RNS Number:5861W
KimCor Diamonds plc
15 May 2007



                              KimCor Diamonds Plc
                          ("KimCor" or the "Company")

          Placing and update on the Koffiefontein exploration licences

KimCor, the AIM-listed diamond producer with properties in South Africa, is
pleased to announce that it has entered into an agreement for the placing of
2,878,526 new ordinary shares of 0.5p each ('the Placing Shares') in the Company
to Coffee House Group Limited ("Coffee House") at an issue price of 8.685p per
share to raise #250,000 before expenses ('the Placing'). The Placing price
represents a discount of 10 per cent. to the Company's average closing
mid-market share price for the 10 business days ending 10 May 2007. The Placing
proceeds will be received in two tranches of #125,000 each on 1 June 2007 and 2
July 2007. The proceeds of the Placing will be applied to meet costs incurred in
installing the water piping and waste conveyor systems at Bellsbank, as
announced on 23 April 2007, and to provide additional working capital for the
Company.

As at the date of this announcement Coffee House holds 9,000,000 Ordinary
Shares, representing 13.99 per cent. of the Company's issued Ordinary Share
capital. Immediately on completion of the Placing Coffee House will hold
11,878,526 Ordinary Shares, representing 17.68 per cent. of the Company's issued
Ordinary Share capital as enlarged by the Placing.

As a substantial shareholder in the Company, Coffee House is a related party of
the Company under the AIM Rules and, by virtue of its size, the Placing falls to
be disclosed as a related party transaction. The KimCor directors, having
consulted with the Company's nominated adviser, consider the terms of the
transaction are fair and reasonable insofar as the Company's shareholders are
concerned.

Immediately following the Placing the Company will have 67,191,859 ordinary
shares of 0.5p each ("Ordinary Shares") in issue, and the Placing Shares will
represent 4.28 per cent. of the Company's issued share capital. The Placing
Shares will rank pari passu in all respects with the existing Ordinary Shares of
the Company.

Application will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM and admission of each tranche is expected on 7
June 2007 and 6 July 2007 respectively.

The Board is additionally pleased to report that further progress has been made
on the Company's Koffiefontein exploration licences located in the Northern
Cape, South Africa.

Three independent sets of geochemical data from indicator minerals collected
from the Nooitgedacht pipe have returned predicted in-situ grades of between 7
and10 carats per hundred tonnes. It is important to note that grade predictions
from geochemical data are indicative only, and are based on the assessment of
comparative chemistry with other known kimberlite resources with similar
chemical signatures, and verification of grades can only be achieved through
future bulk sampling.

A review of drill data has defined a kimberlite pipe on Nooitgedacht that is
300m long and 70m wide at surface, narrowing to 25-30m width at a depth of 40
metres.

The Company has undertaken initial scoping studies to determine the capacity of
Nooitgedacht to justify capital expenditure to develop an operation. The Company
considers it essential to determine the outline of a large geophysical and
geobotanical anomaly located immediately to the west of the Nooitgedacht
structure that is thought to comprise kimberlite fissures and blows that may
subject to detailed investigation provide additional resource that could improve
the economics of the Project.

Should the proposed drilling and geophysical programme over the Nooitgedacht
extension prove the presence of kimberlite fissures and blows with the right
chemical signature then a bulk sampling programme will be initiated to test
recoverable grades on all of the proven kimberlite bearing structures.

A subsequent re-evaluation of the original magnetic data has resulted in a
substantial number of additional geophysical anomalies within the 10,000ha
licence area, that have yet to be investigated in detail. These anomalies are
being sampled for indicator minerals and will be prioritized accordingly.

A further update regarding the Koffiefontein licences will be provided in due
course.

Enquiries:

KimCor Diamonds plc                                         Tel: 020 7290 1400
Martyn Churchouse

Strand Partners Limited                                     Tel: 020 7409 3494
Simon Raggett, Warren Pearce

Bishopsgate Communications Ltd                              Tel: 020 7562 3350
Fran Read




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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