Lace diamond mine operational and financial update DiamondCorp plc AIM share code: DCP & JSE share code: DMC ISIN: GB00B183ZC46 (Incorporated in England and Wales) (Registration number 05400982) (SA company registration number 2007/031444/10) ("DiamondCorp", “the Group” or "the Company") LACE DIAMOND MINE OPERATIONAL AND FINANCIAL UPDATE DiamondCorp, the Southern African diamond mining, development and exploration company, provides the following update on the Lace diamond mine in the Free State province of South Africa. The Company’s 74%-owned subsidiary, Lace Diamond Mines (Pty) Limited has been issued with a Section 54 shut down notice on underground operations by the South African Department of Mineral Resources (“DMR”) relating to a fire incident on a dump truck which was extinguished without injury just inside the portal to the decline. The instructions issued by the DMR include a request for an "external ventilation audit team to inspect the mine for smoke and other gases". Mine management is struggling to find logic in the instruction and is considering its options including legal means of redress. The Company expects that underground mining operations will remain suspended for at least one week. As announced on 12 October 2016, the Company, in addition to its longer term financial requirements, requires additional funding in the very near term of c.£500,000 for immediate financial commitments in order to continue trading as a going concern. The Company remains in discussion with a third party for the provision of a convertible debt facility to satisfy this requirement. However, no assurances can be given at this stage that the provision of such finance will be entered into either in time or at all. In the absence of such a facility, it is likely that the Group will be unable to continue trading as a going concern. The Company will update shareholders accordingly. Contact details: DiamondCorp plc Paul Loudon, Chief Executive Tel: +27 56 216 1300 Euan Worthington, Chairman Tel: +44 7753 862 097 UK Broker & Nomad Panmure Gordon (UK) Limited Adam James/Atholl Tweedie Tel: +44 20 7886 2500 JSE Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Megan Young Tel: +27 11 445 8068 SA Corporate Advisor Qinisele Resources Proprietary Limited Dennis Tucker/Andrew Brady Tel: +27 11 883 6358 The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR"). 13 October 2016 United Kingdom Date: 13/10/2016 11:21:00 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.