in connection with any such exercise
or failure so to exercise.

No prospectus
No offering document, prospectus or admission document has been or will be submitted to be
approved by the FCA or submitted to the London Stock Exchange in relation to the Placing
and Placees' commitments will be made solely on the basis of the information contained in
this Announcement (including the Appendix) released by the Company today.

Each Placee, by accepting a participation in the Placing, agrees that the content of this
Announcement (including the Appendix) is exclusively the responsibility of the Company and
confirms that it has neither received nor relied on any other information, representation,
warranty, or statement made by or on behalf of the Company, Panmure Gordon or any other
person and neither Panmure Gordon nor the Company nor any other person will be liable for
any Placee's decision to participate in the Placing based on any other information,
representation, warranty or statement which the Placees may have obtained or received.
Each Placee acknowledges and agrees that it has relied on its own investigation of the
business, financial or other position of the Company in accepting a participation in the
Placing. Nothing in this paragraph shall exclude the liability of any person for fraudulent
misrepresentation.

Registration and settlement
Settlement of transactions in the Placing Shares following Admission will take place within the
system administered by Euroclear UK & Ireland Limited ("CREST"), subject to certain
exceptions. The Company reserves the right to require settlement for and delivery of the
Placing Shares (or a portion thereof) to Placees in certificated form if, in the opinion of
Panmure Gordon, delivery or settlement is not possible or practicable within the CREST
system or would not be consistent with the regulatory requirements in the Placee's
jurisdiction.

Participation in the Placing is only available to persons who are invited to participate in it by
Panmure Gordon.

A Placee's commitment to acquire a fixed number of Placing Shares under the Placing will be
agreed orally with Panmure Gordon and a contract note will be despatched as soon as
possible thereafter. Such agreement will constitute a legally binding commitment on such
Placee's part to acquire that number of Placing Shares at the Placing Price on the terms and
conditions set out or referred to in the Appendix and subject to the Company's Articles of
Association.

Following the close of the Bookbuild, each Placee allocated Placing Shares in the Placing will
be sent trade confirmations in accordance with the standing arrangements in place with
Panmure Gordon, stating the number of First Tranche Placing Shares and Second Tranche
Placing Shares allocated to it at the Placing Price, the aggregate amount owed by such
Placee to Panmure Gordon and settlement instructions.
Each Placee agrees that it will do all things necessary to ensure that delivery and payment is
completed in accordance with the standing CREST or certificated settlement instructions that
it has in place with Panmure Gordon. Settlement should be through Panmure Gordon against
CREST ID: 83801. For the avoidance of doubt, Placing allocations will be booked with a
trade date of 3 December 2015 and settlement date of 9 December 2015 for the First Tranche
Placing Shares and a settlement date of 24 December 2015 for the Second Tranche Placing
Shares.

The Company will deliver the Placing Shares to the CREST accounts operated by Panmure
Gordon as agent for the Company and Panmure Gordon will enter its delivery (DEL)
instruction into the CREST system. The input to CREST by a Placee of a matching or
acceptance instruction will then allow delivery of relevant Placing Shares to that Placee
against payment. The Placing Shares will be held as nominee for the relevant Placee.

It is expected that settlement will take place on 9 December 2015 for the First Tranche
Placing Shares and 24 December 2015 for the Second Tranche Placing Shares, on a delivery
versus payment basis.

Interest is chargeable daily on payments not received from Placees on the due date in
accordance with the arrangements set out above at the rate of four per cent. per annum
above the base lending rate of the Bank of England, as determined by Panmure Gordon.

Each Placee is deemed to agree that, if it does not comply with these obligations, the
Company may sell any or all of the Placing Shares allocated to that Placee on such Placee's
behalf and retain from the proceeds, for the Company's account and benefit, an amount equal
to the aggregate amount owed by the Placee plus any interest due. The relevant Placee will,
however, remain liable for any shortfall below the aggregate amount owed by it and may be
required to bear any stamp duty or stamp duty reserve tax (together with any interest or
penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf.

If Placing Shares are to be delivered to a custodian or settlement agent, Placees should
ensure that the trade confirmation is copied and delivered immediately to the relevant person
within that organisation. Insofar as Placing Shares are registered in a Placee's name or that
of its nominee or in the name of any person for whom a Placee is contracting as agent or that
of a nominee for such person, such Placing Shares should, subject as provided below, be so
registered free from any liability to UK stamp duty or stamp duty reserve tax. Placees will not
be entitled to receive any fee or commission in connection with the Placing.

