Diamcor Mining Shareholder Update

October 29, 2008

KELOWNA, October 29, 2008 – Diamcor Mining Inc. (TSX-V:DMI) (the “Company”), announces that it has finalized a formal Shareholder’s Agreement with Black Economic Empowerment partner Nozala Investments (Pty) Ltd. (“Nozala”) for the Company’s DMI Minerals South Africa (Proprietary) Limited subsidiary.  As previously announced, the Company will retain a 70% ownership position with Nozala holding the remaining 30% of the subsidiary which will be used in the planned Krone-Endora alluvial deposit acquisition.  As previously disclosed in the Company’s news release of May 26, 2008, the Company received confirmation from De Beers Consolidated Mines Limited (“De Beers”) that its proposal to acquire the Krone-Endora alluvial deposit (the “Deposit”) with Nozala was approved as the successful proposal.  The Deposit consists of prospecting rights over the farms Krone 104 and Endora 66, both located adjacent to the De Beers Venetia Diamond Mine in the Limpopo Province of South Africa.  The Company is currently working to conclude the definitive asset purchase agreement on Krone-Endora with De Beers, and expects to provide Shareholders with additional information in the coming weeks. 

The Company also previously announced on August 7, 2008 that it was considering and evaluating various proposals from interested parties with regards to the sale of its non-core So Ver Mining assets as part of the Company’s strategy to re-deploy its resources to new mining opportunities.  Several parties that expressed interest in acquiring the assets have now completed their initial due diligence efforts, and Management is now in the final stages of discussions to formalize final agreements.  The Company anticipates being able to provide Shareholders with further updates on the progress of those discussion also in the coming weeks.    

Due to the current market conditions the Company has elected to re-price the non-brokered private placement financing of up to $1,000,000.00 previously announced on September 26, 2008.  The private placement will now consist of the sale of up to 3,333,333 units at a price of $0.30 per unit.  Each unit will consist of one common share and one common share purchase warrant.  Each warrant will entitle the holder thereof to acquire one additional common share at an exercise price of $0.45 for a period of two years from the closing date. 

Proceeds from the financing along with any potential proceeds from the sale of non-core assets will be used to fund some of the costs associated with the purchase of the Krone-Endora alluvial diamond deposit, and for general corporate purposes.  

All transactions are subject to regulatory, and/or approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required.  Securities issued pursuant to the above private placement will be subject to a hold period of four months plus one day following the closing.

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
President & CEO
Diamcor Mining Inc.

Phone: (250) 864-3326
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 has not reviewed and does not accept responsibility for the adequacy or, the accuracy of this release.