DCP.L Regulatory News (DCP)

7 January 2013

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", "the Group" or "the Company")

Tiffany Loan and Diamond Offtake Agreement Signed

DiamondCorp, the Southern African diamond development and exploration company, is pleased to announce that it has signed binding legal agreements with Laurelton Diamonds, Inc., a wholly-owned subsidiary of Tiffany & Co. (NYSE:TIF) for a term loan of US$6,000,000 ("the Loan") in exchange for an Offtake Agreement for diamond production from the Lace mine in the Free State province of South Africa.

The terms of the Loan are unchanged from those announced on 16 November 2012. The finalisation of the Loan allows the proceeds of the convertible bond issue (as announced on 17 December 2012) to be released from escrow and completes the funding required for the 47 level block cave development at Lace.

The Loan will be drawn down by DiamondCorp Holdings Limited, a wholly-owned subsidiary of the Company, in two equal tranches on 10 January 2013 ("First Funding Date") and 10 April 2013 ("Second Funding Date"). The Loan will bear annual interest at 9% and must be repaid in full by the 8th anniversary of the Second Funding Date. There will be no payments of interest or principal for the first three years of the Loan, with interest accumulating during this period and added to the principal amount to be amortised and repaid. The Loan can be repaid early in part or in full without penalty.

The Offtake Agreement will take effect from the First Funding Date until the end of the life of the mine. Subject to any purchases by the South African State Diamond Trader, the Offtake Agreement will give Laurelton Diamonds, Inc. the right to purchase, on commercial terms related to fair market value, production from the Lace Mine which meets the quality and colour standards required to yield Tiffany quality polished diamonds. Special stones and those diamonds which do not meet the Tiffany standard will be excluded from the Offtake Agreement.

DiamondCorp's CEO, Paul Loudon said: "Signing of binding agreements with Tiffany finalises the Lace funding package and allows underground development to commence this month and tailings retreatment and diamond production to recommence by March.

We are very excited to have secured such a prestigious funding partner as Tiffany and our highly experienced and committed mine development team are motivated and ready to start accessing the 13 million carats of diamonds available for recovery at Lace."

Contact details:

DiamondCorp plc

Euan Worthington, Chairman

Tel: +44 1962 760 266

Paul Loudon, Chief Executive

Tel: +44 20 3151 0970

SP Angel Corporate Finance LLP

AIM Nomad and Broker

Ewan Leggat/Laura Littley

Tel: +44 20 3463 2260

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