Annual Report 2008
Project3  3/25/09  2:24 PM  Page 1 DiamondCorp is an emerging diamond producer focused on
maximising shareholder value through the development of
high-margin diamond production assets. The company is
incorporated in the United Kingdom, and operates in the
long-established diamondiferous regions of South Africa.
DiamondCorp plc was formed in March 2005 and was
admitted to the Alternative Investment Market (AIM) of the
London Stock Exchange (“DCP” in “Mining” sub sector) on
1 February 2007.The company attained a secondary listing
on the main board of the JSE on 31 March, 2008 (“DMC” in
“Basic Materials – Diamonds & Gemstones” sector).
DiamondCorp’s primary asset is the Lace Diamond Mine,
located 200 kilometres south-west of Johannesburg and
approximately 20 kilometres from Kroonstad in the Free
State Province of South Africa.The Lace property consists of
approximately 1,180 hectares and potentially contains more
than 13 million carats of diamonds in tailings and kimberlite.
In addition, Lace has been granted new order prospecting
rights over two further properties, namely the Silverbank and
Moregroet properties, both of which adjoin the Lace prop-
erty, where additional kimberlites have been identified.
1 Highlights and operational progress
2 Chairman’s letter to shareholders
6 CEO’s review of the year
9 Resource statement
12 Board of Directors and Management
14 Corporate governance
15 Financial report
17 Remuneration report
18 Directors’ report
22 Statement of Directors’ responsibilities
23 UK  Auditors’ report 
25 SA Auditors’ Report 
26 Consolidated income statement
27 Company income statement
28 Consolidated balance sheet
29 Company balance sheet
30 Statement of changes in equity 
31 Consolidated cash flow statement
32 Company cash flow statement
33 Notes to the financial statements
56 Notice of Annual General Meeting
58 Officers and professional advisors 
59 Form of Proxy
Corporate profile
Contents
Project3  3/25/09  2:24 PM  Page 2 • Lace tailings re-treatment recovered 50,521 carats. Recoveries averaged 6.28 carats per hundred tonnes (cpht) –
approximately 70% of diamonds recovered were gem quality. Recoveries improved to 7.23 cpht in Q4 following 
re-commissioning of the re-crush circuit
• Connection to a second Eskom power supply from a new power line servicing the De Beers Voorspoed diamond
mine completed. Impact of power outages and load shedding declined
• Initial problems with processing circuit overcome in anticipation of underground mining. Commissioning of primary
crushing circuit commences in March 2009
• Good progress with decline. Satellite pipe reached in November 2008; holing into main pit in January 2009
• Access to high-grade, high-value coherent hypabyssal kimberlite from the main pipe being accelerated
Operational progress
1
Annual Report 2008
• £3.55 million equity raised through two share placements during the year
• Agreement reached with Africa Opportunity Fund LP for a US$5 million loan facility, which completed the funding
requirements for Phase 2 at Lace 
• 31,906 carats of gem diamonds sold at tender in Johannesburg for R14 million (US$1.7 million) at an average price 
of US$53.52 per carat
• Mining right granted for Phase 2 Lace underground development by the South African Department of Minerals and
Energy (DME)
Highlights 2008
DIAMOND CORP(BM) 23-3-09  3/25/09  12:52 PM  Page 1 Y ou will be acutely aware of the current state of the financial markets.
Mining is one of the first sectors to suffer in such a bear market and
particularly small miners, when investors question whether they have
the finance, or indeed the right projects, to stay afloat.
I will not dwell on this in my report, other than to note that our
share price has outperformed many in our peer group.This was
partially as a result of our shares being tightly held, introducing a
major new shareholder and not having to face hedge fund investor
distress or large scale redemptions. However, we also believe that
our outperformance is due to the fundamental strength of our
primary asset and the significant progress made towards bringing
the Lace Diamond Mine into full underground production more
than a year ahead of schedule.At peak production, Lace is expected
to produce more than 500,000 carats of diamonds per year.
I hope in this report that we provide shareholders with some insight
into the delivery by your Company on our objectives during the year,
and how DiamondCorp is positioned, not only to weather current
markets, but to grow and thrive in the medium to longer term.
Looking back on the 2008 financial year, I am pleased to report that
there have been several highlights, including:
• The recovery of some 50,000 carats of diamonds from the
tailings re-treatment operation;
• Continued and accelerated development of the Phase 2 Lace
Underground mine, with bulk sampling commencing from the
Satellite Pipe by the end of 2008;
• Granting of mining rights for Phase 2, providing security of tenure
for at least 20 years;
• Construction and early commissioning of the primary crushing
circuit by March 2009, ahead of schedule; and
• Raising all requisite funding for Phase 2 development, through
equity capital and a project loan.
The diamond market
The diamond market today has been severely affected by the
worldwide recession. Like the banking crisis, the speed and severity
of the collapse in rough diamond prices, which more than halved in
the latter half of the year, was not an event we expected or for
which we could plan. Diamonds, as a luxury commodity, have clearly
felt the impact of softening retail sales, with around 40% of the
global retail demand emanating from the United States. However,
the impact of the global contraction in diamond demand has been
exacerbated by two other factors – the crisis in the global banking
industry and further destocking in the diamond pipeline led by the
industry leader De Beers. In respect of the first point, credit to the
diamond cutting and polishing industry has simply evaporated with
a knock-on impact on primary demand.This is a consequence of the
withdrawal  of a major traditional lending institution with historic
ties to the trade.The second factor, the continued destocking by the
industry driver De Beers over the past five or six years, is not
entirely unrelated and has also had a significant impact on supply
2
Annual Report 2008
Chairman’s letter to shareholders
“We remain focused for the year ahead: our primary efforts will be to ensure that we
are producing from the underground operation by mid-year, and generating positive
cash flows, with costs contained within the lowest industry quartile.”
Dear Shareholders
Euan Worthington
Chairman
DIAMOND CORP(BM) 23-3-09  3/25/09  12:52 PM  Page 2 over perhaps a longer period and also on prices. Its stockpile has
reputedly been run down, and the expectation is that market-
related supply-demand forces will shape this sector in the future,
perhaps for the first time ever.
So, what does this mean for prices in the medium to long term?
We are pleased to note that producers have been very responsive
to the rapid change in the market and many loss-making
operations have been placed on care and maintenance and even
closed. In addition, most recent diamond discoveries (most notably
in Canada) have already been brought into production, so that
when demand recovers we believe that there will be a serious
shortfall in rough diamond supply.This change could begin within
the next two to three years.We are aware of the increasing supply
from synthetics which are playing and will continue to play an
important role in filling some of this gap, subject to energy prices.
However, for higher value stones, consumers continue to want, and
indeed demand, the real thing.
Thus, along with industry commentators, we see a widening gap
developing between diamond supply and demand. As with a
number of other commodities, when the next upturn comes there
simply is not going to be sufficient economic and immediate
production available to meet demand. Inevitably, this will lead to
upward pressure on prices.
We believe that the production of coloured and higher-grade,
higher-value stones from Lace will give us an added advantage and
we are looking forward to viewing the first output from hard rock
kimberlite in the coming months.
On the road to full scale production
Production from the tailings re-treatment operation continued
during the year, yielding 50,521 carats of diamonds, and generating
revenues of US$1,707,000 (£916,767). Pleasingly, around 70% of
the diamonds recovered were of gem quality, confirming our
expectations of what we will face when we start production from
the Main Pipe. Although the tailings re-treatment operation was
suspended at the end of 2008, because the diamond price fall had
rendered it uneconomic, its real value has been in developing and
testing the operating circuit in advance of full underground
production.The value of this cannot be underestimated.This year-
long learning curve helped us to identify and overcome teething
problems and resulted in the successful re-commissioning of the
re-crush circuit in the fourth quarter. Shareholders can also be
assured that we will bring to account the stones remaining in the
tailings dump when diamond prices rise.
Given the state of the markets, the decision in 2007 to accelerate
the development of Phase 2 of the Lace underground mine in
order to access rapidly the higher-grade kimberlite has proven
both timely and fortuitous. Good progress has been made with the
project, with the recent commencement of underground bulk
sampling from the Satellite Pipe.This will be followed by access to
the Main Pipe by mid-year. Assuming that the diamond grade of
Lace kimberlites allows us to be profitable at current prices, mining
will then commence and increase to around 3,000 tonnes per day
in the second half of 2009, reaching full production of 4,000 tonnes
per day when the vertical shaft is refurbished in 2010.
Licence to operate
A key development post year-end (on 5 February 2009) in a
process undertaken throughout 2008, was the granting of the
mining right for the Lace underground mine by the South African
Department of Minerals and Energy (DME) in terms of the Mineral
and Petroleum Resources Development Act. Our 21-year lease,
which is renewable, provides a legal tenure, a certain operating
framework and a licence to operate in the broadest sense of this
term.We have been grateful for the co-operation of the DME and
others in finalising these legalities and remain convinced that the
South African mining environment is both investor-friendly and
pragmatic.The delay in the implementation of the proposed Royalty
Bill, which would have imposed a royalty of up to 5% on diamond
revenues (with effect from this financial year), is evidence of this and
will protect and stimulate the local mining industry, both objectives
of Finance Minister Trevor Manuel that show insight and foresight.
Our relations with local communities remain good, and we are
working with our Black Economic Empowerment (BEE) partners
to ensure that the mineral wealth released from below surface, can
transform and grow into meaningful and sustainable benefits for
our communities in the longer term. Apart from job creation, the
most important primary need in the area is for education and we
are working with Sphere and Shanduka as to how we can best
deliver to meet this need.
Finally, we have had constructive interaction with the State
Diamond Trader (SDT) which is entitled, through statute, to
purchase 10% of our production at their discretion.To date, the
SDT has not acquired any of our diamonds.
3
Annual Report 2008
DIAMOND CORP(BM) 23-3-09  3/25/09  12:52 PM  Page 3 4
Annual Report 2008
Fully-funded to production
We were very pleased to attract the considered attention of
and investment by the European Islamic Investment Bank plc
(EIIB) into your company, as a cornerstone shareholder at a time
when robust shareholder support can be critical to a company’s
success. EIIB is now our largest shareholder and we welcome to
the board EIIB’s Head of Private Equity, Mr Robin Henshall.
Our discussions with EIIB have indicated that they are
supportive of our immediate progress, plans and longer-term
growth ambitions.
Importantly, the Company is fully-funded as a result of two share
placements (raising £3.55 million) and the raising of a project loan
of US$5 million (£2.8 million). We are particularly pleased to be
able to bring the Lace mine back into production without further
recourse to the stricken and costly financial markets.
Seeking new opportunities
We continue to review diamond projects and, in particular, those
where our development and operational team can add value.
We have talked to many potential sellers and suitors and, while
we are focused in Southern Africa, we have looked at
opportunities as far afield as West Africa, Australia and even
Canada. However, to date we have not been able to match the
value and the potential for profitability that shareholders will
gain from Lace. Consequently, after extensive reviews and due
diligence, we have not been able to consummate any deals. We
remain on the look-out as current markets provide impetus for
consolidation and favour those with capital, or access to capital,
together with the particular skill set such as ours that can
transform a project into a mine. I would also remind
shareholders that there are other known kimberlites on our
licences around Lace, which we will look to explore when free
cash flow is available.
First class team in place
We have been fortunate to attract and retain a first class team,
both at a corporate and operational level who have flawlessly
planned for Phase 2 and have delivered ahead of time and on
budget.They have built up a substantial base of trained operators,
drawn almost entirely from local communities and having honed
their skills during the tailings retreatment phase, will be able to
introduce them rapidly into the full scale mining operation.
The year ahead
We remain focused for the year ahead – our primary efforts will
be to ensure that we are producing from the underground
operation by mid-year, and generating positive cash flows, with
costs contained within the lowest industry quartile.We anticipate
achieving solid margins, even at current diamond prices and when
our operation comes into full production in 2010, we will be able
to take full advantage of the expected recovery in diamond prices.
Our vested value remains unarguable: with some 35 million tonnes
of kimberlite outlined within the Main Pipe, containing an estimated
13.8 million carats of diamonds at an average grade of 42 carats per
hundred tonnes, worth some R10 billion (£715 million) in-ground
at current prices.
We will maintain our licence to operate, acting as a responsible
citizen and fair employer while we continue to look for attractive
opportunities for growth.
Euan Worthington
Chairman
Chairman’s letter to shareholders (continued)
“We are pleased to bring the Lace mine
back into production without further
recourse to the stricken and costly
financial markets.”
DIAMOND CORP(BM) 23-3-09  3/25/09  12:52 PM  Page 4 Annual Report 2008
The Lace pipes with existing and proposed infrastructure
5
Main Shaft
The 6 metre by 2.7 metre vertical shaft is
currently in the process of being refurbished
with completion scheduled for 2010.
Decline portal
The sinking of the decline commenced in
January 2008 and subsequently accessed the
Satellite Pipe in late 2008. In January 2009, the
decline holed through the side wall of the main
pit to provide ventilation for the mine.
Coherent kimberlite 
The upper level kimberlite runs at a grade of 
27 cpht, while coherent grades are between 
40 and 60 cpht.
Satellite Pipe
A 20,000 to 30,000 tonne bulk sample is
currently being extracted from the Satellite Pipe
where 3.5 million tonnes of kimberlite occur.
Main Pipe
It is estimated that 35 million tonnes of
kimberlite exist between the 240 metres and
855 metres level.The Main Pipe is approximately
2.5 hectares, has been drilled to 855 metres and
remains open at depth. Drilling has shown that a
higher grade, coherent kimberlite becomes
volumetrically dominant at depth.
Pipe graphics by Solid Project
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 5 CEO’s review for the year
Despite the malaise in the financial and diamond markets, 2008
was an exciting year for DiamondCorp as we made significant
progress towards our objective of becoming a high-value,
sustainable kimberlite diamond producer.
Good progress was made with the development of our primary
asset, the Lace diamond mine, which is 74% owned by 
the company.
Key achievements and developments
Key achievements and developments during the year include:
March 2008 Inward listing on the main board of the 
JSE Limited in South Africa, under the share
code DMC in the “Basic Materials –
Diamonds & Gemstones” sector.With effect
from 31 March, the JSE became the
Company’s primary regulator. The listing on
the JSE was intended to enhance investors’
awareness of DiamondCorp and to diversify
the Company’s investor base.
April 2008 The appointment of Steve West to the
position of Head of Business Development
and Paul Sharples (former General Manager
of Lace mine) to Head of Mining.
These appointments significantly bolstered
DiamondCorp’s leadership at a time when
the industry was reported to be suffering
from skills shortages, and ensured that we
met our key operational and strategic
objectives during the year under review.
May 2008 Successful capital raising for the accelerated
development of Lace following the private
placement of 2,249,923 new ordinary shares
at an issue price of R11.59 per share on the
JSE.This placement of new shares – raising
“It has always been our intention to follow a two-phased approach in the exploitation
of the Lace mine. Operationally we are in good shape and we expect to continue to
achieve the targets that we have set.”
Rudzani Nepfumba – Recovery Supervisor
Rudzani began at Lace in June 2007 as a student metallurgist
as part of an in-service training programme, and has since
been trained in general plant operation. She was appointed
to the position of Recovery Supervisor in February 2008
under the guidance of the plant manager.
