Diamondcorp Plc reported unaudited consolidated and parent earnings results for the year ended December 31, 2012. On consolidated basis, for the period, the company reported operating loss was £3,346,737 compared to £4,140,765 a year ago. Loss before tax was £3,534,940 compared to £4,239,146 a year ago. Net loss was £3,534,940 or 1.22 pence per basic and diluted share compared to net loss of £4,239,146 or 1.87 pence per basic and diluted share a year ago. Headline loss per share was 1.22 pence compared to 2.43 pence for the same period a year ago. Net cash used in operating activities was £2,185,843 compared to net cash from provided by operating activities £160,836 a year ago. Purchase of property, plant and equipment was £850,034 compared to £376,794 for the same period a year ago. On parent company basis, for the period, the company reported operating loss was £927,437 compared to £1,964,560 a year ago. Loss attributable to equity holders of the parent company was £1,039,777 compared to £2,082,132 in the same period last year. Net cash used in operating activities was £1,110,308 compared to £6,706,535 a year ago.

Diamondcorp Plc announced that development activities have commenced for the 47 level block cave at the Lace mine, following receipt of the first £1.9 million tranche of loan funds from Laurelton Diamonds Inc. The Main Pipe at the Lace mine contains 33.1 million tonnes of kimberlite indicated and inferred to a depth 855m containing approximately 13.4 million carats in both resource categories at an average grade of 40.1 carats per hundred tonnes. The resource has an in-ground value in excess of $2 billion at $160 per carat. The deposit will be mined by block cave mining, with three caves planned over the 25 year life of mine on the 47, 67 and 85 levels. The kimberlite is open at depth, and also contains a significant bulge between 250m and 360m depth with the potential to add additional tonnage Approximately 600,000 tonnes of kimberlite are expected to be extracted and processed during this period. Anticipated revenue from the mine is forecast at £30 million during the 43 months of development before full production of 100,000 tonnes per month is achieved. The 1.2 million tonne per annum Lace mine is expected to produce more than 500,000 carats of diamonds per annum at peak production.

Diamondcorp Plc announced that it has finalized with Laurelton Diamonds, a wholly-owned subsidiary of Tiffany & Co. (TIF) the term loan of $6 million in exchange for an Offtake Agreement for diamond production from the Lace mine in the Free State province of South Africa. The company reported that the terms of the agreement remain unaltered from those previously announced. The development paves way for the proceeds of the convertible bond issue to be released from escrow and completes the funding required for the 47 level block cave development at Lace. The loan is expected to come at an interest rate of 9% annually and must be repaid in full by the 8th anniversary of the Second Funding Date, April 10, 2013. The Offtake Agreement is expected to give Laurelton Diamonds the right to purchase production which meets the required quality and color standards from the Lace Mine, and is said to take effect from the first funding date, January 10 this year, until the end of the life of the mine, subject to conditions.