Diamcor Announces Private Placement

Diamcor Announces Private Placement

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Diamcor Announces Private Placement

PR Newswire

KELOWNA, BC, June 4, 2013

TSX.V Symbol (DMI)

KELOWNA, BC, June 4, 2013 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI), (the "Company") an emerging producer of rough diamonds, announces that
it intends to complete a non-brokered private placement (the
"Offering") of up to 1,500,000 units (the "Units") at a price of $1.25
per Unit for gross proceeds of up to $1,875,000 (the "Proceeds").  Each
Unit will consist of one common share (a "Share") of the Company and
one-half of one common share purchase warrant (a "Warrant").  Each
whole Warrant will entitle the holder thereof to purchase one Share at
an exercise price of $1.75 for a period of 36 months following the date
of issuance

The Offering is subject to regulatory approval and/or approval of the
TSX Venture Exchange along with completion of all definitive
documentation and filings as required.  Securities issued pursuant to
the Offering will be subject to a hold period of four months plus one
day following the date of issuance.

As previously announced, the region of the Company's Krone-Endora at
Venetia project experienced very heavy rainfall during the first
quarter of 2013 at levels which had not been recorded in the area for
over 200 years.  These rainfalls limited the Company's ability to
process material at levels targeted for the short-term, and its
potential to complete the sale of rough diamonds and secure revenues as
envisioned during the period.  The Company has reported that operations
are now returning to normal, and the Proceeds from the Offering will be
used as operating capital to support the continued advancement of the
Project, the planned ramping of operations underway, the continued
processing of material aimed at recovering additional rough diamonds
for planned sales in the short-term, and for general and corporate
purposes.

On March 13, 2013, the Company successfully completed the desired
procurement, delivery, construction, and installation of the vast
majority of equipment and infrastructure required to significantly
expand the quarrying and in-field dry-screening operations at the
Project.  These upgrades were part of the Company's final preparations
in anticipation of a planned move to 24/7 operations in the near
future, and were completed as budgeted through the previously announced
$4.0 million in additional financing from its long-term strategic
alliance partner Tiffany & Co. Canada, a subsidiary of world famous New
York based Tiffany & Co.  The expanded quarrying and in-field screening
operations are designed to provide significant operational cost savings
and efficiencies over the long-term of the Project through the removal
of an estimated 60-65% of fine material (-1.0mm in size) at the quarry
through a dry-screening process.  Production capacities of the expanded
facilities are designed to exceed those of the main processing plant to
allow for the stockpiling of treated and screened materials at the main
processing plant.  With the fine material removed, screened material
stockpiled at the plant would not be affected by rains in the future. 
The delays caused by the unusual rains in the first quarter of 2013
were a result of unfortunate timing, in that material recovered from
quarry was not able to be processed through the expanded in-field
dry-screening operations prior to being saturated by the rains, thus no
stockpile of previously screened material was available at the main
plant for processing as would be expected under normal
operations.        

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 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, 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.


[e-mail]


Tel [phone]


www.diamcormining.com

Investor Relations Contact:



Justin Vaicek


Liolios Group, Inc.


[e-mail]


Tel [phone]

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.

WE SEEK SAFE HARBOUR

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

SOURCE Diamcor Mining Inc.