Exploration

Diamcor's stated focus is a desired, and direct deviation from the typical exploration focused strategy of exploring for the discovery of new Kimberlite mines.  That being said, certain exploration efforts performed by the Company are completed when evaluating new production based projects targeted for acquisition.  During the evaluation of potential acqusition targets of kimberlite tailings projects, or select alluvial and eluvial porjects, the Company undertakes proven exploration methods aimed at determining the potential of projects to meet the Company's requirements to achieve sustained near-term production over suitable long project lifes.  Geophysics, along with low-cost near-surface drilling programmes, and bulk sampling, help the company to better determine any project's potential, and are used in conjunction with quality past exploration data and independent 43-101 reports to establish operational models to minimize risk.

In addition to these efforts aimed at helping the Company to select new projects for potential acqusition, projects such as the pending DeBeers Krone-Endora acquisition can also have additional areas of interest which the Company systematically drills and evaluates in an effort to establish yet further resources which can add to overall production targets and project life.  Projects which the Company acquires may also prove to have potential kimberlite occurances, such as was the case at So Ver, and under those sceanrios the Company does have the ability to perform initial drilling and bulk sampling to measure initital significance.  While the Company may perform such initial work, it is not a key focus of the Company, and the typical stategy employed by the Company would be to partner with a larger entity on such occurances to minimize the associated costs and risks.  This was the strategy employed at the Company's previous Doornkloof exploration project.