DCP.L Regulatory News (DCP)

DiamondCorp plc

JSE share code: DMC

AIM share code: DCP

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

('DiamondCorp' or 'the Company' or 'the Group')

Interim Results (unaudited) for the six month period ended 30 June 2011

DiamondCorp plc, a southern Africa focussed diamond mine development and exploration company, releases its interim results for the six month period ended 30 June 2011. The results are unaudited.

HIGHLIGHTS

- After a year's development activity, the decline at the Lace mine near Kroonstad in the Free State province of South Africa successfully accessed kimberlite at the 26 level for bulk testing (260m below surface).

- Mining to recover the bulk sample continues in a northeast direction across the pipe and remains in kimberlite with a lower amount of surrounding rock incorporated compared to the kimberlite initially encountered, with the latest two sub-samples of 837 tonnes and 630 tonnes returning recovered grades of 22 carats and 30 carats per hundred tonnes ("cpht") respectively.

- Ground conditions in this higher grade kimberlite are significantly better than the lower grade 'stony ground' on the western side of the pipe on this level, allowing a better mining advance towards completion of the bulk sample.

- To date, a total of 14,211 tonnes of kimberlite have been processed for the recovery of 1,837 carats of diamonds.

- Management are encouraged that the diamond quality remains consistent with the initial parcel which was valued last month by the SA Diamond Exchange at an average of $205 per carat.

 - Aproximately 40% of the diamonds are larger than one-third of a carat, and more than 80% of the diamonds are gem quality. The largest gem diamond recently recovered is 20.54 carats. The Company has also just recovered a 1.01 carat pink diamond.

- The average recovered grade of all kimberlite processed to date is 13 cpht. This should not be considered indicative of either the whole pipe at this level or the grade of the kimberlite which will be incorporated into the mining plan.

- In Botswana, core drilling has commenced on kimberlite J-01, a 10ha diamondiferous kimberlite, approximately 10km southeast of De Beers Jwaneng mine.A large diameter drilling rig is currently being mobilised on J-05, 1.5ha diamondiferous kimberlite, approximately 5km southeast of the Jwaneng mine. The current drilling programme aims to better define the contact margins of J-01 and provide an indicative diamond grade of both kimberlite pipes by the end of the year.

- £3.48 million of new equity has been raised during 2011 to the date of this announcement, allowing the bulk test at the Lace mine to continue and the next phase of exploration in Botswana to commence.

- Net loss for the six months ended 30 June 2011 was £1,168,179 (30 June 2010 £1,609,114).

- The loss was determined after charging administrative overhead costs of £663,568 (2010 £653,983) and interest charges of £99,861 (2010 £201,537). Non-cash charges for the period, including depreciation and amortisation, were £491,194 (2010 £611,461) and a foreign exchange gain on the loan payable of £109,076 (2010 £168,960 loss).

Commenting on the results, DiamondCorp CEO Paul Loudon said: "The period under review saw us make significant steps towards our goal of being a long-term diamond producer. Having successfully re-accessed the Lace mine below any of the old workings, we are now determining the grade and carat value at the top of the first mining block and expect to have this information next month. At the same time, we have commenced our mini bulk testing programme on our two diamondiferous kimberlites in Botswana and expect to have these results before the end of 2011."

22 September 2011

London

The Competent Person responsible for the technical information with respect to Botswana contained in this announcement is Mr Paul Zweistra (Pr. Sci. Nat., Registration number 400016/93) a full-time employee of VP3 Geoservices (Pty) Limited. VP3 and Mr Zweistra have given their permission for their work to be quoted in this announcement.

CONSOLIDATED INCOME STATEMENT

Six months ended 30 June 2011

Six months Six months

ended ended

30 June 30 June

2011 2010

£ £

Administrative expenses (663,568) (653,983)

Depreciation and amortisation (491,194) (611,461)

expense

OPERATING LOSS (1,154,762) (1,265,444)

Investment revenues - interest 5,120 26,827

on bank deposits

Interest expense (99,861) (201,537)

Foreign exchange gain / (loss) 109,076 (168,960)

on loan payable

LOSS BEFORE TAX (1,140,427) (1,609,114)

Tax (27,752) -

LOSS FOR THE FINANCIAL PERIOD (1,168,179) (1,609,114)

ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE PARENT (1,046,064) (1,467,808)

NON CONTROLLING INTEREST (122,115) (141,306)

(1,168,179) (1,609,114)

BASIC & DILUTED LOSS PER SHARE £0.006 £0.025

HEADLINE LOSS PER SHARE £0.006 £0.026

All of the activities of the Group are classed as continuing.

