Diamondcorp provides final results

DiamondCorp plc, the South African diamond mine development and exploration company, releases its audited results for the period ended 31 December 2007.

Highlights for 2007

- Completion of a 1.6 million tonne per annum dense media separation plant and commissioning of Phase One tailings retreatment operation at the Lace mine in the Free State Province of South Africa.

- Total diamond recoveries of 25,266 carats, of which 15,976 carats were produced post-commissioning of the processing plant.

- Diamond quality exceeds management’s expectations, including a significant proportion of fancy coloured stones.

- Initial revenue of £74,795 from 4,454 carats of diamonds sold late in the year. Gross loss on this production was £114,608 which is not representative of steady state production, but was due to operational problems related to South African power outages, weather-related processing problems and an extended mechanical breakdown in the recrush circuit.

- Net Loss for the year was £2,101,251, including non-cash items of £790,329 (net £1,310,922). The loss included some one off charges associated with the Company’s IPO.

- Accelerated development plan formulated to bring Phase Two underground mining into production in the second half of 2008, more than 12 months ahead of schedule.

- Snowden Mining Industry Consultants Pty Ltd completed a Scoping Study on the accelerated development plan which validated management’s proposal.

Post Period Highlights

- Most of the operational issues which hampered production late in 2007 have argely been overcome and February was a record month in terms of tailings throughput.

- Management worked with Investec Bank Limited on an inward listing of the Company’s shares on the main board of the JSE Limited which is expected to be completed in March.

The company’s Chairman say that 2007 was the year that your Company joined the ranks of diamond producers as its 74% owned South African subsidiary began recovering gems from the Lace Mine tailings dumps. The last time that Lace produced diamonds was in 1931. It is also gratifying to report our first revenues from the sales of diamonds in the second half of the year.

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