Mr. Dean Taylor reports

DIAMCOR CLOSES FIRST TRANCHE OF FINANCING

Diamcor Mining Inc. has sourced vendor financing for a portion of the equipment being installed at the company's Krone-Endora at Venetia project and thus has elected to reduce the size of the previously announced non-brokered private placement of up to $5-million to $3.5-million and has revised the unit price of the offering from 40 cents to 35 cents per unit. The majority of participants subscribing to the revised offering consist of existing shareholders, including 37,500 units subscribed for by a company controlled by a director of the company, and the company has closed a first tranche, resulting in the issuance of a total of 5,715,950 units at a price of 35 cents per unit for gross proceeds of $2,000,582.50. Each unit consists of one common share of the company, and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one share at an exercise price of 60 cents until June 20, 2021. All securities issued under the offering are subject to a four-month hold period expiring on Oct. 21, 2018.

The company further announces that, as part of the revised offering, the company has paid to one finder an aggregate cash commission of $1,814.40, representing 6 per cent of the gross proceeds received from subscribers introduced to the company by such finders, and has issued an aggregate of 5,184 non-transferable warrants to such finder, representing 6 per cent of the number of units sold to subscribers introduced to the company by such finder. Each finder warrant entitles the holder to purchase one share of the company at an exercise price of 60 cents until June 20, 2021. The finder warrants will also be subject to a hold period ending on Oct. 21, 2018.

The company has received additional subscription interest for the balance of the revised offering from various parties and anticipates closing the remaining balance of the revised offering in a second and final tranche in the short term, subject to the receipt and finalization of subscription documentation from various parties by the company. The proceeds from the first tranche of the revised offering will allow the company to proceed without further delay in finalizing its initial efforts to address the insufficient recoveries of water from the project's settling dams through the installation of additional screening equipment, which will be followed by the incorporation of paste-thickening technology to support increased processing volumes at the project for the long term.

The planned second and final closing of the balance of the revised offering is subject to the approval of the TSX Venture Exchange, along with completion of all definitive documentation and filings as required. Additional securities issued pursuant to the revised offering will be subject to a hold period of four months plus one day following the date of their issuance.

About Diamcor Mining Inc.

Diamcor Mining is a fully reporting publicly traded junior diamond mining company. The company has a well-established operational and production history in South Africa and extensive prior experience supplying rough diamonds to the world market.

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