Diamcor Provides Operational and Corporate Update

KELOWNA, January 12, 2023 - Diamcor Mining Inc. (TSXV:DMI)(OTCQB:DMIFF)(FRA:DC3A), ("Diamcor" or, the "Company") announced today an operations and corporate update for the Company's Krone-Endora at Venetia Project (the "Project"). Various operational upgrades were advanced and increases in revenue were demonstrated during H2 2022 despite the ongoing power outages experienced throughout South Africa in 2022 which negatively affected processing volumes. The Company's focus in 2023 will remain on additional operational advancements to support the increase of processing volumes over the long-term, with the key near-term objectives being to install supplemental power systems, additional large material processing and diamond recovery systems, the procurement of additional heavy equipment, and to further advance recommended exploration drilling and bulk sampling efforts to further expand the Company's understanding of the geotechnical aspects and the greater potential of the Project.

Operations Highlights 2022

• Various Upgrades Completed on Schedule - The Company successfully completed various upgrades as envisioned throughout 2022. These included the procurement of additional screening equipment, the development and installation of various items to lower water consumption on a per ton basis, the improvement of water recoveries from processing, and initial expansions and improvements to the Project's final recovery systems. Together these improvements, along with a host of other items, lowered operational costs while improving efficiencies and recoveries for the long-term.
• Increased Processing Volume Capabilities - While issues surrounding the national power supply in South Africa during 2022 impacted the Company's overall processing volume potential due to lost operational hours, the upgrades were successfully completed and demonstrated the Project's processing plant's capabilities to achieve increases in processing volumes per hour of up to 70% over historical levels.
• Reductions in Operating Costs on a Per Ton Basis - The collective upgrades completed also demonstrated their ability to achieve the Company's goal of not only increasing the Project's hourly processing volumes, but to do so while lowering operating costs on a per ton basis. The screening improvements have also shown their ability to reduce consumables and provide additional benefits with material handling and heavy equipment cycle times.

Key Operational Focus/Outlook for 2023

• Installation of Power Upgrades to Minimize Down Time - As part of the evaluation of operations during 2022, the Company identified several solutions to supplement the Project's current power systems with suitable cost-effective systems to minimize the impact of potential future load-shedding in South Africa by the state-run national power supplier (Eskom). The Company sees this as one of the key items to be undertaken early in 2023 and believes that, once completed, there will be further improvements to processing volumes given the resulting increase in operational hours. These efforts include the installation of a larger standby generator at the Project's main treatment plant, battery backup systems to bridge time between power outages and the switch to generator power, and power conditioning equipment to improve the overall quality of the power being supplied. This in turn is expected to have positive impacts on the processing plant's electrical systems, improving power supply quality and variability, and thus lowering maintenance costs.
• Planned Further Increases in Processing Volumes - The Company successfully advanced several objectives in 2022 which allowed it to demonstrate the Project's processing plant's abilities to achieve increased processing volumes on an hourly basis. The further growth in processing volumes has been planned throughout 2022 and will include the installation of high-volume processing equipment that will deal specifically with the larger size fractions of material at the Project, allowing material to be screened into two specific size fractions, which is expected to further increase overall processing capacities at the Project by as much as 75%. This enhancement will also incorporate additional in-pit screening to provide the benefit of yet further efficiencies in material hauling and immediate rehabilitation.
• Exploration into Greater Project Area - The Company's efforts to date have been largely focused on the recommended initial drilling and bulk sampling exercises, followed by the development of the Project's infrastructure, processing plants, and the current trial mining exercises over an initial area of ~657.71 hectares of the Project's total ~5,888 hectares. With the advancement of the upgrades to the Project's processing plants now largely completed as envisioned, the Company plans to proceed early in 2023 with the continuation of drilling and bulk sampling on several extended portions of the confluence area which extend out from the current trial mining area. These drilling and bulk sampling exercises do not require any significant additional permitting, and are planned to take place in conjunction with current ongoing operations at the Project. Further details will be released in the coming weeks.

"Despite various challenges throughout the year, we are very pleased with the operational improvements and the increases in revenue achieved in 2022", stated Mr. Dean Taylor, Diamcor CEO. "Our focus in 2023 will continue to be on further increasing processing hours and tonnages for the long-term, as well as looking towards the greater opportunities we have over the additional areas of the Project yet to be defined. These opportunities, with the goal of expanding our deposits inventory, are seen as an important step for the Company."

"As we look forward to building off our successes in 2022 and carrying them into 2023, I would also like to take this opportunity to thank our team, suppliers, and shareholders for their support and wish all the very best in 2023."

About Diamcor Mining Inc.

Diamcor Mining Inc. is a fully reporting publicly traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI, and on the OTC QB International under the symbol DMIFF. The Company has a well-established operational and production history in South Africa and extensive prior experience supplying rough diamonds to the world market.

About the Tiffany & Co. Alliance

The Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of 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 at then current prices to be determined by the parties on an ongoing basis. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with financing to advance the Project. Tiffany & Co. is owned by Moet Hennessy Louis Vuitton SE (LVMH), a publicly traded company which is listed on the Paris Stock Exchange (Euronext) under the symbol LVMH and on the OTC under the symbol LVMHF. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

About Krone-Endora at Venetia

In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting 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. On September 11, 2014, the Company announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project's total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade "Alluvial" basal deposit which is covered by a lower-grade upper "Eluvial" 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 material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.

Qualified Person Statement:

Mr. James P. Hawkins (B.Sc., P.Geo.), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has reviewed this press release and approved of its contents.

On behalf of the Board of Directors

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

For further information contact:

Mr. Dean H. Taylor
Diamcor Mining Inc.
DeanT@Diamcor.com
+1 250 862-3212

Mr. Rich Matthews
Integrous Communications
rmatthews@integcom.us
+1 (604) -757-7179

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.

WE SEEK SAFE HARBOUR

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

SOURCE: Diamcor Mining Inc.