Diamcor Commences Drilling at Krone-Endora at Venetia Project

KELOWNA, BC, May 17 /CNW/ --
KELOWNA, BC, May 17 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI) (the 'Company'), is pleased to announce that the recommended drilling
programme at the Company's recently acquired Krone-Endora at Venetia
Project (the 'Project') has commenced.  As previously announced, heavy
equipment was deployed to the project shortly after the closing of the
acquisition, and approximately 38 kilometers of access roads and
additional clearing work required to access the drilling targets has
been completed as planned.  With this work complete, the initial phase
of the drilling programme commenced and approximately 25 of /-200
targets included in the initial drilling phase have now been drilled.

The drilling targets of the initial phase are located inside the
previously identified K1 and Confluence areas, as well as on new areas
of the Project located immediately to the East of the K1 area which
have not previously been drilled.  Drilling within the immediate and
surrounding areas of the K1 and Confluence areas are being done at
tighter in-fill spacing intervals of 100m x 100m in an effort to better
define the known higher-grade basal deposit previously identified by De
Beers, and to determine the potential extension and direction of the
deposit between these current areas and the existing outer fence-line
of Venetia.  Drilling of targets further to the east and north of the
K1 and Confluence areas will be completed at 200m x 200m spacing to
determine the potential extension and location of additional deposits
into these areas of the Project.

The diamond bearing deposits on the properties of Krone and Endora have
been identified as originating from the higher grounds of the adjacent
Venetia kimberlites, and occur in two layers with a combined average
total depth of only 15 meters from surface to bedrock.  The Company
plans to use the results of the low-cost reverse circulation drilling
now underway to aid in the determination of the potential extent and
location of additional upper and lower basal gravels, and in its
selection of areas for the upcoming bulk sampling programme.  The
completion of the recommended drilling and bulk sampling programmes in
the coming months are designed to support the Company's planned filing
of a new updated and current NI 43-101 Technical Report for the
Project.  These programmes will also be used to identify potential
areas for the Company's planned move to trial-mining exercises in the
near-term, and to assist the Company in arriving at final production
decisions for the Project over the long term.  The current NI 43-101
Technical Report as filed by the Company on July 30, 2009 was based
solely on the areas of the Project which De Beers performed initial
work on previously, with a diamond dollar per carat price estimate from
2005.

About Krone-Endora at Venetia:

On February 28, 2011, the Company successfully completed the acquisition
of the Krone-Endora at Venetia Project from De Beers.  The Project
consists 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.  De Beers previously completed various exploration
efforts on initial areas of interest comprised of approximately 310
hectares, a summary of which has been reported in an initial
Independent NI 43-101 Technical Report filed by the Company on July 30,
2009.  The deposits which occur on the properties of Krone and Endora
have been identified as a rare, higher-grade lower 'Eluvial' basal
deposit which is covered by a lower-grade upper 'Alluvial' 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 an estimated combined 1,000m (1 km) of material from the
higher grounds of the adjacent Venetia Kimberlite areas.  Based solely
on the work completed to date, the current NI 43-101 Technical Report
filed provided a current inferred resource estimate of 54,258,600
tonnes of diamond-bearing gravels and 1.3 million carats of diamonds
for the initial areas of interest alone.  The deposits on Krone-Endora
occur in two layers with an average total depth of only 15.0 metres
from surface to bedrock, allowing for a very low-cost mining operation
to be employed, and the potential for near-term diamond production from
a known high-quality source.  Krone-Endora as well benefits from the
significant development of infrastructure and services already in place
due to its location directly adjacent to the Venetia Mine.

About Diamcor Mining Inc:

Diamcor Mining Inc. is a fully reporting publically traded junior
diamond mining company which is listed on the TSX Venture Exchange
under the symbol V.DMI.  The Company has a well established operational
and production history in South Africa, and extensive experience
supplying rough diamonds to the world market.  Rather than exposing
itself to the high-risks and costs associated with exploration, the
Company's focus is on the identification, acquisition, and operation of
quality near-term production based diamond projects such as the
Krone-Endora at Venetia Project.  For additional information on
Diamcor, please visit our website at www.diamcormining.com.

Strategic Tiffany & Co. Alliance:

As announced on March 29, 2011, the Company has established a long-term
strategic alliance and first right of refusal with 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. 
To expedite the production and supply of rough diamonds from
Krone-Endora at Venetia, Tiffany & Co. has also provided the Company
with additional financing for the Project.  Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF.  Originally founded in 1837, the
Tiffany's name is now globally recognised as one of the premier luxury
jewellery and specialty retailers in the world.  Through Tiffany & Co.
and various other subsidiaries, the company is engaged in product
design, manufacturing, and retailing activities on a global basis.  As
of October 31, 2010 Tiffany & Co. operates 225 retail stores and
boutiques in the Americas, Japan, Asia-Pacific, and Europe and engages
in direct selling through internet, catalog and business gift
operations.  For additional information on Tiffany & Co., please visit
their website at www.tiffany.com.

On behalf of the Board of Directors

Mr. Dean H. Taylor


President & CEO


Diamcor Mining Inc.

DTaylor@diamcormining.com

Phone:  (250) 864-3326


Website: www.diamcormining.com

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.

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that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

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

Phone:  (250) 864-3326
Website: www.diamcormining.com