Diamcor To Issue Compensation Shares

May 21, 2008

KELOWNA, May 21, 2008 – Diamcor Mining Inc. (TSX-V:DMI) (the “Company”), upon the recommendation of its Compensation Committee and subject to TSX Venture Exchange and disinterested shareholder approval, has authorized the granting of an aggregate of 568,940 compensation shares of common stock (“Compensation Shares”) to certain Company officers, directors and employees at a deemed issue price of $0.50 per Compensation Share. 

The Compensation Shares were recommended by the Company’s Compensation Committee in March 2008 and were ratified by the Board of Directors in March 2008, subject to TSX Venture Exchange approval and disinterested shareholder approval.  The Company has recently received notification from the TSX Venture Exchange that it will extend the application of the TSX Venture Exchange policy for compensation shares issued by Tier 1 issuers to the Compensation Shares approved by the Company.

The purpose of the Compensation Shares is to recognize the outstanding performance of these included officers, directors and employees during the preceding fiscal year in a manner that preserves the working capital of the Company, with a secondary goal of incentivizing these individuals with equity interests more in line with industry standards.  The Compensation Committee believes that the increased equity for these individuals will advance the Company’s management retention and business plan objectives.

The Company will issue a follow-up news release upon receipt of the requisite TSX Venture Exchange and disinterested shareholder approval and the subsequent issuance of the Compensation Shares.  The Compensation Shares, once issued, will then be subject to a four month hold period from that date.

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


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