Diamondcorp : FINANCING AND OPERATIONAL UPDATE

9 November 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', 'the Group' or 'the Company')

FINANCING AND OPERATIONAL UPDATE

DiamondCorp, the Southern African diamond mining, development and exploration company, announces that, further to the Company's announcement of 20 October 2016, the second tranche of the financing facility from Rasmala plc (the 'Facility'), in the gross amount of £300,000, is in the process of being drawn down by the Company.

Lace mine production continues in line with expectations, with the balance of the 5,000 carats of the Company's diamond inventory, against which the Facility is collateralised, expected to be processed by the end of the day shift today.

Production in the current month is on schedule to exceed 15,000 tonnes and the grade for the month of November to date is 29 carats per hundred tonnes.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 216 1300

Chris Ellis, Interim Non-Executive Chairman

Tel: +44 (0) 20 3151 0970

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ('MAR').