Paul Loudon
Managing Director and CEO
6
Annual Report 2008
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 6 Annual Report 2008
R26 million (£1.73 million) largely from South
African institutions – met (in part at least) an
objective of the South African listing and is
being used to finance Phase 2 at Lace.
June 2008 Connection to a second Eskom power supply
from a new power line servicing the nearby
De Beers Voorspoed mine. As a result, the
impact of power outages and load shedding
was significantly reduced in the latter half of
the year.
July 2008 Loan facility granted up to the amount of 
US$5 million by the Africa Opportunity Fund
LP, completing the funding requirements for
Phase 2.
November 2008 Placement of 4 million fully paid ordinary
shares, at a gross value of £1.8 million with
the European Islamic Investment Bank plc,
for general working capital purposes. EIIB
subsequently increased its holding in the
company, thus raising its shareholding to
26.09%, through the acquisition of shares on
the market, signifying its stated intention of
becoming a cornerstone investor in the
company.
October 2008 Successful commissioning of new vertical
spindle impact crusher for re-crush of
kimberlite.The new crusher has operated to
specification and solved earlier process
problems in this section of the recovery plant.
By year-end Significant progress with the development of
the underground project, more than a year
ahead of the original schedule by year-end.
The decline accessed the Satellite Pipe and a
ventilation drive holed through the sidewall
of the main Lace pit.
February 2009 Mining right executed for Phase 2
underground development at Lace. As all of
these issues have been discussed in the letter
to shareholders from our Chairman, my
review will focus on the operational progress
made during the year and our plans for the
Lace diamond mine.
Two-phased approach
It has always been our intention to follow a two-phased approach
in the exploitation of the Lace mine as discussed below.
• Phase 1 began with the commissioning of the 1.6 million tonne
per year Dense Media Separation (DMS) plant in 2007 to treat
3.6 million tonnes of tailings over a period of three years.The
diamonds recovered from the tailings were above average in
terms of colour and quality and, during the financial year, a total
of 803,810 tonnes of tailings were treated, for the recovery of
50,521 carats of diamonds. Recoveries, however, were lower
than anticipated due to failures in the re-crush circuit which
were not resolved until October 2008. Of the diamonds
tendered during the year, 70% were of gem quality, achieving an
average price of $53.52 per carat, with these realising total
revenue of R14.13 million (US$1.71 million). The tailings
treatment operation was suspended in January 2009 because
the rapid decline in diamond prices had made this operation
uneconomic. It is envisaged that this process may resume once
prices have recovered.
•Phase 2 comprises the development of an underground
kimberlite mine and involves the sinking of a decline into the
unmined portions of the Lace Satellite Pipe, which was
historically mined to a depth of only 50 metres and the Main
Pipe, which was partially mined to a depth of 240 metres. In view
of the success achieved in the tailings treatment operation, the
development of Phase 2 was accelerated and this decision has
proved to be prescient given the current market conditions.
Georgina Thakeng – Sorthouse Supervisor
Georgina began training as a sorter at Lace in July 2007 and,
having completed her training course, became a Sorthouse
Supervisor in August 2008. She is also involved in administrative
duties at the mine and is currently receiving in-house computer
skills training.
7
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 7 Annual Report 2008
Good progress on Phase 2
A new 4m by 4m decline is being sunk between the Lace pipes and
the existing 6m by 2.7m vertical shaft, using the mine’s own mining
fleet. This decline advanced and reached the Satellite Pipe in
November 2008, after initial progress was slowed by poor ground
conditions on the contact between the surface sediments and the
competent country rock. An initial 20,000 to 30,000 tonne bulk
sample has been extracted from the Satellite Pipe and, if the grades
allow for profitable mining at current prices, the mining of this
material will continue until the Main Pipe material is accessed in the
second half of 2009. Initial mining capacity is 1,000 tonnes per day,
rising to approximately 3,000 tonnes per day by mid-2009 when
the last of our underground mining fleet is delivered. Processing of
Satellite Pipe material will commence during April 2009, following
commissioning of a new primary and secondary crushing circuit.
The plant stability and recovery issues encountered earlier in
2008 were largely resolved by the fourth quarter.Testwork using
a vertical spindle impact crusher demonstrated that it can
successfully liberate the 2 to 3 cpht of diamonds locked up in the
re-crush stockpile and a commercial scale unit was successfully
installed and commissioned in late 2008. Commissioning of the
new primary and secondary crushing circuit commenced on
schedule in March 2009. It has been our intention from the outset
to ensure that Lace’s costs are in the lowest industry quartile.
While rising diesel prices, unplanned repairs and maintenance, and
power outages had a negative impact on costs during Phase 1,
management is confident that a combination of the new power
supply, the installation of the vertical spindle impact crusher and
the mining of higher-grade kimberlite will deliver solid operating
margins, even with current depressed diamond prices during
Phase 2.
Resource upside potential
Approximately 35 million tonnes of kimberlite have been outlined
in the Main Pipe at Lace, between 240m and 855m. Up to a
further 7 million tonnes of kimberlite exists above the 240m level
but has not been taken into account in the resource estimates
owing to the existence of old workings. Mining of these remnants
(which is expected to be high-grade coherent hypabyssal
kimberlite) will take place once access to the old workings has
been achieved. A further 3.5 million tonnes of kimberlite also
exists in the Satellite Pipe, located 30m to the west of the Main
Pipe. Historically, the Satellite Pipe yielded a lower grade than the
Main Pipe and no tonnages from this pipe have been included in
the resource estimates.
The market
The worldwide economic downturn has had a significant impact
on the diamond market, as discussed in the Chairman’s letter, with
prices received for Lace diamonds falling by 50% during the fourth
quarter. Reduced demand and lower diamond prices are expected
to continue throughout 2009, although the full impact is expected
to be somewhat cushioned for DiamondCorp because of the
depreciation of the South African rand against the dollar. Phase 2
will target higher-value kimberlite in a higher price range to the
tailings diamonds. Also, Lace has the potential to deliver sought-
after gemstones. In addition to the high quality white stones, the
Lace tailings have yielded significant numbers of fancy yellow, pink
and signature lilac stones. During June 2008, a 34.84 carat non-gem
diamond was recovered, the largest diamond to date, underlining
the potential for the pipe to deliver sizeable stones and
demonstrating the efficiency of the Lace recovery plant.
In conclusion
My thanks are extended to our board for their counsel, to our Black
Economic Empowerment (BEE) partners for their support, and to
our management and employees for their unstinting commitment
and continued efforts. I would like to formally welcome to the
DiamondCorp board Mr Robin Henshall, who joined as a 
non-executive director with effect from 14 November 2008.
Mr Henshall is a representative of EIIB and brings to the board
extensive experience of the investment banking sector.
CEO’s review (continued)
8
Thabo Mabula – Plant Foreman
Thabo worked as a DMS operator for Sonop Delwery before
he joined Lace in May 2007. He began as a DMS operator and
received further training on operating procedures and
diamond recovery processes.Thabo was promoted to Plant
Supervisor in November 2007 and was promoted again in
February 2009 to Plant Foreman.
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 8 Annual Report 2008
Resource statement
Tonnage (Mt) Grade (cpht) Carats (Mct)
Depth Main Pipe Satellite Pipe Total Main Pipe Satellite Pipe Main Pipe Satellite Pipe Total
Potential 
diamondiferous
kimberlite
(1)
0-240m – 1.75 1.75 – Unknown – Unknown –
240-345m 6.57 0.63 7.2 27.7 Unknown 1.82 Unknown 1.82
Inferred 
Resources
(2)
345-600m 14.26 1.06 15.32 38 Unknown 5.42 Unknown 5.42
600-855m 12.88 – 12.88 50.3 Unknown 6.49 Unknown 6.49
Total Inferred 
Resources 345-855m 28.24
(3)
1.09
(4)
29.33 42.2 – 11.91 – 11.91
Total potential 
diamondiferous 
kimberlite plus 
Inferred 
Resources 0-855m 34.81
(3)
3.47
(4)
38.28 39.4 – 13.73 – 13.73
(1).
Estimated by MPH based on inferred kimberlite volumes, historical diamond recoveries and the drilling of resources below this level, but
requiring additional testing before it could be classified as an inferred resource under any reporting code.
(2).
In accordance with the SAMREC Code for reporting mineral resources and reserves.
(3).
Includes approximately 1.1Mt of country rock xenoliths between depths of 345m and 855m assigned zero grade.
(4).
Includes approximately 0.3Mt of country rock xenoliths between depths of 345m and 855m assigned zero grade.
Main Pipe
It is estimated that 
35 million tonnes of
kimberlite exist between
the 240 metres and 
855 metres level.The main
pipe is approximately 
2.5 hectares, has been
drilled to 855 metres and
remains open at depth.
Drilling has shown that a
higher grade, coherent
kimberlite becomes
volumetrically dominant 
at depth.
9
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 9 10
Annual Report 2008
Prospects
From the third quarter, the operational issues experienced early in
2008 were largely resolved.The processing plant is operating at
design capacity, operators have been trained and no further power
outages have been experienced.
Phase 2 involves capital expenditure of approximately R100 million
(US$12.8 million) over a period of two years to achieve
underground production of 4,000 tonnes of kimberlite per day. By
year-end, approximately 50% of Phase 2 capex had been spent, and
I am pleased to confirm that all the necessary debt and equity
required for the completion of Phase 2 is in place.
Operationally, we are in good shape and we expect to continue
to achieve the targets that we have set. In next year’s report, I look
forward to reporting on the performance of an operating
diamond mine.
Paul Loudon
Managing Director and CEO
CEO’s review (continued)
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 10 11
Annual Report 2008
During the financial year, a total of
803,810 tonnes of tailings were treated,
for the recovery of 50,521 carats 
of diamonds.
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 11 Annual Report 2008
Board of Directors and Management
Euan Worthington – Non-executive Chairman (53)
Euan Worthington has been associated with and involved in
exploration, mining development, analysis and corporate finance in
London for over 25 years. He has worked as an independent
mining finance consultant since 2001 and is a non-executive
director of African Eagle Resources plc and European Nickel plc,
both listed on the AIM. Mr Worthington holds a BSc Geology
(Hons) from Kings College, London, a DIC (Mineral Resources
Engineering) and MSc in Mineral Production Management from
Royal School of Mines, Imperial College, London.
Paul Loudon – Managing Director and CEO (46)
Paul Loudon has more than 20 years’ experience in stockbroking,
corporate finance and management of junior mining and
exploration companies. He has been President of Battlefields
Minerals Corporation of Toronto and non-executive chairman of
BDI Mining Corp. He was head of Equities at Loeb Aron &
Company Ltd, a London corporate finance house specialising in the
mining sector, where he was responsible for raising considerable
sums of equity capital for resource companies listed in the United
Kingdom, Canada and Australia.
Dr Jonathan Willis-Richards – Non-executive Director (54)
Jonathan Willis-Richards holds a bachelor’s degree in Geology from
Oxford University and a Master’s Degree in Mining Geology and a
PhD from Camborne School of Mines. He is internationally known
for his doctoral work on numerical modelling in the areas of
fractured geothermal and mineralised systems, and is a founder
and Managing Director of London mining corporate finance house
Loeb Aron & Company Ltd.
Nicholas Allen – Non-executive Director (72)
Nicholas Allen has worked in the mining industry for over 40 years,
primarily in diamond mining and marketing, including extensive
periods with Consolidated African Selection Trust Limited, D.Drukker
& Zn NV, George Evans of Antwerp and Benguela Concessions
Limited. He is a non-executive director of Mercator Gold plc.
Robin Henshall – Non-executive Director (49)
Robin Henshall has more than 22 years’ experience as an
investment banker, mainly with UBS, SG Barr Devlin, Donaldson,
Lufkin & Jenrette / Credit Suisse and County NatWest. He is
currently Head of Private Equity and Corporate Advisory at
European Islamic Investment Bank plc, which is a 26.09%
shareholder in DiamondCorp.
John Forrest – Chief Financial Officer and Company Secretary (62)
John Forrest is a CPA with more than 30 years’ experience in
public company administration and financial management. He
commenced his career with Price Waterhouse & Co and currently
acts as finance director of several public companies.
DiamondCorp plc
12
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 12 13
Annual Report 2008
Pulane Kingston – Non-executive Chairperson (39)
Pulane Kingston graduated from the University of Wales with an
LLB (Hons) and from the University of Nottingham with an LLM
in International Law. She is an executive director and one of the
founder shareholders of Sphere Holdings. She was previously an
associate at White & Case (Johannesburg) and prior to that an
associate partner at Edward Nathan & Friedland Inc, specialising in
corporate and commercial law. She has been involved in
privatisations, mergers, acquisitions, listings, restructuring and
various empowerment transactions.
Paul Loudon – Managing Director and CEO (See opposite)
Paul Sharples – Head of Mining (59)
Paul Sharples is a chartered mining engineer with more than 
30 years’ experience in the mining industry. He commenced his
career with Anglo American Corporation in Welkom and has held
senior operation and consulting positions for a range of mining
companies and mineral consulting firms, including Gencor Billiton,
Murray & Roberts, Bateman Engineering and Mintek. He has been
involved in the development and management of significant
underground and opencast gold and diamond operations in South
Africa, Brazil, the DRC and Namibia.
Steve West – Head of Business Development (55)
Steve West is a mechanical engineer with more than 30 years
experience in the mining industry, predominantly in diamonds. He
commenced his career with De Beers Consolidated Mines in
Kimberley and held a number of senior positions with the Trans
Hex Group Limited, including group marine manager and group
project manager. Prior to joining DiamondCorp, Steve was mine
manager of Gem Diamonds Limited’s Cempaka diamond mine 
in Indonesia.
John Forrest – Finance Director (See opposite)
Gert (Gerry) Robbertze – Non-executive Director (66)
Gery Robbertze graduated from Camborne School of Mines with
a degree and an ACSM in 1972. He has held various management
and engineering positions in Namibia and South Africa on copper,
lead, zinc, chrome, manganese, tin and gold mines and on projects
with Tsumeb Corporation Limited, Gold Fields of South Africa and
Assore. In 1987 he joined Anglovaal Limited as chief constructing
engineer. He was senior vice-president, technical services of the
Anglovaal Group before joining The Mineral Corporation
consultancy in September 2003 as a director.
Ronald Makomva (33)
Prior to being an associate director at Sphere Holdings, Ronald
held positions in Deutsche Bank and Standard Bank’s investment
banking divisions. Ronald’s investment banking experience spans
several years, during which he advised local and international
companies on mergers and acquisitions, leveraged buy-outs and
capital raising initiatives. Ronald also has taxation experience
acquired during his tenure at the South African Revenue Services.
After completing his BCom degree with Rhodes University and
postgraduate qualification in accounting with University of Natal,
Ronald qualified as a chartered accountant, having served his
articles with PKF Inc.
Karishma Sewpersad (29)
Karishma qualified with a Bachelor of Science degree in Chemical
Engineering from the University of Natal in 2002, before beginning
her career as a process engineer in Xstrata Alloys’ ferrochrome
production facilities in Lydenburg. Having gained experience in
smelting operations she took up a managerial position as a
production superintendent in the Agglomeration and Pre-
Reduction section of the operation, and later became technical
superintendent. She entered the corporate environment when she
took up a position as marketing superintendent at Xstrata’s head
offices in Rustenburg. During this time she commenced a Master’s
degree in Business Leadership (MBL) through the University of
South Africa and is currently in her final year of study. After a total
of four and a half years in the ferrochrome industry, she joined BHP
Billiton as a commercial analyst in their coal division. Today,
Karishma is a Principal for Shanduka Resources.
