Kalahari Desert Drilling Starts

20th October 2016

Botswana Diamonds PLC

("Botswana Diamonds" or the "Company")

Kalahari Desert Drilling Starts

The Board of Botswana Diamonds (AIM: BOD) announces that, further to the notification of 9th September 2016, a first phase four hole drilling programme has commenced on Prospecting Licence PL 135 in the Gope region of the Kalahari Desert. The Gope region is a very remote part of the world with no people, no water, deep sand and extreme temperatures. Operating in the region requires significant planning and logistical support. This licence is a top priority target for the Botswana Diamonds/Alrosa joint venture and the drilling programme is targeting new kimberlites. It was selected in separate studies by BOD and by Alrosa geologists as having significant potential and it has never previously been drilled. Intensive soil sampling and electromagnetic studies have identified anomalies in the geology. The core resulting from the drilling programme will be analysed by Alrosa mineralogists present in Botswana. If required, further evaluation and analysis will take place in St. Petersburg, Russia. Results can be expected in approximately twelve weeks.

John Teeling, chairman, commented "The Gope drill campaign is breaking new ground in one of the most remote deserts on Earth. There are no people, even water must be transported long distances and the sand is deep. Temperatures can differ by 50 Celsius between day and night. No mining companies have ventured here before to undertake drilling programmes. And yet the preliminary geochemical and geophysical indicators are strongly positive. We are at the cutting edge of diamond exploration and are cautiously optimistic of finding kimberlites."

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This release has been approved by Benjamin Mosigi, MSc (Mineral Exploration and Mining Geology), who is a member of the Geological Society of South Africa.

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

Botswana Diamonds (BOD) is an AIM and Botswana listed diamond explorer active in Botswana where it has joint ventures with Alrosa, the largest diamond company in the world and with BCL, a State owned copper nickel producer. The Alrosa/BOD joint venture operates on 14 licences in the Orapa and Kalahari Desert regions of Botswana. Drilling is ongoing in both areas. The BCL/BOD and others, joint venture is on ten licences in the Kalahari Desert region. Earlier drilling has discovered diamondiferous kimberlites on a licence in this block.

Enquiries:

www.botswanadiamonds.co.uk