Pangolin Recovers Diamonds From the Kimberlitic Magi Area, Tsabong North Project, Botswana

TORONTO, ONTARIO--(Marketwired - May 20, 2014) - Pangolin Diamonds Corp. (the "Company" or "Pangolin") (TSX VENTURE:PAN) is pleased to announce the recovery of micro-diamonds from a series of recently acquired core samples from the Magi kimberlitic sandy tuff at its 100%-owned Tsabong North project in south-west Botswana.

Highlights include:

• The Magi kimberlitic sandy tuff is diamond-bearing;

• Three micro-diamonds are recovered from a 3.7 m interval of kimberlitic sandy tuff in drill hole Magi-005. The micro-diamonds have a total carat weight of 0.000108 ct with one diamond retained on the 0.150mm sieve;

• A further ten split-core samples from drill hole Magi-008 drill hole are on route to Canada for diamond recovery;

• Drill hole Magi-007 is complete and split-core samples are being considered for diamond recovery;

• Both drill holes will test two recently discovered circular magnetic features within the Magi kimberlitic sandy tuff area.

The samples of drill hole from Magi-005 collected for diamond recovery at the kimberlitic Magi area have returned three micro-diamonds from two consecutive samples (sample 2304: 45.65 meters to 47.65 meters and sample 2305: 47.65 meters to 49.35 meters) with a total length of 3.7 meters. The samples are described as reddish brown, fine to medium grained sandy tuff with greater than 10% rock fragments of quartz and schist, with some micro faults/joints in-filled with siltstone. There are additional similar sandy tuff horizons in the drill hole available for sampling.

The Magi core samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion.

During the period between sampling and the delivery of these results Pangolin has continued to work on the Magi area. A ground magnetic survey was particularly successful in recognizing two separate magnetic features in close proximity to the sandy tuff area. The reader is encouraged to visit the Pangolin Diamonds website to view an image of the Magi magnetic targets and the location of the drill holes completed (www.pangolindiamondscorp.com/Tsabong.php).

Drill hole Magi008 was recently completed and ten split-core samples of fine to medium grained chaotic to banded sandy tuff were selected for diamond recovery work. These samples are on route to CF Mineral Research Limited in Canada. The results are not expected for at least one to two months. Drill hole Magi-007 was just completed and will be logged and sampled as necessary. Planning is now underway to step-up the sampling and drilling program at Magi.

Mmadinare Diamond Project

Pangolin received a confirmation report of previously reported micro-diamonds recovered from soil samples at its 100% owned Mmadinare Diamond Project in north-east Botswana. The confirmation testing report of four grains from the Mmadinare project; two previously reported as micro-diamonds after mineral observation (Block 01 and Block 02) and two additional "possible" micro-diamonds (Block 01) did not pass diamond testing. The significant numbers of mineral indicators recovered from the same set of samples, primarily ilmenites, are being prepared for micro-probe analysis to characterize their potential diamond affinity. The Company remains confident that the indicator rich areas discovered to date and the presence of the SWS-21 intrusion containing mantle minerals with chemistry related to the diamond stability field are indicative of the area's diamond potential.

Diamond confirmation testing was carried out by CF Mineral Research Limited in Kelowna, Canada using an EDS spectrum test.

The first phase of follow-up soil sampling designed to expand on the discovery of numerous indicator minerals in two separate areas within the project is complete. The 148 samples will be processed by Pangolin in its DMS plant located in Francistown, Botswana. Mineral concentrates will then be observed by an independent agent with confirmation testing, if necessary, by CF Mineral Research Limited.

Malatswae Diamond Project

Pangolin Diamonds, in its wholly owned subsidiary Geocontracts Botswana (Pty) Limited, was issued in terms of Section 16 of the Mines and Minerals Act, a new Prospecting Licence (PL247/2014) for the exclusive right to prospect for Precious Stones within a 839 km² area of the Central District, Botswana.

Field work will begin shortly in accordance with the proposed work programme outlined in the PL application. The first year will involve soil sampling for indicator minerals on a one kilometre grid.

About the Tsabong North Diamond Project

The Tsabong North Project, located in southwestern Botswana, is 1,546.06 square kilometres in size. It is on the northern edge of the Tsabong Kimberlite Field known to contain 85 kimberlites. A number are diamond-bearing.

During the past nine months a series of airborne geophysical targets were drill tested. To date the most significant discovery is the Magi area where an apparently extensive kimberlitic tuff was intersected in six drill holes.

The presence of diamonds in the Magi is consistent with the high pressure mantle derived garnets previously reported from this discovery and, together with the known diamondiferous Tsabong kimberlites to the south, confirms the general prospectivity for diamondiferous kimberlites in the area.

About the Mmadinare Diamond Project

The Mmadinare Project, located in northeast Botswana, is 1,345.6 square kilometres in size. It contains similar geological environmental indicators to known mines such as Venetia, the Oaks, Martins Drift and River Ranch.

As reported in the September 18, 2013, news release, Pangolin previously discovered Manganese-rich (manganoan) ilmenites within a volcanic intrusion (the "SWS-21") in the Project Area. Manganese-rich diamond-inclusion type ilmenites are known to be associated with diamondiferous kimberlites and diamonds.

The enzyme-leach trace element chemistry from the SWS-21, identified by independent lab analysis, is identical to diamondiferous kimberlites in the Jwaneng area, Botswana. Also as reported, multiple diamond-inclusion type manganoan ilmenites were recovered from soil samples collected in a different part of the Project Area.

About the Malatswae Diamond Project

The Malatswae Diamond Project covers approximately 1,200 km² and is located 70 km southeast of the Orapa Mine. The Project targets kimberlite. The chemical
compositions of the garnets from the Malatswae Project are distinctly different from the garnets from the Orapa kimberlite field, indicating an undiscovered kimberlite
source.

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 Person as defined by National Instrument 43-101.

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 four separate projects throughout Botswana inclusive of the Tsabong North, Jwaneng South, Malatswae and Mmadinare Projects. Pangolin's management and team leaders have over 100 years of combined diamond exploration. This places the Company as one of the most experienced diamond explorers in Botswana. 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.

For more information, please refer to www.pangolindiamondscorp.com

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