Representations and warranties
By participating in the Placing, each Placee (and any person acting on such Placee's behalf)
acknowledges, undertakes, represents, warrants and agrees (as the case may be) with
Panmure Gordon and the Company, in each case as a fundamental term of their application
for Placing Shares, the following:

That it:


-represents and warrants that it has read this Announcement, including the Appendix, in its
entirety and that its acquisition of Placing Shares is subject to and based upon all the terms,
conditions, representations, warranties, acknowledgements, agreements and undertakings
and other information contained herein and undertakes not to redistribute or duplicate this
Announcement;

-acknowledges that it has received this Announcement solely for its use and has not
redistributed or duplicated it;

- acknowledges and agrees that no offering document, prospectus or admission document
has been or will be prepared in connection with the Placing and represents and warrants that
it has not received a prospectus, admission document or other offering document in
connection with the Placing or the Placing Shares;

- acknowledges that its participation in the Placing shall also be subject to the provisions of
the Placing Agreement and the memorandum and articles of association of the Company in
force both before and immediately after Admission;

- acknowledges that the ordinary shares in the capital of the Company are admitted to trading
on AIM and on the alternative exchange of the JSE, and the Company is therefore required to
publish certain business and financial information in accordance with the rules and practices
of AIM and the JSE (collectively, the "Exchange Information"), which includes a description
of the nature of the Company's business and the Company's most recent balance sheet and
profit and loss account and that it is able to obtain or access such Exchange Information
without undue difficulty and is able to obtain access to such information or comparable
information concerning any other publicly traded company without undue difficulty;

- acknowledges that neither Panmure Gordon nor the Company nor any of their respective
affiliates or any person acting on behalf of any of them has provided, and will not provide, it
with any material regarding the Placing Shares or the Company other than this
Announcement; nor has it requested any of Panmure Gordon, the Company, any of their
respective affiliates or any person acting on behalf of any of them to provide it with any such
information;

- acknowledges that the content of this Announcement is exclusively the responsibility of the
Company and that neither Panmure Gordon nor any person acting on its behalf has or shall
have any liability for any information, representation or statement contained in this
Announcement or any information previously published by or on behalf of the Company and
will not be liable for any Placee's decision to participate in the Placing based on any
information, representation or statement contained in this Announcement or otherwise. Each
Placee further represents, warrants and agrees that the only information on which it is entitled
to rely and on which such Placee has relied in committing itself to subscribe for the Placing
Shares is contained in this Announcement and any information previously published by the
Company by notification to a Regulatory Information Service, such information being all that it
deems necessary to make an investment decision in respect of the Placing Shares and that it
has neither received nor relied on any other information given or representations, warranties
or statements made by Panmure Gordon or the Company or their respective affiliates and
neither Panmure Gordon nor the Company nor their respective affiliates will be liable for any
Placee's decision to accept an invitation to participate in the Placing based on any other
information, representation, warranty or statement. Each Placee further acknowledges and
agrees that it has relied on its own investigation of the business, financial or other position of
the Company in deciding to participate in the Placing;

- represents and warrants that it has neither received nor relied on any inside information (as
defined in section 118C of the Financial Services and Markets Act 2000, as amended
("FSMA")) concerning the Company in accepting this invitation to participate in the Placing;

- acknowledges that neither Panmure Gordon nor any person acting on its behalf nor any of
their respective affiliates has or shall have any liability for any publicly available or filed
information, or any representation relating to the Company, provided that nothing in this
paragraph excludes the liability of any person for fraudulent misrepresentation made by that
person;

- represents and warrants that it has complied with its obligations under the Criminal Justice
Act 1993, section 118 of FSMA and in connection with money laundering and terrorist
financing under the Proceeds of Crime Act 2002, the Terrorism Act 2000 (as amended), the
Terrorism Act 2006 and the Money Laundering Regulations 2007 (the "Regulations") and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any
government agency having jurisdiction in respect thereof and the Money Laundering
Sourcebook of the FCA and, if making payment on behalf of a third party, that satisfactory
evidence has been obtained and recorded by it to verify the identity of the third party as
required by the Regulations;

