Diamcor Provides update on Debeers Acquisition

/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO "U.S. PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES./

KELOWNA, BC, May 11 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the "Company"), is pleased to announce that the second tranche of financing has been completed as reported in a recent news release on May 4th, 2010, (Diamcor Recent News - http://www.diamcormining.com/investors/news/index.php?&content_id=175%20)

Diamcor is now in the final stages of closing for the previously announced acquisition of the Krone-Endora diamond project from diamond giant DeBeers Consolidated Mines Limited. With the second tranche of the financing now successfully completed, the Company has sufficient funds to complete the acquisition and its planned start of trial-mining. The Company will also plans to add an additional low-cost drilling programme aimed at further establishing the full potential of significant additional areas of the project which are not yet part of the current initial 1.3 million carat inferred resource estimate reported in the recently release NI43-101 report on the project. After signing the definitive agreement to acquire the rare "eluvial" Krone-Endora project from DeBeers in December of 2008, the Companies have successfully moved the finalization of the pending acquisition through the various levels of completion. The Company is now at the final stage of receiving the pending approvals from the South African Department of Minerals & Energy for the transfers of the Krone and Endora rights from DeBeers into the Company's South African subsidiary, DMI Minerals (Pty) Limited and the final approval from the TSX Venture Exchange. The Company is optimistic this process will be concluded without any further significant delay and, accordingly, is preparing to put itself in a position to begin working on identified areas by the third quarter of 2010.

"We are very pleased to now be in the final stages of the acquisition of this quality asset given its significant potential to provide our Company with sustained rough diamond production for many years at a time when world-wide supplies are clearly struggling to keep up with increasing demands from the emerging markets," noted Mr. Dean Taylor, CEO of Diamcor Mining Inc. "We are also optimistic that the efforts associated with our additional planned drilling programmes to run in conjunction with our trial-mining on known areas of interest will further enhance the project's full potential and provide us with an ability to very quickly make plans for our final production level targets for the longer term," added Mr. Taylor.

The Krone-Endora diamond project is located directly adjacent to DeBeers flagship South African Venetia diamond mine. Venetia is the third largest diamond mine in the world, with peak production in past years approaching 9.0 Million carats per year (750,000 Carats/Mo.). Previous work completed by DeBeers, along with the current independent NI43-101 report on Krone-Endora, indicate the diamond bearing deposits that occur on the adjacent properties of Krone and Endora are directly related to the Venetia mine in that the lower "eluvial" deposits identified are thought to have been created by the direct shift of a portion of an estimated 1,000M, or 1.0 vertical Km of material from the tops of the Venetia Kimberlite clusters. This "eluvial", or one-time shift of material is believed to have then been covered by an upper level of diamond bearing gravel as a result of the ongoing "alluvial" erosion of additional material due to rains and such from the higher areas of Venetia to the surrounding lower areas. Given the nature of the deposit, and its location directly adjacent to the source, diamond characteristics such as size, frequency, and quality are all expected to mirror those of the source. In addition to this, the short-distance travelled by the deposit material is thought to have resulted in the significantly higher average grades reported, compared with more typical alluvial deposits, which should provide for a much more consistent operational scenario for the project.

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. The Company has well established operational and production history in South Africa, and extensive experience supplying rough diamonds to the world market. Rather than exposing itself to the high-risks and costs associated with Kimberlite exploration, the Company's focus is on the identification, acquisition, and operation of quality near-term production based diamond projects.

    
    On behalf of the Board of Directors

    Mr. Dean H. Taylor
    President & CEO
    Diamcor Mining Inc.
    [email protected]

    Phone: [phone]
    Website: www.diamcormining.com
    

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. This news release is not for dissemination in the United States, to "U.S. Persons" or to United States of America news services.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Mr. Dean H. Taylor, President & CEO, Diamcor Mining Inc., [email protected], Phone: [phone], Website: www.diamcormining.com