Placing and Subscription to raise £3.18 million

5 June 2015

DiamondCorp plc

AIM share code: DCP & JSE share code: DMC

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

("DiamondCorp", "the Group" or "the Company")

Placing and Subscription to raise £3.18 million

Intention to undertake an Open Offer for up to approximately £2 million

Termination of royalty financing facility

DiamondCorp, the Southern African focussed diamond development, exploration and mining company, is pleased to announce that it has placed 31,837,000 new ordinary shares of 0.1 pence each in the Company (the "New Shares") at 10 pence each (or ZAR 1.87 as applicable, together the "Placing Price") to raise gross proceeds of approximately £3.18 million (the "Placing").

The Placing, which was oversubscribed, was undertaken with a range of new and existing institutional and private investors in both the UK and South Africa. The New Shares comprise 25,487,000 placing shares placed through Panmure Gordon (UK) Limited, and 6,350,000 subscription shares subscribed directly with the Company. The Placing Price of 10 pence represents a discount of 13.0 per cent. to the closing mid-market price on AIM on 4 June 2015.

In addition, the Board is intending to offer up to approximately 20 million new ordinary shares of 0.1 pence each (the "Ordinary Shares") at the Placing Price by way of a non-underwritten open offer to eligible existing shareholders of DiamondCorp to raise up to approximately a further £2 million (the "Open Offer"). The launch of the proposed Open Offer shall be subject to, inter alia, completion of customary documentation, regulatory approval and publication of a circular to shareholders. If undertaken, the Open Offer would be made so as to enable all eligible shareholders to subscribe for new Ordinary Shares at the Placing Price on a pro rata basis to their current holdings and with the option for increasing their allocation pursuant to an excess application facility. A further announcement shall be made in due course.

In light of the Placing and the potential value implications for the Lace mine resource resulting from the recently announced discovery of a Type IIa diamond, the Board has concluded it is not in the Company's best interests to proceed with the royalty financing facility from Acrux Resources (Pty) Limited, of which the signing of a term sheet was announced on 17 March 2015, and has consequently terminated the agreement at no additional expense.

The net proceeds of the Placing will be used to fund the working capital shortfall disclosed in the Company's audited financial results for the year ended 31 December 2014, as announced on 26 May 2015, being £1.8 million in the Company's base case to £2.8 million in the sensitised case. Consequently, the Directors consider that, upon completion of the Placing, the Company will have sufficient funds to ramp up to commercial production, which is anticipated in the second half of 2015, leading to the commencement of positive cashflow anticipated by the end of 2015. Any additional funds raised from the proposed Open Offer would be used to further enhance the working capital position and mine economics.

Commenting on the Placing, DiamondCorp's CEO Paul Loudon said: "I am delighted with the strong support we have received for the Company by existing and new shareholders and I look forward to updating the market on our operational developments as we ramp up to commercial production at the Lace Mine."

Admission and Dealings

The Placing and Subscription is conditional on the admission of the New Shares to trading on the AIM Market of the London Stock Exchange plc ("AIM") and the Alternative Exchange of the JSE Limited ("AltX"). Applications are in the process of being made to the London Stock Exchange and the JSE Limited for admission of the New Shares to trading on AIM and AltX ("Admission"). It is expected that such Admission will become effective and that dealings will commence on AIM and AltX at 8.00 am UK time on 10 June 2015.

The New Shares will rank pari passu with the existing Ordinary Shares.

Following Admission, the Company will have 355,202,478 Ordinary Shares in issue, all of which have voting rights. The New Shares will represent approximately 9.0 per cent. of the enlarged issued ordinary share capital of the Company upon Admission. The above figures do not include any new Ordinary Shares that may be issued pursuant to the proposed Open Offer.

The above figure of 355,202,478 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in DiamondCorp under the FCA's Disclosure and Transparency Rules.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 828 246 897

Euan Worthington, Chairman

Tel: +44 7753 862 097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James/Tom Salvesen

Tel: +44 20 7886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)Megan Young

Tel: +27 11 445 8068

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker / Andrew Brady

Tel: +27 11 883 6358