DCP.L Regulatory News (DCP)

NOT FOR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANY OTHER JURISDICTION IF TO DO SO WOULD CONSTITUTE A VIOLATION OF THE LAWS OF SUCH JURISDICTION

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")

Placing of new shares

The Board of DiamondCorp, the South African diamond mining and exploration company, is pleased to announce that it has conditionally placed 580,322 new ordinary shares ("Placing Shares") at 8.5 pence per share (the "Placing Price") to raise, in aggregate, £49,327.37 gross proceeds for the Company. The Placing Price represents a discount of 4.3 per cent. to the closing mid-market price of 8.88 pence on 8 December 2010, being the last practicable date prior to the posting of this announcement. The net proceeds of the placing will be used as working capital by the Company.

Taking account of the placing announced today and the placing announced on 7 December 2010 (the placing of 34,713,796 New Ordinary Shares at 8.5 pence per share), the Company will have raised a total of £3 million (before expenses), assuming that all resolutions are passed at the Company's general meeting to be held on 22 December 2010. The total number of issued shares following both placings will be 183,873,651.

The new ordinary shares will, when issued and fully paid, rank equally in all respects with the existing ordinary shares, including the right to receive any dividend or other distribution declared, made or paid after the date of their unconditional allotment.

It is expected that the AIM Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. (UK time) on 23 December 2010, and the AltX Admission will also become effective and that dealings in Placing Shares will commence at 10:00 a.m. (UK time) on 23 December 2010.  

For further information, please contact:

DiamondCorp plc

Paul Loudon, Chief Executive

+44 20 7256 2651

Cenkos Securities plc

Nominated Advisor and Joint Broker

Ivonne Cantu / Liz Bowman / Will Dymott

+44 20 7397 8900

Fairfax I.S. PLC

Joint Broker

Ewan Leggat

+44 207 598 5368

PSG Capital (Pty) Limited

John-Paul Dicks

+27 21 887 9602