BRD.L Regulatory News (BRD)

BlueRock Diamonds plc

("BlueRock" or "the Company")

4 October 2016

Notice of General Meeting

BlueRock announces that a General Meeting of the Company will be held at the offices of SP Angel Corporate Finance LLP, Prince Frederick House, 35-39 Maddox Street, London W1S 2PP at 10.00am on 20 October 2016. The Notice of General Meeting and Forms of Proxy have today been dispatched to shareholders and will be available shortly on the Company's website.

The purpose of the General Meeting is to consider and vote on the following resolutions:

Ordinary resolution:

1. In addition to all existing authorities granted to the directors of the Company (the "Directors") in respect of the allotment of shares in the Company or the granting of rights to subscribe for or to convert any security into shares in the Company ("Rights") but without prejudice to the proper exercise of such authorities, the Directors be and are generally and unconditionally authorised in accordance with section 551 of the Company Act 2006 (the "Act") to exercise all the powers of the Company to allot shares in the Company or grant Rights up to a maximum nominal value of £250,000.

Such authority shall expire at the end of the next annual general meeting of the Company save that the Company may, before such expiry, make an offer or agreement which would, or might, require shares in the Company to be allotted or Rights to be granted after such expiry and the Directors may allot shares in the Company or grant Rights in pursuance of such an offer or agreement as if the authority conferred by this resolution had not expired.

Special resolution:

2. In addition to all existing authorities granted to the Directors, the Directors be empowered, in accordance with section 570 of the Act, to allot equity securities (as defined in section 560 of the Act) for cash pursuant to the authority conferred by resolution 1 as if section 561(1) of the Act did not apply to such allotment but without prejudice to the prior exercise of such authorities, provided that this power shall be limited to the allotment of equity securities up to an aggregate nominal amount of £250,000 and shall expire at the end of the next annual general meeting of the Company, save that the Company may, before such expiry, make an offer or agreement which would, or might, require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or agreement as if the authority conferred by this resolution had not expired.

Background to proposals

The Company is pleased to say that the work that the new management team has undertaken in the last few months has prepared the ground work for the next stage of BlueRock's development.

The new team has already put into place a number of measures as part of plans to enable production to be expanded over the next few months with a target of reaching production levels of in excess of 30,000 tonnes a month at a cost per tonne significantly less than hitherto. The expected reduction in costs of production have significantly reduced the anticipated break-even point so that at 30,000 tonnes per month, the Board anticipates that it will be profitable at, for example, the average grade that was achieved last year of 3.24 cpht from the higher levels of the K2 pipe. At 4.6 cpht, the estimated grade for the whole of the K2 pipe as set out in the Competent Person's Report produced at the time of the IPO on AIM in 2013, the anticipated breakeven point is less than 15,000 tonnes per month.

Johan Milho has only been with the Company for a few months but has had a noticeable impact upon production plans and his in depth and wide ranging experience in diamond mining is proving invaluable. To complement Johan, recognised industry experts have also been consulted to help develop and review future plans.

Now that the plans have been finalised, financing is required and in order to do that, the Company is seeking to raise funds through a placing (the "Placing") of ordinary shares of one penny each (each an "Ordinary Share").

The Company is thus seeking to increase the Directors' authority to issue Ordinary Shares and to disapply pre-emption rights on such an issue by a further 25.0 million Ordinary Shares from the existing authority of 4.1 million Ordinary Shares. This will enable the Directors to allot Ordinary Shares for the Placing and to provide a certain amount of headroom to provide some flexibility until the Company's next Annual General Meeting.

Further announcements will be made in due course as appropriate.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About BlueRock Diamonds plc (AIM:BRD)

BlueRock is a diamond mining company with activities in the Kimberley region of South Africa. BlueRock own a diamond processing plant and the mining right over the Kareevlei Tenements in South Africa.