Lace Diamond Mines (Pty) Ltd
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 13 14
Annual Report 2008
The Group is committed to a high standard of corporate
governance and operates to clear principles and procedures of
control appropriate to a business of its size. Whilst there is no
requirement for AIM companies to comply with the Combined
Code, the Company intends to comply with the main provisions in
so far as they are appropriate to smaller companies.This statement
describes how the Group applies the principles of governance.
The Board is responsible for approving Company policy and
strategy. It meets regularly throughout the year and there are a
number of matters that are reserved for its decision. Management
supplies the Directors with appropriate and timely information and
the Directors are free to ask for any further information they
consider necessary. Copies of all press announcements made by
the Company are also circulated to the Board. Directors may take
independent professional advice at the Company’s expense and
each director has access to the Company Secretary.The Company
Secretary is charged with ensuring that the Company complies
with all relevant regulations.
The Board consists of a Non-Executive Chairman, one Executive
(Managing) Director and three Non-Executive Directors.
Supply of information
T o enable the Board to function effectively and allow the Directors
to discharge their responsibilities, full and timely access is given to
all relevant information. The Board receives reports from the
Managing Director at its monthly meetings. In addition:
• an annual budget for each operating subsidiary is approved by
the Board; and
• actual results are monitored monthly.
Reappointment
Any Director appointed during the year is required, in accordance
with the Company’s Articles of Association, to retire and seek
appointment by shareholders at the next Annual General
Meeting.The Articles also require that one-third of the Directors
retire by rotation each year and seek re-appointment at the
Annual General Meeting.The Directors required to retire will be
those who have been longest in office since their last appointment
or re-appointment.
The Remuneration Committee
The Remuneration Committee reviews the performance of the
Executive Directors and sets the scale and structure of their
remuneration including bonus arrangements. The Remuneration
Committee also sets the allocation of share options to Directors
and other employees. As a small company it is not possible for the
Committee to comply fully with the Combined Code. Accordingly,
membership of the Committee comprises Nick Allen as Chairman
together with Euan Worthington and Jonathan Willis-Richards.
Statement of remuneration policy
The Group’s policy provides for a competitive package that reflects
the Group’s performance and is designed to attract and retain high
calibre executives.The package currently consists of a base salary
and longer-term rewards in the form of share options.There is no
bonus plan currently in place.
Communication with shareholders 
The Company has made use of the London Stock Exchange PRN
service to communicate with shareholders since admission to AIM.
The Annual General Meeting gives shareholders the opportunity
to question the Board.
Accountability
The Board of Directors has overall responsibility for the system of
internal financial control which is designed to provide reasonable,
but not absolute, assurance against material misstatement or loss.
The key procedure is:
•the Audit Committee, comprising Jonathan Willis-Richards
(Chairman), Euan Worthington and Nick Allen, meets with the
external auditors twice per year.
Corporate governance
DIAMOND CORP(BM) 23-3-09  3/25/09  12:53 PM  Page 14 15
Annual Report 2008
Financial report
Results
The results for the year were as follows:
2008 2007
£ £
Revenue 916,767 74,795
Cost of sales (1,494,253) (189,403)
Gross loss (577,486) (114,608)
Administrative expenses (3,027,623) (2,054,135)
Operating loss (3,605,109) (2,168,743)
Investment revenues 32,043 112,492
Finance costs (682,286) –
Loss before tax (4,255,352) (2,056,251)
Tax (30,132) (45,000)
Loss for the financial year (4,285,484) (2,101,251)
Diamond recoveries in 2008 were 50,521 carats (2007 – 25,266).
Seven tenders of gem diamonds were held in Johannesburg in 2008 and 31,906 carats were sold for an aggregate US$1,707,000, an average
price of US$53.52 (2007 – US$59).
Our gross loss for 2008 was £577,486 which was the result of several factors:
Briefly, (i) our recovered grade was lower than plan, primarily because of problems in our crushing circuit which were resolved by end of year;
(ii) our plant throughput was about 70% of plan because of problems early in the year with power outages and severe weather; (iii) slump in
prices that occurred in diamond market during Q4.
These results led the Company late in 2008 to place the tailings operation on care-and-maintenance and concentrate on the mining of the
main kimberlite. Operational problems experienced in 2008 have now been resolved.This is discussed further in the “Business review” section
of the Directors' Report.
As a result of the tailings decision, the Company took a write down of £377,534 on the carrying value of the tailings inventory.The expense
is reflected in cost of sales.
Share capital and long term loan
During the year ended 31 December 2008, the following changes in share capital occurred:
(i) in May 2008 the Company was admitted to the Johannesburg Stock Exchange (JSE) and issued 2,249,923 ordinary shares at South African
rand equivalent of 77.7 pence each;
(ii) 66,664 warrants were exercised for proceeds of £19,999 and the same number of ordinary shares were issued; 733,336 loan note
warrants were not exercised and expired in April 2008;
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 15 16
Annual Report 2008
Share capital and long term loan (continued)
(iii) in October 2008 the Company completed a long term loan with Africa Opportunity Fund L.P . in the amount of US$5,000,000.The loan
is secured by the Company's equity interest in Lace Diamond Mines (Pty) Limited and by the assets of the Company's subsidiaries.
Interest is payable at a rate of 12% with interest due in 2009 of US$600,000. Principal is repayable as follows: 2010 – US$1,500,000;
2011 – US$3,500,000.This loan is denominated in US dollars whereas the Company's reporting currency is sterling. As a result of
depreciation of sterling against the dollar in 2008 the Company reported an unrealised foreign exchange loss on the loan of £607,031.
The Company has set aside US$600,000 for the 2009 interest payments;
(iv) on 7 November 2008 the Company issued 4,000,000 ordinary shares of 3 pence each in respect of a private placement completed at
45 pence per ordinary share.
Balance sheet, cashflow and working capital 
During the year the Group raised £6,379,658 (2007 – £2,267,335) from the following financing activities:
– £1,713,413 from the issuance of 2,249,923 ordinary shares at 77.7 pence each
– £19,999 from the exercise of 66,664 warrants at 30 pence each
– £1,800,000 from the issuance of 4,000,000 ordinary shares at 45 pence each
– £2,846,246/US$5,000,000 on completion of long term loan
During the year cash of £4,445,484 (2007 – £3,836,321) was invested as follows:
(i) £1,334,611 (2007 – £1,740,069) was invested in property, plant and equipment at the Lace mine, primarily rolling stock;
(ii) £2,310,677 (2007 – £1,635,209) was used in the operations of the Group; and
(iii) £883,365 (2007 – £461,043) was spent on intangible assets, primarily development of the underground mine at the Lace project.
During 2008 Group cash increased by £1,921,569 to £3,252,276 (2007 – £1,330,707) and net current assets increased by 
£1,160,301 to £3,414,943 (2007 – £2,254,642).
Future prospects
Management has formulated an accelerated development plan for Phase 2 underground mining, which aims to introduce kimberlite pipe
material into the mine plan by the second quarter of 2009, approximately 12 months ahead of schedule.While the Group took on debt in
2008, there are no principal payments due until 2010 and cash forecast to be generated by the Group's operating and financial plan for 2009,
together with cash on hand, is considered adequate to meet any short term operating cash requirements, mine development capital and debt
servicing requirements.
JC Forrest
Chief Financial Officer
30 March 2009
Financial report (continued)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 16 17
Annual Report 2008
Remuneration report
The Remuneration Committee
The Remuneration Committee reviews the performance of the Executive Directors and sets the scale and structure of their remuneration
including bonus arrangements.The Remuneration Committee also sets the allocation of share options to Directors and other employees. As
a small company it is not possible for the Committee to comply fully with the Combined Code. Accordingly, membership of the Committee
comprises Nick Allen as Chairman, together with Euan Worthington and Jonathan Willis-Richards.
Statement of remuneration policy
The Group's policy provides for a competitive package that reflects the Group's performance and is designed to attract and retain high calibre
executives.The package currently consists of a base salary and longer-term rewards in the form of share options.There is no bonus plan
currently in place.
Audited
Remuneration for the year 1 January 2008 to 31 December 2008
Fees paid
Salary to third Options
Date or fee Bonus party Total granted
appointed ££££ number
EA Worthington 
(2)
18 May 2006 30,000 – 10,000 40,000 Nil
J Willis-Richards 
(1)
18 May 2006 – – 12,000 12,000 Nil
RN Allen 29 Mar 2005 12,000 – – 12,000 Nil
PR Loudon 
(3)
29 Mar 2005 77,500 10,000 60,000 147,500 Nil
RL Henshall 
(4)
14 Nov 2008 – – 1,533 1,533 Nil
119,500 10,000 83,533 213,033 Nil
Remuneration for the year 1 January 2007 to 31 December 2007
Fees paid
Salary to third Options
Date or fee Bonus party Total granted
appointed ££££ number
EA Worthington 
(2)
18 May 2006 15,000 – 20,000 35,000 370,000
J Willis-Richards 
(1)
18 May 2006 – – 11,000 11,000 280,000
RN Allen 29 Mar 2005 11,000 – – 11,000 280,000
PR Loudon 
(3)
29 Mar 2005 72,000 25,000 54,000 151,000 690,000
98,000 25,000 85,000 208,000 1,620,000
(1)
Includes amounts paid to Loeb Aron & Company Limited where Mr.Willis-Richards and Mr. Loudon are both directors.
(2)
Includes amounts paid to Mining Finance Solutions where Mr.Worthington is a director.
(3)
Includes amounts paid to Glendree Capital Management Limited where Mr. Loudon is a director.
(4)
Includes amounts paid to European Islamic Investment Bank plc where Mr. Henshall is an officer.
The Directors received no pension contributions or benefits in kind.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 17 18
Annual Report 2008
The Directors present their report on the affairs of the Group, together with the financial statements and auditors' reports, for the year ended
31 December 2008.
Principal activities
The Company was incorporated on 22 March 2005. On 15 May 2006, the Company acquired 100% of the ordinary share capital of Crown
Diamond Mining Limited, a Company registered in the British Virgin Islands. In 2007 Crown Diamond Mining Limited changed its name to
Diamondcorp Holdings Limited (“DHL”). DHL owns 74% of the ordinary share capital of Lace Diamond Mines (Pty) Limited, a Company
involved in mining at the Lace diamond mine in South Africa. In November 2006 Soapstone Investments (Pty) Limited was incorporated in
South Africa. It is wholly-owned by DHL and has been established primarily as an investment Company to evaluate other investment
opportunities in South Africa.
Business review
DiamondCorp's 74%-owned Lace diamond mine is located 200km southwest of Johannesburg in the Free State Province of South Africa.The
project comprises the Lace kimberlites which have the potential to support a +20-year underground mining operation and tailings from
previous mining operations which were treated throughout 2008 while access to the kimberlite pipes was established.
Approximately 35 million tonnes of kimberlite have been outlined in the main Lace pipe between the 240m and the 855m level, containing
an estimated 13.8 million carats of diamonds at an average grade of 42 carats per hundred tonnes (cpht). Up to a further 7 million tonnes of
kimberlite exists above the 240m level, but is not taken into account in the Company's resource estimates due to the existence of old
workings. Nonetheless, this remnant kimberlite, much of which is expected to be high-grade coherent kimberlite, will be mined once access
to the Main Pipe is achieved. A further 3.5 million tonnes of kimberlite also exists in a Satellite Pipe 30m to the west of the Main Pipe.The
Satellite Pipe was historically of a lower diamond grade than the Main Pipe and no tonnage from this pipe has been incorporated into resource
estimates.
A new 4m x 4m decline has been sunk between the Lace pipes and the existing 6m x 2.7m vertical shaft using the Company's own
underground mining fleet.This decline accessed the Satellite Pipe late in 2008 and holed through the side wall of the main Lace pit in early
January 2009, allowing ventilation equipping to be established.
Late in 2008, the Department of Minerals and Energy granted a mining right for the Lace underground development, which was executed in
Welkom on 5 February 2009.
An initial 20,000-30,000 tonne bulk sample is now being extracted from the Satellite Pipe, while the decline continues around to access
potentially high-grade coherent kimberlite in the Main Pipe during the second half of 2009. If Satellite Pipe grades allow for profitable mining
at current prices, then mining of this material will continue until the Main Pipe material is accessed.The initial mining rate is 1,000 tonnes per
day, with plans to increase this to 3,000 tonnes per day by the second half of 2009.
To fund the accelerated development of the Lace underground, the Company raised a total of £2.89 million in new equity during 2008, and
secured a project loan of US$5 million.The placing of new equity was facilitated by the successful listing of the Company's shares on the main
board of the JSE Limited in Johannesburg.The JSE is now the primary listing for the Company's shares from a regulatory perspective, with the
listing on the AIM Market of the London Stock Exchange a secondary listing.The Company's shares are fully fungible between the two markets.
The project loan is a three-year facility with capital repayments of US$0.5 million in April 2010, US$1.0 million in October 2010, US$1.5 million
in April 2011 and US$2.0 million in October 2011.The interest rate is fixed at 12%.
Re-treatment of Lace tailings continued during 2008, with 803,810 tonnes treated for the recovery of 50,521 carats of diamonds, of which
approximately 70% were gem quality.Total recovery over the period averaged 6.28 cpht and were lower than anticipated due to failures in
the re-crush circuit, which were not resolved until October with the installation of a new vertical spindle impact (VSI) crusher to replace the
failed cone crusher. Successful commissioning of the VSI crusher saw recoveries improve to 7.23 cpht in the final quarter. Overall recoveries
in Q4 were hampered by mining of a lower grade zone of the dump containing old slimes and non-kimberlitic material.The fall in diamond
prices suffered during Q4 has rendered the tailings re-treatment operation uneconomic and this activity has now ceased while the plant is 
Directors’ report
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 18 19
Annual Report 2008
re-configured for the commencement of kimberlite processing in March 2009. Recommencement of this activity will be assessed when
diamond prices recover.
Seven diamond tenders were held in Johannesburg during 2008, with 31,906 carats of gem diamonds being sold for total gross revenue of
R14,129,203 (US$1.707 million) at an average price of US$53.52 per carat. Non-gem diamonds totalling 12,493 carats were sold for
R137,112 (US$16,821) during the year. From the third quarter onwards, all production was first offered to the State Diamond Trader which
has the right to negotiate the purchase of up to 10 per cent of the production.
The operational issues experienced early in 2008 have been resolved and the Lace processing plant is now operating to design capacity.
No power outages occurred following connection mid-year to the new Eskom power line supplying the nearby Voorspoed diamond mine
operated by De Beers.
Key performance indicators
Management uses the following key performance indicators to assess the performance of the business.The table below reflects our results for
the year:
2008 2007
Run of mine processed (tonnes) 803,807 320,045
Average carats per hundred tonnes (cpht) 6.29 7.85
Average selling price per carat – gem £29 ($54) £30 ($59)
Cost per tonne £1.86 ($3.45) £1.90 ($3.80)
Principal risks and uncertainties
The Company is exposed to fluctuations in the price per carat which could impact revenues positively or negatively.The second key risk to
which the business is exposed relates to the underground section of the mine where the volume of diamonds and the clarity may not be as
expected. Again, this could have either a positive or negative impact on revenues and profits depending on the outcome.
