Mr. Graham Warren reports

PANGOLIN RECOVERS DIAMOND FROM MALATSWAE PROJECT, BOTSWANA

Pangolin Diamonds Corp. has recovered a macrodiamond from a soil sample at its recently acquired Malatswae project prospecting licence PL247/2014. The project is located in north-central Botswana and is 100 per cent owned by Pangolin.

A regional soil sample, numbered MSC119, weighing approximately 40 kilograms was collected and then processed at Pangolin's DMS plant in Francistown, Botswana. A concentrate was then independently examined in Gaborone by a specialist consultant who subsequently submitted the stone to C.F. Mineral Research Ltd. in Kelowna, Canada, which confirmed the diamond.

The white diamond weighs 0.005484 carat and was retained on a standard Endecotts sieve with the mesh size of 0.6 millimetre. The diamond is therefore classified as a macrodiamond -- greater than 0.5 millimetre in at least one direction.

Photos of the diamond and a location map are available through Pangolin's new website on the Malatswae project page.

A field team is now on site collecting follow-up samples on a close-spaced grid (200 metres by 200 metres) to help determine the significance of this discovery.

Malatswae diamond project

The Malatswae kimberlite project covers 1,058 square kilometres and is located 70 kilometres southeast of the Orapa mine. The project area hosts a number of kimberlite targets. Previous work by Pangolin Diamonds demonstrated that the chemical compositions of garnets recovered in soil samples are distinctly different from the garnets from the Orapa kimberlite field, suggesting that an undiscovered kimberlite may be found within the project area.

Quality control and quality assurance

Quality assurance procedures, security, transport, storage and processing protocols conform to chain of custody requirements. The diamond results reported here are based on laboratory work completed by C.F. Mineral Research in Kelowna, Canada, an independent mineral processing laboratory. Residues are retained, and are available for review and audit.

Pangolin exploration programs are carried out under the supervision of Rick G. Bonner, PGeo, who directs operations in Botswana for Pangolin Diamonds.

The technical disclosure in this news release has been reviewed and approved by Dr. Leon Daniels, PhD, member of AIG (American International Gemologists), chairman of the board of Pangolin Diamonds, and a qualified person as defined by National Instrument 43-101.