Diamcor Completes Main Power Line / Recovers Additional Specials at Krone-Endora Project

TSX.V Symbol (DMI)

KELOWNA, BC, Aug. 6, 2013 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI), (the "Company") an emerging producer of rough diamonds, announces that the installation of the main power line to the Company's Krone-Endora at Venetia Project (the "Project") has now been completed.  The 8.4 km main power supply line, constructed by State electricity supplier Eskom, is the final key infrastructure requirement for the Project and is expected to provide immediate operational cost savings and reduced downtime when compared to the diesel generators currently being used at the Project.  The Company has also installed an additional 0.7 km power line to support the in-field screening plant.  With these power lines now complete, the existing diesel generators at both the main plant and the in-field screening plant will remain in place to provide the Project with added benefit of standby power.

In addition, the Company has recovered four additional "Special" diamonds in the +10.8 carat category during the ongoing testing and commissioning work being performed at the Project.  The four additional Specials recovered were 12.82 carat, 17.75 carat, 20.48 carat, and 48.26 carat stones.  The Company previously announced on May 28, 2013, the recovery of the first Special diamond, an 11.23 carat, during initial testing of material in the +1.0mm to -10.0mm size fraction, and then on July 11, 2013, the recovery of two additional Specials, 13.38, and 15.16 carat diamonds during the early processing of material in the +12.0mm to -28.0mm size fraction.  With the recovery of these latest Specials the Company has now recovered seven individual diamonds over 10.8 carats in size during the initial testing and commissioning exercises underway with only limited tonnage having been processed. Individual diamonds of further note recovered during the month of July include: 9.55 carat; 8.71 carat; 7.69 carat; 7.55 carat; 7.13 carat; 6.50 carat; 5.72 carat; and 5.36 carat stones.  The installation of a crushing circuit at the main plant is now underway, and once operational is expected to further increase the effective processing of larger size fractions, thus providing additional opportunity for the recoveries of larger diamonds.

"The installation of the main power line to the Project marks the successful completion of the final infrastructure item for the Project, and one that will provide immediate benefits to operating cost and reliability", commented Mr. Dean Taylor, President and Chief Executive Officer of Diamcor. "The continued recovery of larger diamonds also provides us with yet further confirmation of the Project's ability to produce large diamonds, and while their quality does vary like all production, the frequency with which they are being recovered certainly is indicative of the potential for high quality / high dollar value diamonds to be recovered more often", added Mr. Taylor.

To date, the Company has recovered and tendered a total of 6,702.90 carats of diamonds for total gross proceeds of (US) $926,324.03 from the initial testing and commissioning exercises underway at the Project.  As of July 31, 2013 the Company had also delivered 3,460 carats of diamonds for tender and sale in the coming weeks.

The Company also reports that it has granted incentive stock options ("Options") to purchase an aggregate 1,550,000 common shares ("Shares") to certain officers, directors, employees, and consultants pursuant to the Company's stock option plan. All Options are exercisable at a price of $1.25 per share, for a period of five years expiring on August 6, 2018. No Shares acquired upon exercise of the Options may be traded prior to December 7, 2013. With the issuance of these Options the Company now has Options issued to purchase an aggregate of 5,548,333 shares.

About Diamcor Mining Inc.

Diamcor Mining Inc. is a fully reporting publically traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI, and on the OTC QX International under the symbol DMIFF.  The Company has a well-established operational and production history in South Africa, extensive experience supplying rough diamonds to the world market, and has established a long-term strategic alliance with world famous Tiffany & Co.  Rather than exposing itself to the high risks and costs associated with exploration, the Company's focus is on the identification, acquisition, and operation of unique diamond projects with near-term production potential such as the Krone-Endora at Venetia Project.  For additional information on Diamcor, please visit our website at www.diamcormining.com.

About the Tiffany & Co. Alliance

As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at then current prices to be determined by the parties on an ongoing basis.  In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with substantial financing to advance the Project as quickly as possible. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF.  Founded in 1837, the Tiffany name is now globally recognised as one of the premier luxury jewellery and specialty retailers in the world. Through Tiffany & Co. and various other subsidiaries, the company is engaged in product design, manufacturing, and retailing activities on a global basis.  As of January 2013, Tiffany & Co. operated 275 stores and boutiques in the Americas, Japan, Asia-Pacific, Europe and the United Arab Emirates, and also engages in direct selling through internet, catalog and business gift operations. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

About Krone-Endora at Venetia

In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers' flagship Venetia Diamond Mine in South Africa. De Beers previously completed various exploration efforts on initial areas of interest comprised of approximately 307 hectares, a summary of which was reported in an initial Independent NI 43-101 Technical Report filed by the Company on July 30, 2009. The deposits which occur on the properties of Krone and Endora have been identified as a rare, higher-grade "Alluvial" basal deposit which is covered by a lower-grade upper "Eluvial" deposit. The deposits are proposed to be the result of the direct-shift (in respect to the "Eluvial" deposit) and erosion (in respect to the "Alluvial" deposit) of an estimated combined 1,000 m (1 km) of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with an average total depth of less than 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source.  Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.  Since acquiring Krone-Endora the Company has completed the construction and installation of extensive infrastructure at the Project, along with the installation of a purpose built modular processing plant, and extensive quarrying and in-field screening operations.  Commissioning of the processing plant is now complete, and the Company's current efforts are designed to be a continuation of the ongoing advancement of the Project, and as part of the Company's final preparations in anticipation of a planned move to 24/7 operations in the near future.

Qualified Person Statement:

Mr. James P. Hawkins (BSc., P.Geo), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta ("APEGA").  Mr. Hawkins has reviewed this press release and approved of its contents.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
[email protected]
Tel (250) 864-3326
www.diamcormining.com

Investor Relations Contact:
Justin Vaicek
Liolios Group, Inc.
[email protected]
Tel (949) 574-3860

This press release contains certain forward-looking statements.  While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.  Further, the Company expressly disclaims any obligation to update any forward looking statements.  Accordingly, readers should not place undue reliance on forward-looking statements.

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SOURCE Diamcor Mining Inc.