Insurance Settlement

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')

INSURANCE SETTLEMENT

DiamondCorp plc, the African diamond mine development and exploration company, is pleased to announce that its South African operating subsidiary Lace Diamond Mines (Pty) Limited has reached agreement with Mutual and Federal Insurance Limited on a claim for damage to timbers and pumps in the vertical shaft at the Lace mine incurred during heavy rains earlier in the year.

The settlement agreed and received is R27,000,000 (approximately £2.07 million) after deductibles. A 5% commission is payable to the settlement agent Alexander Forbes Risk Services (Pty) Limited.

In the current underground mine development plan, it is proposed that the vertical shaft at Lace be used for upcast ventilation rather than being re-equipped for ore hoisting.

London

15 December 2011

AIM Nomad: Fairfax I.S. plc

AIM Brokers: Fairfax I.S. plc, Ocean Equities LtdJSE Sponsor: PSG Capital (Pty) LimitedDiamondCorp plc, Paul Loudon +44 20 3151 0970/+27 56 212 2308Ewan Leggat, Fairfax I.S. plc +44 207 598 5368Guy Wilkes, Ocean Equities Limited +44 207 786 4370John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602Charmane Russell/Marion Brower, Russell & Associates +27 11 880 3924