Financial risk management objectives and policies
The Group's activities expose it to a number of financial risks including currency risk and liquidity risks.
Currency risks
The Group transacts business in three currencies, UK Sterling (GBP), South African Rand (ZAR) and United States Dollar (USD). It has
expenditure in both GBP and ZAR, sufficient to ensure that its exposure to currency fluctuations is relatively limited. All revenues are
transacted in USD. Bank accounts in all three currencies are used to reduce any risk to exchange rate movements. A long term loan facility,
denominated in USD, was obtained during 2008 (see note 14). In 2009, the bulk of the Group's surplus cash will be held in USD to manage
the resulting increase in the Group's exposure to foreign exchange movements.
Liquidity
While the Group took on debt in 2008 (see note 14), there are no principal payments due until 2010 and cash forecast to be generated by
the Group's operating and financial plan for 2009, together with cash on hand, is considered adequate to meet any short term operating cash
requirements, mine development capital and debt servicing requirements.
Credit risk
The Group's principal financial assets are bank balances and cash.The credit risk on liquid funds is limited because the counterparties are banks
with high credit-ratings assigned by international credit-rating agencies.
Share capital
Details of movements in share capital are set out in note 17 to the financial statements.
In 2007 the Company granted 2,970,000 options to purchase ordinary shares exercisable at a price of 135 pence per share which vest over
a period of 5 years from the date of grant.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 19 20
Annual Report 2008
Directors’ report (continued)
Share capital (continued)
On 1 February 2007 the Company completed its Initial Public Offering of 2,750,000 ordinary shares at 90p each (gross proceeds of
£2,475,000) and was admitted to the AIM market.
In January 2007, Cenkos Securities plc, the Company's nominated advisor and broker, received warrants to subscribe for up to
1,000,000 ordinary shares of 3 pence each exercisable at 135 pence for a period of 24 months from date of admission to the AIM market.
On 1 May 2007, the Company granted a warrant to purchase 250,000 Ordinary Shares of the Company at an exercise price of 121.5p to
BBK Consultancy plc, which vest when the Company's shares trade above 135p for more than 28 consecutive trading days, exercisable at any
time up to and including 30 April 2011.
During the year ended 31 December 2007, 783,330 warrants were exercised for proceeds of £235,000 and the same number of ordinary
shares were issued.
On 26 May 2008 the Company listed on the Johannesburg Stock Exchange (JSE) and simultaneously issued 2,249,923 ordinary shares at the
ZAR equivalent of 77.7 pence each.
On 7 November 2008 the Company issued 4,000,000 ordinary shares of 3 pence each in respect of a private placement completed at
45 pence per ordinary share.
During the year ended 31 December 2008, 66,664 warrants were exercised for proceeds of £19,999 and the same number of ordinary shares
were issued.
Payment to suppliers
It is the Company's and Group's policy to pay creditors when they fall due for payment, which results in payment within 30 days.
Dividends
No dividends were declared during the year covered by this report.The Directors intend to reinvest cash flow from Lace tailings re-treatment
in a pre-feasibility study and the development of the underground Lace mine workings.
Directors
The Directors, who served throughout the year were as follows:
P R Loudon (Australian)
R N Allen (British)
E A Worthington (British)
J Willis-Richards (British)
R L Henshall (British) (appointed 14 November 2008)
The Directors who held office at 31 December 2008 have the following interests in the shares of the Company and options to purchase
ordinary shares of the Company:
Options to purchase ordinary Interest in ordinary shares
Vendor warrants shares of 3 pence each of 3 pence each
2008 2007 2008 2007 2008 2007
P R Loudon 833,333 833,333 690,000 690,000 1,798,052 1,768,052
R N Allen – – 280,000 280,000 83,367 83,367
E A Worthington – – 370,000 370,000 90,000 90,000
J Willis-Richards * 833,333 833,333 280,000 280,000 1,316,666 1,316,666
R L Henshall ** – – – – 10,720,555 –
* The Vendor Warrants held by J Willis-Richards and family include 250,000 Loeb Aron Warrants with whom J Willis-Richards is connected.
** RL Henshall is an officer of European Islamic Investment Bank plc, which is the beneficial owner of 10,720,555 shares.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 20 21
Annual Report 2008
Substantial interests
At the date of the Directors' Report the following parties (apart from Directors) held in excess of 3% of the share capital of the Company:
European Islamic Investment Bank plc *** 10,720,555 26.09%
Millennium Capital Partners LLP 4,375,000 10.65%
JP Morgan Asset Management U.K. Limited 3,505,000 8.53%
Aktiva Diversified Holdings Limited 3,375,000 8.21%
Dromen Securities Limited 2,200,000 5.35%
Green Dragon Nominees Pty Limited **** 1,798,052 4.37%
Credit Suisse Securities (MM) 1,400,000 3.41%
*** RL Henshall is an officer of this Company.
**** PR Loudon is a Director of this Company.
Political and charitable contributions
The Group made no political or charitable contributions during the year ended 31 December 2008 (2007 – nil).
Going concern
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the
Business review on pages 18 to 19. The financial position of the Group, its liquidity position and borrowing facilities are described in the Chief
Financial Officer's report on pages 15 to 16. In addition, note 20 to the financial statements includes the Group's objectives, policies and
processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its
exposures to credit risk and liquidity risk.
As highlighted in note 20 to the financial statements, the Group meets its day to day working capital.The current economic conditions create
uncertainty, particularly over (a) the level of demand for the Group's products; and (b) the exchange rate between Sterling and the South
African Rand and the consequence of this for the cost of the Group's operations.The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance, show that the Group will be able to operate without additional bank financing given that
sufficient funding has been received in the year.
After making enquiries, and given the funding received in the year as detailed in the cash flow statement, the directors have a reasonable
expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Auditors
Each of the persons who is a director at the date of approval of this annual report confirms that:
– so far as the director is aware, there is no relevant audit information (as defined in the Companies Act 1985) of which the Company's
auditors are unaware; and
– the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant
audit information (as defined) and to establish that the Company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985.
Deloitte LLP have expressed their willingness to continue in office as auditors and a resolution to re-appoint them will be proposed at the
forthcoming Annual General Meeting.
Deloitte & T ouche were appointed as auditors during the year and will continue in office in accordance with section 270(2) of the Company's Act.
Declaration by Secretary
The Secretary certifies that the Company has lodged with the Registrar of Companies all such returns as are required of a public company,
in terms of Section 268G(d) of the South African Companies Act No 61 of 1973, as amended, and that all such returns are true, correct and
up to date.
Approved by the Board of Directors and signed on behalf of the Board
JC Forrest
Secretary
30 March 2009
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 21 22
Annual Report 2008
The Directors are responsible for preparing the Annual Report, Directors' Remuneration Report and the financial statements in accordance
with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year.The directors are required by the IAS Regulation
to prepare the Group financial statements under International Financial Reporting Standards (IFRSs) as adopted by the European Union and
have also elected to prepare the parent company financial statements in accordance with IFRSs as adopted by the European Union. The
financial statements are also required by law to be properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS
Regulation.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Company's financial position,
financial performance and cash flows.This requires the faithful representation of the effects of transactions, other events and conditions in
accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting
Standards Board's 'Framework for the preparation and presentation of financial statements'. In virtually all circumstances, a fair presentation
will be achieved by compliance with all applicable IFRSs. However, directors are also required to:
• properly select and apply accounting policies;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information; and 
• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the
impact of particular transactions, other events and conditions on the entity's financial position and financial performance.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position
of the Company and enable them to ensure that the financial statements comply with the Companies Act 1985.They are also responsible for
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in
other jurisdictions.
Statement of Directors’
responsibilities
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 22 23
Annual Report 2008
We have audited the Group and parent Company financial statements (the ''financial statements'') of DiamondCorp plc for the year ended
31 December 2008, which comprise of the Consolidated and Company Income Statement, the Consolidated and Company Balance Sheets,
the Consolidated and Company Cash Flow Statements, the Consolidated and Company Statements of Changes in Equity, and the related
notes 1 to 22.These financial statements have been prepared under the accounting policies set out therein. We have also audited the
information in the Directors' Remuneration Report that is described as having been audited.
This report is made solely to the Company's members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors'
report and for no other purpose.To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors' responsibilities for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in
accordance with applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the
Statement of Directors' Responsibilities.
Our responsibility is to audit the financial statements and the part of the Directors' Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and the
part of the Directors' Remuneration Report to be audited have been properly prepared in accordance with the Companies Act 1985 and,
as regards the Group financial statements,Article 4 of the IAS Regulation.We also report to you whether in our opinion the information given
in the Directors' Report is consistent with the financial statements.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the
information and explanations we require for our audit, or if information specified by law regarding Directors' remuneration and other
transactions is not disclosed.
We read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
The other information comprises only the Directors' Report, the unaudited part of the Directors' Remuneration Report, the Chairman's
Statement, the Financial Report and the Corporate Governance Statement We consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any further
information outside the Annual Report.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An
audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the
Directors' Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgments made by the Directors
in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group's and Company's
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors' Remuneration Report to
be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Directors' Remuneration
Report to be audited.
Independent Auditors’ report
to the members of DiamondCorp plc
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 23 24
Annual Report 2008
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the
Group's affairs as at 31 December 2008 and of its loss for the year then ended;
• the parent Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union as applied
in accordance with the provisions of the Companies Act 1985, of the state of the parent Company's affairs as at 31 December 2008;
• the financial statements and the part of the Directors' Remuneration Report to be audited have been properly prepared in accordance
with the Companies Act 1985 and, as regards the Group financial statements, Article 4 of the IAS Regulation; and
• the information given in the Directors' Report is consistent with the financial statements.
Separate opinion in relation to IFRSs
As explained in Note 1 to the Group financial statements, the Group in addition to complying with its legal obligation to comply with IFRSs
as adopted by the European Union, has also complied with the IFRSs as issued by the International Accounting Standards Board.
In our opinion the Group financial statements give a true and fair view, in accordance with IFRSs, of the state of the Group's affairs as at
31 December 2008 and of its loss for the year then ended.
Deloitte LLP
Chartered Accountants and Registered Auditors 
Cambridge, United Kingdom
30 March 2009
Independent Auditors report (continued)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 24 25
Annual Report 2008
We have audited the annual financial statements and Group financial statements of DiamondCorp plc , which comprise the balance sheets as
at 31 December 2008, income statements, statements of changes in equity and cash flow statements for the year then ended, and a summary
of significant accounting policies and other explanatory notes, and the directors' report, as set out on pages 18 to 21.
Directors' Responsibility for the Financial Statements
The Group's Directors are responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards and in the manner required by the Companies Act of South Africa.This responsibility includes: designing,
maintaining and implementing internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
International Standards on Auditing.Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the
appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the annual financial statements present fairly, in all material respects, the financial position of the Company and the Group as
at 31 December 2008, and their financial performance and their cash flows for the year then ended in accordance with International Financial
Reporting Standards, and in the manner required by the Companies Act of South Africa.
Deloitte & Touche
Per: H Loonat
Partner – Assurance
30 March 2009
Report of the
independent Auditors 
to the members of DiamondCorp plc 
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 25 26
Annual Report 2008
Revenue 916,767 74,795
Cost of sales (1,494,253) (189,403)
Gross loss (577,486) (114,608)
Administrative expenses (3,027,623) (2,054,135)
Operating loss 3 (3,605,109) (2,168,743)
Investment revenues 32,043 112,492
Finance costs (682,286) –
Loss before tax (4,255,352) (2,056,251)
Tax 6 (30,132) (45,000)
Loss for the financial year 18 (4,285,484) (2,101,251) 
Attributable to the equity holders of the parent (4,285,484) (2,101,251) 
Basic and diluted loss per share 7 (11.65p) (6.27p)
Headline loss per share 7 (11.55p) (6.26p)
All of the activities of the Group are classed as continuing.
2008 2007
Note £ £
Consolidated income statement
Year ended 31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 26 27
Annual Report 2008
2008 2007
Note £ £
Administrative expenses (1,117,539) (1,159,521)
Operating loss 3 (1,117,539) (1,159,521)
Investment revenues 7,748 80,757
Finance costs (674,373) –
Loss for the financial year 18 (1,784,164) (1,078,764)
Attributable to the equity holders of the parent (1,784,164) (1,078,764)
All of the activities of the Company are classed as continuing.
Company income statement
Year ended 31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 27 28
Annual Report 2008
2008 2007
Note £ £
Non-current assets
Goodwill 8 4,606,026 4,606,026
Other intangible assets 8 2,311,232 1,445,567
Property, plant and equipment 9 5,644,476 4,958,689
Deferred tax asset 15 57,723 –
12,619,457 11,010,282
Current assets
Inventories 11 463,822 986,049
Other receivables 12 566,730 136,495
Cash and cash equivalents 3,252,276 1,330,707
4,282,828 2,453,251
Total assets 16,902,285 13,463,533
Current liabilities
Obligations under finance leases (91,269) –
Other payables 13 (667,375) (198,609)
Provisions (9,241) –
(767,885) (198,609)
Non-current liabilities
Long term loan 14 (3,399,709) –
Net assets 12,734,691 13,264,924
Equity
Share capital 17 1,232,610 1,043,112
Share premium account 18 17,460,220 14,116,306
Warrant reserve 18 710,514 740,949
Share option reserve 18 320,261 282,790
Translation reserve 18 209,339 82,537
Retained losses 18 (7,198,253) (3,000,770)
Total equity 12,734,691 13,264,924
These financial statements were approved by the Board of Directors and authorised for issue on 30 March 2009.
Signed on behalf of the Board of Directors
P R Loudon
Director
Consolidated balance sheet
31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 28 29
Annual Report 2008
2008 2007
Note £ £
Non-current assets
Investments in subsidiaries 10 4,217,500 4,217,500
Other intangible assets 8 376,526 396,343
4,594,026 4,613,843
Current assets
Other receivables 12 13,087,702 8,759,826
Cash and cash equivalents 2,295,131 1,265,368
15,382,833 10,025,194
Total assets 19,976,859 14,639,037
Current liabilities
Other payables 13 (158,021) (64,193)
Non-current liabilities
Long term loan (3,399,709) –
Net assets 16,419,129 14,574,844
Equity
Share capital 17 1,232,610 1,043,112
Share premium account 18 17,460,220 14,116,306
Warrant reserve 18 710,514 740,949
Share option reserve 18 320,261 282,790
Retained losses 18 (3,304,476) (1,608,313)
Total equity 16,419,129 14,574,844
These financial statements were approved by the Board of Directors and authorised for issue on 30 March 2009.
