New Licence Acquired on the Vutomi Joint Venture

17th July 2017

Botswana Diamonds PLC

("Botswana Diamonds" or the "Company")

· Vutomi licenses extended into additional area of mineralisation adjacent to Frischgewaagt (FGT)

Botswana Diamonds (BOD), the AIM and BSE listed explorer, is pleased to announce that the company has been granted a Prospecting Licence over an additional 1,000 hectares immediately east of and contiguous to Frischgewaagt. Geophysics studies undertaken by Botswana Diamonds in the area indicate that the kimberlite dyke/pipe system being studied extends into the adjacent property. The combined area of the two properties covers over 2,700 hectares.

John Teeling, Chairman, commented, "Geology does not follow licence boundaries. One of the first things you do if you have promising exploration results is to secure adjacent ground. Initial results are encouraging, but we do not yet know where the richest mineralisation will be confirmed. Work so far strongly indicates that the system containing diamonds extends eastwards, adjacent to our Frischgewaagt property. We believe that the diamond-bearing dyke stretches at least 10 km. We sought and obtained a prospecting licence over this promising ground as a matter of urgency. The drilling programme starting in weeks will be extended into this area."

This release has been approved by James Campbell, Managing Director of Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Fellow of the South African Institute of Mining and Metallurgy, a Fellow of Materials, Metals and Mining with over 31-years' experience in the diamond sector.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

Enquiries:

www.botswanadiamonds.co.uk