Dr. Leon Daniels reports

PANGOLIN DIAMONDS CORP. ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Pangolin Diamonds Corp. has closed its previously announced non-brokered private placement financing of units for aggregate gross proceeds of $277,720. The offering consisted of 4,628,666 units at a price of six cents per unit, with each unit consisting of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share at a price of seven cents for a period of 60 months from the date hereof.

Proceeds of the offering will be used to continue the exploration program, inclusive of drilling, at the company's 100-per-cent-owned diamond projects in Botswana.

Dr. Leon Daniels, president, chief executive officer and a director of the company, and Gareth Penny, non-executive chairman and director of the company, subscribed for 833,333 units and two million units, respectively. As a result, the issuance of units to Dr. Daniels and Mr. Penny is considered to be a related party transaction as defined under Multilateral Instrument 61-101 -- protection of minority securityholders in special transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that participation in the private placement by insiders will not exceed 25 per cent of the fair market value of the company's market capitalization.

In consideration for the services of certain finders, the company issued an aggregate of 125,673 units to the finders on the same terms as the units issued pursuant to the offering.

The offering is subject to the final acceptance of the TSX Venture Exchange, and all securities issued pursuant to the offering are subject to a four-month-and-one-day hold period in compliance with Canadian securities laws.