Signed on behalf of the Board of Directors
P R Loudon
Director
Company balance sheet
31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 29 30
Annual Report 2008
2008 2007
£ £
Group
Opening balance 13,264,924 9,018,355
Loss for financial year (4,285,484) (2,101,251)
New equity share capital subscribed 189,498 301,000
Premium on new equity share capital subscribed 3,343,914 5,582,211
Value attributed to warrants granted 57,566 99,282
Value attributed to share options granted 37,471 282,790
Translation reserve 126,802 82,537
Closing balance 12,734,691 13,264,924
Company
Opening balance 14,574,844 9,388,325
Loss for financial year (1,784,164) (1,078,764)
New equity share capital subscribed 189,498 301,000
Premium on new equity share capital subscribed 3,343,914 5,582,211
Value attributed to warrants granted 57,566 99,282
Value attributed to share options granted 37,471 282,790
Closing balance 16,419,129 14,574,844
Statement of changes in equity
Year ended 31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 30 31
Annual Report 2008
2008 2007
£ £
Operating loss (3,605,109) (2,168,743)
Depreciation and amortisation 645,860 297,954
Share based payment charge 37,471 282,790
Other gains and losses 3,998 49,159
Loss on disposal of property plant and equipment 39,642 3,322
Finance costs (7,913) –
Decrease (increase) in receivables (430,235) 123,259
Decrease (increase) in inventories 522,227 (74,283)
(Decrease) increase in payables 569,276 (433,516)
Effect of foreign exchange translation (85,894) 284,849
Net cash used in operating activities (2,310,677) (1,635,209)
Investing activities
Purchase of intangible assets (883,365) (461,043)
Purchase of property, plant and equipment (1,334,611) (1,740,069)
Interest received 32,043 112,492
Net cash used in investing activities (2,185,933) (2,088,620)
Financing activities
New long term loan raised 2,846,246 –
Proceeds on issue of ordinary shares 3,533,412 2,267,335
Net cash from financing activities 6,379,658 2,267,335
Net increase (decrease) in cash and cash equivalents 1,883,048 1,456,494
Cash and cash equivalents at beginning of year 1,330,707 2,822,089
Effect of foreign exchange rate changes 38,521 34,888
Cash and cash equivalents at end of year 3,252,276 1,330,707
Consolidated cash flow statement
Year ended 31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 31 32
Annual Report 2008
2008 2007
£ £
Company cash flow statement
Year ended 31 December 2008
Operating loss (1,117,539) (1,159,521)
Depreciation 19,817 –
Share option expense 37,471 282,790
Other gains and losses 3,998 49,159
Loss on disposal of property, plant and equipment – 3,322
(Increase) in receivables (4,327,876) (1,347,520)
Increase (decrease) in payables 93,828 (1,322)
Effect of foreign exchange translation (85,753) –
Net cash used in operating activities (5,376,054) (2,173,092)
Investing activities
Purchase of intangible assets – (2,690)
Interest received 7,748 80,757
Net cash from (used in) investing activities 7,748 78,067
Financing activities
New long term loan raised 2,846,246 –
Proceeds on issue of ordinary shares 3,533,412 2,267,335
Net cash from financing activities 6,379,658 2,267,335
Net increase in cash and cash equivalents 1,011,352 172,310
Cash and cash equivalents at beginning of year 1,265,368 1,093,058
Effect of foreign exchange rate changes 18,411 –
Cash and cash equivalents at end of year 2,295,131 1,265,368
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 32 1 Basis of preparation and accounting policies
General information
DiamondCorp plc is a Company incorporated in England and Wales under the Companies Act 1985.The address of the registered office
is given on page 58.The nature of the Group's operations and its principal activities are set out in the Directors' report on page 18.
These financial statements are presented in pounds sterling because that is the currency of the parent Company of the Group. Foreign
operations are included in accordance with the policies set out in this note.
a) Adoption of new and revised International Financial Reporting Standards
Three interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period.
These are IFRIC 11 IFRS2: Group and Treasury Share Transactions; IFRIC 12 Service Concession Arrangements; and IFRIC 14 IAS 19.The
Limit of a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.The adoption of these interpretations has not led
to any changes in the Group's accounting policies.
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in
these financial statements were in issue but not yet effective:
IFRS 1 (revised) First Time Adoption of IFRS
Amendments to IFRS 2 Vesting conditions and cancellations
IFRS 3 (revised) Business Combinations 
IFRS 8 Operating segments
IFRIC 13 Customer Loyalty Programmes
IFRIC 15 Agreements for the Construction of Real Estate
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRIC 18 Transfers of Assets from Customers
IAS 1 (revised) Presentation of Financial Instruments
IAS 23 (revised) Borrowing Costs 
Amendments to IAS 27 Consolidated and Separate Financial Statements
IAS 32 (amended)/IAS 1 (amended) Puttable Financial Instruments and Obligations Arising on Liquidation
Amendments to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items
Amendments to IAS 39 Reclassification of Financial Assets: Effective Date and Transition
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the
financial statements of the Group.
b) Basis of preparation
DiamondCorp plc was incorporated on 22 March 2005. On 15 May 2006 the Company acquired the entire issued share capital of Crown
Diamond Mining Limited which changed its name to DiamondCorp Holdings Limited in 2007(DHL). DHL owns 74% of the issued share
capital of Lace Diamond Mines (Pty) Limited.
The financial statements have been prepared in accordance with International Financial Reporting Standards.The financial statements have
been prepared on the historical cost basis.The financial statements have also been prepared in accordance with IFRSs adopted by the
European Union and therefore the Group financial statements comply with Article 4 of the EU IAS Regulation.The principal accounting
policies adopted are set out below.
The financial statements are prepared on a going concern basis as discussed on page 21.
33
Annual Report 2008
Notes to the financial statements
Year ended 31 December 2008
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 33 34
Annual Report 2008
1 Basis of preparation and accounting policies (continued)
c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its
subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity
so as to obtain benefits from its activities.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Minority interests
consist of the amount of those interests at the date of the original business combination (see below) and the minority's share of changes
in equity since the date of the combination. Losses applicable to the minority in excess of the minority's interest in the subsidiary's equity
are allocated against the interests of the Group except to the extent that the minority has a binding obligation and is able to make an
additional investment to cover the losses.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with
those used by the Group.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
d) Business combinations
The acquisition of subsidiaries is accounted for using the purchase method.The cost of the acquisition is measured at the aggregate of
the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in
exchange for control of the acquiree, plus any costs directly attributable to the business combination.The acquiree's identifiable assets,
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 “Business Combination” are recognised at their
fair value at the acquisition date, except for non-current assets (or disposal Groups) that are classified as held for resale in accordance
with IFRS 5 “Non-Current Assets held for Sale and Discontinued Operations” which are not recognised and measured at fair value less
costs to sell.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business
combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after
reassessment, the Group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities exceeds the
cost of the business combination, the excess is recognised immediately in profit or loss.
The interest of minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets,
liabilities and contingent liabilities recognised.
e) Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group's interest in the fair value of the
identifiable assets and liabilities of a subsidiary, at the date of acquisition. Goodwill is initially recognised as an asset at cost and is
subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised as an asset is reviewed for
impairment at least annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units expected to benefit from the
synergies of the combination.The cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than
the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Year ended 31 December 2008
Notes to the financial statements (continued)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 34 35
Annual Report 2008
1 Basis of preparation and accounting policies (continued)
f) Intangible assets
Exploration and evaluation expenditure comprises costs which are directly attributable to the acquisition of exploration licenses and
subsequent exploration expenditures.
Exploration and evaluation expenditure is carried forward as an asset provided that one of the following conditions is met:
(i) Such costs are expected to be recouped in full through successful development and exploration of the area of interest or
alternatively, by its sale;
(ii) Exploration and evaluation activities in the area of interest have reached a stage which permits a reasonable assessment of the
existence of economically recoverable reserves with active and significant operations in relation to the area continuing, or planned
for the future.
Identifiable exploration and evaluation assets acquired are recognised as assets at their cost of acquisition. An impairment review is
performed when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amounts.
Exploration assets are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions
outlined is met. Exploration rights are amortised over the useful economic life of the mine to which it relates, commencing when the
asset is available for use.
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Capitalised pre-production expenditure includes costs incurred and capitalised during the plant construction phase which are intangible
in nature. In prior years these capitalised expenditures were amortised over the life of the work in progress. However, the Mining Right
has been granted and for 2008 and subsequent years these expenditures will be amortised at a rate of 5% based on the life of the Mining
Right.
Rights to use the Power Line are capitalised at their cost of acquisition and are being amortised over the useful economic life at a rate
of 5% per annum.
Underground exploration and evaluation expenditure will be amortised from the point at which it is available for use over its useful
economic life, expected to be 5% per annum.
g) Property, plant and equipment
Property, plant and equipment is stated at cost less any subsequent accumulated depreciation and subsequent accumulated impairment
losses.
Depreciation is charged so as to write off the cost, less estimated residual value on assets other than land, over their estimated useful
lives, using the reducing balance method, on the following bases:
Plant 5%
Mining fleet 25%
Buildings 4%
Other tangible assets 20 – 33.33% 
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in income.
h) Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 35 36
Annual Report 2008
1 Basis of preparation and accounting policies (continued)
h) Impairment of tangible and intangible assets excluding goodwill (continued)
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to the present value using a pre tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (cash-generating unit) is reduced to its recoverable amount.An impairment loss is recognised as an expense immediately, unless
the relevant asset is carried at a re-valued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years.A reversal of an impairment
loss is recognised as income immediately, unless the relevant asset is carried at a re-valued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
i) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable losses for the period.T axable loss differs from net loss as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible.The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted
by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance
sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be
utilised. Such assets and liabilities are not recognised if the temporary differences arise from the initial recognition of goodwill or from
the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit
nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests
in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax
assets and liabilities on a net basis.
j) Financial instruments
Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual
provisions of the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective
interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the income statement when there
is objective evidence that the asset is impaired.The allowance recognised is measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.
Year ended 31 December 2008
Notes to the financial statements (continued)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 36 37
Annual Report 2008
1 Basis of preparation and accounting policies (continued)
j) Financial instruments (continued)
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and demand deposits, and other short-term highly liquid investments that are readily
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.An equity
instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Trade payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate
method.
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the
relevant period.The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points
paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the financial asset, or, where appropriate, a shorter period.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Intercompany receivables
Intercompany receivables are initially recognised by the Company at fair value and are subsequently measured at amortised cost using
the effective interest rate method.
k) Foreign currencies
The individual financial statements of each Group Company are presented in the currency of the primary economic environment in
which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of
each Group Company are expressed in pounds sterling, which is the functional currency of the Company, and the presentation currency
for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency (foreign
currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.At each balance sheet date, monetary assets
and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income
statement for the period. In the case of intercompany loans, any foreign exchange differences arising on elimination of these loans upon
consolidation of the Group Companies, are classified as equity and transferred to the Group's translation reserve, as these loans are for
investment purposes even though short term in nature. Exchange differences arising on the retranslation of non-monetary items carried
at fair value are included in the income statement for the period except for differences arising on the retranslation of non-monetary
items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of
that gain or loss is also recognised directly in equity.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated
at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the
period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions
are used. Exchange differences arising, if any, are classified as equity and transferred to the Group's translation reserve. Such translation
differences are recognised in the income statement in the period in which the foreign operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity
and translated at the closing rate.
l) Restoration, rehabilitation and environmental costs
An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the
development or ongoing production of a mining property. Such costs arising from the installation of plant and other site preparation
work, discounted to their net present value, are provided for and capitalised at the start of each project, as soon as the obligation to
incur such costs arises.These costs are charged against profits over the life of the operation, through the depreciation of the asset and
the unwinding of the discount on the provision. Costs for restoration of subsequent site damage which is created on an ongoing basis
during production are provided for at their net present values and charged against profits as extraction progresses.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 37 38
Annual Report 2008
1 Basis of preparation and accounting policies (continued)
l) Restoration, rehabilitation and environmental costs (continued)
Changes in the measurement of a liability relating to the decommissioning of plant or other site preparation work that result from changes
in the estimated timing or amount of the cash flow, or a change in the discount rate, are added to, or deducted from, the cost of the
related asset in the current period. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised
immediately in the income statement. If the asset value is increased and there is an indication that the revised carrying value is not
recoverable, an impairment test is performed in accordance with the accounting policy above.
m) Inventories
Inventory and work in progress are valued at the lower of cost and net realisable value.
Work in progress was valued at the time of acquisition at £2.84 per carat based on an in situ valuation equivalent to 8% of the market
value of US$63 per carat achieved at a sale of Lace project diamonds in May 2005.The number of carats in inventory (370,285 carats)
was based on an expert determination provided to the Company by a qualified external valuer.Work in progress is being amortized on
the units of production method. In 2008, the carrying value of work in progress was written down by £377,534 to reflect depreciation
in diamond prices and lower than forecast recoveries.
n) Revenue
Revenue from the sale of diamonds is recorded when the diamonds are sold at tender.The Lace plant was commissioned on 1 October
2007.The proceeds from the sale of diamonds recovered prior to that date were recorded as a reduction in the carrying value of the
pre-production expenses held within intangible assets.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying
value.
o) Finance leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the
lessee. All other leases are classified as operating leases. Rentals payable under operating leases are charged to income on a straight-line
basis over the term of the relevant lease. Assets held under finance leases are initially recognised as assets of the Group at their fair value
at the inception of the lease or, if lower, at the present value of the minimum lease payments.The corresponding liability to the lessor is
included in the balance sheet as a finance lease obligation.
p) Critical accounting judgements 
In the process of applying the Group's accounting policies, which are described above, the Directors have made the following judgements
that have the most significant effect on the amounts recognised in the financial information.
– Valuation of inventory – see accounting policy m) above.
– Valuation of warrants issued and ordinary shares issued as consideration – see notes 18 and 19.
– Impairment of goodwill – see policy e) above.
– Going concern – see page 21.
In addition, the Directors have considered the following key sources of estimation uncertainty:
During 2007, an issue arose between the Company and the Department of Mines and Energy (DME) over whether or not a Mining
Right was required for Phase One tailings retreatment.The Company's legal advice is that processing of tailings dumps do not fall within
the ambit of the Mineral and Petroleum Resources Development Act 28 of 2002 and a mining right or a mining permit is not required.
The view held by the Company and its legal advisers was upheld by the High Court of the Orange Free State Provincial Division in
December 2007 in a case between the DME and De Beers in relation to diamond tailings dumps at Jagersfontein. In 2009, a Mining Right
was formally granted to Lace Diamond Mines (Pty) Ltd allowing for more than 20 years of mining of both the dumps and the remaining
kimberlite, thereby resolving the issue.
2 Business and geographical segments 
For management purposes, the Group has one business and geographical segment – diamond mining and exploration in the Republic of
South Africa.