STATEMENT OF CHANGES IN EQUITY

Six months Six months

ended ended

30 June 30 June

2011 2010

£ £

Opening balance 18,006,470 10,442,525

Loss for the financial period (1,168,179) (1,609,114)

New equity share capital 590,817 3,040,426

subscribed

Premium on new equity share 1,823,378 3,516,236

capital subscribed

Translation reserve (733,054) 285,489

Value attributed to warrants granted - (49,160)

Closing balance 18,519,431 15,626,402

CONSOLIDATED BALANCE SHEET

30 June 31 December

2011 2010

£ £

NON-CURRENT ASSETS

Goodwill 4,606,026 4,606,026

Other intangible assets 7,001,104 4,947,778

Property, plant and equipment 5,671,543 6,260,302

17,278,673 15,814,106

CURRENT ASSETS

Inventories 340,666 355,349

Other receivables 431,190 398,266

Cash and cash equivalents 2,382,583 4,293,185

3,154,439 5,046,800

TOTAL ASSETS 20,433,112 20,860,906

CURRENT LIABILITIES

Obligations under finance leases - (25,718)

Other payables (741,990) (627,028)

Loan payable (1,154,951) (2,184,950)

Provisions (16,740) (16,740)

(1,913,681) (2,854,436)

NET ASSETS 18,519,431 18,006,470

EQUITY

Share capital 6,107,026 5,516,209

Share premium 25,026,394 23,203,016

Warrant reserve 505,876 505,876

Share option reserve 402,583 402,583

Translation reserve 2,180,942 2,913,996

Retained losses (15,703,390) (14,535,211)

EQUITY ATTRIBUTABLE TO EQUITY 19,052,983 18,417,907

HOLDERS OF THE PARENT

NON CONTROLLING INTEREST (533,552) (411,437)

TOTAL EQUITY 18,519,431 18,006,470

CONSOLIDATED CASH FLOW STATEMENT

Six months Six months

ended ended

30 June 30 June

2011 2010

£ £

Net loss for the period (1,173,299) (1,635,941)

Depreciation and amortisation 491,194 611,461

Foreign exchange (gain) / loss (109,076) 168,960

on long term loan

Gain on disposal of property, (2,071) (43,555)

plant and equipment

Other non-cash charges - 51,056

(Increase) / Decrease in receivables (32,924) 47,441

Decrease / (Increase) in inventories 14,683 (9,516)

Increase / (Decrease) in other payables 89,244 (329,124)

NET CASH USED IN OPERATING (722,249) (1,139,218)

ACTIVITIES

INVESTING ACTIVITIES

Purchase of intangible assets (2,330,615) (368,837)

Disposal of property, plant and 86,492 152,358

equipment

Purchase of property, plant and (340,435) (24,218)

equipment

Interest received 5,120 26,827

NET CASH USED IN INVESTING (2,579,438) (213,870)

ACTIVITIES

FINANCING ACTIVITIES

Proceeds on issue of ordinary 2,414,195 6,542,847

shares

Repayment of capital on long (1,029,999) (423,333)

term loan

Interest payment on long term (99,861) (201,537)

loan

NET CASH FROM FINANCING ACTIVITIES 1,284,335 5,917,977

NET (DECREASE) / INCREASE IN CASH (2,017,352) 4,564,889

AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT 4,293,185 288,188

BEGINNING OF PERIOD

Effect of foreign exchange 106,750 (86,990)

rate changes

CASH AND CASH EQUIVALENTS AT 2,382,583 4,766,087

END OF PERIOD

NOTES TO THE FINANCIAL STATEMENTS

Six months ended 30 June 2011

1. ACCOUNTING POLICIES

These interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in the condensed interim financial information as applied in the Group's latest annual audited financial statements. The financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to interim periods.

