Delivery of Operational Equipment and Modular Plant Underway at Krone-Endora at Venetia Project

TSX.V Symbol (DMI)

OTCQX Symbol (DMIFF)

KELOWNA, BC, Jan. 17, 2012 /PRNewswire/ – Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the “Company”), is pleased to announce that with the majority of the of
ongoing site developments at the Company’s Krone-Endora at Venetia
project (the “Project”) now nearing completion, deliveries of
operational equipment and a new modular processing plant to the Project
are now underway.  The efforts undertaken in 2011 were designed not
only to support the further advancement of the Project and the expected
initial recoveries of rough diamonds in the short-term, but also to
support the longer-term production targets of the Company in the coming
months and years.

“2011 was a milestone year for Diamcor” noted Diamcor CEO Dean Taylor, “and we now find ourselves positioned as one of the very few companies
in the world with the potential to provide sustained rough diamond
production in the future at a time when prices are increasing, and
shortfalls in supply are widely expected to grow”, added Mr. Taylor.

Milestone achievements in 2011 included the finalization of the
Project’s acquisition from DeBeers in February, along with the
Company’s announcement of a strategic alliance and financing with world
famous luxury retailer Tiffany & Co. in March.  With these items
complete, the Company began work on the project in April with the aim
being to advance the project towards production as quickly as
possible. The extensive efforts undertaken and completed in 2011
included:

        --  Construction of a 9km primary access road to support the
            ongoing needs of the Project for the long-term

        --  Clearing of 60km of temporary roads in preparation for the
            deployment of operational teams to complete the recommended
            infill and extended drilling programme

        --  Completion of the initial recommended infill and extended
            drilling progamme on 390 targets, which due to encouraging
            results was expanded to 469 targets and lead to the Company's
            previously announced 97.5% increase in the basal gravel
            estimates at the Project

        --  Subsequent drilling of a total of 558 targets over +/- 400
            hectares, allowing the Company to secure data used in the
            determination of areas for planned additional bulk sampling,
            upcoming trial-mining exercises, and the location for the
            immediate construction of the Project's plant site

        --  Installation of +/- 4km of high strength, solar powered,
            electrical security fencing and gates around the areas chosen
            for trial mining and the construction of the plant site

        --  Clearing and removal of +/- 4,000 truckloads for the
            establishment of a quarry in the area selected for trial-mining
            exercises, and the transport of that material for the
            construction of the Project's plant site and dams

        --  Clearing of +/-5 acres for the construction of the plant site
            area, along with fresh water, waste, and settling dams

        --  Completion of civil engineering works, construction of a 5m
            raised wall around the plant site, and extensive concrete work
            in preparation for the installation of modular processing
            plant, final recovery units, and associated offices and
            workshops

        --  Design of and preparations for the installation of +/- 13km of
            water pipelines, along with the installation of a +/- 7km main
            power-line to the project

With a vast majority of the above projects either complete, or nearing
completion by December 31, 2011, the arrival of key operational
equipment has also begun with the delivery of a new Terex H6203
power-screen from the Terex manufacturing facilities in Ireland. The
H6203 is the largest power-screen in the Terex line with a head-feed
capacity of up to 800 tons per hour. The unit is designed to dry screen
material directly in the quarry and by removing as much as 45% of the
non-diamond bearing material in the quarry, should reduce operational
costs and the overall water consumption at the Project over the
long-term.  Initial testing of this unit has been completed with
positive results, and the screening and stockpiling of material to
support the upcoming commissioning phase of the modular plant is
scheduled to commence in the coming weeks.

In addition to the delivery of the Terex power-screen, the deliveries of
components of the Project’s modular processing plant to the site are
also underway.  The design, construction, and initial testing of the
new modular plant was completed at facilities in Kimberley South
Africa, with the design aimed at supporting the Company’s initial
targeted ramp of up to 10,000 carats per month within 12 months.  The
plant employs the use of 16′ pre-concentrating pans, along with a Dense
Media Separation (DMS) plant, containerized x-ray Flo-Sort machines for
the primary hands-off recovery of diamonds and secondary grease
system.  Due to the modular nature of the plant, additional expansion
can be performed as needed in a very cost effective way when desired.  

The combined efforts of the work completed in 2011, along with the
additional efforts currently underway, are aimed at supporting the
further advancement and the initial recoveries of rough diamonds from
the Project through the Company’s planned upcoming move to recommended
trial-mining exercises at the Project.  In conjunction with these
efforts, the Company plans to complete further bulk sampling exercises
on new areas of the Project to support the filing of a new updated and
current NI 43-101 Technical Report for the Project in the coming
months, and to assist the Company in arriving at final long-term
production decisions for the Project.

Strategic Tiffany & Co. Alliance:

As announced on March 29, 2011, the Company has established a long-term
strategic alliance and first right of refusal with world famous New
York based Tiffany & Co. to purchase up to 100% of the future
production of rough diamonds from the Krone-Endora at Venetia Project. 
As previously announced, Tiffany & Co, provided the Company with
substantial financing to advance the Project.  Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF.  Originally founded in 1837, the
Tiffany’s name is now globally recognised as one of the premier luxury
jewellery and specialty retailers in the world.  Through Tiffany & Co.
and various other subsidiaries, the company is engaged in product
design, manufacturing, and retailing activities on a global basis.  As
of December 31, 2011 Tiffany & Co. operated 246 retail stores and
boutiques in the Americas, Japan, Asia-Pacific, and Europe and engages
in direct selling through internet, catalog and business gift
operations.  For additional information on Tiffany & Co., please visit
their website at www.tiffany.com.

About Krone-Endora at Venetia:

On February 28, 2011, Diamcor successfully acquired the Krone-Endora at
Venetia Project from De Beers Consolidated Mines Limited.  The Project
consists of the prospecting rights over the farms Krone 104 and Endora
66, which represent a combined surface area of approximately 5,888
hectares directly adjacent to De Beers’ flagship Venetia Diamond Mine
in South Africa.  De Beers previously completed various exploration
efforts on initial areas of interest comprised of approximately 307
hectares, a summary of which was reported in an initial Independent NI
43-101 Technical Report filed by the Company on July 30, 2009.  The
deposits which occur on the properties of Krone and Endora have been
identified as a rare, higher-grade “Eluvial” basal deposit which is
covered by a lower-grade upper “Alluvial” deposit.  The deposits are
proposed to be the result of the direct-shift (in respect to the
“Eluvial” deposit) and erosion (in respect to the “Alluvial” deposit)
of an estimated combined 1,000 m (1 km) of material from the higher
grounds of the adjacent Venetia Kimberlite areas.  The deposits on
Krone-Endora occur in two layers with an average total depth of less
than 15.0 metres from surface to bedrock, allowing for a very low-cost
mining operation to be employed with the potential for near-term
diamond production from a known high-quality source.  Krone-Endora also
benefits from the significant development of infrastructure and
services already in place due to its location directly adjacent to the
Venetia Mine.

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, and on the OTC QX International under the
symbol DMIFF.  The Company has a 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 exploration, the Company’s focus
is on the identification, acquisition, and operation of unique diamond
projects with near-term production potential such as the Krone-Endora
at Venetia Project.  For additional information on Diamcor, please
visit our website at www.diamcormining.com.

On behalf of the Board of Directors

Mr. Dean H. Taylor

President & CEO

Diamcor Mining Inc.

DTaylor@diamcormining.com

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.

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SOURCE Diamcor Mining Inc.