Operational Update

BlueRock Diamonds plc

("BlueRock" or "the Company")

26 August 2016

Recommencement of operations at Kareevlei Mine

BlueRock is pleased to announce the recommencement of operations at its Kareevlei Mine. As announced on 12th July there were a number of areas the DMR (Department of Mineral Resources) highlighted that needed attention. Our team has worked hard over the last five weeks to rectify all matters to the satisfaction of the DMR. Production is expected to recommence on Monday 29th August 2016, targeting volumes in excess of 20,000t per month. 

We have a number of options open to us regarding increasing plant capacity. Buying Diacar's plant remains one option as well as expanding our own. Johan Milho, our new mine manager, and the operating team are evaluating all options with the objective being to process significantly increased tonnages than before at a reduced USD per tonne cost.

Adam Waugh, CEO of BlueRock Diamonds said:

"After a frustrating few weeks I am delighted that we are now back into production. Initially we will be processing 30,000 to 50,000 tonnes of Kimberlite lying in stockpiles close to our plant. These are stockpiles of oversize rocks that we have accumulated over the last two years from all levels of the pit. We have been preparing these stockpiles for processing over the last two months and will closely monitor the quality and quantity of diamonds in this previously unprocessed kimberlite. Thereafter we will process kimberlite directly from the mine starting with the next blast which is scheduled for late September."

About BlueRock Diamonds plc (AIM:BRD)

BlueRock is a diamond mining company with activities in the Kimberley region of South Africa. BlueRock own a diamond processing plant and the mining right over the Kareevlei Tenements in South Africa.