Funding 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") FUNDING UPDATE Further to the announcements of 12 and 13 October 2016, DiamondCorp announces that the third party with whom the Company has been in advanced discussions for the provision of a convertible debt facility has withdrawn from such discussions due to the adverse movement in the Company’s share price. However, the Company is in accelerated discussions with certain of the Company’s shareholders and other third parties with a view to securing the necessary additional funding of c.£500,000 to satisfy immediate financial commitments. In the absence of a successful resolution to these discussions, it is likely that the Group will be unable to continue trading as a going concern in the very near term. No assurances can be given at this stage that the provision of the required immediate term funding will be entered into either in time or at all. Additionally, in the event that the Company secures the required immediate term funding, there can be no certainty that the Company will subsequently secure the necessary funding solutions to meet its longer term financial requirements as previously announced. 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"). 14 October 2016 United Kingdom Date: 14/10/2016 08:00:00 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.