Year ended 31 December 2008
Notes to the financial statements (continued)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 38 39
Annual Report 2008
3 Operating loss 
Group Company
2008 2007 2008 2007
£ £ £ £
Operating loss is after charging (crediting)
Auditors' remuneration
- as auditors 85,800 80,000 44,000 59,000
Foreign exchange losses (gains) 85,894 (284,849) 85,753
Loss on disposal of fixed assets 39,642 3,322 – –
Depreciation of tangible assets 547,042 289,821 – –
Amortisation of intangible assets 98,818 8,133 19,817 –
Amortisation of work in progress 67,331 72,264 – –
Impairment of Inventories 377,534 – – –
The analysis of auditors' remuneration is as follows:
Fees payable to the Company's auditors for the audit of 
Company's accounts 34,000 34,000 34,000 34,000
Fees payable to the Company's auditors and their associates 
for other services to the Group – 10,000 – 10,000
The audit of the Company's subsidiaries 31,800 21,000 – –
Total audit fees 65,800 65,000 34,000 44,000
Corporate finance services 20,000 15,000 10,000 15,000
Total non-audit fees 20,000 15,000 10,000 15,000
T otal 85,800 80,000 44,000 59,000
4 Staff costs
Staff costs of the Group and Company were:
2008 2007
£ £
Group
Wages and salaries 661,452 175,364
Social security costs 39,147 35,983
700,599 211,347
Average number of administrative staff 9 7
Average number of operational staff 90 7
Average number of employees 99 14
Company
Wages and salaries 138,583 120,913
Social security costs 15,672 15,900
154,255 136,813
Average number of employees 3 4
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 39 40
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
5 Directors' emoluments
2008 2007
£ £
Directors' emoluments for the year ended 31 December 2008 and 2007 and for the highest paid 
director were as follows:
Directors' remuneration
Fees paid by the Company and its subsidiaries 213,033 208,000
Emoluments of highest paid director 147,500 151,000
6Tax
Current tax 87,855 45,000
Deferred tax (see note 15) (57,723) –
Tax expense for the year 30,132 45,000
The charge for the year can be reconciled to the loss per the income statement as follows:
Loss for the year (4,255,352) (2,056,251)
Tax at the UK corporation tax rate of 28% (2007 – 30%) (1,191,498) (616,875)
Expenses not deductible 603,933 –
Short term timing differences 364 –
Tax losses carried forward 632,673 661,875
Prior year adjustment – deferred tax (15,340) –
Tax expense for the year 30,132 45,000
The tax charge for the year relates to interest earned by Soapstone Investments (Pty) Limited on
an intercompany loan to Lace Diamond Mines (Pty) Limited.
7. Loss per share
a) Basic loss per share
Basic loss per share is calculated by dividing the loss for the year by the weighted average number 
of shares in issue during the year.The weighted average number of shares used is 36,772,136 
(2007 – 33,501,444).
b) Diluted loss per share
International Accounting Standard 33 requires presentation of diluted earnings per share when a 
Company could be called upon to issues shares that would decrease the net profit or increase 
the net loss per share. For a loss making Company with outstanding options, net loss per share 
would only be increased by the exercise of out-of-money options. Since it seems inappropriate 
to assume that option holders would exercise out-of-money options, no adjustment has been 
made to diluted loss per share for out-of-money share options.
c) Headline loss per share
The Group presents an alternative measure of loss per share after excluding all capital gains 
and losses from the loss attributable to ordinary shareholders.The impact of this is as follows:
Basic
Loss per share (11.65p) (6.27p)
Effect of loss on disposal of property, plant and equipment 0.10p 0.01p
Adjusted loss per share (11.55p) (6.26p)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 40 41
Annual Report 2008
8. Intangible fixed assets
For the year ended 31 December 2008
Pre- Under-
Power Power production ground
Line Line capitalised capitalised Mineral
Goodwill Phase 1 Phase 2 expenses expenses rights Total
Group £££££££
Cost
At 1 January 2008 4,606,026 341,221 – 424,792 80,388 607,299 6,059,726
Exchange differences – 1,732 13,401 (4,982) 79,618 2,479 92,248
Additions – 19,198 124,387 – 739,780 – 883,365
At 31 December 2008 4,606,026 362,151 137,788 419,810 899,786 609,778 7,035,339
Accumulated amortisation
At 1 January 2008 – (4,265) – (3,868) – – (8,133)
Charge for the year (16,806) (4,000) (34,734) (13,827) (29,451) (98,818)
Exchange differences (1,807) (431) (3,709) (4,145) (1,038) (11,130)
At 31 December 2008 – (22,878) (4,431) (42,311) (17,972) (30,489) (118,081)
Carrying amount
At 31 December 2008 4,606,026 339,273 133,357 377,499 881,814 579,289 6,917,258
At 31 December 2007 4,606,026 336,956 – 420,924 80,388 607,299 6,051,593
Mineral
rights
Company £
Cost and carrying amount
Cost at 1 January 2008 396,343
Charge for the year (19,817)
At 31 December 2008 376,526
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 41 42
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
8. Intangible fixed assets (continued)
For the year ended 31 December 2007
Pre- Under-
production ground
Power capitalised capitalised Mineral
Goodwill Line expenses expenses rights Total
Group ££££££
Cost
At 1 January 2007 4,606,026––– 1,110,530 5,716,556
Regrouping intangible assets – 256,957 238,891 9,408 (505,256) –
Exchange differences – 5,083 (127,345) 2,364 2,025 (117,873)
Additions – 79,181 313,246 68,616 – 461,043
At 31 December 2007 4,606,026 341,221 424,792 80,388 607,299 6,059,726
Accumulated amortisation
At 1 January 2007 ––––––
Charge for the year – (4,265) (3,868) – – (8,133)
At 31 December 2007 – (4,265) (3,868) – – (8,133)
Carrying amount
At 31 December 2007 4,606,026 336,956 420,924 80,388 607,299 6,051,593
Mineral
rights
Company £
Cost and carrying amount
At 1 January 2007 393,653
Additions 2,690
At 31 December 2007 396,343
The Group has received its Mining Right for the Lace project.Accordingly, the amortisation policy for pre-production capitalised expenses
was changed effective 1 January 2008 to 5% to conform with the life of the plant for amortisation purposes.
The Group has been granted “New Order Prospecting Rights” in respect of two properties in the Free State of the Republic of
South Africa:
(i) Ruby 691 Farm, which covers an area of 1,180.6 hectares and in which is situated the historical workings of the Lace diamond mine;
and
(ii) Silverbank Farm, which covers an area of 4,407.6 hectares.
In addition, the Group purchased the surface rights to Subdivision 1 of Ruby 691 Farm which is 108.2 hectares in area.
The Group tests annually for impairment, or more frequently if there are indications that goodwill might be impaired.The Group has one
reportable business segment and all goodwill is associated with that segment.The recoverable amounts of the cash generating unit
(“CGU”) is determined from value in use calculations.The key assumptions for the value in use calculations are those regarding the
discount rates, growth rates and expected changes to selling prices and direct costs during the period. A discount rate of 10% has been
used, which is consistent with the rate used for determining the value of purchased intangibles.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 42 43
Annual Report 2008
8. Intangible fixed assets (continued)
The Group prepares cash flow forecasts derived from the most recent financial budget approved by management and extrapolates cash flows
for the coming years based on a 25 year project model being the projected life of the mine. For the purposes of this calculation, management
assumes a build up in production from 1,500 tonnes to 3,000 tonnes per day in Y ear 1, then increasing to 4,000 tonnes per day during Y ear 2,
and for each subsequent year of production.The model uses grade assumptions based on geological exploration data incorporated in the
independent “competent person's” report, prepared at the time of the Company's admission to AIM, and assumes 0% increase in diamond
prices from the current depressed levels. Fixed expenses have been assumed to grow at 10% for Year 1 and then 8% thereafter.Variable
expenses are directly linked to production and have been assumed to increase at the same rate as production throughout the forecast period.
The rates used above reflect historical rates achieved and expected levels for 2009, but are then adjusted for subsequent years. Having
performed impairment testing, no impairment has been identified and therefore no impairment loss has been recognised in either year.
The Group has prepared a sensitivity showing zero growth throughout the 25 year period and increasing the discount rate to 20%. Even
at this level no impairment is required to be recorded.
9. Property plant and equipment
For the year ended 31 December 2008
Land Other
Mining and tangible
Plant Fleet buildings assets T otal
Group £££££
Cost
At 1 January 2008 3,970,156 1,010,603 133,933 162,836 5,277,528
Additions 660,677 675,729 54,667 34,807 1,425,880
Exchange differences 48,384 51,221 16,961 2,681 119,247
Disposals (276,665) – – – (276,665)
At 31 December 2008 4,402,552 1,737,553 205,561 200,324 6,545,990
Accumulated depreciation
At 1 January 2008 (48,899) (233,444) (10,598) (25,898) (318,839)
Charge for the year (236,574) (259,870) (10,464) (40,134) (547,042)
Disposals 20,750––– 20,750
Exchange differences (23,203) (24,576) (4,306) (4,298) (56,383)
At 31 December 2008 (287,926) (517,890) (25,368) (70,330) (901,514)
Carrying amount
At 31 December 2008 4,114,626 1,219,663 180,193 129,994 5,644,476
At 31 December 2007 3,921,257 777,159 123,335 136,938 4,958,689
For the year ended 31 December 2007
Cost
At 1 January 2007 2,655,794 672,581 73,484 48,240 3,450,099
Additions 1,247,602 320,949 57,829 113,689 1,740,069
Exchange differences 66,760 17,073 2,620 4,229 90,682
Disposals – – – (3,322) (3,322)
At 31 December 2007 3,970,156 1,010,603 133,933 162,836 5,277,528
Accumulated depreciation
At 1 January 2007 – (25,953) (242) (2,823) (29,018)
Charge for the year (48,899) (207,491) (10,356) (23,075) (289,821)
At 31 December 2007 (48,899) (233,444) (10,598) (25,898) (318,839)
Carrying amount
At 31 December 2007 3,921,257 777,159 123,335 136,938 4,958,689
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 43 44
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
10. Investment in subsidiaries
For the year ended 31 December 2008
Company £
Cost and carrying amount
At 1 January 2008 and 31 December 2008 4,217,500
For the year ended 31 December 2007
Company £
Cost and carrying amount
At 1 January 2007 and 31 December 2007 4,217,500
The investment represents 100% of the share capital of Crown Diamond Mining Limited (“CDM”) which was acquired on 15 May 2006.
CDM changed its name to Diamondcorp Holdings Limited in 2007 (“DHL”) and is a Company registered in the British Virgin Islands.
The Africa Opportunity Fund L.P . loan is secured by the assets of the subsidiaries. For a list of subsidiaries, please refer to note 21.
11. Inventories
2008 2007
Group £ £
Work in progress
Cost and carrying amount at beginning of year 754,765 1,052,000
Impairment of inventories (377,534) (84,737)
Amortisation (67,331) (72,264)
Foreign exchange loss (48,670) (140,234)
Carrying amount at end of year 261,230 754,765
Diamond inventories 126,335 198,758
Consumable and other inventories 76,257 32,526
463,822 986,049
At 31 December 2008 diamond inventories amounted to 17,713 (2007 – 11,522) carats of which 5,317 carats were of gem quality.
Work in progress was valued on acquisition at £2.84 per carat based on an in situ valuation equivalent to 8% of the market value of
US$63 per carat achieved at a sale of Lace project diamonds in May 2005.The number of carats in work in progress (370,285 carats)
was based on an expert determination provided to the Company by a qualified external valuer. Commissioning of the tailings plant
occurred on 1 October 2007. Amortisation of work in progress in the amount of £67,331 (2007 – £72,264), based on the units of
production method, was recorded in 2008.
In 2008, the carrying value of work in progress was written down by £377,534 to reflect depreciation in diamond prices.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 44 45
Annual Report 2008
12. Other receivables
Group Company
2008 2007 2008 2007
£ £ £ £
Receivables due from Group undertakings – – 13,081,817 8,749,747
Prepayments and other receivables 566,730 136,495 5,885 10,079
566,730 136,495 13,087,702 8,759,826
The Directors consider that the carrying amount of these assets approximates their fair value. All receivables balances are non-interest
bearing.
Included in prepayments and other receivables, is a rehabilitation bond held by the Department of Minerals and Energy in the amount
of £62,170 (2007 – £10,737) providing for the cost of rehabilitation on termination of the Lace project.
Credit risk management
The Group and Company's principal financial assets are bank balances and cash.The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings assigned by international credit-rating agencies.The Group currently holds no trade
receivables. Included within loans and receivables is an amount of £100,000 (2007 – nil) which is a contracted other receivable.This is
the amount after an impairment loss recognised in the year of £170,000 (2007 – nil). Management reviews the creditworthiness of all
customers before entering into a transaction.
The Company also holds amounts receivable from related parties as disclosed in note 16. Management reviews the creditworthiness of
all balances due from related parties with reference to future profitability.
13. Other payables
Group Company
2008 2007 2008 2007
£ £ £ £
Income tax 87,855 45,000 – –
Interest on long term loan 67,342 – 67,342 –
Accruals and deferred income 512,178 153,609 90,679 64,193
667,375 198,609 158,021 64,193
The Directors consider that the carrying amount of these liabilities approximates their fair value. All payables balances are non-interest
bearing.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 45 46
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
14. Long term loan
On 17 October 2008, the Company completed a long term loan with Africa Opportunity Fund L.P. (“AOF”) in the amount of
US$5,000,000.The loan is secured by the Company's equity interest in Lace Diamond Mines (Pty) Ltd and by the assets of the Company's
subsidiaries.
The loan is repayable over 36 months as detailed in the schedule below.
AOF Repayment Schedule
Capital Interest
repayment payment
Schedule schedule T otal
Repayment date (US$) (US$) (US$)
16 April 2009 – 299,178 299,178
16 October 2009 – 300,822 300,822
16 April 2010 500,000 299,178 799,178
16 October 2010 1,000,000 270,740 1,270,740
16 April 2011 1,500,000 209,425 1,709,425
16 October 2011 2,000,000 120,329 2,120,329
5,000,000 1,499,672 6,499,672
Interest accrues daily and is payable half-yearly at a rate of 12% with the portion of the interest relating to the year ended 31 December
2008, US$124,932, being accrued for in these accounts (£67,342).
The cost of the warrants granted to AOF, £57,566, (refer note 18) has been offset against the loan in accordance with IAS 39.The cost
of these warrants is to be expensed over the life of the loan and does not constitute payment towards the loan.The warrant cost
expensed during the period was £3,998.
At 31 December 2008, the carrying value of the long term loan with Africa Opportunity Fund L.P . was £3,453,277 (US$5,000,000) before
taking into account the above-mentioned warrant costs.
15. Deferred tax
2008
£
At 1 January 2008 –
Credit to the income statement (57,723)
At 31 December 2008 (57,723)
2008
£
Current year credit (42,383)
Prior year adjustment (15,340)
At 31 December 2008 (57,723)
The deferred tax asset relates to capital allowances in excess of depreciation. Until it is probable that sufficient taxable profits will be
available to allow all or partial recovery of deferred tax assets of £2,163,453 (2007 – £520,453), the accounting benefit of tax losses will
not be reflected in the accounts.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 46 47
Annual Report 2008
16. Related party transactions
The Directors consider that there is no ultimate controlling party of the Company. Transactions between the Company and its
subsidiaries, which are related parties of the Company have been disclosed in the Company section of this note.
The Directors are considered to be the key personnel of the Group and therefore all transactions with such individuals have been
disclosed below and in the audited section of the remuneration report.
Details of transactions between the Group and other related parties are disclosed below.
During the year ended 31 December 2008:
(i) £82,000 (2007 – £85,000) were paid to the following companies as Directors' remuneration:
– £60,000 to Glendree Capital Management Limited (2007 – £54,000), a Company owned by P R Loudon;
– £10,000 to Mining Finance Solutions (2007 – £20,000), a Company owned by E A Worthington;
– £12,000 to Loeb Aron & Company Limited (2007 – £11,000), a Company where J Willis-Richards is a director;
In addition, during the year ended 31 December 2008:
(i) DiamondCorp plc  incurred rent of £25,000 from Loeb Aron & Company Limited (2007 – £25,000).
(ii) Lace incurred consulting fees of £4,110 (2007 £4,242) from The Mineral Corporation, a Company in which G Robbertze, a director
of Lace, is a principal.
