Proposed merger of BRC Diamond and Diamond Core Resources receives significant shareholder support

    JOHANNESBURG, South Africa and TORONTO, Canada, Aug. 2 /CNW/ - BRC
Diamond Corporation ("BRC") (TSX-V: BRC) and Diamond Core Resources Limited
("Diamond Core") (JSE: DMR) are pleased to announce that the proposed merger
of their two businesses (the "Merger"), as announced on July 5, 2007, is
progressing well.
    Both companies are preparing documentation in respect of the Merger,
including that related to the scheme of arrangement in South Africa as well as
appropriate regulatory applications. This includes technical reports related
to each of the company's properties and pro forma financial information. A
reciprocal due diligence process is also continuing.
    Management of both BRC and Diamond Core have visited with a select number
of Diamond Core institutional shareholders, in accordance with guidance and
rules established by the Securities Regulation Panel in South Africa, to seek
their support for the transaction, which was a pre-condition as set out in the
pre-merger agreement. These meetings have resulted in BRC receiving
irrevocable commitments of support in favour of the Merger from shareholders
which represent a total of approximately 52% of the current Diamond Core
shares outstanding. In addition, the directors of Diamond Core, who
beneficially hold approximately 3.7% of the current Diamond Core shares
outstanding, have agreed to recommend the Merger to Diamond Core's
shareholders, subject to their fiduciary obligations and the receipt of a
favourable fair and reasonable opinion.
    Mike de Wit, President and CEO of BRC, said "The support of Diamond
Core's shareholders is a real vote of confidence for the Merger and confirms
that these institutions share our belief in the opportunity and value that is
expected to be created by a combined business going forward." Theo Botoulas,
CEO of Diamond Core, added "I am appreciative of the strong support shown by
our shareholders in sharing our vision of constructing a strong, dynamic and
sustainable diamond company. This now allows our teams to focus on completing
documentation and advancing the transaction, while Mike and I get on with the
business of developing our plans for the new BRC DiamondCore."
    Neither this announcement nor the agreements entered into with
shareholders constitute a firm obligation to complete the Merger or a firm
intention on the part of BRC to make any offer to the shareholders of Diamond

    About BRC

    BRC is a Canadian-based diamond exploration company active principally in
the Democratic Republic of Congo ("DRC"). Led by a management team with
extensive experience in the DRC, BRC was one of the first companies to
identify emerging diamond opportunities in the DRC and today has a commanding
land position, directly controlling approximately 8,458 square kilometres and
retaining a further 10,922 square kilometres through option agreements on
three separate exploration properties. These properties are located in some of
the most prospective diamond regions of the country. Banro Corporation, BRC's
largest shareholder with a 27.5% interest in BRC, is a mineral exploration
company focused on the DRC. BRC is listed on the TSX Venture Exchange under
the ticker "BRC".

    About Diamond Core

    The objectives of the South African-based Diamond Core group of companies
are to conduct systematic greenfields diamond exploration programs and to
bring to account economically viable diamond discoveries, which result from
the exploration programmes, as well as through the acquisition of assets
considered uneconomic or marginal by others and which are value-accretive to
shareholders. Diamond Core believes these assets can successfully be brought
to account using its technical skills, entrepreneurial spirit and low cost
operating structure. Diamond Core is focused on, and currently active in, the
Northern Cape Province of South Africa. Diamond Core is actively involved in
two kimberlite exploration projects, the Paardeberg East Project, situated 40
km west of Kimberley, and the Skeyfontein JV, located some 20 km south east of
the town of Postmasburg. Through its acquisition of Samadi Resources (SA)
(Pty) Ltd., Diamond Core has a suite of three alluvial projects:
Silverstreams, Uitdraai and the De Kalk Project. Diamond Core also has a suite
of five applications with the Department of Minerals and Energy Affairs for
additional prospecting rights in the Northern Cape Province. Diamond Core is
listed on the JSE Securities Exchange in South Africa under the ticker "DMR".

    Forward-Looking Statements:

    This press release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities, events or
developments that BRC and Diamond Core believe, expect or anticipate will or
may occur in the future (including, without limitation, statements regarding
or relating to the completion of the Merger and future plans and objectives of
BRC and Diamond Core) are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of BRC and Diamond Core
based on information currently available to them. Forward-looking statements
are subject to a number of risks and uncertainties that may cause the actual
results of BRC and Diamond Core to differ materially from those discussed in
the forward-looking statements, and even if such actual results are realized
or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on such companies. Factors that could
cause actual results or events to differ materially from current expectations
include, among other things, failure to complete the Merger as a result of one
or more of the closing conditions not being fulfilled (including failure to
obtain all required approvals), the possibility that future exploration
results will not be consistent with the expectations of BRC and Diamond Core,
changes in equity markets, changes in diamond markets, foreign currency
fluctuations, political developments in the DRC or South Africa, changes to
regulations affecting BRC's or Diamond Core's activities, uncertainties
relating to the availability and costs of financing needed in the future,
delays in obtaining or failure to obtain required project approvals, the
uncertainties involved in interpreting exploration results and other
geological data and the other risks involved in the diamond exploration and
development industry. Any forward-looking statement speaks only as of the date
on which it is made and, except as may be required by applicable securities
laws, BRC disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although BRC and Diamond Core believe that the assumptions inherent
in the forward-looking statements are reasonable, forward-looking statements
are not guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty therein.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press release.

For further information:

For further information: In Johannesburg: James Duncan, Russell &
Associates,  27 11 880-3924; In Toronto: Arnold T. Kondrat, Executive Vice
President, or Martin D. Jones, Vice President, Corporate Development, BRC
Diamond Corporation, at (416) 366-2221 or 1-800-714-7938

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BRC DiamondCore Ltd.

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