Market Update

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')

MARKET UPDATE

DiamondCorp plc, the southern African diamond mining and exploration company, is pleased to announce an update of drilling and geophysical programmes completed on the Jwaneng South Project Area ("Jwaneng South") in Botswana, and capital raising plans with respect to completing the decline development at the Lace diamond mine in South Africa.

HIGHLIGHTS

·; Microdiamond analysis of samples taken from initial boreholes from the J-01 kimberlite in Botswana demonstrates the kimberlite is diamondiferous.

·; Larger drill samples are now required for definitive grade determination.

·; Geophysical surveys indicate the presence of two more targets in the project area, with the size potential to host kimberlites of economic size.

·; Market sentiment towards diamond sector is improving, with concomitant rough price increases.

·; Decision to initiate capital raising to resume development of the Lace underground mine in the Free State province of South Africa.

JWANENG SOUTH PROJECT

Jwaneng South contains five geophysical targets, of which three - J-01, J-05 and J-12 were considered priority targets for geophysical survey and drill testing.

In November 2009, DiamondCorp completed two diamond boreholes to depths of 301m and 340m on J-01, a 10 hectare geophysical target. Both holes intersected kimberlite from approximately 20m down hole depth to the end of the boreholes, indicating the presence of a large kimberlite body beneath shallow Kalahari cover.

Approximately 350 kg of samples from the two drill holes were submitted to MSA Analytical Laboratories in Johannesburg for microdiamond analysis. Preliminary results are positive with microdiamonds present in the samples. The small size of the samples and the resulting small range of diamond sizes may preclude a definitive statement of potential diamond grade. As a result, a larger diameter diamond drilling programme will be required to recover a larger sample of kimberlite for mini bulk testing and grade estimation.

Ground gravity and magnetic surveys over both J-05 and J-12 have been completed, and initial (raw data) results suggest both of these targets to be between 3 and 5 hectares in size, more than double the size previously estimated. A programme of initial diamond drill holes is currently being planned for these targets, the results of which will allow the company to plan future larger diameter drilling and mini bulk testing priorities.

DiamondCorp managing director and CEO, Mr Paul Loudon, said: 'We are pleased that our initial programme in the Jwaneng South Project Area has discovered a large diamondiferous kimberlite at J-01, and outlined two more targets with the potential to host kimberlites with economic size potential.'

DiamondCorp is earning a 77.5 per cent interest in various exploration licences in Botswana from Geoperspectives (Pty) Limited by funding exploration activities. The J1 kimberlite is located 8km southeast of De Beers Jwaneng mine, the richest diamond mine in the world measured by value.

LACE MINE

A strong price recovery for rough diamonds as evidenced by prices being received by operating diamond producers has resulted in an improved market sentiment towards the diamond sector. As a consequence, the Company has decided to proceed with raising capital to complete the £4 million decline development to access underground resources at the Company's 74%-owned Lace diamond mine in the Free State of South Africa. After completing its capital raising, the Company will work in conjunction with Snowden Mining Industry Consultants to implement the decline development and finalise a sub-level caving plan to resume underground mining at Lace between the -240m and -330m levels. The decline is currently at the -105m level, and the 1.2 million tonne per annum Lace diamond processing plant is on care and maintenance.

The Lace main pipe contains 33.12 million tones of kimberlite in indicated and inferred resources to the -855m levels at an average grade of 40.12 carats per hundred tones, for a contained resource of 13.29 million carats of diamonds. DiamondCorp last sold diamonds from Lace at US$90 per carat in July of last year. Since that time, rough diamond prices have recovered strongly.

The Company will also seek to raise capital to pay down its debt obligations to the Africa Opportunity Fund (£1.3 million in 2010), and to fund its ongoing exploration programmes in Botswana.

The Competent Persons responsible for the Resource Statement and the Botswana technical information contained in this announcement are Mr Peter Walker (Pr. Sci. Nat., Registration number 400064/99) and Mr Paul Zweistra (Pr. Sci. Nat., Registration number 400016/93) full-time employees of VP3 Geoservices (Pty) Limited. VP3, Mr Walker and Mr Zweistra have given their permission for their work to be quoted in this announcement.

10 February 2010

London

AIM Broker and Nominated Advisor: Cenkos Securities plc

Investment Bank and Sponsor: Investec Bank Limited

For further information, please contact:

Paul Loudon, DiamondCorp plc

+44 20 7256 2651

Joe Nally/Liz Bowman/Ivonne Cantu, Cenkos Securities plc

+44 20 7397 8900

Robert Smith, Investec Bank Limited

+27 11 286 7326

Charmane Russell/Matthew Ross, Russell & Associates

+27 11 880 3924

Ana Ribeiro/Tim Blythe, Blythe Weigh Communications

+44 20 7138 3204