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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')

ISSUE OF SHARES FOR CASH 

DiamondCorp, the South African diamond mining company, is pleased to announce that in accordance with the general authority approved by shareholders at the annual general meeting held on 4 July 2008, the Company has placed 4,000,000 fully paid ordinary shares ('new shares') of 3p par value for gross proceeds of £1,800,000.

The new shares represent 10.79% of the Company's issued share capital and will rank pari passu with all existing shares.

The Company has applied for the new shares to be listed on the JSE Limited ('JSE') and the AIM Market of the London Stock Exchange. The admission of the shares to trading is expected on the JSE on Tuesday, 11 November 2008 and AIM on Wednesday, 12 November.

The shares have been placed at 45 pence per share (the equivalent of R7.49 per share) at the prevailing exchange rate of 16.6444R/£, being a 10% discount to the 30-day volume weighted average price of R8.32 on the JSE as at 29 October 2008, being the date agreement was reached to place the shares.

The shares have been placed to the European Islamic Investment Bank plc, which qualifies as a 'public' shareholder within the meaning of paragraphs 4.25 and 4.26 of the Listings Requirements of the JSE.

The proceeds of the placing will be used for general working capital purposes.

Financial effects

The table below reflects the pro forma financial effects of the placement. This table has been prepared for illustrative purposes only in terms of the Listings Requirements of the JSE and therefore, due to its nature may not truly reflect DiamondCorp's financial position or results. The directors of DiamondCorp are responsible for the preparation of the pro forma financial effects.

	Before issue of new shares (i)	After issue of new shares (ii)	% change (iii)
Basic loss per share (pence)	3.78	3.39	10.32
Headline loss per share (pence)	3.78	3.39	10.32
Net asset value per share (pence)	34.56	35.58	2.95
Tangible net asset value per share (pence)	17.23	19.93	15.67
Number of shares in issue	37,086,995	41,086,995	10.79

Notes

    (i)  The 'Before issue of new shares' figures are based on the DiamondCorp
         unaudited interim results for the six months ended 30 June 2008.

   (ii)  The 'After issue of new shares' is based on the assumption that the issue of 
         new shares was effective on 1 January 2008. It is assumed that the proceeds
         will be utilized for working capital and will therefore not affect earnings for
         the period. The proceeds have been converted at the prevailing exchange rate
         as at 29 October of 16.6444R/£.
  (iii)  The percentage change has been calculated on rounded numbers.

7 November 2008

London

Sponsor:

Investec Bank Limited

For further information, please contact:

Paul Loudon

DiamondCorp plc

+44 20 7256 2651 

Joe Nally/Liz Bowman

Cenkos Securities plc

+44 20 7397 8900

Robert Smith/Tanis Crosby

Investec Bank Limited

+27 11 286 7662

Charmane Russell

Russell & Associates

+27 11 880 3924

Jane Stacey/Jos Simson

Conduit PR

+44 20 7429 6606/+44 7922 923 306

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