DCP.L Regulatory News (DCP)

16 June 2011

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 to raise £3.48 million

HIGHLIGHTS

·; The Company has placed 26,794,397 new ordinary shares of 3 pence each in the Company at a price of 13 pence per share to raise approximately £3.48 million (before expenses) (the "Placing");

·; The proceeds of the Placing are to be applied to the Company's kimberlite exploration activities in Botswana and working capital for activities in South Africa.

Introduction

The Board of DiamondCorp, the southern African diamond development and exploration company, is pleased to announce that it has placed 26,794,397 new ordinary shares of 3 pence each in the Company at a price of 13 pence per share to raise, in aggregate, £3.48 million gross proceeds for the Company (approximately £3.3 million net of expenses). The Placing Price represents a discount of 0.95 per cent. to the closing mid-market price of 13.125p on 15 June 2011.

Use of Proceeds

The proceeds of the Placing are expected to be applied as follows:

Details of the Placing

The Company currently has authority to issue a total of 19,693,882 ordinary shares of 3p each in the Company. Therefore the Placing will comprise:

(i) 19,693,882 ordinary shares of 3p each in the Company (the "Placing Shares"); and

(ii) 7,100,515 ordinary shares of 3p each in the Company which will be placed subject to shareholder approval at the next annual general meeting of the Company (the "Conditional Placing Shares"). Notice of the annual general meting will be sent to shareholders shortly and is expected to be held on or around 25 July 2011.

Placing Shares

Application has been made to the London Stock Exchange and the JSE for the Placing Shares to be admitted to trading on AIM and AltX. It is expected that Admission will become effective and that trading in the Placing Shares will commence on AIM and AltX at 8.00 am UK time on 22 June 2011. The Placing Shares will rank pari passu with the existing ordinary shares.

Following the issue of the Placing Shares there will be a total of 203,567,533 ordinary shares of 3 pence each in the capital of the Company.

Conditional Placing Shares

The issue of the Conditional Placing Shares is subject to shareholder approval at the next annual general meeting of the Company. Should the relevant resolutions at the AGM be passed by shareholders, application will be made to the London Stock Exchange and the JSE for the Conditional Placing Shares to be admitted to trading on AIM and AltX. It is expected that Admission will become effective and that trading in the Conditional Placing Shares will commence on AIM and AltX at 8.00 am UK time on or around 26 July 2011. The Conditional Placing Shares will rank pari passu with the existing ordinary shares.

Following the issue of the Conditional Placing Shares there will be a total of 210,668,048 ordinary shares of 3 pence each in the capital of the Company.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +44 20 3151 0970

Fairfax I.S. PLC

AIM Nomad and Broker

Ewan Leggat/Laura Littley

Tel: +44 207 598 5368

Ocean Equities Limited

Guy Wilkes

Tel: +44 207 786 4370

PSG Capital (Pty) Limited

John-Paul Dicks

Tel: +27 21 887 9602

Russell & Associates

Charmane Russell/Marion Brower

Tel: +27 11 880 3924

Blythe Weigh Communications

Ana Ribero

Tel +44 020 7138 3206