DCP.L Regulatory News (DCP)

DiamondCorp plcJSE share code: DMCAIM share code: DCPISIN: GB00B183ZC46(Incorporated in England and Wales)(Registration number 05400982)(SA company registration number 2007/031444/10)('DiamondCorp' or 'the Company')

OPERATIONAL UPDATE

DiamondCorp plc, the African diamond mine development and exploration company, is pleased to provide an update of kimberlite bulk testing at the Lace mine in South Africa and drilling at Jwaneng South in Botswana.

LACE MINE, SOUTH AFRICA

- Mining continues in a northeast direction across the pipe and has now entered less diluted kimberlite, with the latest sub-sample of 1,553 tonnes returning grades of up to 22 carats per hundred tonnes ("cpht").

- To date, a total of 11,091 tonnes of volcaniclastic kimberlite has been sampled from between the 25 and 26 levels on the southern and western sides of the main Lace pipe. Much of the kimberlite in these zones is heavily diluted with up to 75% country rock (waste) inclusions.

- From the total kimberlite processed to date, 1,235 carats of diamonds have been extracted, with the biggest stone being a 16.08 carat non-gem diamond.

- 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.

- Approximately 40% of the diamonds are larger than one-third of a carat, and more than 80% of the diamonds are gem quality.

- The results of the bulk test will determine both the carat value of the Lace diamonds and the grade of kimberlite zones to be mined. These results will allow finalisation of the mine plan for the first mining block between the 26 level and the 29 level.

- The average recovered grade of 'diluted contact kimberlite material' processed to date is 11.90 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.

- Sampling started in what historically was described as the "stony ground" side of the pipe, where waste inclusions dilute the grade. Mining is moving progressively northeast across the pipe into the zone where historically the best recoveries (higher grades) were reported.

- The pipe is being sampled in this manner so that development drives put in place for sampling can be used for full-scale mining in a sequence which allows the expected highest grade kimberlite in the northeast of the pipe to be mined first, and then progressively mine in a retreat manner to the lower grade southwest side.

- The tonnage processed to date represents approximately 37% of the total tonnage from the planned bulk test of 30,000 tonnes and less than 33% of the total area of the pipe to be sampled.

- The Lace processing plant continues to operate efficiently and no damage to any diamonds recovered to date has been identified.

- The sampling rate continues to be slower than originally planned to ensure mining takes place in as safe a manner as possible.

Commenting on the activities, DiamondCorp CEO, Paul Loudon said: 'We continue to be pleased with the results from the sampling, and look forward to reporting the results from the higher grade zones being sampled in the coming weeks.'

JWANENG SOUTH PROJECT, BOTSWANA

DiamondCorp is pleased to announce an update on exploration activities in Prospecting Licence PL/71 covering the Jwaneng South Joint Venture Area in Botswana.

Drilling contracts have been let for both additional core drilling and large diameter drilling on kimberlites J-01 and J-05. Site establishment and mobilisation of the drilling rigs is under way and drilling is expected to commence within the next week.

The objective of the programme is to obtain a better understanding of the geometry and geology and return a preliminary diamond grade of both kimberlites by the end of the year.

The J-01 kimberlite has an approximate geophysically defined area of 10ha and J-05 is approximately 1.5ha in size. The project area lies between 5km and 10km south of Debswana's Jwaneng mine, the richest diamond mine in the world measured by value.

DiamondCorp is earning a 77.5 per cent interest in PL/71 from Botswana company Geoperspectives (Pty) Limited by funding exploration activities.

London

7 September 2011

The Competent Person responsible for the technical information contained in this announcement is Mr Paul Zweistra (Pr. Sci. Nat., Registration number 400016/93) a full-time employee of VP3 Geoservices (Pty) Ltd. VP3 and Mr Zweistra have revieved the information contained herein and approved the contents of this press release.

AIM Nomad: Fairfax I.S. plc

AIM Brokers: Fairfax I.S. plc, Ocean Equities LtdJSE Sponsor: PSG Capital (Pty) Limited