2006


Diamcor Board Proposes Share Consolidation

 

KELOWNA, BC, Jul 20, 2006 (Canada NewsWire via COMTEX News Network) -- TSX.V Symbol (DMR)

The Board of Directors of Diamcor Mining Inc (TSX - DMR) today announces a proposal to consolidate the Common Shares of the Company on a basis of one new share for up to ten pre-consolidation shares. The proposal is subject to both TSX Venture Exchange approval, as well as shareholder approval, which will be put forward by special resolution at the Company's Annual General and Special Meeting on September 15, 2006. There will not be a corporate name change in connection with any consolidation.

Diamcor has achieved several key milestones over the past two years, and has developed a key operational team in South Africa which has proven their ability to successfully identify, implement, and operate diamond related projects. The Company's So Ver mine facility has been able to achieve significant gains in both production efficiencies and production rates under Diamcor's management and ownership, and the facility will continue to play a role in the ongoing efforts of the recent Doornkloof exploration project. The Company also continues to identify and evaluate various other potential large scale projects in the area, and will continue to focus on a growth strategy in the coming year.

There are currently 29,576,809 Common Shares outstanding with another 4.6 million options and warrants that are exercisable into an equivalent number of Common Shares that are subject to certain withholding restrictions. If approved, the consolidation would reduce the total possible number of Common Shares to 2,957,680.90 (approximately 3.4 million on a fully diluted basis).

Diamcor and its Directors believe that reducing the number of shares will have several benefits, and enhance its ability to attract quality larger investment that can be used to fund both its ongoing efforts, and its ability to secure new projects aimed at growth.

Further information regarding the proposed share consolidation will be available in the Company's Management Information Circular which will be mailed to shareholders on July 28, 2006.

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.

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

SOURCE: Diamcor Mining Inc.

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

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