Diamcor Mining Concludes Definitive Sale Of Assets Agreement On De Beers Krone-Endora Project

December 11, 2008

December 11, 2008, KELOWNA, BC – Diamcor Mining Inc. (TSX-V:DMI) (the “Company”) is pleased to announce that it has now signed a definitive sale of assets agreement with De Beers Consolidated Mines Limited for the Krone-Endora alluvial project (the “Project”).  The Company announced on May 26, 2008 that its proposal to acquire the Project for 14,000,000.00 Rand (Approx. $1,818,600.00 CND) had been approved as the successful proposal (the “Acquisition”).  The Project is located immediately adjacent to the north of De Beers Venetia Diamond Mine in the Limpopo Province of South Africa on the De Beers owned farms Krone 104MS and Endora 66MS.  The Project consists of the alluvial fan sediments off of the adjacent Venetia kimberlite pipes and covers an area roughly five square kilometres in size.  Based on published production reports by De Beers the Venetia Diamond Mine is widely known to be one of South Africa’s largest producers of diamonds at approximately 9.0 million carats per year.  De Beers had completed extensive exploration work on the alluvial flows from Venetia which occur on the two farms, however the project did not represent part of its current vision and thus, the deposit was chosen as one which would be made available to other, and more specifically, emerging junior miners and explorers and Women in mining.  The Acquisition will be done through Diamcor’s South African subsidiary, DMI Minerals South Africa (Proprietary) Limited (“DMI Minerals”), which is 70% owned by Diamcor Mining Inc, with the remaining 30% held by Diamcor’s Black Economic Empowerment partner Nozala Investments (Proprietary) Ltd (“Nozala”).  Nozala is a very broad-based 100% Women owned entity with an estimated 500,000 Women shareholders.

The Acquisition was subject to the negotiation and signing of the recently completed definitive sale of assets agreement between DMI Minerals and De Beers, and included an initial payment of a 1,500,000.00 Rand (the “Deposit”) by DMI Minerals.  With this formal agreement now complete the companies will immediately begin work to satisfying the conditions associated with closing which are; the preparation, submission, and acceptance of applications to secure Ministerial consent for cession of the associated prospecting rights from De Beers to DMI Minerals, the signing of an associated right of access agreement to the properties between the parties, the assignment to DMI Minerals of the existing environmental and rehabilitation liabilities, the completion of an associated sole right, royalty free license for the use of all associated extensive geological data for the properties by DMI Minerals, the granting by the Department of Water Affairs of a suitable water license to DMI Minerals, final TSX Venture Exchange regulatory approval, and the final payment of 12,500,000.00 Rand upon completion of these conditions.

As noted, the Project had been the subject of extensive exploration work previous completed by De Beers, the results of which were documented in an equally extensive internal mineral resource estimate for De Beers.  Given the internal non-public nature of this past work, DMI Minerals will now immediately begin the process of commissioning an initial independent 43-101 report based on these past findings for public release to shareholders.  Upon successful completion of the Acquisition DMI Minerals plans to immediately proceed on with the continuation and further development of this past bulk sampling and evaluation work in an effort to delineate the future work necessary to enable the Company to arrive at a production decision with respect to the Project.

The Acquisition represents the Company’s first for its DMI South Africa subsidiary in conjunction with 100% women-owned Black Economic Empowerment partner Nozala Investments (Pty) Ltd. (“Nozala”). This partnership, under which Nozala will have a 30% interest in DMI South Africa, has been designed to draw on the considerable synergies of the two entities with an ability to provide broad-based economic benefit and support of junior and Women in mining, as well as, support the emerging South African diamond polishing industry with the planned contract polishing of suitable diamonds from the Deposit through Nozala’s established Nozala Diamonds (Pty) Ltd subsidiary facilities in South Africa.

“We are very pleased to announce this formal signing of an agreement with De Beers at a time when many in the industry are experiencing the unprecedented pressures of the current global financial crisis,” stated Mr. Dean H. Taylor, CEO of Diamcor Mining Inc., “it represents the hard work of both parties and a commitment by De Beers to support the efforts of junior and Women in Mining in South Africa, and given the Projects proximity to Venetia, we are very optimistic and committed to ensuring the transaction provides an ultimate success story for all involved”, added Mr. Taylor.   

Diamcor Mining is a junior resource company with established operations and production history in South Africa.  The Company is determined to use this established operating history and industry knowledge to increase its current production of diamonds through the development and or, acquisition of additional quality properties in the region.

On behalf of the Board of Directors

Mr. Dean H. Taylor
Diamcor Mining Inc.

Phone: (250) 862-3212
Website: www.diamcormining.com

This press release contains certain forward-looking statements.  While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.  Further, the Company expressly disclaims any obligation to update any forward looking statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  This news release is not for dissemination in the United States, to “U.S. Persons” or to United States of America news services.


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