Diamcor Completes Drilling of Initial Phase Targets at Krone-Endora at Venetia Project

KELOWNA, BC, June 29, 2011 /CNW/ --
TSX.V Symbol (DMI)


OTCQX Symbol (DMIFF)

KELOWNA, BC, June 29, 2011 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the 'Company'), is pleased to announce that it has now completed
drilling the initial phase targets of its recommended drilling
programme at the Company's recently acquired Krone-Endora at Venetia
Project (the 'Project'). The Company previously announced the initial
phase of drilling had commenced on May 17, 2011, and can now report
that approximately 230 targets have now been completed on schedule, and
on budget as planned. The drilling targets in this initial phase were
located inside the previously identified K1 and Confluence areas, as
well as on new areas of the Project located immediately to the East of
the K1 area which had not previously been drilled. These drilling
efforts were aimed at collecting data to better define the known
higher-grade basal deposit previously identified by De Beers, and to
determine the potential extension and direction of the deposit between
these current areas and the existing outer fence-line of Venetia.

With this initial phase of drilling now complete, the Company is now
proceeding with the drilling of targets associated with Phase 2 of its
recommended drilling programme. The Company plans to use the results of
both the initial phase of drilling in conjunction with the additional
drilling efforts now underway to further aid in determining the
potential extent and location of additional upper and lower basal
gravels to other portions of the Project, and for the selection of
areas for the Company's planned upcoming bulk sampling programme. The
combined drilling and bulk sampling programmes are designed to support
the filing of a new updated and current NI 43-101 Technical Report (the
'NI 43-101 Report') for the Project in the coming months. These
programmes will also be used to identify areas for the Company's
planned move to trial-mining exercises in the near-term, and to assist
the Company in arriving at final production decisions for the Project
over the long-term. The current NI 43-101 Technical Report as filed by
the Company on July 30, 2009 was based solely on the areas of the
Project on which De Beers previously performed initial work, with a
diamond dollar per carat price estimate from 2005.

The Company is also pleased to inform investors and interested parties
that a new updated corporate video on the recent efforts of Diamcor has
now been posted on the Company's website, and can be accessed at the
following link http://diamcormining.com/investors/corporate_video/.

About Krone-Endora at Venetia:

On February 28, 2011, Diamcor successfully completed the acquisition of
the Krone-Endora at Venetia Project from De Beers. The Project consists
of the prospecting rights over the farms Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in South
Africa. De Beers previously completed various exploration efforts on
initial areas of interest comprised of approximately 310 hectares, a
summary of which has been reported in an initial Independent NI 43-101
Technical Report filed by the Company on July 30, 2009. The deposits
which occur on the properties of Krone and Endora have been identified
as a rare, higher-grade lower 'Eluvial' basal deposit which is covered
by a lower-grade upper 'Alluvial' deposit. The deposits are proposed to
be the result of the direct-shift (in respect to the 'Eluvial' deposit)
and erosion (in respect to the 'Alluvial' deposit) of an estimated
combined 1,000m (1 km) of material from the higher grounds of the
adjacent Venetia Kimberlite areas. Based solely on the work completed
to date, the current NI 43-101 Technical Report filed provided a
current inferred resource estimate of 54,258,600 tonnes of
diamond-bearing gravels and 1.3 million carats of diamonds for the
initial areas of interest alone. The deposits on Krone-Endora occur in
two layers with an average total depth of only 15.0 metres from surface
to bedrock, allowing for a very low-cost mining operation to be
employed, and the potential for near-term diamond production from a
known high-quality source. Krone-Endora as well benefits from the
significant development of infrastructure and services already in place
due to its location directly adjacent to the Venetia Mine.

About Diamcor Mining Inc:

Diamcor Mining Inc. is a fully reporting publically traded junior
diamond mining company which is listed on the TSX Venture Exchange
under the symbol V.DMI, and on the OTC QX International under the
symbol DMIFF. The Company has a well-established operational and
production history in South Africa, and extensive experience supplying
rough diamonds to the world market. Rather than exposing itself to the
high risks and costs associated with exploration, the Company's focus
is on the identification, acquisition, and operation of quality
near-term production based diamond projects such as the Krone-Endora at
Venetia Project. For additional information on Diamcor, please visit
our website at www.diamcormining.com.

Strategic Tiffany & Co. Alliance:

As announced on March 29, 2011, the Company has established a long-term
strategic alliance and first right of refusal with world famous New
York based Tiffany & Co. to purchase up to 100% of the future
production of rough diamonds from the Krone-Endora at Venetia Project.
To expedite the production and supply of rough diamonds from
Krone-Endora at Venetia, Tiffany & Co. has also provided the Company
with additional financing for the Project. Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF. Originally founded in 1837, the
Tiffany's name is now globally recognised as one of the premier luxury
jewellery and specialty retailers in the world. Through Tiffany & Co.
and various other subsidiaries, the company is engaged in product
design, manufacturing, and retailing activities on a global basis. As
of October 31, 2010 Tiffany & Co. operates 225 retail stores and
boutiques in the Americas, Japan, Asia-Pacific, and Europe and engages
in direct selling through internet, catalog and business gift
operations. For additional information on Tiffany & Co., please visit
their website at www.tiffany.com.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com

Phone:(250) 864-3326
Website: www.diamcormining.com

This press release contains certain forward-looking statements. While
these forward-looking statements represent our best current judgement,
they are subject to a variety of risks and uncertainties that are
beyond the Company's ability to control or predict and which could
cause actual events or results to differ materially from those
anticipated in such forward-looking statements. Further, the Company
expressly disclaims any obligation to update any forward looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.

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Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com