KimCor resumes production at SMI4

KimCor Diamonds plc, a diamond producer and exploration company with properties in South Africa and Tanzania announces the recommencement of production at the Company’s SMI4 tailings plant.

HIGHLIGHTS

* Initial processing of the 15.5 million tonne tailing resource with an average recoverable grade of 6 carats per hundred tonnes will be at a rate of 60,000 tonnes per month (’tpm’);

* Phase Two construction is underway with the installation of eight 14ft diamond recovery pans, and is scheduled for completion for the end of March 2008; and

* Following this, plant processing will increase to 100,000tpm, management will assess potential for further expansion of the plant capacity to 250,000tpm.

The agreement regarding the acquisition of the SMI4 tailings dumps entered into between the Company’s subsidiary, Superkolong Holdings Limited (amongst others) and De Beers Consolidated Mining closed on Thursday 6 March 2008.

Commissioning and production re-commenced on 14 March 2008. Superkolong remains on schedule to complete the Phase Two expansion by the end of March, 2008.

Martyn Churchouse, Chief Executive Officer commented that the plant construction team has done an excellent job and has met the scheduled completion date. The
next objective is to have the plant operate on a continuous routine basis as quickly as possible and achieve economies of scale to maximise our operating margin.

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