- if a financial intermediary, as that term is used in Article 3(2) of EU Directive 2003/71/EC, as
amended (the "Prospectus Directive") (including any relevant implementing measure in any
member state), represents and warrants that the Placing Shares subscribed for by it in the
Placing will not be acquired on a non-discretionary basis on behalf of, nor will they be
acquired with a view to their offer or resale to, persons in a member state of the European
Economic Area which has implemented the Prospectus Directive other than to qualified
investors, or in circumstances in which the prior consent of Panmure Gordon has been given
to the proposed offer or resale;

- represents and warrants that it has not offered or sold and will not offer or sell any Placing
Shares to persons in the United Kingdom, except to persons whose ordinary activities involve
them in acquiring, holding, managing or disposing of investments (as principal or agent) for
the purposes of their business or otherwise in circumstances which have not resulted and
which will not result in an offer to the public in the United Kingdom within the meaning of
section 85(1) of FSMA;

- represents and warrants that it has not offered or sold and will not offer or sell any Placing
Shares to persons in the European Economic Area prior to Second Admission except to
persons whose ordinary activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of their business or otherwise in
circumstances which have not resulted in and which will not result in an offer to the public in
any member state of the European Economic Area within the meaning of the Prospectus
Directive;

- represents and warrants that it has only communicated or caused to be communicated and
will only communicate or cause to be communicated any invitation or inducement to engage
in investment activity (within the meaning of section 21 of FSMA) relating to the Placing
Shares in circumstances in which section 21(1) of FSMA does not require approval of the
communication by an authorised person;

- represents and warrants that it has complied and will comply with all applicable provisions of
FSMA with respect to anything done by it in relation to the Placing Shares in, from or
otherwise involving, the United Kingdom;

- represents and warrants that it is a person falling within Article 19(5) and/or Article 49(2)(a)
to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as
amended, or is a person to whom this Announcement may otherwise be lawfully
communicated;

- acknowledges that any offer of Placing Shares may only be directed at persons in member
states of the European Economic Area who are "qualified investors" within the meaning of
Article 2(1)(e) of the Prospectus Directive and represents and agrees that it is such a qualified
investor;

- represents and warrants that it and any person acting on its behalf is entitled to subscribe for
Placing Shares under the laws of all relevant jurisdictions which apply to it and that it has all
necessary capacity and has obtained all necessary consents and authorities to enable it to
commit to this participation in the Placing and to perform its obligations in relation thereto
(including, without limitation, in the case of any person on whose behalf it is acting, all
necessary consents and authorities to agree to the terms set out or referred to in this
Announcement) and will honour such obligations, and that its subscription of the Placing
Shares will be in compliance with applicable laws and regulations in the jurisdiction of its
residence, the residence of the Company, or otherwise.

- acknowledges and agrees that the Placing Shares have not been and will not be registered
under the Securities Act or with any securities regulatory authority of any state or jurisdiction
of the United States, or the relevant Canadian, Japanese, Australian or Irish securities
legislation and therefore the Placing Shares may not be offered, sold, transferred or delivered
directly or indirectly into the United States, Canada, Japan, Australia or the Republic of
Ireland or their respective territories and possessions, except subject to limited exemptions;

- warrants that it has complied with all relevant laws of all relevant territories, obtained all
requisite governmental or other consents which may be required in connection with the
Placing Shares, complied with all requisite formalities and that it has not taken any action or
omitted to take any action which will or may result in Panmure Gordon, the Company or any
of their respective directors, officers, agents, employees or advisers acting in breach of the
legal or regulatory requirements of any territory in connection with the Placing;

- acknowledges and agrees that its purchase of Placing Shares does not trigger, in the
jurisdiction in which it is resident or located: (i) any obligation to prepare or file a prospectus or
similar document or any other report with respect to such purchase; (ii) any disclosure or
reporting obligation of the Company; or (iii) any registration or other obligation on the part of
the Company;

- undertakes that it (and any person acting on its behalf) will make payment for the Placing
Shares allocated to it in accordance with this Announcement on the due time and date set out
herein, failing which the relevant Placing Shares may be placed with other subscribers or sold
as Panmure Gordon may in its discretion determine and without liability to such Placee;

