Pangolin Discovers Volcanic Intrusion with Diamond-Inclusion Type Ilmenites at Its Mmadinare Project, Botswana

-- Manganese-rich diamond-inclusion type ilmenites, known to be associated with diamondiferous kimberlites and diamonds.

-- Discovered volcanic intrusion believed to be a kimberlite.

-- Trace element chemistry identical to diamondiferous kimberlites in the Jwaneng area, Botswana.

-- Multiple diamond-inclusion type ilmenites also recovered from exploration soil samples in the Mmadinare Project.

TORONTO, ONTARIO--(Marketwired - Sep 18, 2013) -

Editors note: There is a photo associated with this release.

Pangolin Diamonds Corp. (TSX VENTURE:PAN) (the "Company" or "Pangolin") is pleased to announce the discovery of a volcanic intrusion with diamond-inclusion type ilmenites (the "SWS-21"), located in the Company's 100% owned Mmadinare Diamond Project (the "Project") in northeastern Botswana. This is one of the four Project Areas for which Pangolin has exploration licences. An update and overview of Pangolin's Tsabong and Jwaneng Project Areas will be released in the coming weeks.

Mmadinare Project Highlights include:

• Independent laboratory analysis by CF Mineral Laboratories Inc. of Kelowna, BC, Canada returned five manganese-rich or "Mn-ilmenites" recovered from the SWS-21;
  
  
• The five Mn-ilmenites were recovered from 20 kilograms of material taken from a discovery pit at a 2 meter depth in the central part of the intrusion;
  
  
• The five Mn-ilmenites recovered from the SWS-21 are similar to ilmenites reported by Dr. Felix V. Kaminsky and co-workers from 2001 to 2009 as inclusions in diamonds and from diamondiferous kimberlites in the Juina area of Mato Grosso, Brazil. Those ilmenites are reportedly derived from the lower mantle of the earth and are important diamond indicator minerals;
  
  
• The Juina area had economical kimberlites containing type IIa pink diamonds as reported by Diagem Inc. in 2007 & 2008 (information on these kimberlites can be found on Sedar.com in Diagem's news releases and Technical Report 43-101 F1 resource estimates). The report, authored by Dr. Felix V. Kaminsky, a Qualified Person under National Instrument 43-101 rules, corroborates his 2001 publication "Super Deep Diamonds from the Juina area, Mato Grosso State, Brazil";
  
  
• Enzyme-leach trace element results from the SWS-21, identified by the independent analysis of material sent to Activation Laboratories Ltd. of Ancaster, Ontario, are consistent with orientation trace element results over known diamondiferous kimberlites in the Jwaneng kimberlite field;
  
  
• The SWS-21 was discovered through pitting from surface and has negligible overburden; and
  
  
• Multiple diamond-inclusion type manganoan ilmenites were recovered from soil samples collected in a different part of the Project Area.
  
  

Pangolin is continuing exploration work on the SWS-21. A team is currently on site excavating trenches to delineate the surface area. The team will dig at least three exploration pits to a minimum 5 metre depth and process at least 100 tonnes of material through Pangolin's Dense Media Separation plant. The concentrate will be sent to an independent laboratory for the possible recovery of macro-diamonds. In addition, sampling will be conducted to locate the source of the Mn-ilmenites recovered from stream sediment soil samples.

Dr Leon Daniels, B.Sc., Ph.D., Chairman of Pangolin, stated, "The discovery of the SWS-21 intrusion Mn-ilmenites, similar to those reported as diamond inclusions from Brazil, is a significant development for our Mmadinare Diamond Project, where our focus is to discover near-surface, high grade diamondiferous kimberlites for in-house diamond production. The team on the ground is highly motivated by these positive results."

About the Mmadinare Diamond Project

The Mmadinare Project is 1,345.6 square kilometers in size and located in the north-eastern portion of Botswana. It has geobotanical features similar to known kimberlites.

There are similar geological environmental indicators to known mines such as Venetia, the Oaks, Martinsdrift, and River Ranch.

About Pangolin Diamonds Corp.

Pangolin Diamonds Corp. is building a leading diamond exploration and development company in the heart of Botswana, the world's leading diamond producing country by value. The Company is the 100% owner of 11 Prospecting Licences covering 5,307 km², including the Tsabong North, Jwaneng South, Malatswae and Mmadinare Projects. Pangolin's management and team leaders have over 135 years of combined diamond exploration experience in southern Africa. This makes the Company the most experienced diamond explorer in Botswana other than De Beers Exploration and Debswana. The Company is equipped for exploration, with two diamond drill rigs and a fully portable one-tonne per hour Dense Media Separation Plant used to prepare samples and make diamond concentrates. Pangolin is well-funded to continue its exploration programs for the next year.

For more information on Pangolin Diamonds Corp., please go to: www.pangolindiamondscorp.com.

To view the photo associated with this release, please visit the following link: http://media3.marketwire.com/docs/pan-F1.pdf.

References:

Kaminsky, F.V., Zakharchenko, O.D., Davies, R., Griffin, W.L., Khachatryan-Blinova, G.K., Shiryaev, A.A. (2001) Superdeep diamonds from the Juina area, Mato Grosso State, Brazil. Contributions to Mineralogy and Petrology, v. 140 (6), p. 734-753.

Kaminsky, F.V., Belousova, E.A. (2009) Manganoan ilmenite as kimberlite/diamond indicator mineral. Geologia i Geofizika (Russian Geology and Geophysics), v. 50 (12), p. 1212-1220.

Kaminsky, F.V., Khachatryan, G.K., Andreazza, P., Araujo, D., Griffin, W.L. (2009) Super-deep diamonds from kimberlites in the Juina area, Mato Grosso State, Brazil. Lithos, v. 112S (2), p. 833-842.

Cautionary Statements regarding Diagem Inc.'s Technical Report NI 43-101 F1 on exploration results and resource estimates:

Mineralization on adjacent properties is not necessarily indicative of mineralization on a subject property.

The technical disclosure in this news release has been reviewed and approved by Dr. Leon Daniels, Ph.D., Member of AIG, Chairman of the Board of Pangolin, and a Qualified Person under National Instrument 43-101 rules.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.