Pangolin Diamonds Drills 120 Hectare Circular Kimberlite Target at its Jwaneng South Project, Botswana

- Project is 50 km South of DeBeers' Jwaneng Mine in Botswana, the World's Richest Diamond Mine By Value

- First Kimberlite Target Covers an Area Two Times the Size of DeBeers' Jwaneng Mine at Discovery in 1972

- Trace Element Chemistry is Similar to Diamondiferous Kimberlites in the Jwaneng Kimberlite Field

TORONTO, ONTARIO--(Marketwired - Oct 7, 2013) - Pangolin Diamonds Corp. (TSX VENTURE:PAN), (the "Company" or "Pangolin") is pleased to announce that diamond core drilling has commenced at its 100% owned Jwaneng South Project (the "Project") in Botswana, Africa. This is one of Pangolin's four 100% owned diamond exploration projects in Botswana.

Drilling marks the next major step in Pangolin's exploration of its Jwaneng South Project. The Company has identified more than 20 drill-ready kimberlite targets at the Project area since work commenced in 2011.

Highlights of the initial Kimberlite Target ("GK6") now being drilled at Jwaneng South include:

• GK6 is a large circular feature highlighted by a high density vegetation anomaly spanning an area of 1.5 km in diameter. This feature can be seen clearly with Google EarthTM - click here: http://pangolindiamondscorp.com/cGEBC58.kml;

• The GK6 aeromagnetic drill target covers 120 hectares. It is twice the size of DeBeers' Jwaneng Mine when first discovered in 1972 and approximately the same size as their Orapa Mine when first discovered in 1967. The Jwaneng Mine is the worlds richest diamond mine by value and contributes 60% – 70% of Debswana's annual revenue. The Orapa Mine is the second largest diamond producing kimberlite pipe in the world;

• Aeromagnetic surveys indicate the formation is near surface; and

• Gravity lows at GK6 are the same to those associated with the Jwaneng Mine diamondiferous kimberlites.

To view the figure (GK6 Kimberlite Target) associated with this press release, please visit the following link: http://www.marketwire.com/library/20131006-GK6800.jpg

Pangolin's diamond drill program at GK6, now underway, will consist of at least two core drill holes to a minimum depth of 150 meters. The drilling will center on two magnetic phases identified within the aeromagnetic anomaly associated with the feature visible on Google Earth™.

A number of other aeromagnetic and vegetation (geo-botanical) anomalies within the Jwaneng South Project are targeted for drilling during this campaign. They also exhibit magnetic positive or negative characteristics.

Below are a 650 meter wide positive anomaly and a 1,000 meter wide negative anomaly:

To view the figure (GH6 Kimberlite Target and GL01 Kimberlite Target) associated with this press release, please visit the following link: http://www.marketwire.com/library/20131006-KimberliteTarget.jpg

Dr Leon Daniels, B.Sc., Ph.D., Chairman of Pangolin, stated, "The proximity of the famous Jwaneng Mine makes this Project one of the top priorities of Pangolin's exploration program. We look forward with anticipation to an aggressive drilling campaign to test an abundance of large kimberlite targets."

About the Jwaneng Kimberlite Field

The Jwaneng Kimberlite field has 18 confirmed kimberlites, of which at least 6 are known to be diamondiferous and 4 are being mined. This represents a 1 in 5 conversion from exploration target to production. The field is situated in the Southern District of Botswana, 100 km north of the South African border. The Jwaneng Mine is the world's richest diamond mine by value, contributing 60% - 70% of Debswana's annual revenue. It generates approximately US$1.16 billion from 8 million carats produced annually.

About the Jwaneng South Diamond Project

The 799 km² Jwaneng South Project is located 50 km south of the Jwaneng Mine. The Jwaneng Mine was discovered in 1972 and is operated by Debswana, a joint-venture company between DeBeers and Botswana. There is well-established infrastructure in the area with a skilled workforce, roads, power and water.

Pangolin has identified more than 20 large, drill-ready kimberlite targets at its Jwaneng South Project through exploration work completed since 2011. The Project has multiple, circular crater-like features with aeromagnetic characteristics similar to those of kimberlites in the Pipe 441 area of Canada. Enzyme-leach trace element results are consistent with orientation trace element results over known diamondiferous kimberlites from the Jwaneng kimberlite field. These results come from an independent analysis of samples by Activation Laboratories Ltd. of Ancaster, Ontario.

The Company cautions that information regarding the Jwaneng Mine and Orapa Mine is not necessarily indicative of the kimberlite targets being drilled by the Company, and there is no guarantee that the kimberlite targets being drilled by the Company will return diamond results of any economic significance.

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 DeBeers 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 into 2014.

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.

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

References:

DeBeers web page: http://www.debeersgroup.com/Operations/Mining/MiningOperations/Debswana/Jwaneng)

Debswana web page: http://www.debswana.com/Operations/Pages/Jwaneng.aspx

GOOGLE Earth™: http://earth.google.com

Mining.com - Rough diamond prices to skyrocket in 2018: http://www.mining.com/rough-diamond-prices-to-skyrocket-in-2018

Sources: Bain & Company, Company data, government data, the Kimberly Process and Paul Ziminsky analysis

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.