- acknowledges that neither Panmure Gordon nor any of its affiliates, nor any person acting
on behalf of any of them, is making any recommendations to it, advising it regarding the
suitability of any transactions it may enter into in connection with the Placing and that
participation in the Placing is on the basis that it is not and will not be a client of Panmure
Gordon for the purposes of the Placing and that neither Panmure Gordon has no duties or
responsibilities to it for providing the protections afforded to its clients or for providing advice
in relation to the Placing nor in respect of any representations, warranties, undertakings or
indemnities contained in the Placing Agreement nor for the exercise or performance of any of
its rights and obligations thereunder including any rights to waive or vary any conditions or
exercise any termination right;

- undertakes that the person whom it specifies for registration as holder of the Placing Shares
will be (i) itself or (ii) its nominee, as the case may be. Neither Panmure Gordon nor the
Company will be responsible for any liability to stamp duty or stamp duty reserve tax resulting
from a failure to observe this requirement. Each Placee and any person acting on behalf of
such Placee agrees to participate in the Placing and it agrees to indemnify the Company and
Panmure Gordon in respect of the same on the basis that the Placing Shares will be allotted
to the CREST stock account of Panmure Gordon who will hold them as nominee on behalf of
such Placee until settlement in accordance with its standing settlement instructions;

- acknowledges that these terms and conditions and any agreements entered into by it
pursuant to these terms and conditions and any non-contractual obligations arising out of or in
connection with such agreements shall be governed by and construed in accordance with the
laws of England and Wales and it submits (on behalf of itself and on behalf of any person on
whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any
claim, Placing dispute or matter arising out of any such contract, except that enforcement
proceedings in respect of the obligation to make payment for the Placing Shares (together
with any interest chargeable thereon) may be taken by the Company or Panmure Gordon in
any jurisdiction in which the relevant Placee is incorporated or in which any of its securities
have a quotation on a recognised stock exchange;

- acknowledges that Panmure Gordon and its affiliates will rely upon the truth and accuracy of
the representations, warranties and acknowledgements set forth herein and which are
irrevocable and it irrevocably authorises Panmure Gordon to produce this Announcement,
pursuant to, in connection with, or as may be required by any applicable law or regulation,
administrative or legal proceeding or official inquiry with respect to the matters set forth
herein;
- agrees to indemnify on an after tax basis and hold the Company and Panmure Gordon and
their respective affiliates harmless from any and all costs, claims, liabilities and expenses
(including legal fees and expenses) arising out of or in connection with any breach of the
representations, warranties, acknowledgements, agreements and undertakings in the
Appendix and further agrees that the provisions of the Appendix shall survive after completion
of the Placing;

- represents and warrants that it will acquire any Placing Shares subscribed for by it for its
account or for one or more accounts as to each of which it exercises sole investment Placing
discretion and it has full power to make the acknowledgements, representations and
agreements herein on behalf of each such account;

- acknowledges that its commitment to subscribe for Placing Shares on the terms set out
herein and in the relevant contract notes will continue notwithstanding any amendment that
may in future be made to the terms of the Placing and that Placees will have no right to be
consulted or require that their consent be obtained with respect to the Company's conduct of
the Placing. The foregoing representations, warranties and confirmations are given for the
benefit of the Company and Panmure Gordon. The agreement to settle a Placee's
subscription (and/or the subscription of a person for whom such Placee is contracting as
agent) free of stamp duty and stamp duty reserve tax depends on the settlement relating only
to the subscription by it and/or such person direct from the Company for the Placing Shares in
question. Such agreement assumes, and is based on a warranty from each Placee, that
neither it, nor the person specified by it for registration as holder, of Placing Shares is, or is
acting as nominee or agent for, and that the Placing Shares will not be allotted to, a person
who is or may be liable to stamp duty or stamp duty reserve tax under any of sections 67, 70,
93 and 96 of the Finance Act 1986 (depositary receipts and clearance services). If there are
any such arrangements, or the settlement relates to any other dealing in the Placing Shares,
stamp duty or stamp duty reserve tax may be payable. In that event the Placee agrees that it
shall be responsible for such stamp duty or stamp duty reserve tax, and neither of the
Company, nor Panmure Gordon shall be responsible for such stamp duty or stamp duty
reserve tax. If this is the case, each Placee should seek its own advice and notify Panmure
Gordon accordingly;

- understands that no action has been or will be taken by any of the Company, Panmure
Gordon or any person acting on behalf of the Company or Panmure Gordon that would, or is
intended to, permit a public offer of the Placing Shares in any country or jurisdiction where
any such action for that purpose is required;

