Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF), (the “Company”) announces it has completed the initial integration of the Tomra XRT system into the in-field screening operations at the Company’s Krone-Endora at Venetia Project (the “Project”). The integration of this equipment is aimed at allowing the Company to; test the effects of further concentrating and reducing the size fractions of material being processed at the Project’s Main-Treatment Plant; reduce overall water consumption associated with processing of all material, and; reduce the operational costs of heavy equipment through a reduction of double handling of material realized during the initial testing of this equipment as a separate stand-alone item.

The Company further reports that in addition to the previously announced 7.50 and 12.78 carat rough diamonds recovered utilizing the Tomra XRT system and sold at recent tender, two additional rough diamonds in the +10.8 carat “special” category, an 11.64 and a 12.73 carat, were recently recovered from the Project. The recovery of these two gem-quality rough diamonds occurred during initial testing being performed on the above noted integrated in-field screening operations, and are expected to be sold in upcoming tenders next fiscal quarter.

The Company also reports that it has granted incentive stock options (“Options”) to purchase an aggregate of 2,800,000 common shares (“Shares”) to certain officers, directors, and employees, pursuant to the Company’s 20% fixed stock option plan. All Options are exercisable at a price of $1.00 per share, for a period of five years expiring on March 21, 2021. No Shares acquired upon exercise of the Options may be traded prior to July 22, 2016. With the issuance of these Options the Company now has 6,629,211 Options issued to purchase at an average price of $1.11 per share, and were granted in accordance with Policy 4.4 of the TSX Venture Exchange and the terms and conditions of the Company’s Stock Option Plan.

Rough diamonds recovered were the result of the continued processing of material from various size fractions during the period. The combined efforts currently underway are designed to support the continued advancement of objectives consistent with the recommendations of the updated NI43-101 Technical Report (“Updated Technical Report”) filed by the Company on April 28, 2015, and to aid the Company in arriving at initial production decisions for the Project. The recovery of all rough diamonds to date are incidental to the ongoing commissioning and testing exercises performed at the Project. The above-noted testing exercises and incidental recoveries do not form part of the Updated Technical Report and therefore no general grade, price, or quality determination is intended by the Company at this time due to the nature and purpose of the processing of this material.