2007


Diamcor Mining Enters Into Agreement With Trans Hex for Exploration on Diamcor's “So Ver” Mining Area

 

KELOWNA, BRITISH COLUMBIA, CANADA, May 31, 2007 – Diamcor Mining Inc. (TSX-V:DMI) (“Diamcor” or the “Company”) announced today that it has signed a memorandum of understanding for a joint venture agreement with Trans Hex Group Limited (JSE:TSX) and its joint venture partners (collectively “Trans Hex”) to perform exploration on various new and yet unexplored portions of Diamcor’s So Ver land holdings in South Africa. Trans Hex has been evaluating geophysical anomalies outside the So Ver mining area and is in possession of exploration information that suggests there may be potential to discover additional kimberlite bodies on these yet unexplored parts of the Diamcor property. The new targets identified are part of an area covered by both an old order prospecting right previously granted to Diamcor and a recent new order prospecting right granted to Trans Hex. The areas in question are not associated with the previously announced Doornkloof exploration undertakings.

Under the terms of the joint venture understanding, Diamcor will allow Trans Hex access to sample all geophysical targets identified in the area and in exchange retain a 7.5% interest in any project that may follow from the exploration targets identified. Trans Hex has agreed to fund these projects through feasibility, after which all post-feasibility funding would be in proportion to each party’s interest in any subsequent project that may result. Any resulting post-feasibility project will be overseen by a joint venture management committee, but the project will be operated and managed by Trans Hex. Trans Hex will also be responsible for the marketing of any diamonds produced through Trans Hex Diamond Trading.

“We welcome the opportunity to work with Trans Hex, in further evaluating the new anomalies they have identified on our land holdings, and to the potential discovery of additional kimberlite bodies that could result in a viable project at a later date,” commented Dean Taylor, Diamcor President and Chief Operating Officer.

About Diamcor: Diamcor Mining is a junior mining and exploration company with active operations and established key strategic relationships within the Republic of South Africa. Diamcor is determined to use this established operating history and industry knowledge to increase its current production of diamonds through the development and acquisition of additional quality properties in the region. It operates offices in both Canada and South Africa. Diamcor’s securities trade on the Toronto Stock Exchange (V:DMI). For more information about Diamcor Mining Inc., please visit our website at www.diamcormining.com.

About Trans Hex: Trans Hex Group is a world leader in the exploration, mining and marketing of high quality alluvial diamonds from both its land and sea operations. In addition to their well established land operations in South Africa, Trans Hex is expanding its Angolan mining activities and has operations in both Namibia and Botswana. Trans Hex has enjoyed a 23 year history of paying dividends, and it has a continual focus on exploration activities to increase reserves. Trans Hex recently reported record diamond sales for the year, up 4% to US $168.4 million. Trans Hex securities trade on the JSE (Johannesburg Stock Exchange) under the symbol TSX as well as on the Namibian Stock Exchange under the symbol (NSX). For more information about Trans Hex visit their website at www.transhex.co.za.


Forward Looking Information: This release includes certain forward-looking statements including, without limitation, statements concerning preliminary results of geological reports, Diamcor’s future plans and opportunities, results from strategic partnerships and joint ventures, business strategy, potential transactions, and objectives of management for future operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "plans," or "continue" or the negative thereof or variations thereon or similar terminology. Although Diamcor believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are subject to a number of risks and uncertainties, and actual results could differ materially from those anticipated in these forward-looking statements.


For further information please contact:

Mr. Dean H. Taylor
President and Chief Operating Officer
Diamcor Mining Inc.
(250) 864-3326