Resource Statement

2 March 2016

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" or "the Company")

RESOURCE STATEMENT

DiamondCorp, the Southern African diamond mining, development and exploration company, is pleased to report that a new Technical Report and Resource Statement has been prepared for the Company's 74%-owned Lace mine, in the Free State Province of South Africa.

Highlights

· MPH Consulting Limited of Toronto has delivered the technical report and resource/reserve statement update, including detailed microdiamond analysis, grade and carat value modelling completed by Dr Johan Ferreira.

· The report concludes that the updated resource/reserve statement is a conservative base case with compelling evidence that considerable grade and value per carat upside is likely which will be defined with additional production and evaluation data.

· When comparing to the previous mineral resource estimate prepared for the Lace mine in March 2012, it is important to note that the estimated recovered grade for all facies has now been aligned with the Lace production plant utilizing 1.25 mm slotted bottom screens, compared to 1.00 mm screens in its original design configuration.

· While the increase in bottom screen sizes means that recoveries will be significantly lower in terms of grade, the carat value of those diamonds recovered will be higher as the smallest diamonds no longer being recovered are also the lowest value diamonds. So while the impact on recovered grade resulting from the change can be perceived as significant, the economic impact is minimal.

· 1.25 mm has been determined as the optimum bottom cut-off screen size for the project based on trade off studies undertaken by the Company. The change in screen size is expected to result in considerable operational efficiencies and (in conjunction with optical and x-ray waste sorting) up to a 50% reduction in water consumption in the processing plant, allowing for mining of the resource at greater than the current planned rate of 1.2 million tonnes per annum once block caving commences.

· The total resource tonnage in the main Lace pipe has been estimated at 38.48 million tonnes to the 920m level, an increase of 16% from 33.12 million tonnes estimated in March 2012 to the 855m level. The resource remains open at depth.

· The recoverable diamonds from this resource at the increased bottom screen size of 1.25 mm is estimated at 9.39 million carats (March 2012: 13.39 million carats, at 1.00 mm screen size).

· The average value of the Lace diamonds from the stone size frequency distribution achieved with the 1.25 mm bottom screen size has been forecast to be $164 per carat in the current market (March 2012: $160 per carat). Importantly, this price does not include any values achieved from the recovery of special stones, for which Lace was known during its previous production period pre-Great Depression, including diamonds up to 122 carats in size.

· The K4 kimberlite, which comprises 60% of the Lace resource by tonnage and 87% of the resource by diamond content has an estimated average recoverable grade of 40 carats per hundred tonnes (cpht) at 1.25 mm bottom screen size (58 cpht previously at 1.00 mm bottom screen size).

· The base case average recoverable grade from all tonnage is estimated at 24.4 cpht at 1.25 mm bottom screen size (40 cpht at 1.00 mm previously), equating to an average of US$40 revenue per tonne.

· At an exchange rate of 15.0000 South African rands to the US dollar, the average grade and carat value equate to revenue of R600 per tonne compared with forecast mining and processing costs of R238 per tonne for the UK4 Block and R145 per tonne for block caving. This represents robust operating margins of 60% and 76% respectively.

· Within the 38.69 million tonnes of resources, 2.21 million tonnes of the UK4 Block has been classified as a mineral reserve between the 230 and 370m levels. This reserve comprises 1.43 million tonnes of K4 in the probable category grading 36.2 cpht and 0.78 million tonnes of low grade K6 kimberlite in the probable category at a grade of 9.0 cpht.

· The whole block could be mined for 60 months at a rate of 35,000 tonnes per month and generate a positive NPV of R133.3 million (US$8.9 million) and a robust IRR of 59%. It is the Company's intention to concentrate on mining the high-grade K4 kimberlite within this reserve first while the first block cave is established on the 500m level (being outside of the current mineral reserve estimate). There may well be opportunities to optimize the mine plan as more K4 is found to be present as the mine progresses. When block caving progresses, any unmined portions of this reserve would then be extracted in subsequent caves.

· The small Satellite pipe which was incorporated into the previous resource statement is not included in the new resource statement as it is not considered a feasible mining proposition at this stage.

· The grade model for the UK4 Block reserve has been found to show high precision in predicting recovered diluted grades achieved in the bulk sampling on -250m, -290m and -310m levels.

· Lace has been demonstrated as a reliable microdiamond producer allowing for high-confidence grade estimates, and the valuation data from 4,982 carats recovered during bulk sampling similarly gives confidence to the valuation model.

· There is compelling geological evidence that K4 and K6 grade will improve within the block cave mining depths (and Lift 2 of the UK4 Mine), however more evaluation work is needed to verify these trends.

· The CRB (country rock breccia) unit which comprises 9% of the current resource model has been assigned zero grade at this time, although it is known to be significantly diamondiferous. The CRB will be bulk and microdiamond sampled in coming months and will be incorporated into updated grade estimations as these data become available, such that carat content at Lace is highly likely to improve on the current estimates.

· Kimberlite volumes and tonnages will also change as more delineation work is completed.

· The full technical report and resource/reserve statement will be shortly available on the Company's website at www.diamondcorp.plc.uk.

Resource Statement

All figures are gross. DiamondCorp owns a 74% equity interest in the project

Based on a recoverable grade model for the current Lace plant configuration (+1.25mm bottom cut-off screen size)

Diamond price based on bulk sample parcels and January 2016 price book

Effective date 1 February 2016.

Reserve Statement

The UK4 Mining block constitutes a portion of the above Indicated Resource, with reserves estimated as per the following table:

All figures are gross. DiamondCorp owns a 74% equity interest in the project

Based on a recoverable grade model for the current Lace plant configuration (+1.25mm bottom cut-off screen size)

Diamond price based on bulk sample parcels and January 2016 price book

Rounding has been applied

Plant recovery 100% of recoverable grade, mining recovery 100%

Effective date 1 February 2016.

Commenting on the report, DiamondCorp CEO Paul Loudon said: 'The new resource and reserve statements provide a much higher level of confidence in the estimated grade and carat value of the Lace deposit. This confirms the potential for high operating margins increasing with depth which was one of the factors which attracted us to the project from the outset. The forecast grade numbers are in line with what we are seeing from the UK4 mining ramp up and the actual carat value achieved will be known when we commence diamond sales in Antwerp in the last week of March.'

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 216 1300

Euan Worthington, Chairman

Tel: +44 7753 862 097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Adam James/Atholl Tweedie

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

Competent Person

Mr. Paul Sobie, P.Geo., President of MPH Consulting Limited, being an Independent Qualified Person and a member in good standing of the Association of Professional Geoscientists of Ontario, Membership # 0374, has reviewed and approved the technical content of this news release.

The resource/reserve statement has been prepared in accordance with the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC)

Glossary of Technical Terms

A full list of technical terms is incorporated in the technical report available on the Company's website.