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Pangolin Recovers Mantle Indicator Minerals from Magi Kimberlite Drill Core, Botswana

- Mantle-derived grains recovered from sandy tuffs at 44 to 58 meters depth at Magi 001

TORONTO, ONTARIO -- (Marketwired) -- 02/25/14 -- Pangolin Diamonds Corp. (the "Company" or "Pangolin") (TSX VENTURE: PAN) announces it has recovered mantle-derived indicator minerals from the Magi kimberlite from drill hole Magi-001, at its 100%-owned Tsabong North Project in Botswana. Pyrope garnet, forsterite and chromite with mantle chemistries were recovered from kimberlitic sandy tuffs at 44 to 58 meters inclusive, as well as from the overlying sandstones from 15 to 37 meters depth. The pyrope garnets are similar to the 45 mantle derived garnets previously reported from glauconitic sandstone overlying the Magi kimberlite, having high-pressure G9 compositions associated with diamond-stable conditions in the mantle (see news release, March 26, 2013).

Fourteen samples were collected from vertical drill hole Magi-001, which intersected sandstone from 15.06 to 33.04 meters (m), mudstone from 33.04 to 41.28 m, and kimberlitic sandy tuffs from 41.28 m to the end of the hole at 76.26 m. Intervals of sandy tuff from drill hole Magi-002 (103.67 to 114.29 m) and from drill hole Magi-003 (61.45 to 75.35 m) were also sampled. The drill core was split and the splits were shipped to CF Mineral Laboratories Inc. (Kelowna, B.C.) and to the MSA Group (Johannesburg, S.A.) for heavy mineral separation and analysis. Independent assessment by CF Minerals reported a number of high-pressure G9 pyrope garnets associated with the diamond stability field (the area of the Earth's mantle with the heat and pressure required to produce diamonds). Other garnets in the sample are classified as G3, G5 and G11 mantle-derived pyrope according to the CF Minerals classification scheme. In-house assessment of chromite compositions indicates that they are consistent with derivation from garnet lherzolite. Collectively, the results confirm that the Magi body is kimberlitic in nature and has sampled the mantle lithosphere at depths conducive to diamond formation. Chromite grains were identified in the MSA Group samples and additional analyses are pending. Thirteen additional core samples from the Magi-005 were also selected for microdiamond analysis.

The Company wishes to announce that Manfred Marx has retired. His contribution to the industry cannot be adequately described. The Company sincerely wishes him an enjoyable retirement and thanks him for his contribution to the Pangolin program.

Dr. Leon Daniels was quoted as saying "we are pleased with results and progress at the Magi kimberlite" and "we wish Manfred all the best in his retirement and thank him for his valuable contribution to the Company."

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, a qualified person as defined by National Instrument 43-101.

About the Tsabong North Project

The Tsabong North Project, located approximately 100 km north of the town of Tsabong in south-western Botswana, is 1,545 km2 in size. It encloses anomalous concentrations of kimberlite indicators and has large geo-botanical features. The Company's first discovery at Tsabong North is the Magi kimberlite, which has been confirmed over a distance of 1,200 metres in an east-west direction and 400 metres to the north. To date, six diamond drill holes are completed on the Magi kimberlite. All holes intersected sandy kimberlitic tuff attributed at this time to crater sediments, and host to mantle-derived indicator minerals recovered in the Company's exploration sampling programs. Mantle-derived minerals including high-pressure diamond indicator G9 garnets and chromite derived from garnet lherzolite were recovered from the drill core of Magi-001. The garnets are similar in chemical composition to the garnets from the Letlhakane Mine in the Orapa area. Pangolin has identified more than 50 drill-ready aeromagnetic targets in the Project area, several of which have surface areas exceeding 20 Hectares (0.2 km2). Associated with a number of these anomalies are indicator minerals, some with remnants of kelyphite that indicate close proximity to kimberlite.

The Company cautions that information regarding the Orapa kimberlites, and Letlhakane Mine or Orapa Mine or Jwaneng kimberlites, are not necessarily indicative of the kimberlite or kimberlite targets being drilled by the Company. The Company further cautions that there is no guarantee that the kimberlite and/or kimberlite targets being drilled by the Company will return diamond results of any economic significance.

About Pangolin Diamonds Corp

Pangolin Diamonds Corp. is building a leading diamond exploration and development company in the heart of Botswana, the world's leading diamond producing country by value. 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 has over +100 years of combined diamond exploration experience in southern Africa. This places the Company as the most experienced diamond explorer in Botswana excepting De Beers Exploration and Debswana. The Company is equipped for exploration, with two diamond drill rigs and a fully portable one-tonne per hour Dense Media Separation Plant used to prepare samples and make diamond concentrates. Pangolin is funded to continue its exploration programs into mid-2014.

For more information, please refer to www.pangolindiamondscorp.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.

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