RNS Number:3247G
KimCor Diamonds plc
25 October 2007



                              KIMCOR DIAMONDS PLC
                          ("KimCor" or the "Company")
                                        
                     ACQUISITION OF KIMBERLEY TAILING DUMPS

The Board of KimCor, the mid-tier diamond producer, is pleased to announce that
its subsidiary Superkolong (PTY) Limited ("Superkolong") is acquiring a 26.4 per
cent share of diamondiferous tailing mineral resources (TMRs) in Kimberley,
South Africa, from De Beers Consolidated Mines Limited ("De Beers").

Highlights

  * Superkolong's 26.4 per cent interest totals 15.45 million tonnes of
    TMRs;

  * Superkolong will process the TMRs through its existing SMI4 plant. As a
    result it will not need new processing infrastructure while the project life
    will be extended by 10 years;

  * KimCor will gain management control over the resource, which will
    significantly improve the economics of the project;

  * Based on historical production and sales information, KimCor expects
    annual sales of 108,000 carats from the Superkolong TMRs;

  * At an average sale price of US$60 per carat once full production is
    commenced, project gross annual revenues would be in excess of US$6.4
    million;

  * The new resource has an estimated in-situ value of approximately US$57.2
    million; and

  * The Superkolong share of the TMRs was purchased for a consideration of
    approximately #195,000.

KimCor will be entitled to 70% of revenue from diamond sales from the
Superkolong TMRs, the balance accruing to the Group's Empowerment Partner. The
Company will also benefit from the combined effect of the removal of handling
fees on diamond production and the ability to revert to in-house sorting and
sales. This is expected to result in an estimated immediate uplift in sales
value of approximately US$6.0 per carat.

Background to the Acquisition

Superkolong is acquiring the TMRs as a result of its 26.4 per cent interest in
Nungu Trading 740 (Proprietary) Limited (to be renamed The Small Miners Forum
Kimberley (Proprietary) Limited) ("SMF"). SMF has entered into a Sale of Assets
Agreement ("SAA") with De Beers to purchase the TMRs.

In addition to the cash purchase price for the assets, Superkolong has committed
to an EMP which will cost the Group #495,000 over the life of the project and is
sufficient to ensure environmental rehabilitation is completed to the high
standards maintained by De Beers.

SMF and Superkolong will complete ownership of the TMRs once all required
authorisations are received from the South African authorities.
The acquisition is conditional upon the following:

(i)   issue of approval of sale of assets by the Competition Authorities;

(ii)  issue of a Diamond Dealers Licence to permit the sale of diamond
      production; and

(iii) compliance with the Environmental Management Programme ("EMP") designed
      and approved by De Beers.

Martyn Churchouse, Chief Executive of KimCor commented "The asset sale by De
Beers will ensure the continued growth of mining programmes in the Kimberley
region and will benefit Superkolong and its empowerment partner. On the basis
that the assets provide a minimum additional 10 years of mine life for the SMI4
operation, KimCor will invest funds in a capital project to increase the plant
capacity to generate a minimum of 108,000 carats per year.

"The combination of the increased production from SMI4 together with production
from our existing mines underpins the Group's annual production target of
200,000 carats per annum. We have a highly skilled team managing the project,
with a wealth of experience processing this resource type and now have an
opportunity to consolidate our position as a leading exponent of tailing mineral
resource reprocessing".

                                   ---ENDS---

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
Maxine Barnes
Nick Rome


Notes to Editors:

KimCor is an integrated diamond mining and exploration company focused on
diamond production in Africa with complementary cutting and polishing
operations. The Company is building on an existing portfolio of revenue 
producing assets. Through its subsidiary companies, KimCor has five producing 
miningoperations and a number of advanced exploration projects in South Africa 
and Tanzania.

Superkolong is a subsidiary of KimCor in which Kolong Investment Holdings (Pty)
Limited, the Group's Empowerment Partner holds a 30 per cent interest.








                      This information is provided by RNS
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