- in making any decision to subscribe for the Placing Shares, confirms that it has knowledge
and experience in financial, business and international investment matters as is required to
evaluate the merits and risks of subscribing for the Placing Shares. It further confirms that it is
experienced in investing in securities of this nature in this sector and is aware that it may be
required to bear, and is able to bear, the economic risk of, and is able to sustain a complete
loss in connection with the Placing. It further confirms that it relied on its own examination and
due diligence of the Company and its associates taken as a whole, and the terms of the
Placing, including the merits and risks involved;

- represents and warrants that it has (a) made its own assessment and satisfied itself
concerning legal, regulatory, tax, business and financial considerations in connection herewith
to the extent it deems necessary; (b) had access to review publicly available information
concerning the Company that it considers necessary or appropriate and sufficient in making
an investment decision; (c) reviewed such information as it believes is necessary or
appropriate in connection with its subscription of the Placing Shares; and (d) made its
investment decision based upon its own judgment, due diligence and analysis and not upon
any view expressed or information provided by or on behalf of Panmure Gordon;

- understands and agrees that it may not rely on any investigation that Panmure Gordon or
any person acting on its behalf may or may not have conducted with respect to the Company,
or the Placing and Panmure Gordon has not made any representation to it, express or
implied, with respect to the merits of the Placing, the subscription for the Placing Shares, or
as to the condition, financial or otherwise, of the Company, or as to any other matter relating
thereto, and nothing herein shall be construed as a recommendation to it to subscribe for the
Placing Shares. It acknowledges and agrees that no information has been prepared by
Panmure Gordon for the purposes of this Placing;

- accordingly it acknowledges and agrees that it will not hold Panmure Gordon or any of its
affiliates or any person acting on its behalf responsible or liable for any misstatements in or
omission from any publicly available information relating to the Company or information made
available (whether in written or oral form) in presentations or as part of roadshow discussions
with investors relating to the Company (the "Information") and that neither Panmure Gordon
nor any person acting on behalf of Panmure Gordon makes any representation or warranty,
express or implied, as to the truth, accuracy or completeness of such Information or accepts
any responsibility for any of such Information; and

- if the Placing Shares were offered to it in the United States, represents and warrants that in
making its investment decision, (i) it has consulted its own independent advisers or otherwise
has satisfied itself concerning, without limitation, the effects of United States federal, state
and local income tax laws and foreign tax laws generally and the US Employee Retirement
Income Security Act of 1974, the US Investment Company Act of 1940 and the Securities Act,
(ii) it has received all information (including the business, financial condition, prospects,
creditworthiness, status and affairs of the Company, the Placing and the Placing Shares, as
well as the opportunity to ask questions) concerning the Company, the Placing and the
Placing Shares that it believes is necessary or appropriate in order to make an investment
decision in respect of the Company and the Placing Shares, (iii) it is aware and understands
that an investment in the Placing Shares involves a considerable degree of risk and no US
federal or state or non-US agency has made any finding or determination as to the fairness
for investment or any recommendation or endorsement of the Placing Shares, and (iv) it is
able to bear the economic risk of an investment in the Placing Shares, is able to sustain a
complete loss of the investment in the Placing Shares and has no need for liquidity with
respect to its investment in the Placing Shares;

- understands that the Placing Shares have not been and will not be registered under the
Securities Act or with any securities regulatory authority of any state or other jurisdiction of
the United States, and accordingly, may not be offered or sold or otherwise transferred in the
United States except pursuant to a registration statement under the Securities Act or an
exemption from the registration requirements of the Securities Act and, in connection with any
such transfer, the Company shall be provided, as a condition to transfer, with a legal opinion
of counsel, in form and by counsel reasonably satisfactory to the Company, that no such
Securities Act registration is or will be required and with appropriate certifications by the
transferee as to appropriate matters.

- it is not a Plan (which term includes (a) employee benefit plans that are subject to Section
406 of the US Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
plans, individual retirement accounts and other arrangements that are subject to Section 4975
of the US Internal Revenue Code of 1986, as amended (the "Code"), (b) plans, individual
retirement accounts and other arrangements that are subject to provisions under applicable
US federal, state, local or other laws or regulations that are substantially similar to Section
406 of the ERISA or Section 4975 of the Code ('Similar Laws") and (c) entities the underlying
assets of which are considered to include "plan assets" of such plans, accounts and
arrangements) and are not purchasing the Placing Shares on behalf of, or with the "plan
assets" of, any Plan.

