Operational 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')

BOTSWANA EXPLORATION UPDATE

HIGHLIGHTS

·; Microdiamond recoveries from the initial drilling samples from the J-05 kimberlite have returned two macrodiamonds and 49 microdiamonds.

·; The results demonstrate a second diamondiferous kimberlite in the PL/71 licence area and provide sufficient encouragement to proceed with a mini-bulk sampling programme of large diameter drilling ("LDD").

·; LDD priorities for next year are now being planned.

UPDATE

DiamondCorp is pleased to announce an update on exploration activities in Prospecting Licence PL/71 covering the Jwaneng South Joint Venture Area in Botswana.

Eight microdiamond samples, weighing between approximately 50kg and 75kg each, from the J-05 kimberlite which is some 10 km from Debswana`s huge Jwaneng mine were collected from sections of core from the Company's initial five diamond drill holes despatched to Saskatchewan Research Council's laboratory in Saskatoon, Canada, for microdiamond recovery. The samples were taken from both volcaniclastic and coherent kimberlite intersections, and were treated by means of caustic fusion.

The samples yielded 51 diamonds, comprising two macrodiamonds and 49 microdiamonds. One macrodiamond was white/colourless and one was off-white. (Macrodiamonds are diamonds that are greater than 0.5mm in the longest axial dimension.) Encouragingly, the presence of two macrodiamonds suggests the possibility of a coarse stone size distribution.

Paul Loudon, DiamondCorp CEO, said: "We are very pleased that we now have two diamondiferous kimberlites in PL/71 for bulk testing in 2011, providing us with a pipeline of promising diamond exploration projects in Botswana in addition to our long-life Lace diamond mine development in South Africa.

'The number of stones recovered from the J-05 samples is insufficient to make a meaningful potential diamond grade prediction at this stage, but we are very excited at the number recovered and this provides management with sufficient encouragement to proceed with the planning of an LDD mini-bulk sampling programme to be undertaken in 2011.'

Additional drilling of three angled boreholes at J-05, has shown J-05 to be an elongated kimberlite narrowing to the east and widening to the west, with an estimated total surface area of approximately 1.5 ha, based on drilling todate. The kimberlite lies under approximately 28 metres of Kalahari sand.

J-05 lies 5 km to the northwest of J-01, a 10 ha diamondiferous kimberlite identified by DiamondCorp drilling last November.

Planning for the LDD sampling programme within PL/71 will now be finalised and is expected to be funded as part of a capital raising in the first half of 2011.

DiamondCorp is earning a 77.5 per cent interest in PL/71 from Botswana company Geoperspectives (Pty) Limited by funding exploration activities.

The Competent Person responsible for the technical information contained in this announcement is Mr Paul Zweistra (Pr. Sci. Nat., Registration number 400016/93) a full-time employee of VP3 Geoservices (Pty) Limited. VP3 and Mr Zweistra have given their permission for their work to be quoted in this announcement.

8 November 2010

London

AIM Nomad: Cenkos Securities plc

AIM Brokers: Cenkos Securities plc, Fairfax I.S. plcJSE Sponsor: PSG Capital (Pty) LimitedDiamondCorp plc, Paul Loudon +44 20 7256 2651Liz Bowman/Ivonne Cantu, Cenkos Securities plc +44 20 7397 8900Ewan Leggat, Fairfax I.S. plc +44 207 598 5368John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602Charmane Russell/Marion Brower, Russell & Associates +27 11 880 3924