Interim Results

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 2015

DiamondCorp plc, the Southern Africa focussed diamond mine development and exploration company, releases its unaudited interim results for the six month period ended 30 June 2015.

HIGHLIGHTS

· After adjustments for a weaker Rand exchange rate, the pre-tax loss for the period was £3.159 million compared with £2.748 million in the same period in 2014.

· Continued close attention to cost control saw administrative expenditure for the period reduced to £0.671 million (£0.869 million in 2014).

· Total assets at 30 June were £35.100 million (£32.413 million in 2014) and liabilities were £28.242 million (£25.415 million in 2014).

· Cash at 30 June was £1.943 million. After the period end, a further £2.089 million was raised from a heavily oversubscribed Open Offer.

· Processing of kimberlite from development continues to return encouraging results in terms of diamond size frequency and quality.

· As has been reported, for safety reasons, underground tunnel development at the Lace mine is proceeding slower than planned in fractured ground close to old workings. Some zones, particularly on the eastern side of the pipe have been found to contain kimberlite of a quite friable nature. This has reduced the rate of advance and as a result of DiamondCorp's insistence on installing additional support, particularly at tunnel cross cuts in the kimberlite, will continue to impact on the development timetable. These ground conditions will be a positive for fragmentation and caving when mining commences.

· Additional anti-rollback idlers for the underground conveyor belt system to meet new Department of Mineral Resources' requirements have started to arrive on site and installation has commenced. The majority of the installation is expected to be completed during September ahead of the ramp up in commercial production from the Upper K4 mining block during Q4 2015.

· The Company's first diamond sale is now scheduled for October, when tunnel and initial slot drive tonnage will have provided a sufficiently representative parcel of kimberlite diamonds.

· The result of initial diamond sales along with controlled bulk test results from the kimberlite tunnel development will provide the required information for release of the Company's upgraded resource statement.

· Detailed studies progressed on options for introducing waste sorting systems in the processing plant to optimise mining of the Lace kimberlites in the longer-term with initial encouraging results.

1 September 2015

STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

NOTES TO THE FINANCIAL STATEMENTS

Six months ended 30 June 2014

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 28 August 2015 and do not constitute statutory financial statements within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 31 December 2014 have been extracted from the statutory financial statements of DiamondCorp plc.

A copy of the statutory accounts for the year ended 31 December 2014 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 2014 statutory accounts.

Results for the six-month periods ended 30 June 2015 and 30 June 2014 have not been audited.

The comparative information presented in the income statement has been prepared for the period 1 January 2014 - 30 June 2014. This has been performed in order to comply with the AIM rules and is presented solely for this purpose.

2. LOSS PER SHARE

IAS 33 "Earnings per share" requires 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 £3,098,379 for the six months ended 30 June 2015 (30 June 2014: £2,676,238) and on 321,462,540 ordinary shares (30 June 2014: 294,360,041) being the weighted-average number of ordinary shares in issue.

The Group presents an alternative measure of loss per share after excluding all capital gains and losses from the loss attributable to ordinary shareholders ("Headline earnings / (loss)"). Due to there being no adjustments headline loss per share and basic loss per share is the same.

3. SHARE CAPITAL

DiamondCorp plc does not have an authorised share capital, in line with the provisions of the UK Companies Act 2006. The Directors' authority to issue and allot shares in the company is set each year by Company's shareholders at the Annual General Meeting. The level of disapplication in respect of pre-emption authority is determined by the Company's Nominated Adviser and is based on UK corporate governance guidelines for AIM companies.

In April 2014, 41,526,000 ordinary shares of 0.5 pence each were issued to current and new shareholders of the Company, the cost associated with issuance of these shares has been charged to the share premium account.

In May 2015, 5,000,000 ordinary shares of 0.1 pence were issued to a warrant holder to exercise warrants over 5,000,000 ordinary shares at an exercise price of 0.9 pence

In June 2015, 31,837,000 ordinary shares of 0.1 pence were issued to current and new shareholders of the Company, the cost associated with the issuance of these shares has been charged to the share premium account.

Contact details:

DiamondCorp plc

Paul Loudon, CEO

Tel: +27 56 216 1300

Euan Worthington, Chairman

Tel: +44 7753 862097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James

Tel: +44 20 7886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)Megan Young

Tel: +27 11 445 8068

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker/Andrew Brady

Tel: +27 11 883 6358