Pangolin Diamonds Intersects 59 Metres of Kimberlite at One of the World's Largest Kimberlites, in Botswana

- Geophysical modeling suggests the Magi-Kimberlite at Pangolin's Tsabong North Project in Botswana is a 270 hectare (2.7 km2) pipe

- The new Magi-04 drill hole is 400 metres north of the Magi-01 drill hole, increasing the confidence level as to its size

- Drilling at Magi-04 drill core intersects 59 metres of kimberlite at 35 metres below surface

- This additional hole builds on earlier positive intersections at the same site

- Company's drill program is funded into mid-2014

TORONTO, ONTARIO--(Marketwired - Dec 11, 2013) - Pangolin Diamonds Corp. (TSX VENTURE:PAN) (the "Company" or "Pangolin") announced that it has core drilled a new hole, Magi-04, at the Company's Magi kimberlite. Kimberlite was intersected from 35m depth to 94 metres. Karoo sandstones were intersected from 94m to 127m at which depth the hole was terminated. The Magi, one of the largest kimberlites in the world, modeled at 270 hectares (2.7 km²), is located in Pangolin's 100% owned Tsabong North Project (the "Project") in Botswana. The kimberlite was discovered earlier this year, as announced in the Company's October 16, 2013 news release.

The Magi Kimberlite Discovery

The Magi kimberlite has now been confirmed over a distance of 1,200 metres in an East-West direction and 400 metres to the North. The average depth of intersection of the crater facies sediments is approximately 35 metres. The depths of intersection of the sandy tuffs vary between 55.3 and 61.5 metres.

Further work will continue. Six additional holes have been laid out for core drilling to confirm the modeled size of the Magi kimberlite. These core holes will also be used towards modeling the complex geology of the crater sediments and kimberlitic sandy tuffs in preparation for future possible larger diameter drilling. One hole will be drilled to a minimum depth of 250 metres of kimberlite intersection.

Detailed logging of the core indicates that the Magi kimberlite is of syn-Karoo age. This makes it older than the Cretaceous diamondiferous kimberlites of the Tsabong kimberlite field further to the south, dated at 78 million years, but potentially similar in age to the Jwaneng kimberlites, dated at 245 million years.

Core samples from all the holes are being submitted to independent laboratories to recover any additional indicator minerals, and any diamonds.

Dr Leon Daniels, PhD, Chairman of the Board of Pangolin, stated: "The Magi-04 drill hole result is consistent with the geophysical model for the kimberlite. Geological modeling of the kimberlite will continue well into 2014. "

About the Tsabong North Project

The Tsabong North Project, located approximately 100 km north of the town of Tsabong in south-western Botswana, is 1,545 km² in size. It is comprised of anomalous concentrations of kimberlite indicators and has large geo-botanical features. Pangolin has identified more than 50 drill-ready aeromagnetic targets in the Project area, several of which have surface areas exceeding 20 Hectares (0.2 km²).

The Tsabong North Project is situated on the margin of the Archaean Kaapvaal Craton in a similar tectonic environment to the Orapa kimberlite field. A total of 45 mantle-derived garnets, inclusive of the high pressure diamond-indicator garnets, were discovered in the drill core of Magi-01. These garnets are similar in chemical composition to the garnets from the Letlhakane Mine in the Orapa area.

Pangolin's soil sampling has produced highly anomalous concentrations of kimberlite indicators within the Project area. Microprobe analyses of indicator minerals have confirmed the presence of G10 garnets, indicating the presence of a mantle conducive to the crystallization of diamonds. A number of indicators occur, including remnants of kelyphite that indicate close proximity to kimberlite. Enzyme-leach trace element results are consistent with orientation trace element results over known kimberlites near the Project.

The Company cautions that information regarding the Orapa kimberlites, and Letlhakane Mine or Orapa Mine or Jwaneng kimberlites, are not necessarily indicative of the kimberlite or kimberlite targets being drilled by the Company. The Company further cautions that there is no guarantee that the kimberlite and/or 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 4 separate projects throughout Botswana inclusive of 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 into mid-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 Diamonds, a Qualified Persons under National Instrument 43-101 rules.

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

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