Company
The Company held a loan to Diamondcorp Holdings Limited of £13,064,690 (2007 £8,732,619) and to Lace Diamond Mines (Pty)
Limited of £17,274 (2007 £17,127).
17. Share capital
2008 2007
£ £
Authorised share capital
166,666,666 ordinary shares of 3 pence each 5,000,000 5,000,000
2008 2007
No. £ No. £
Called up, allotted and fully paid
Ordinary shares of 3 pence each 41,086,995 1,232,610 34,770,408 1,043,112
On 1 February 2007 the Company was admitted to the AIM market and simultaneously issued 2,750,000 ordinary shares at 90 pence
each. In accordance with the terms of the Convertible Loan Notes, on the date of admission the notes converted to 6,500,000 ordinary
shares.
During the year ended 31 December 2007, 783,330 warrants were exercised for proceeds of £235,000 and the same number
of ordinary shares were issued.
On 26 May 2008 the Company listed on the Johannesburg Stock Exchange (JSE) and simultaneously issued 2,249,923 ordinary shares at
the ZAR equivalent of 77.7 pence each.
On 7 November 2008 the Company issued 4,000,000 ordinary shares of 3 pence each in respect of a private placement completed
at 45 pence per ordinary share.
During the year ended 31 December 2008, 66,664 warrants were exercised for proceeds of £19,999 and the same number of ordinary
shares were issued.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 47 48
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
18. Reserves
For the year ended 31 December 2008
Share Share
Warrant option premium Retained Translation
reserve reserve account losses reserve
Group £££££
At 1 January 2008 740,949 282,790 14,116,306 (3,000,770) 82,537
Loss for the year – – – (4,285,484) –
(Exercise of warrants)/Share premium on exercise (7,333) – – 7,333 –
Warrants expired (80,668) – – 80,668 –
Premium arising on issue of equity shares – – 3,378,692 – –
Value of warrants over ordinary shares 57,566––––
Share option expense in year – 37,471–––
Movement during the year –––– 126,802
Issue costs – – (34,778) – –
At 31 December 2008 710,514 320,261 17,460,220 (7,198,253) 209,339
Share Share
Warrant option premium Retained
reserve reserve account losses
Company ££££
At 1 January 2008 740,949 282,790 14,116,306 (1,608,313)
Loss for the year – – (1,784,164)
(Exercise of warrants)/Share premium on exercise (7,333) – – 7,333
Warrants expired (80,668) – 80,668
Premium arising on issue of equity shares – – 3,378,692 –
Issue of warrants over ordinary shares 57,566 – –
Share option expense in year – 37,471 –
Issue costs – – (34,778) –
At 31 December 2008 710,514 320,261 17,460,220 (3,304,476)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 48 49
Annual Report 2008
18. Reserves (continued)
For the year ended 31 December 2007
Share Share
Warrant option premium Retained Translation
reserve reserve account losses reserve
Group £££££
At 1 January 2007 641,667 – 8,534,095 (899,519) –
Loss for the year – – – (2,101,251) –
(Exercise of warrants)/Share premium on exercise (86,167) – 86,167 – –
Premium arising on issue of equity shares – – 6,074,999 – –
Value of warrants over ordinary shares 185,449––––
Share option expense in year – 282,790–––
Movement during the year –––– 82,537
Issue costs – – (578,955) – –
At 31 December 2007 740,949 282,790 14,116,306 (3,000,770) 82,537
Share Share
Warrant option premium Retained
reserve reserve account losses
Company ££££
At 1 January 2007 641,667 – 8,534,095 (529,549)
Loss for the year – – – (1,078,764)
(Exercise of warrants)/Share premium on exercise (86,167) – 86,167 –
Premium arising on issue of equity shares – – 6,074,999 –
Issue of warrants over ordinary shares 185,449–––
Share option expense in year – 282,790 – –
Issue costs – – (578,955) –
At 31 December 2007 740,949 282,790 14,116,306 (1,608,313)
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 49 50
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
18. Reserves (continued)
Warrants Warrant
Warrants in issue reserve 
£
Group and Company
At 31 December 2008 7,316,666 710,514
Group and Company
At 31 December 2007 6,466,655 740,949
(i) Loan Note Warrants
The holders of convertible loan notes which were converted into 4,750,000 ordinary shares of 1 penny each on 21 December 2005, were
entitled to be issued, on conversion, with a total of 1,583,333 warrants to subscribe for ordinary shares of 3 pence each at the lower of
180 pence per share or price at which the Company issued ordinary shares of 3 pence each on admission to the Alternative Investment
Market.The exercise price was reduced to 30 pence per ordinary share when admission did not take place prior to 30 April 2006.These
warrants expired on 30 April 2008 with 66,664 warrants being exercised before the expiry date. Certificates in relation to these warrants
were issued on 30 June 2006 following and taking into account, the consolidation of the Company's share capital on that date.
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
(ii) V endor Warrants
The vendors of Crown Diamond Mining Limited (which changed its name to Diamondcorp Holdings Limited in 2007) were entitled to
be issued on completion of the sale of its ordinary share capital to the Company with a total of 4,166,666 warrants to subscribe for
ordinary shares of 3 pence each at a price of the lower of 180 pence or price at which the Company raises equity finance on admission
to the Alternative Investment Market (90 pence).These warrants expire on that date which is five years from the date of admission to
the Alternative Investment Market. Certificates in relation to these warrants were issued on 30 June 2006 following and taking into
account, the consolidation of the Company's share capital on that date.
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
(iii) Loeb Aron Warrants
In reference to work performed on fundraisings by Loeb Aron & Company Limited, Loeb Aron were issued warrants over
250,000 ordinary shares of 3 pence each for a period of two years from the date of admission to the Alternative Investment Market,
exercisable at 105 pence per share.
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
(iv) Cenkos Warrants
In January 2007, Cenkos Securities plc, the Company's nominated advisor and broker, received warrants to subscribe for up to
1,000,000 ordinary shares of 3 pence each exercisable at 121.5 pence for a period of 24 months from date of admission to the AIM market.
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
(v) BBK Warrants
In 2007 a warrant was issued to BBK Consultancy plc to subscribe for 250,000 ordinary shares of 3 pence each for a period of 3 years
at an exercise price of 121.5 pence.The warrants vest when the Company's share price is above 135 pence per share for 28 consecutive
trading days and are exercisable at any time up to and including 30 April 2011.
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
(vi) AOF Warrants
In 2008 a warrant was issued to Africa Opportunity Fund to subscribe for 1,650,000 ordinary shares of 3 pence each, exercisable at
65.3 pence for a period of 36 months from the date of grant, 17 October 2008.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 50 51
Annual Report 2008
18. Reserves (continued)
These warrants were valued by the Directors using the Black-Scholes valuation model, based on the assumptions as detailed below.
Loan Note Vendor Loeb Aron Cenkos BBK AOF
Black-Scholes assumptions Warrants* Warrants* Warrants Warrants Warrants Warrants
Term range 2 years 5.6 years 2 years 2 years 3 years 0.5 years
Expected dividend yield Nil Nil Nil Nil Nil Nil
Risk free interest rate 5% 5% 5% 5% 5% 2%
Share price volatility 55% 55% 55% 55% 40% 40%
Share price at time of grant 45 pence 45 pence 90 pence 90 pence 90 pence 56.5 pence
* These warrants were subject to the share consolidation on 30 June 2006.
Share options (refer note 19)
Stock Stock
options option
in issue reserve 
£
Group and Company
At 31 December 2008 2,945,000 320,261
Group and Company
At 31 December 2007 2,940,000 282,790
(i) 2007 UK Options
During 2007, options over 2,940,000 ordinary shares of 3 pence each were granted to employees and management of the Company,
exercisable at 135 pence for a period of 10 years from the date of issue. 270,000 of these options vested on grant and the balance vest
over 3 year at one-third at each anniversary of the issue date. 690,000 of these options were forfeited during 2008 by reason of
retirement.
Share options granted during the year ended 31 December 2007 were valued by the Directors using the Black-Scholes valuation model,
based upon the assumptions as detailed below:
(ii) The DiamondCorp Share Option Plan
During 2008, a share option plan was approved and registered in the Republic of South Africa to provide eligible employees of the Group
with the opportunity to acquire as incentive an interest in the equity of the Company. Eligible employees were granted options over
695,000 ordinary shares of 3 pence each, exercisable at 50 pence for a period of 10 years from the date of issue, 16 December 2008.
These options vest over 3 years at one-third at each anniversary of the issue date.
These options were valued by the Directors using the Black-Scholes valuation model, based upon the assumptions as detailed below and
Management has elected to expense the cost of these options effective 1 January 2009.
Black-Scholes Assumptions
The 
2007 DiamondCorp
UK Share 
Option Option 
Plan Plan
Term range 3 years 3 years
Expected dividend yield Nil Nil
Risk free interest rate 5% 2%
Share price volatility 40% 40%
Share price at time of grant 90 pence 34.5 pence
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 51 52
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
19. Share based payments
Equity-settled share option scheme
The Company has a share option scheme for all employees of the Group. Options are exercisable at a price equal to the average quoted
market price of the Company's shares on the date of grant.The vesting period is three years. If the options remain unexercised after a
period of ten years from the date of grant the options expire. Options are generally forfeited if the employee leaves the Group before
the options vest.
Details of the share options outstanding during the year are as follows.
2008 2007
Weighted Weighted
Number of average Number of average
share exercise share exercise
options price options price
(£) (£)
Outstanding at beginning of year 2,940,000 135p –
Granted during the year 695,000 50p 2,940,000 135p
Forfeited during the year (690,000) –
Exercised during the year – –
Expired during the year – –
Outstanding at the end of the year 2,945,000 115p 2,940,000 135p
Exercisable at the end of the year 930,000 135p 270,000 135p
The options outstanding at 31 December 2008 had a weighted average exercise price of 115p, and a weighted average remaining
contractual life of 8.5 years. The aggregate of the estimated fair values of the options granted on those dates is £414,942. At
31 December 2007, 2,940,000 options were outstanding at a weighted average exercise price of 135p.
The inputs into the Black-Scholes model are as follows:
2008 2007
£ £
Weighted average share price 34.5p 90p
Weighted average exercise price 50p 135p
Expected volatility 40% 40%
Expected life 3 years 3 years
Risk-free rate 2% 5%
Expected dividend yields 0% 0%
Expected volatility was determined based on management's best estimate.The expected life used in the model has been adjusted, based
on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
During 2008, the Group recognised total expenses of £37,471 (2007 – £282,790) relating to equity-settled share-based payment
transactions.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 52 53
Annual Report 2008
20. Financial instruments
Group and Company
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return
to stakeholders through the optimisation of the debt and equity balance.The capital structure of the Group consists of debt, which
includes the borrowings disclosed in note 14, cash and cash equivalents and equity attributable to equity holders of the parent, comprising
issued capital, reserves and retained earnings as disclosed in note 18.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument
are disclosed in note 1 to the financial statements.
Categories of financial instruments
Group Company
Carrying value Carrying value
2008 2007 2008 2007
£ £ £ £
Financial assets
Loans and receivables (including cash and cash equivalents) 3,352,276 1,330,707 15,376,948 10,015,115
Financial liabilities
Amortised cost 3,822,819 94,382 55,679 –
Financial risk management objectives
The Group's financial function provides services to the business, monitors and manages the financial risks relating to the operations of
the Group.These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and
cash flow interest rate risk.
The Group does not enter into or trade financial instruments, including derivative financial instruments, for any purpose.
Market risk
The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates.There has been an increase
in the Group's exposure to market risks due to the long term loaned obtained during the year.The manner in which the Group measures
and manages the risk has not changed.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise.
The carrying amounts of the Group's and Company's foreign currency denominated monetary assets and monetary liabilities at the
reporting date are as follows:
Assets (Liabilities)
2008 2007
£ £
Cash denominated in South African Rand 1,188,930 100,709
Cash denominated in United States Dollar 414,393 –
Long term loan denominated in United States Dollar (3,453,277) –
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 53 54
Annual Report 2008
Year ended 31 December 2008
Notes to the financial statements (continued)
20. Financial instruments (continued)
Foreign currency sensitivity analysis
The Group is exposed to the currency of South Africa (Rand) and the United States Dollar.
The following table details the Group's sensitivity to a 20% increase and decrease in the Sterling against South African Rand and United
States Dollar. 20% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management's assessment of the reasonably possible change in foreign exchange rates.The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the period end for a 20% change in foreign currency rates.
A negative number below indicates a decrease in profit where the Sterling strengthens 20% against the relevant currency. For a 20%
weakening of the Sterling against the relevant currency, there would be an equal and opposite impact on the profit and the balances
below would be positive.
Rand currency impact
2008 2007
£ £
Loss due to a 20% change against ZAR 198,155 (12,000)
Loss due to a 20% change against USD (506,481) –
The Group's sensitivity to foreign currency has increased during the current period, because the Company held higher balances of foreign
currency.
In management's opinion, the impact of the sensitivity analysis is representative.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk
management framework for the management of the Group's short term funding and liquidity management requirements.The Group
manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities.The tables have been drawn
up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay.
The table includes the principal cash flows.
Weighted 
average Less
effective Than 1 – 2 2 +
interest rate 1 year Years Years Total
Group %££££
2008
Non-interest bearing 278,273 – – 278,273
Finance lease liability 14.20% 35,330 35,330 20,609 91,269
Fixed interest rate instruments 12.00% 414,600 1,281,279 2,370,618 4,066,497
728,203 1,316,609 2,391,227 4,436,739
2007
Non-interest bearing 94,382 – – 94,382
Finance lease liability – – – –
Fixed interest rate instruments – – – –
94,382 – – 94,382
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 54 55
Annual Report 2008
20. Financial instruments (continued)
Weighted 
average Less
effective Than 1 – 2 2 +
interest rate 1 year Years Years Total
Company %££££
2008
Non-interest bearing 55,679 – – 55,679
Fixed interest rate instruments 12.00% 414,600 1,281,279 2,370,618 4,066,497
470,279 1,281,279 2,370,618 4,122,176
2007
Non-interest bearing – – – –
Fixed interest rate instruments – – – –
––––
The following table details the Group's and Company's expected maturity for its non-derivative financial assets.The tables below have
been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those
assets.
Group Company
Weighted Weighted
average average
effective Less than effective Less than
interest rate 1 month interest rate 1 month
%£ %£
2008
Non-interest bearing 2,600,971 2,295,131
Fixed interest rate instruments 10.09% 777,305 –
3,378,276 2,295,131
2007
Non-interest bearing 289,342 9,015,115
Fixed interest rate instruments 7.02% 1,041,365 5.8% 1,000,000
1,330,707 10,015,115
21. Subsidiaries
Details of the Company's subsidiaries at 31 December 2008 were as follows:
Place of Proportion of Proportion of
incorporation ownershipvoting power
(or registration) interest held
Name of subsidiary and operation % % Principal activity
Diamondcorp Holdings Limited 
(1)
British Virgin Islands 100 100 Holding Company of a Trading
Group
Lace Diamond Mines (Pty) Limited Republic of South Africa 74 74 Diamond exploration and
exploitation
Soapstone Investments (Pty) Limited Republic of South Africa 100 100 Investment Company
(1)
Formerly named Crown Diamond Mining Limited
22. Subsequent events
On 5 February 2009, a 21-year Mining Right for the Lace project was issued to Lace Diamond Mines (Pty) Limited by the Department
of Minerals and Energy.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 55 Notice of Annual General Meeting
DiamondCorp plc  
(the “Company”)
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of the Company will be held at the offices of DiamondCorp plc , First Floor,
Georgian House, 63 Coleman Street, London, EC2R 5BB on 6 May 2009 at 2:30 pm in order to consider and, if thought fit, pass resolutions
1 to 6 as Ordinary Resolutions and resolution 7 as a Special Resolution:-
Ordinary Resolutions
1 To re-elect as a director Paul Robert Loudon who is retiring in accordance with Article 114 of the Company's Articles of Association
and who being eligible is offering himself for re-election.
