Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF), (the “Company”) is pleased to announce that further to the installation of significant additional operational items and expansions completed as announced on January 18, 2017, the testing, commissioning and calibration of these new facilities at the Company’s Krone-Endora at Venetia Project (the “Project”) continues to progress in a positive manner. The Company expects the finalization of these efforts to be completed by April 30, 2017. These efforts, initially targeted for completion in the prior fiscal quarter ended March 31st, were delayed due to operational and product delivery issues. However, with the testing, commissioning, and calibration work now substantially completed, the facilities have very recently begun demonstrating an ability to achieve the desired goals of: increased processing volumes; the crushing and treatment of material up to 45mm in size; the processing of material through a dedicated ultra-coarse large diamond recovery circuit; and, an increase in the overall capacity of the Project’s final recovery and sorting facilities. This progress was evidenced by the results realized in the April tender, as noted below. Targeted increases in processing volumes approaching 100% over previous months are expected to be achieved in the current quarter, and the Company’s primary focus will now shift towards the planned transition to large-scale trial-mining exercises at the Project.

Rough Diamond Tender and Sales Update
In an initial tender and sale of rough diamonds recovered from the initial processing of material in the +1.0mm to -15.0mm size fractions held in February 2017, the Company sold 1,533.37 carats, for gross proceeds of USD $209,949.02, resulting in an average price of USD $136.92 per carat. In a second tender and sale completed early in April 2017, the Company sold 2,900.62 carats of rough diamonds recovered from the initial processing of crushed material in the +1.0mm to -45.0mm size fractions through the new substantially completed facilities prior to March 13, 2017, for gross proceeds of USD $810,106.26, resulting in an average price of USD $279.29 per carat. This second tender and sale included the sale of four gem quality rough diamonds which were recovered in the specials category (+10.7 carats): a 12.13 carat, a 15.46 carat, a 17.97 carat, and a 29.1 carat rough diamond.

The combined efforts currently underway are designed to support the continued advancement of objectives consistent with the recommendations of the updated NI 43-101 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.

Appointment of New Managing Director of Operations
The Company is pleased to announce that in conjunction with its planned transition from project development to large-scale trial-mining, Mr. Rob De Pretto has been appointed as the new Managing Director of Operations – South Africa of the Company’s operating subsidiary. Mr. De Pretto, a citizen and resident of South Africa, has an extensive, impressive, and well established 33-year career in the diamond industry. He most recently held senior management, operational, and technical positions with Anglo American and De Beers Consolidated Mines. He has gained extensive experience through his direct involvement in the development of a majority of the De Beers’ mines, including four years as the production manager of De Beers Venetia Diamond mine. Mr. De Pretto holds a B.Sc. (Met. Eng.) and M.Sc. (Met. Eng.) from the University of Witwatersrand. He later obtained a Management Advancement Programme certificate through University of Witwatersrand School of Business Administration. Mr. De Pretto is a member of the South African Institute of Mining & Metallurgy, a registered Professional Engineer with Engineering Council of South Africa, and has been educated and trained in a wide array of items directly related to diamond mining and the management of diamond mines over his 30+ year career. The Company’s operating subsidiary has accepted the resignation of its former Managing Director of Operations – South Africa, Mr. Dean Del Frari. No severance is due to Mr. Del Frari and his previously issued and unexercised options will expire at the close of business on June 29, 2017. The Company wishes to thank Mr. Del Frari for his efforts over the years, and wishes him the best in his future endeavors