Diamcor Closes 2nd And Final Tranche Of Financing

KELOWNA, May 4, 2010 – Diamcor Mining Inc. (TSX-V:DMI) (the “Company”), is pleased to announce that, further to its news release of February 9, 2010, whereby the Company announced the first tranche closing of its non-brokered private placement of units (the “Financing”) for gross proceeds totalling $2,152,121.00, the Company has now closed its planned second and final tranche of the Financing for additional gross proceeds totalling $1,651,546.80.  As noted in the initial release of February 9, 2010, the closing of a second tranche was aimed at providing the Company with the ability to fully fund all remaining closing costs associated with the previously announced pending acquisition of the Krone-Endora diamond deposit (the “Project”) from De Beers Consolidated Mines (“DeBeers”).  Proceeds of the final tranche will be used for the completion of the acquisition of the Project from De Beers, funding of the Company’s planned initial work programmes for the project, the ongoing planning and preparation of post-closing operational items associated with the Project, the continued advancement of future potential acquisitions, and for general corporate purposes.  

Pursuant to the requirements of the TSX Venture Exchange (the “TSXV”) the proceeds from the final tranche of the Financing will be held in escrow by the Company’s solicitors until such time as the TSXV provides its final approval for the acquisition of the Project or its written approval for the release of the proceeds.

The final tranche of the Financing consisted of 5,505,155 units being issued at a price of $0.30 per unit for the total final tranche gross proceeds of $1,651,546.50 noted above.  Each unit consists of one Company common share (a “Share”), and one-half of one share purchase warrant (a “Warrant”).  Each whole Warrant will entitle the holder thereof to acquire one additional Share at an exercise price of $0.50 until May 4, 2012. 

The Company will pay aggregate finder’s fees of $127,574.98 in cash and issue an aggregate of 369,962 broker warrants exercisable to purchase up to 369,962 Shares of the Company at a price of $0.50 per Share until May 4, 2011.            

All private placements are subject to regulatory and/or final approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required.  Securities issued pursuant to the final tranche of the Financing will be subject to a hold period ending on September 4, 2010. 

Upon completion of this final tranche, the Company will have 25,618,283 shares issued and outstanding.

About Diamcor Mining Inc:

Diamcor Mining Inc is a fully reporting publically traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI.  The Company has well established operational and production history in South Africa, and extensive experience supplying rough diamonds to the world market.  Rather than exposing itself to the high-risks and costs associated with kimberlite exploration, the Company’s focus is on the identification, acquisition, and operation of quality near-term production based diamond projects.

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.


Neither  TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.