- it understands and agrees that there may be material tax consequences to it of an
acquisition or disposition of any of the Placing Shares. Neither the Company nor Panmure
Gordon gives any opinion or makes any representation with respect to the tax consequences
to the Placee under United States, state, local or foreign tax law of the Placee's acquisition or
disposition of such securities. In particular, no determination has been made whether the
Company will be a "passive foreign investment company" ("PFIC") within the meaning of
Section 1291 of the United States Internal Revenue Code;
- if Placees are purchasing the Placing Shares outside the United States, each Placee (and
any person acting on such Placee's behalf) agrees, represents and warrants as follows:

- it is aware that the Placing Shares are being offered outside the United States in reliance on
Regulation S promulgated under the Securities Act;
it is, at the time of the offer and acceptance of the Placing Shares, outside the United States
for the purposes of Regulation S; and

- it did not purchase or otherwise acquire the Placing Shares based on or due to directed
selling efforts (as defined in Rule 902 under the Securities Act), including based on an
advertisement in a publication with a general circulation in the United States, nor has it seen
or been aware of any activity that, to its knowledge, constitutes directed selling efforts in the
United States.

- for Placees that are located in the United States, each such Placee (and any person acting
on such Placee's behalf) agrees, represents and warrants as follows:

- it is "qualified institutional buyer" (a "QIB"), as defined in Rule 144A under the Securities
Act, and (i) if acquiring the Placing Shares as a fiduciary or agent for one or more investor
accounts, each owner of such account is a QIB, the Placee has full investment discretion with
respect to each account, and has full power and authority to make the acknowledgements,
representations and agreements contained herein on behalf of each owner of such account;
and (ii) is acquiring the Placing Shares for its own account, or for the account of a QIB for
which it has full investment discretion, in each case for investment purposes and not with a
view to, or for offer or sale in connection with, any distribution (within the meaning of the
United States securities laws) of such Placing Shares;

- it agrees that the Company may require a certification from it in support of any transfer, in
form and substance satisfactory to the Company, and agrees that the Company, the registrar,
CREST or any transfer agent may reasonably require additional evidence or documentation
supporting compliance with applicable securities laws, and prior to any sale or transfer, the
Company may require the delivery of such certifications, notifications, agreements and
warranties and legal opinions of duly qualified counsel as it may reasonably require to confirm
that the proposed sale or other transfer complies with the foregoing restrictions;

- it acknowledges that the Company reserves the right to make inquiries of any holder of the
Placing Shares or interests therein at any time as to such person's status under US securities
laws, and to require any such person that has not satisfied the Company that such person is
holding appropriately under US securities laws to transfer such Placing Shares or interests
therein immediately to the Company;

- it is purchasing the Placing Shares for its own account or for one or more investment
accounts for which it is acting as a fiduciary or agent, in each case for investment only, and
not with a view to or for sale or other transfer in connection with any distribution of the Placing
Shares in any manner that would violate the Securities Act or otherwise cause the Company's
assets to become subject to ERISA;

- it understands and acknowledges that neither the Company nor any of its respective
affiliates, makes any representation as to the availability of any exemption under the
Securities Act for the reoffer, resale, pledge or transfer of the Placing Shares;

- it agrees that the Placing Shares are "restricted securities" for US securities law purposes
which may not be deposited into any unrestricted depositary facility established or maintained
by a deposited bank. As such, it agrees not to offer or sell the Placing Shares to any person
other than in compliance with the following restrictions which apply to all its Placing Shares
and which shall be affixed in the form of a legend to any certificates of Placing Shares:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE (OR ITS PREDECESSOR)
HAVE NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS
AMENDED (THE 'SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION IN THE UNITED STATES, AND, ACCORDINGLY, MAY NOT BE
OFFERED, SOLD, PLEDGED, HEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A)
IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR
904 OF REGULATION S UNDER THE SECURITIES ACT (AND IS NOT ACTING IN A
PREARRANGED TRANSACTION RESULTING IN THE RESALE OF THESE SECURITIES
INTO THE UNITED STATES); (B) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144 UNDER THE SECURITIES ACT; (C) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT;
OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, SUBJECT, IN THE CASES OF CLAUSES (A), (B) AND (C), TO THE
RIGHT OF THE ISSUER TO OBTAIN, IF THE ISSUER SO REQUESTS, AN OPINION, IN
FORM AND SUBSTANCE AND FROM COUNSEL SATISFACTORY TO THE ISSUER AT
THE EXPENSE OF THE HOLDER OF THIS CERTIFICATE, WHICH PROVIDES THAT
SUCH OFFER, SALE, PLEDGE, HEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

