Highlights

• Sample MSCc154 recovered an intact fragment of garnet peridotite;
• Thirteen indicator minerals from nine additional samples have primary features including friable reaction mantles and possible adhering kimberlite;
• The grains are from two separate source areas in close proximity to the previously reported diamonds; and
• All indicator minerals exhibit features consistent with a proximal host rock such as kimberlite.

TORONTO, ONTARIO (November 7, 2014) – Pangolin Diamonds Corp. (TSX-V: PAN) (the “Company” or “Pangolin”) announces that it has received results from the Company’s recently completed detailed surface sampling program at its wholly owned Malatswae Project in Botswana, showing the recovery of additional kimberlite indicator minerals.

A total of 62 close-spaced (200 by 200 metres) soil samples from 31 sample sites were collected to further qualify the earlier discovery of three diamonds and kimberlite indicator minerals from within a 1 km² area of the Malatswae Project (refer to the Pangolin Diamonds news release of September 15, 2014). The soil sampling protocol employed by Pangolin is described below; MCC Geoscience Inc. (North Vancouver, B.C.) described the surface features.

Using an airborne magnetic layer, two geophysically-distinct areas separated by 750 metres and in close proximity to the diamonds were selected for follow-up close-spaced soil sampling. In total, 13 mineral grains and a fragment of garnet peridotite were recovered from the two areas. The mineral grains are variously described as displaying primary features including reaction surfaces on pyrope, soft reaction mantles on picroilmenite, fragile cracked grains of olivine and/or enstatite with possible adhering kimberlite, and picroilmenite with possible adhering kimberlite. The garnet peridotite fragment contains two pyrope garnets, olivine, and secondary chlorite and measures 2.5 by 1.5 by 1.0 millimetres. Eleven of the mineral grains report at least one dimension greater than one millimetre.

Pangolin has already completed a ground magnetic survey over a 3 by 3 kilometre area, the MSC Grid, and is now collecting ground gravity points over specific magnetic features in close proximity to the kimberlite indicator minerals and diamonds recovered on the MSC Grid.

A diamond drill is on route to the MSC Grid. Drilling is expected to begin on or before November 8, 2014.

Photos of select mineral grains and the mantle rock fragment of garnet peridotite are posted on the Malatswae Project page at the Pangolin Diamonds website.

Malatswae Soil Sampling Methodology

At each sample site three soil samples were collected. First a 20 kilogram unscreened sample was collected within a 50 metre radius of the GPS controlled sample site. This material was dry screened in the field to recover the -425 micron +2 millimetre size fraction. A second 20 kilogram unscreened sample was collected from 1m² at the same GPS point and was also dry screened as above. These two samples were combined into one sample with a number identifier of MSCa.

At the same GPS point a small pit was dug to a depth of 0.5m prior to collecting a 20 kilogram sample which was then screened as above. This sample set was given a number identifier of MSCc.

All samples were then transported to Francistown, Botswana and processed through Pangolin’s DMS plant. The concentrates were subsequently delivered to an independent mineral specialist in Gaborone, Botswana who sorted and recovered the indicator minerals. The indicators were then delivered to MCC Geoscience for examination, and the observations reported in this news release were provided to Pangolin by MCC Geoscience. The mineral grains are now en route to CF Minerals Research Ltd. (Kelowna, B.C.) for microprobe analysis. The results will be reported upon receipt at a later date.

Malatswae Ground Magnetic Survey Methodology

The Company contracted the services of Aegis Instruments (Pty) Limited (Aegis), Lobatse, Botswana to undertake the ground magnetic geophysical survey. Aegis used for this project GEM’s GSM-19 (Overhauser) proton magnetometers for both a base station and grid survey. The magnetic data was collected on 50 metre separated north-south section lines and readings were collected every one second.

Aegis processed data at the end of each day and then delivered to Pangolin a complete Geosoft database at the end of the survey. The database included all raw data files and grid files for the Total Magnetic Intensity, an Analytic Signal filter and a Vertical Derivative filter.

Quality Control and Quality Assurances

Quality assurance procedures, security, transport, storage, and processing protocols conform to chain of custody requirements. Grains were examined at MCC Geoscience Inc. by Tom E. McCandless, Ph.D. P.Geo. (B.C.). CF Minerals Research Ltd. is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory.

The technical disclosure in this news release has been reviewed and approved by Dr. Leon Daniels, Ph.D., Member of AIG, Chairman of the Board of Pangolin Diamonds and is a Qualified Person as defined by National Instrument 43-101.

About Pangolin Diamonds Corp.

Pangolin Diamonds Corp. is building a leading diamond exploration and development company, in the heart of Botswana, one of the world’s leading diamond producing countries. The Company is the 100% owner of four separate projects throughout Botswana inclusive of the Tsabong North, Jwaneng South, Malatswae and Mmadinare Projects. Pangolin’s management and team leaders have over 100 years of combined diamond exploration experience.

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Pangolin Diamonds Corp. – Contact Information

Scott Young, Investor Relations

Phone: +1.705.888.2756

Email: syoung@pangolindiamonds.com

Graham C. Warren, Chief Financial Officer

Phone: +1.416.594.0473

Fax: +1.416.594.1630

Email: gwarren@pangolindiamonds.com

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

Click to download PDF: PAN NR Mantle Fragment 7 Nov 2014