2 To re-elect as a director Richard Nicholas Allen who is retiring in accordance with Article 114 of the Company's Articles of Association
and who being eligible is offering himself for re-election.
3 T o re-elect as a director Robin Leonard Henshall who is retiring in accordance with Article 114 of the Company's Articles of Association
and who being eligible is offering himself for re-election.
4 T o receive, consider and adopt the Directors' Report and accounts of the Company for the period ended 31 December 2008, together
with the reports of the directors and the auditors thereon.
5 To re-appoint Deloitte LLP of City House, 126-130 Hills Road, Cambridge, CB2 1RY as auditors and to authorise the directors to
determine their remuneration.
6 Pursuant to Section 80 of the Companies Act 1985 (the “Act”) to exercise all or any of the powers of the Company to allot relevant
securities (as defined in section 80(2) of the Act) up to the entire authorised but unissued share capital of the Company from time to
time (after setting aside so many shares as may be required to be allotted and issued by the Company in terms of any share or scheme
for the benefit of employees and/or directors), provided that this authority shall, unless previously revoked or varied by the Company in
general meeting, expire at the conclusion of the next Annual General Meeting of the Company following the date of the passing of this
resolution or (if earlier) 15 months from the date of passing this resolution, but so that the directors may before such expiry make an
offer or agreement which would or might require relevant securities to be allotted after such expiry and the directors may allot relevant
securities in pursuance of that offer or agreement as if the authority hereby conferred had not expired.
Special Resolution
7 Pursuant to Section 95 of the Act, that the directors of the Company be and they are hereby authorised by way of a general authority
to issue all or any of the authorised but unissued ordinary shares in the capital of the Company for cash, as and when they in their
discretion deem fit, subject to the JSE Listings Requirements, which currently provide, inter alia, that:
Annual Report 2008
56
Please note that this document is important and requires your immediate attention.
If you are in any doubt as to the action to be taken, please consult an independent
adviser immediately.
If you have sold or transferred or otherwise intend to sell or transfer all of your
holding of ordinary shares in the Company prior to the Annual General Meeting of
the Company to be held on 6 May 2009 at 2:30 pm, you should send this
document, together with the accompanying Form of Proxy, to the (intended)
purchaser or transferee or to the stockbroker, bank or other agent through whom
the sale or transfer was or is to be effected for transmission to the (intended)
purchaser or transferee. UK Company Number: 5400982
SA Company Registration Number:
2007/031444/10
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 56 7.1 this authority shall expire at the conclusion of the next Annual General Meeting of the Company or (if earlier) 15 months from the
date of passing this resolution save that the Company may, before such expiry, make an offer or agreement which would or might
require equity securities to be allotted after such expiry and the directors may allot equity securities in pursuance of such offer or
agreement as if the power conferred hereby had not expired;
7.2 a paid press announcement giving full details, including the impact on net asset value and earnings per share, will be published at the
time of an issue representing, on a cumulative basis within one year, 5% or more of the number of shares in issue prior to such issue;
7.3 issues in the aggregate in any one financial year will not exceed 15% of the number of ordinary shares in the Company's issued
share capital from time to time;
7.4 in determining the price at which an issue of ordinary shares may be made in terms of this authority, the maximum discount
permitted will be 10% of the weighted average traded price determined over the 30 business days prior to the date that the price
of the issue is determined or agreed by the directors; and
7.5 any such issue will only be made to public shareholders as defined in the JSE Listings Requirements, provided that the maximum
number of ordinary shares which can be issued in terms of this authority in the aggregate in any one year shall not exceed 15% of
the issued ordinary share capital of the Company, from time to time.
By order of the board
P R Loudon
Director
Registered Office: First Floor, Georgian House, 63 Coleman Street, London, EC2R 5BB
30 March 2009
Notes:
1 A member entitled to attend and vote at the meeting is also entitled to appoint a proxy to attend and vote on a poll instead of him.A proxy may demand,
or join in demanding, a poll. A proxy need not be a member of the Company.
2 Completion and return of the form of proxy will not preclude shareholders from attending or voting at the meeting, if they so wish. If you have appointed
a proxy and attend the meeting in person, your proxy appointment will automatically be terminated.
3 To be effective, this proxy form must be lodged at the Registered Office, First Floor, Georgian House, 63 Coleman Street, London, EC2R 5BB, not later
than 2 business days before the time of the meeting or any adjournment thereof, together, if appropriate, with the power of attorney or other authority
(if any) under which it is signed or a notarially certified copy of such power or, where the proxy form has been signed by an officer on behalf of a
corporation, a notarially certified copy of the authority under which it is signed.
4 In the case of a joint holding, a proxy need only be signed by one joint holder. If more than one such joint holder lodges a proxy only that of the holder
first on the register of members will be counted. Any alternations made to this proxy should be initialled.
5 If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take precedence.
6 In the case of a corporation this proxy must be given under its common seal or be signed on its behalf by an attorney or officer duly authorised.
7 Any power of attorney or any other authority under which this proxy form is signed (or a duly certified copy of such power or authority) must be included
with the proxy form.
8 Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the time by which a person must be entered on the register of members in
order to have the right to attend and vote at the Annual General Meeting is 2:30 pm on 4 May 2009, (being not more than 2 business days prior to the
time fixed for the Meeting) or, if the Meeting is adjourned, such time being not more than 2 business days prior to the time fixed for the adjourned meeting.
Changes to entries on the register of members after that time will be disregarded in determining the right of any person to attend or vote at the Meeting.
9 If you are a dematerialised DiamondCorp shareholder and are not an own name dematerialised DiamondCorp shareholder then you must instruct your
Central Securities Depository Participant (“CSDP”) or broker as to how you wish to cast your vote at the Annual General Meeting in order for them to
vote in accordance with your instructions. If you wish to attend the Annual General Meeting in person, please request your CSDP or broker to issue the
necessary letter of representation to you. This must be done in terms of the agreement entered into between the dematerialised DiamondCorp
shareholder (who is not an own name dematerialised DiamondCorp shareholder) and the CSDP or broker.
10 In relation to each of the directors seeking re-election in resolutions 1 to 3 above, copies of their respective CV's are contained within the Directors'
Report to the 2008 Annual Report.
Annual Report 2008
57
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 57 58
Annual Report 2008
Directors
P R Loudon
R N Allen
E A Worthington
J Willis-Richards
R L Henshall
Company Secretary 
and Chief Financial Officer
J C Forrest
Registered Office
First Floor, Georgian House
63 Coleman Street
London
EC2R 5BB
United Kingdom
Tel: +44 (0) 20 7256 2651
Fax: +44 (0) 20 7256 2666
Website: www.diamondcorp.plc.uk
Bankers
Barclays Bank plc
Town Gate House
Church Street East
Woking
Surrey
GU21 6XW
United Kingdom
AIM Broker and Nominated Advisor
Cenkos Securities plc
6.7.8 T okenhouse Y ard
London
EC2R 7AS
United Kingdom
JSE Advisor and Sponsor
Investec Bank Limited
100 Grayston Drive
Sandown
Sandton 
2196
South Africa
Solicitors
Cobbetts LLP
58 Mosley Street
Manchester
M2 3HZ
United Kingdom
Werksmans Inc
155 – 5th Street
Sandton
2196
South Africa
Auditors
Deloitte LLP
Chartered Accountants and Registered Auditors
Cambridge
United Kingdom
Deloitte & Touche
Chartered Accountants and Registered Auditors
South Africa
T echnical Advisors
Snowden Mining Industry Consultants 
Technology House
Greenacres Office Park
Cnr Victory and Rustenburg Roads
Victory Park
Johannesburg 
2195
South Africa  
Officers and professional advisors
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 58 59
Annual Report 2008
Form of proxy
DiamondCorp Plc , (the “Company”)
Company Number: 5400982
SA Company Registration Number:
2007/031444/10
DiamondCorp plc 
(the “Company”)
For use at the Annual General Meeting of the Company convened for 6 May 2009 at 2:30 pm.
I/We 
(BLOCK LETTERS PLEASE)
of
being a member of DiamondCorp plc , hereby appoint the Chairman of the meeting, or*
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at First Floor, Georgian House,
63 Coleman Street, London, EC2R 5BB on 6 May 2009 at 2:30 pm on the following resolutions, to be submitted to the meeting and at any
adjournment thereof, and any other business which may properly come before the meeting and any adjournment thereof.
Please indicate with an 'X' in the appropriate space how you wish your vote to be cast. Unless otherwise instructed, the proxy will vote as
he thinks fit or abstain.
Vote
Ordinary Resolutions For Against Withheld**
1 To re-elect as a director Paul Robert Loudon who is retiring in accordance with
Article 114 of the Company's Articles of Association and who being eligible is
offering himself for re-election.
2 T o re-elect as a director Richard Nicholas Allen who is retiring in accordance with
Article 114 of the Company's Articles of Association and who being eligible is
offering himself for re-election.
3 To re-elect as a director Robin Leonard Henshall who is retiring in accordance
with Article 114 of the Company's Articles of Association and who being eligible
is offering himself for re-election.
4 To receive, consider and adopt the Directors' Report and accounts of the
Company for the period ended 31 December 2008, together with the reports of
the directors and the auditors thereon.
5 To re-appoint Deloitte LLP of City House, 126-130 Hills Road, Cambridge, CB2
1RY as auditors and to authorise the directors to determine their remuneration.
6 Pursuant to Section 80 of the Companies Act 1985 (the “Act”) to exercise all or
any of the powers of the Company to allot relevant securities (as defined in
section 80(2) of the Act) up to the entire authorised but unissued share capital
of the Company from time to time (after setting aside so many shares as may be
required to be allotted and issued by the Company in terms of any share or
scheme for the benefit of employees and/or directors), provided that this
authority shall, unless previously revoked or varied by the Company in general
meeting, expire at the conclusion of the next Annual General Meeting of the
Company following the date of the passing of this resolution or (if earlier)
15 months from the date of passing this resolution, but so that the directors may
before such expiry make an offer or agreement which would or might require
relevant securities to be allotted after such expiry and the directors may allot
relevant securities in pursuance of that offer or agreement as if the authority
hereby conferred had not expired.
DIAMOND CORP Financials 23Mar(BM)  3/25/09  12:51 PM  Page 59 60
Annual Report 2008
Form of proxy (continued)
Vote
Special Resolutions For Against Withheld**
7 Pursuant to Section 95 of the Act, that the directors of the Company be and they
are hereby authorised by way of a general authority to issue all or any of the
authorised but unissued ordinary shares in the capital of the Company for cash,
as and when they in their discretion deem fit, subject to the JSE Listings
Requirements, which currently provide, inter alia, that:
7.1 this authority shall expire at the conclusion of the next Annual General Meeting
of the Company or (if earlier) 15 months from the date of passing this resolution
save that the Company may, before such expiry, make an offer or agreement
which would or might require equity securities to be allotted after such expiry
and the directors may allot equity securities in pursuance of such offer or
agreement as if the power conferred hereby had not expired;
7.2 a paid press announcement giving full details, including the impact on net asset
value and earnings per share, will be published at the time of an issue
representing, on a cumulative basis within one year, 5% or more of the number
of shares in issue prior to such issue;
7.3 issues in the aggregate in any one financial year will not exceed 15% of the
number of ordinary shares in the Company's issued share capital from time to
time;
7.4 in determining the price at which an issue of ordinary shares may be made in
terms of this authority, the maximum discount permitted will be 10% of the
weighted average traded price determined over the 30 business days prior to the
date that the price of the issue is determined or agreed by the directors; and
7.5 any such issue will only be made to public shareholders as defined in the JSE Listings
Requirements, provided that the maximum number of ordinary shares which can
be issued in terms of this authority in the aggregate in any one year shall not exceed
15% of the issued ordinary share capital of the Company, from time to time.
* Y ou may, if you wish, in the space provided insert the name(s) of the person(s) of your choice to attend and vote at the meeting on your behalf.
** Please note that if the “Vote Withheld” box is marked with a “X” the shareholder will not be counted in the calculation of votes “For” and
“Against” and the shareholder will not be taken to have given his/her/their discretion to the proxy, on how to vote.
Signature
Dated day of 2009
Notes:
1 A member entitled to attend and vote at the meeting is also entitled to appoint a proxy to attend and vote on a poll instead of him.A proxy may demand,
or join in demanding, a poll. A proxy need not be a member of the Company.
2 Completion and return of the form of proxy will not preclude shareholders from attending or voting at the meeting, if they so wish. If you have appointed
a proxy and attend the meeting in person, your proxy appointment will automatically be terminated.
3 To be effective, this proxy form must be lodged at the Registered Office, First Floor, Georgian House, 63 Coleman Street, London, EC2R 5BB, not later
than 2 business days before the time of the meeting or any adjournment thereof, together, if appropriate, with the power of attorney or other authority
(if any) under which it is signed or a notarially certified copy of such power or, where the proxy form has been signed by an officer on behalf of a
corporation, a notarially certified copy of the authority under which it is signed.
4 In the case of a joint holding, a proxy need only be signed by one joint holder. If more than one such joint holder lodges a proxy only that of the holder
first on the register of members will be counted. Any alternations made to this proxy should be initialled.
5 If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take precedence.
6 In the case of a corporation this proxy must be given under its common seal or be signed on its behalf by an attorney or officer duly authorised.
7 Any power of attorney or any other authority under which this proxy form is signed (or a duly certified copy of such power or authority) must be included
with the proxy form.
8 Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the time by which a person must be entered on the register of members in
order to have the right to attend and vote at the Annual General Meeting is 2:30 pm on 4 May 2009, (being not more than 2 business days prior to the
time fixed for the Meeting) or, if the Meeting is adjourned, such time being not more than 2 business days prior to the time fixed for the adjourned meeting.
Changes to entries on the register of members after that time will be disregarded in determining the right of any person to attend or vote at the Meeting.
9 If you are a dematerialised DiamondCorp shareholder and are not an own name dematerialised DiamondCorp shareholder then you must instruct your
Central Securities Depository Participant (“CSDP”) or broker as to how you wish to cast your vote at the Annual General Meeting in order for them to
vote in accordance with your instructions. If you wish to attend the Annual General Meeting in person, please request your CSDP or broker to issue the
necessary letter of representation to you. This must be done in terms of the agreement entered into between the dematerialised DiamondCorp
shareholder (who is not an own name dematerialised DiamondCorp shareholder) and the CSDP or broker.
10 In relation to each of the directors seeking re-election in resolutions 1 to 3 above, copies of their respective CV's are contained within the Directors'
Report to the 2008 Annual Report.
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