Diamcor Secures USD $5.0M Term Loan for Krone-Endora at Venetia Project

Diamcor Mining Inc. (TSX-V: DMI, OTCQB: DMIFF, FRA: DC3A), a Canadian diamond mining company with a well-established operational and production history in South Africa, has signed a letter of intent with a Dubai-based company for a USD $5.0M term loan. This financing will be used to support the processing of material at significantly higher volumes at the company's Krone-Endora at Venetia project, advance work programs previously started, and prepare for bulk sampling aimed at expansion into the greater portions of the project. The funds will also be used for general corporate purposes.

The term loan financing is subject to regulatory approval of the TSX Venture Exchange, as well as the completion of all definitive documentation and filings as required. The term loan will be unsecured and carry a yearly interest rate of 15%. For every USD $100,000 of principal advanced under the financing by participants or lenders, Diamcor will issue 150,000 common shares in its authorized share capital, along with 75,000 share purchase warrants.

Diamcor believes that the short-term issues that caused the reduction in demand and depressed prices throughout the rough diamond sector in 2023 are now showing signs of improvement. The potential for recovery in 2025 is widely expected by most in the industry. Excess inventories experienced throughout much of the industry's supply chain owing to elevated post-Covid buying are now becoming more balanced, more restrictive sanctions are being imposed on Russian diamonds, and many of the world's largest luxury retailers are launching significant advertising campaigns to educate consumers on the differences between lab-grown diamonds and the long-term value and rarity of natural diamonds. These elements, when combined with the expected future reduction in global production owing to the age of existing mines and the lack of any significant new finds in over ten years, provide the potential for companies with the ability to supply natural non-conflict rough diamonds to be very well-positioned moving forward.

Diamcor continues to advance discussions with various larger industry groups and financiers on the provision of larger non-dilutive facilities to support future growth. The company is committed to maintaining its financial independence while pursuing strategic goals for the Krone-Endora at Venetia project.



This financing aligns with Diamcor's long-term strategic goals, particularly in relation to the Krone-Endora at Venetia project, by providing the necessary capital to support higher volume processing, advance work programs, and prepare for bulk sampling. The funds will also help the company maintain its financial independence while pursuing growth opportunities. The high interest rate of 15% on the term loan may pose a financial burden, but Diamcor is confident in its ability to service the debt and continue its growth trajectory.