Operational Update

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')

OPERATIONAL UPDATE

DiamondCorp plc, the African diamond mine development and exploration company, is pleased to provide an update of kimberlite bulk testing at the Lace mine in South Africa.

- To date, a total of 5,514 tonnes of volcaniclastic kimberlite has been sampled from between the 25 and 26 levels on the southern margin of the main Lace pipe. The kimberlite in this contact zone of the pipe is heavily diluted with up to 75% country rock (waste) inclusions.

- An additional 1,500 tonnes of kimberlite from the south west side of the pipe has been hauled to surface in readiness for processing and mining continues in a northeast direction across the pipe.

- The tonnage processed to date represents less than 20% of the total tonnage from the planned bulk test of 30,000 tonnes and less than 20% of the total area of the pipe to be sampled.

- From the total kimberlite processed to date, 759 carats of diamonds have been extracted, with the biggest stone being a 16.08 carat non-gem diamond.

- Of the 759 carats, the first 561 carats have been valued by the SA Diamond Exchange at an average of $205 per carat, 71% higher than the Company's base case of $120 per carat, and 28% higher than the Company's upper case of $160 per carat.

- To date the largest diamond in the parcel is a sawable gem of 5.52 carats valued at $1,500 per carat. The bulk of the value in the parcel lies in gem stones of between 1 and 4 carats, and more than 80% of the diamonds recovered to date are gem quality. This is an exceptionally high proportion for run-of-mine kimberlite.

- The average recovered grade of 'diluted contact kimberlite material' processed to date is 13.76 carats per hundred tonne ("cpht"). This should not be considered indicative of the whole pipe at this level, as less than 20% of the pipe area has been sampled to date.

- Sampling started in what historically was described as the "stony ground" side of the pipe, where waste inclusions dilute the grade and is moving progressively northeast across the pipe into the zone where historically the best recoveries (higher grades) were reported.

- The pipe is being sampled in this manner so that development drives put in place for sampling can be used for full-scale mining in a sequence which allows the expected highest grade kimberlite in the northeast of the pipe to be mined first, and then progressively mine in a retreat manner to the lower grade southwest side.

- Forecast revenue per tonne on the kimberlite extracted to date is US$28.21 per tonne, which represents 98 per cent of the Company's base case of $28.80 per tonne, though the parcel valued to date is less than 10% of diamonds expected to be recovered from the bulk test.

- The Lace processing plant is operating efficiently and no damage to any diamonds recovered to date has been identified.

- The sampling rate is slower than planned due to poor ground conditions in and around development drives put in place ahead of mining operations on the 25 and 26 levels in the 1930s. To ensure mining takes place in as safe a manner as possible, the 30,000 tonne bulk sample will now take until September to complete as a consequence of the additional hanging wall support required.

- These poor ground conditions in the upper level of the first 70m mining block will not affect full-scale mine development or mining rates at the planned production level on the 33 level where pre-existing development drives are minimal. To the contrary, it is expected to assist with caving of the kimberlite.

Commenting on the activities, DiamondCorp CEO, Paul Loudon said: 'While we wish it was possible to extract the bulk sample at a faster rate, for safety reasons this is not possible.

'As a result, we are reporting on what we expect to be the lowest grade sections of the pipe at this level as this area has been sampled first. Nonetheless, we are absolutely delighted with the quality of the diamonds we are recovering.

'Further, the dramatic increase in carat value has the potential to lower our forecast breakeven grade from 13 cpht to 8 cpht, meaning Lace could be a significantly higher cash generator than initially thought.

'Opening up old workings which have been under water for more than 75 years has particular challenges and our emphasis is always on ensuring the safety of our workforce.

'Pleasingly, the old mine plans have proven to be very accurate both in terms of elevation and the position of old tunnels. And now, as we are sampling, the kimberlite descriptions from the old manager's reports are also proving accurate.'

The 1931 manager's annual report says: "The total (development) footage in the Mine amounted to 16,979ft., of which 7,733ft. represented the work done in the block from 780ft. (24 level) to 1,100ft. (33 level) The development continued to expose good ground in the North, North-East and East sections of the Mine, and stony ground in the South-East and West."

A full copy of this report has been uploaded to the Company's website at www.diamondcorp.plc.uk, along with some photos of the diluted kimberlite which has been sampled to date.

The Company plans to release another update on Lace bulk sampling in approximately four weeks time.

London

2 August 2011

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) Ltd. VP3 and Mr Zweistra have revieved the information contained herein and approved the contents of this press release.

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