Mr. Dean Taylor reports

DIAMCOR ANNOUNCES TERM LOAN FINANCING

Diamcor Mining Inc. intends to complete a term loan financing of up to $5-million. Term loans under the financing will be unsecured with a 36-month term and will carry an annual interest rate of 10 per cent with interest-only payments required at 12 and 24 months. The principal and remaining interest of the term loans will be due and payable on the 36-month anniversary of the closing date. The company will issue one bonus share in its authorized share capital for every $1 of principal advanced, along with one share purchase warrant for every $1 of principal advanced under the financing by participants/lenders, pursuant to Policy 5.1 of the TSX Venture Exchange corporate finance manual. Each share purchase warrant will entitle the holder thereof to purchase one Class A voting common share in its authorized capital at a price of 25 cents per share for a period of 36 months.

The proceeds from the financing will be used for general corporate purposes, the deployment of additional operational equipment to support increased processing volumes, the continued advancement of the work programs currently under way at the company's Krone-Endora at Venetia project, and to provide the company with additional working capital to offset the time frames associated with the tendering and sale of rough diamonds.

The financing is subject to regulatory approval of the TSX Venture Exchange, along with completion of all definitive documentation and filings as required. All securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing.

About Diamcor Mining Inc.

Diamcor Mining is a fully reporting publicly traded Canadian diamond mining company with a well-established proven history in the mining, exploration and sale of rough diamonds. The company's primary focus is on the mining and development of its Krone-Endora at Venetia project which is co-located and directly adjacent to De Beers's Venetia diamond mine in South Africa. The Venetia diamond mine is recognized as one of the world's top diamond-producing mines and the deposits which occur on Krone-Endora have been identified as being the result of shift and subsequent erosion of an estimated 50 million tonnes of material from the higher grounds of Venetia to the lower surrounding areas in the direction of Krone and Endora. The company focuses on the acquisition and development of mid-tier projects with near-term production capabilities and growth potential and uses unique approaches to mining that involves the use of advanced technology and techniques to extract diamonds in a safe, efficient and environmentally responsible manner. The company has a strong commitment to social responsibility, including supporting local communities and protecting the environment.

About the Krone-Endora at Venetia project

Diamcor acquired the Krone-Endora at Venetia project from De Beers Consolidated Mines Ltd., 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's flagship Venetia diamond mine in South Africa. The company subsequently announced that the South African Department of Mineral Resources had granted a mining right for the Krone-Endora at Venetia project encompassing 657.71 hectares of the project's total area of 5,888 hectares. The company has also submitted an application for a mining right over the remaining areas of the project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade alluvial basal deposit that is covered by a lower-grade upper eluvial deposit. These 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 1,000 vertical metres of material from the higher grounds of the adjacent Venetia kimberlite areas. The deposits on Krone-Endora occur with a maximum total depth of approximately 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, which is widely recognized as one of the top-producing diamond mines in the world.

Qualified person statement

James P. Hawkins, BSc, PGeo, is manager of exploration and special projects for Diamcor Mining, and the qualified person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programs. Mr. Hawkins is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Mr. Hawkins has reviewed this press release and approved of its contents.

We seek Safe Harbor.