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 AND SOUTH AFRICA ACTIVITIES UPDATE

HIGHLIGHTS

·; Reprocessing of geophysical data from PL71 in Botswana has resulted in the size of the geophysical target at J-12 increasing from 15 hectares (ha) to 45ha, and better defined a 4ha target at J-05;

·; A six-hole drilling programme targeting diamondiferous kimberlites at J-05 and J-12 will commence in August.

·; Exploration Licence PL71 covering the Jwaneng South kimberlite exploration project has been renewed by the Botswana Department of Minerals, Energy and Water Resources for a further two years;

·; Decline development activities at the Lace mine in South Africa are progressing well, with approximately 200 metres of decline being developed since activities recommenced on April 20.

DiamondCorp, the Southern African diamond mining and exploration company, is pleased to announce an update on exploration and mine development activities in Botswana and South Africa.

JWANENG SOUTH PROJECT, BOTSWANA

Reprocessing of ground geophysical data from Prospecting Licence PL71 covering the Jwaneng South project area by Earthmaps Consulting of Namibia has resulted in an increase in the size of the geophysical target at J-12 from 15ha to 45ha, and better definition of a 4ha target at J-05. (One hectare = 10,000 sq metres or 2.47 acres)

A six-hole drilling programme targeting diamondiferous kimberlites at J-05 and J-12 will commence in August. The results from this programme, when combined with the results from the drilling of the 10ha kimberlite J-01 last November, will determine the priorities for large diameter drilling and bulk testing in PL71.

DiamondCorp managing director and CEO, said: 'We are excited by the significant increase in the size potential of the geophysical target at J-12, and we look forward to reporting drill results from both J-05 and J-12 over the coming months. The 10ha diamondiferous kimberlite we have intersected at J-01, and the targets at J-05 and J-12, each have the size potential to host a large open pit diamond mine if grade and carat value prove economic.'

The size of the J-12 target is comparable to De Beers Jwaneng pipe, 9km to the northwest of J-12. Jwaneng was a 54ha pipe at the surface when mining commenced, produces between 12.5 million and 15 million carats per annum, and is the richest diamond mine in the world measured by value.

Prospecting Licence PL71 covering the Jwaneng South project has been renewed by the Botswana Department of Minerals, Energy and Water Resources for a further two year period, following acceptance of DiamondCorp's proposed work programme and a 50% statutory reduction in licence area from 61 sq km to approximately 30 sq km.

DiamondCorp is earning a 77.5 per cent interest in PL71 from Geoperspectives (Pty) Limited by completing a definitive feasibility study on at least one kimberlite by June 2014.

After assessing existing exploration data, DiamondCorp has indicated to Geoperspectives that it is relinquishing its rights to earn an interest in prospecting licences PL59 and PL60 in order to concentrate on PL71.

Once initial core drilling and microdiamond analysis is completed, DiamondCorp will commence planning of large diameter drilling at PL71 in order to determine an indicative grade and diamond value for the kimberlites within the prospect area.

LACE MINE, SOUTH AFRICA

Decline development activities are progressing at the Lace mine, near Kroonstad in the Free State province of South Africa.

Since restarting activities on 20 April, approximately 200m of decline development have been completed. The decline size has been increased to 4.5m x 4.5m, and development activities are now progressing on a three-shift 24 hour basis. Development to date has been completed within budget.

The rate of advance will increase during July as a third LHD is re-commissioned and second 25-tonne low profile dump truck is brought into service. In total, 800m of decline development needs to be completed to access kimberlite at the -240m level, and is scheduled to be completed by the end of 2010. Advance will slow as the decline reaches the -165m level and intersects an existing haulage between the pipe and the vertical shaft on that level. Once the holing into the existing workings and dewatering on that level has been completed, the decline will continue its advance down to the -240m level.

The Competent Person responsible for the technical information with respect to Botswana 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.

London

7 July 2010

AIM Nomad: Cenkos Securities plc

AIM Brokers: Cenkos Securities plc, Fairfax I.S. plc JSE Sponsor: PSG Capital (Pty) Limited DiamondCorp plc, Paul Loudon +44 20 3151 0970 Liz Bowman/Ivonne Cantu, Cenkos Securities plc +44 20 7397 8900 Ewan Leggat, Fairfax I.S. plc +44 207 598 5368 John-Paul Dicks, PSG Capital (Pty) Limited +27 21 887 9602 Charmane Russell/Marion Brower, Russell & Associates +27 11 880 3924