EXCEPT AS OTHERWISE DETERMINED BY THE ISSUER, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE (OR ITS PREDECESSOR) MAY NOT BE
DEMATERIALISED INTO CREST OR ANY OTHER PAPERLESS SYSTEM UNLESS THE
PARTY REQUESTING SUCH DEMATERIALISATION FIRST OBTAINS A LETTER FROM
THE TRANSFERREE STATING THAT SUCH TRANSFERREE IS NOT ACTING IN A
PREARRANGED TRANSACTION RESULTING IN THE RESALE OF THESE SECURITIES
INTO THE UNITED STATES OR MAKES SUCH OTHER REPRESENTATIONS
REQUESTED BY THE ISSUER."

The Placee agrees, on its own behalf and on behalf of any accounts for which the Placee is
acting, that if the Placee should offer, resell, pledge or otherwise transfer any Placing Shares,
it will do so only (i) in an offshore transaction meeting the requirements of Rule 903 or 904 of
Regulation S under the Securities Act (and not in a prearranged transaction resulting in the
resale of such Placing Shares into the US), (ii) in a transaction meeting the requirements of
Rule 144 under the Securities Act, (iii) in accordance with another exemption from the
registration requirements of the Securities Act, or (iv) pursuant to an effective registration
statement under the Securities Act, provided that the Placee notify the Company of such
proposed transaction and that the Placee intends to make such sale in accordance with the
terms of this paragraph, and that, such offer, resale, pledge or transfer must, and will, be
made in accordance with any applicable securities laws of any US state or other jurisdiction of
the US. The Placee understands and acknowledges that any offer, resale, pledge or transfer
made other than in compliance with the restrictions contained in this paragraph may not be
recognised by the Company;

      the Placing Shares shall only be eligible for settlement through CREST if approved by
      the Company and if requested by the Company, the purchaser provides a signed letter
      addressed to the Company, containing certain representations regarding compliance
      with United States securities laws;

      it has not purchased the Placing Shares as a result of "general solicitation" or "general
      advertising" (within the meaning of Rule 502(c) under the Securities Act), including
      advertisements, articles, research reports, notices or other communications
      published in any newspaper, magazine, on a website or in or on any similar media, or
      broadcast over radio or television, or any seminar or meeting whose attendees have
      been invited by general solicitation or general advertising; and

      it will inform each purchaser who purchases the Placing Shares from it of the transfer
      restrictions stated herein and that if in the future such purchaser of Placing Shares
      decides to offer, resell, pledge, or otherwise transfer such Placing Shares, any offer,
      resale or transfer must be made in compliance with the Securities Act.

The foregoing representations, warranties and confirmations are given for the benefit of the
Company and Panmure Gordon.
In addition, Placees should note that they will be liable for any stamp duty and all other stamp,
issue, securities, transfer, registration, documentary or other duties or taxes (including any
interest, fines or penalties relating thereto) payable outside the United Kingdom by them or
any other person on the subscription by them of any Placing Shares or the agreement by
them to subscribe for any Placing Shares.

Each Placee and any person acting on behalf of each Placee acknowledges and agrees that
either Panmure Gordon or any of its affiliates may, at their absolute discretion, agree to
become a Placee in respect of some or all of the Placing Shares.

All times and dates in this Announcement may be subject to amendment. Panmure Gordon
shall notify the Placees and any person acting on behalf of the Placees of any changes.

The past performance of the Company and its securities is not, and should not be relied on
as, a guide to the future performance of the Company and its securities. Persons needing
advice should consult an independent financial adviser.


