Vancouver, British Columbia, January 26, 2012 - Diamcor Mining Inc. (TSXV:DMI) (OTCQX:DMIFF) which focuses on the identification, acquisition, and operation of unique diamond projects with near-term production potential, has issued a shareholder update on the company's South African diamond project.

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In February of 2011, the company acquired the Krone-Endora Project from De Beers. The Project represents a combined surface area of approximately 5,888 hectares and is directly adjacent to De Beers' flagship Venetia Diamond Mine

Dean Taylor, Diamcor's CEO stated "2011 was a milestone year for Diamcor, and we now find ourselves positioned as one of the very few companies in the world with the potential to provide sustained rough diamond production in the future at a time when prices are increasing, and shortfalls in supply are widely expected to grow."

De Beers previously completed various exploration efforts on initial areas of interest comprised of approximately 307 hectares, which was the basis of an initial NI 43-101 Technical Report filed by the company in July 2009, and is available on www.sedar.com. The deposits which occur on the Krone and Endora properties have been identified as a rare, higher-grade "Eluvial" basal deposit which is covered by a lower-grade upper "Alluvial" deposit.

A month later, in March 2011, the company announced a strategic alliance with luxury retailer Tiffany & Co. Tiffany & Co. provided Diamcor with substantial financing to advance the Project.

With funds in hand, the company proceeded to construct a 9 kilometre primary access road and cleared 60 kilometres of temporary roads. They also completed the initial recommended infill and extended drilling programme of 390 targets, which due to encouraging results was expanded to 469 targets.

These results led to the company's announcement of a 97.5% increase in the basal gravel estimates.

Subsequent drilling of 558 targets helped the company determine areas for additional bulk sampling, upcoming trial-mining exercises, and the location for the immediate construction of the project's plant site. Once the site was determined, the company moved forward and installed about 4 kilometres of high strength, solar powered, electrical security fencing and gates around the areas chosen for trial mining and the construction of the plant site.

Other work on the property is either completed in nearing completing, including the arrival of a new Terex H6203 power screen from the Terex manufacturing facilities in Ireland. The H6203 is the largest power-screen in the Terex line, with a head-feed capacity of up to 800 tons per hour. The unit is designed to dry screen material directly in the quarry and by removing as much as 45% of the non-diamond bearing material in the quarry, should reduce operational costs and the overall water consumption at the project over the long-term.

The design, construction, and initial testing of a new modular processing plant was competed at facilities in Kimberly South Africa, with the design aimed at supporting the company's initial targeted ramp of up to 10,000 carats per month within 12 months.

The company plans to complete further bulk sampling exercises on new areas of the project in order to file a new NI 43-101 Technical report and assist the company in arriving at final long-term production decisions.

The outlook for rough diamonds is good as there have been no new large deposits found in years, and demand from emerging markets is growing rapidly. A report from Bain & Company estimates further price increases of 6% year over year to 2020.

The shares currently trade at $0.52, and with approximately 26 million shares outstanding, the company is capitalized at $14 million.

For more information, please visit Diamcor's website at www.diamcormining.com, phone 250-862-3212 or email info@diamcormining.com.

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