These interim financial statements were approved by the Board on 21 September 2011 and do not constitute statutory financial statements within the meaning of Section 435 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2010 has been delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

These interim financial statements have been prepared using the accounting policies set out in the Group's 2010 statutory accounts.

Results for the six-month period ended 30 June 2011 have not been audited.

The comparative information presented in the income statement has been prepared for the period 1 January 1010 - 30 June 2010. This has been performed in order to comply with the AIM rules and is presented solely for this purpose.

2. LOSS PER SHARE

IAS required presentation of diluted earnings per share when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. For a loss-making company with outstanding share options, net loss per share would only be decreased by the exercise of out-of-money options. Since it seems inappropriate to assume that option holders would exercise out-of-money options, no adjustment has been made to basic loss per share for out-of-money share options.

The calculation of basic and diluted loss per ordinary share is based on the loss attributable to equity holders of the parent of £1,046,064 for the six months ended 30 June 2011 (30 June 2010: £1,467,808) and on 184,852,905 ordinary shares (30 June 2010: 57,955,303) being the weighted-average number of ordinary shares in issue.

3. LOAN PAYABLE

The loan payable at 30 June 2011 of £1,154,951 (30 December 2010 - £2,184,950) is with Africa Opportunity Fund L.P. ("AOF"). The loan is secured by the Company's equity interest in Lace Diamond Mines (Pty) Ltd and by the assets of the Company's subsidiaries. At 30 June 2011, the amount of capital and interest due for the final payment on 16 October 2011 is US$1.961M.

4. SHARE CAPITAL

30 June 31 December

2011 2010

Called up, allotted and fully paid

No. £ No. £

Ordinary shares

of 3 pence each 203,567,533 6,107,026 183,873,651 5,516,209

In June 2011, 19,693,882 ordinary shares were issued at 13 pence per share for gross proceeds of £2.56 million (see note 5).

5. GOING CONCERN

In determining the appropriate basis of presentation of the interim financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future, this being a period of not less than 12 months from the date of the approval of the financial statements. During the next 12 months the Group will be in a mine-development phase and forecasts indicate that the Group will have insufficient financial resources to accomplish all its development goals and meet all its financial obligations over the next 12 months. The raising of additional finance is deemed to be a material uncertainty which casts significant doubt over the ability of the Group to continue as a going concern.

If its financial resources were insufficient, then the Group would be required to (i) supplement its current cash resources by accessing the equity markets in 2011-2012 or by sale of assets or, alternatively, (ii) to modify its development plan to preserve cash.

After making enquiries, given the successful £3.48 million fundraising in 2011 which was well-supported by the existing shareholder base, assuming that the Group adheres to its development plan, the Directors have a reasonable expectation that additional funds will be available within the next 12 months. Accordingly the Directors continue to adopt the going concern basis of presentation of the financial statements.

The financial statements therefore do not include the adjustments that would result if the Group were not able to continue as a going concern.

6. POST BALANCE SHEET EVENTS

In June 2011, the Company announced that it had placed 26,794,397 ordinary shares at 13 pence per share to raise approximately £3.48 million before expenses. This placing comprised of:

* 19,693,882 ordinary shares issued in June 2011 (see note 3); and

* a further 7,100,515 ordinary shares at 13 pence per share which were placed conditionally, subject to obtaining shareholder approval. At the annual general meeting of the Company, held on 25 July 2011, the requisite shareholder approval was obtained and these shares were admitted to trading on AIM and AltX on 26 July 2011.

AIM Nomad: Fairfax I.S. plc

AIM Brokers: Ocean Equities LimitedJSE Sponsor: PSG Capital (Pty) LimitedDiamondCorp plc, Paul Loudon +44 20 3151 0970Ewan Leggat, Fairfax I.S. plc +44 207 598 5368Ocean Equities Limited, Guy Wilkes +44 207 4370

John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602Charmane Russell/Marion Brower, Russell & Associates +27 11 880 3924