                                          Definitions

“Admission”                        admission of the First Tranche Placing Shares or the
                                   Second Tranche Placing Shares, as the case may be, to
                                   trading on AIM and such admission becoming effective in
                                   accordance with Rule 6 of the AIM Rules for Companies;
"AIM"                              the AIM Market of the London Stock Exchange plc;
"AIM Rules for Companies"          the AIM Rules for Companies and including, where
                                   applicable, any guidance notes published by the London
                                   Stock Exchange from time to time;
"AltX"                             the Alternative Exchange of the JSE Limited;
“Announcement”                     this announcement in its entirety;
"Articles"                         the articles of association of the Company in force on the
                                   date hereof;
“Board” or “Directors”             the directors of the Company, or any duly authorised
                                   committee thereof;
“Circular”                         the Shareholder circular to be published in connection with
                                   the General Meeting;
“Company”                          DiamondCorp plc;
"CREST"                            the computerised settlement system (as defined in the
                                   CREST Regulations) operated by Euroclear which
                                   facilitates the transfer of title to shares in uncertificated
                                   form;
"CREST Regulations"                the Uncertificated Securities Regulations 2001 (SI
                                   2001/3755) including any enactment or subordinate
                                   legislation which amends or supersedes those regulations
                                   and any applicable rules made under those regulations or
                                   any such enactment or subordinate legislation for the time
                                   being in force;
"Euroclear"                        Euroclear UK & Ireland Limited, a company incorporated in
                                   England & Wales with registered number 02878738, being
                                   the operator of CREST;
"First Tranche Placing"            the placing of the First Tranche Placing Shares at the
                                   Placing Price pursuant to the Placing Agreement;
“First Tranche Placing             up to 32,337,000 new Ordinary Shares to be placed firm in
Shares”                            accordance with the terms of the Placing, conditional only
                                   on Admission;
"Form of Proxy"                    the form of proxy for use at the General Meeting;
"FCA"                              the Financial Conduct Authority in its capacity as the
                                   competent authority for the purposes of Part VI of FSMA;
"FSMA"                             the Financial Services and Markets Act 2000 (as
                            amended);
“General Meeting” or “GM”   the general meeting of the Company to be held on or
                            around 23 December 2015;
“Group”                     the Company together with its subsidiaries from time to
                            time;
“IDC”                       the Industrial Development Corporation;
"JSE"                       the JSE Limited (registration number 2005/022939/06), a
                            public company duly registered and incorporated under the
                            company laws of South Africa, licensed as an exchange
                            under the Financial Markets Act 2012;
“LDM”                       Lace Diamond Mine (Pty) Limited;
“Loan”                      the loan of ZAR220 million from IDC;
"London Stock Exchange"     London Stock Exchange plc;
“Ordinary Shares”           the ordinary shares of 0.1 pence each in the capital of the
                            Company;
“Panmure Gordon”            Panmure Gordon (UK) Limited;
“Placing”                   the placing of the Placing Shares at the Placing Price
                            pursuant to the terms of the Placing Agreement;
“Placing Agreement”         the conditional agreement to be dated 2 December 2015
                            between the Company and Panmure Gordon relating to the
                            Placing, further details of which are set out in this
                            Announcement;
"Placing Price"             the price at which the Placing Shares are to be placed as
                            will be agreed between the Company and Panmure
                            Gordon;
“Placing Shares”            the First Tranche Placing Shares and the Second Tranche
                            Placing Shares to be issued by the Company and
                            subscribed for pursuant to the Placing;
"Regulation S"              Regulation S as promulgated under the Securities Act;
“Resolutions”               the resolutions required to allot and issue the Second
                            Tranche Placing Shares to be set out in the notice of the
                            General Meeting contained in the Circular;
“Second Tranche Placing     the new Ordinary Shares to be issued as the second
Shares”                     tranche of the Placing, conditional inter alia on the passing
                            of the Resolutions at the General Meeting;
"Securities Act"            the United States Securities Act of 1933, as amended;
“Shareholders”              holders of Ordinary Shares, from time to time.
"UK" or "United Kingdom"    the United Kingdom of Great Britain and Northern Ireland;
"uncertificated" or "in     recorded on the relevant register of the share or security
uncertificated form"        concerned as being held in uncertificated form in CREST
                            and title to which, by virtue of the CREST Regulations, may
                            be transferred by means of CREST;
"US"                        the United States of America, its territories and
                            possessions, any state of the United States of America and
                            the district of Columbia and all other areas subject to its
                            jurisdiction;
"US Person"                 bears the meaning ascribed to such term by Regulation S;
"US$"                       the lawful currency of the US from time to time;
“ZAR”                       the lawful currency of the Republic of South Africa from
                            time to time; and
"£"                         pounds sterling, the lawful currency of the UK from time to
                            time.

Date: 03/12/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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