Diamond Circle Capital Plc Portfolio Realisation Update (6419O)

TIDMDIAM

RNS Number : 6419O

Diamond Circle Capital Plc

12 October 2012

DIAMOND CIRCLE CAPITAL PLC

12 October 2012

Portfolio realisation update

The Board of Diamond Circle Capital plc is pleased to announce that, in accordance with its newly revised investment objective and policy, it has sold a further three diamonds out of the company's remaining portfolio of six diamonds for an aggregate gross consideration of $20.8million which compares to the carrying value as at 31 August 2012 of $23.4 million. The net aggregate proceeds after all selling commission and costs amounts to $20.8 million.

On 20 September 2012 the Board announced that it had posted a circular to shareholders convening an Extraordinary General Meeting of the company to be held on 15 October 2012. The purpose of the EGM is to approve the re-registration of the Company as a company governed by the Isle of Man Companies Act 2006 and to approve, conditional upon the re-registration, the adoption of a new memorandum of association new articles of association and the process by which capital may be returned to shareholders.

It is the Board's current intention, as soon as practicable following completion of the re-registration noted above, to make a return of capital payment to shareholders. The timing and amount of such return of capital will be announced in due course.

The Board continues to explore and consider all opportunities to realise the remaining portfolio of diamonds in an orderly and timely manner. However, shareholders should note that the market for polished diamonds remains difficult. The Polished Prices Overall Diamond Index has continued to decline falling 11.6 per cent. this year and falling 21.2 per cent from the peak reached last August.

Further information, please contact:

Philip Scales

Tel: [phone]

IOMA Fund and Investment Management Limited

David Benda

Tel: [phone]

Numis Securities Limited

This information is provided by RNS

The company news service from the London Stock Exchange

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