Update on So Ver Operations


KELOWNA, BC, Nov. 8, 2006 (Canada NewsWire via COMTEX News Network) --
TSX.V Symbol (DMR)

Wayne Wolf, President and CEO of Diamcor Mining Inc (TSX - DMR), today announces that the Company is moving into the final stages of processing the remaining tailings at its So Ver project. With the levels of diamonds recovered from these tailings, or grade becoming lower, the company has elected to immediately begin the process of scaling back operations for the year at the main large plant in a planned move towards the implementation and use of smaller portable equipment to process the remaining tailings after the New Year. This decision is based on the ongoing review of the operating costs associated with the use of the existing larger main plant against the current recovery rates or grade of the remaining tailings, as opposed to the reduced costs which would be associated with a smaller portable system. In addition to this operational cost consideration, the possible flexibility such a system would provide should the company elect to proceed further with additional bulk sampling at its Doornkloof project also tends to support this action.

Key operational issues considered in the company's decision to suspend the use of the main five storey plant were the costs associated with the use of heavy equipment to recover and transport the remaining low grade tailings to the main plant, along with the fixed higher power consumption and labour costs associated with processing these tailings in such a large facility. Management believes a return to processing after the New Year with a smaller portable system near the remaining tailings will allow the company to greatly reduce the cost of processing these tailings with no reduction in the recovery of the remaining diamonds.

In addition to this operational evaluation the company has determined that should it be able to acquire additional reserves of tailings, or establish additional opportunities through its exploration activities, it is unlikely that the use of the existing facility would make operational sense in its current location nor would it be feasible to move the plant when compared to the costs of constructing a new and more efficient plant. Operational Managers in South Africa will thus use the upcoming months to plan and remove, or re-work portions of the plant for use in these upcoming efforts as opposed to yearly maintenance which would normally take place during this time. Excess or non-usable portions of the plant which the company will cease to use in continued operations will be salvaged and stored as required.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.

SOURCE: Diamcor Mining Inc.

Mr. Wayne Wolf, President & CEO, Diamcor Mining Inc.
Phone: (250) 862-3212
Website: www.diamcormining.com