Newlands Update

RNS Number:7014Q
KimCor Diamonds plc
25 March 2008

                                                                   25 March 2008



                              KimCor Diamonds plc

                          ("KimCor" or the "Company")



                    NEWLANDS PROCESSING PLANT COMMISSIONING



KimCor Diamonds plc ("KimCor" or the "Company" or the "Group"), a diamond
producer and exploration company with properties in South Africa and Tanzania,
is pleased to announce that the expansion and upgrade of the Newlands diamond
mine processing plant has been completed.



HIGHLIGHTS



*        Commissioning of the plant commenced on 25 March;

*        The plant is quickly expected to reach its new capacity of 37,000
         tonnes per month ("tpm");

*        Plant capacity has been increased from 4,500 tpm to 37,000 tpm;

*        The plant will process 7,000 tonnes of kimberlite ore with an average
         grade of 23 carats per hundred tonnes ("cpht"); and

*        The plant will process 30,000 tonnes of tailings stockpile with an
         average grade of 7 cpht.



The expanded plant design includes a new crushing circuit which will crush
kimberlite ore to 6mm for improved diamond recovery.



In addition to plant expansion, mine management have completed shaft deepening
and underground development to access and mine increased tonnage of kimberlite
ore. Further underground development will continue to year end at which time
kimberlite mining and processing is expected to increase to 15,000 tpm.



Martyn Churchouse, Chief Executive Officer commented "The local management team
continues to meet both its scheduled completion dates and capital budgets on the
various mine and processing plant upgrades and expansions. This is particularly
the case with Newlands as the same team have simultaneously completed the Phase
One expansion at SMI4.



"We have now provided the Newlands mine management with the infrastructure it
requires to significantly increase mine production and we have set targets that
will see the mining and processing of underground ores double during 2009".





Enquiries:



KimCor Diamonds plc                                           Tel: [phone]
Martyn Churchouse


Strand Partners Limited                                       Tel: [phone]
Simon Raggett
Warren Pearce
Victoria Milne-Taylor


Bishopsgate Communications Ltd                                Tel: [phone]
Maxine Barnes
Nick Rome












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