Pangolin Recovers Fifth Diamond from Malatswae Diamond Project, Botswana

TORONTO, ONTARIO--(Marketwired - Sept. 29, 2015) - Pangolin Diamonds Corp. (TSX VENTURE:PAN) (the "Company" or "Pangolin") is pleased to announce it has received positive soil sample results for the Company's wholly-owned Malatswae Diamond Project ("Malatswae"), located 90 km southeast of the Orapa kimberlite field in Botswana.

Sample MX14002 produced an equant, brown aggregate diamond. The diamond reported on the 0.425 mm screen and is just under 1mm in each dimension. Irregular ruts in the diamond contain a secondary, tan-coloured rock material. The diamond was recovered within 550 metres of the centre of the MX14 aeromagnetic anomaly (480m x 230m) located upwind and immediately northeast of the MSC Grid. Three diamonds have previously been reported from the MSC Grid (see news release, July 1, 2015). The four diamonds reported from the MSC Grid to date area define a trend parallel to one of the dominant wind directions in the area.

Sample MX0102 produced a blocky, angular ilmenite with dimensions of 2.5x1.5x1.5mm. A remnant reaction rim is on one surface. The other surfaces of the ilmenites are covered with altered kimberlite. The serpentinized impression of a euhedral olivine is present, as is a large subhedral mica that is probably chlorite after phlogopite, all set in an altered and oxidized groundmass. The presence of the attached kimberlite to the ilmenites suggests minimal transport. The sample was collected on the south side of aeromagnetic anomaly MX01 (300m x 275m)

Aeromagnetic anomalies MX14 and MX01 were selected from regional aeromagnetic data as potential kimberlite sources for the diamonds reported from the MSC Grid. Gravity surveys will be undertaken over the two aeromagnetic targets as soon as independent contractors are appointed. The gravity results will contribute to the selection criteria of drill targets during the fourth quarter of 2015.

The unscreened 100 litre samples were collected within a 50 metre radius of a GPS controlled sample site. This material was dry screened in the field to recover the +425 micron -2 millimetre size fraction. The samples were then transported to Francistown, Botswana and processed through Pangolin's 1-tph DMS plant. The entire process was conducted under the scrutiny of Mr. Miracle Muusha (MSc, MAIG, SACNASP),appointed as indpendent QP in Botswana. 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 Inc. (Vancouver, B.C.) 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.

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.).

The technical disclosure in this news release has been reviewed and approved by Dr. Tom McCandless, Ph.D., P.Geo. (B.C), independent consultant to Pangolin and a Qualified Person as defined by National Instrument 43-101.

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Figure 1: Brown diamond aggregate from sample MX1402 : http://media3.marketwire.com/docs/1026675_Fig1.jpg

Figure 2: Large ilmenite from sample MX0109. The ilmenite has altered kimberlite attached to it. : http://media3.marketwire.com/docs/1026675_Fig2.jpg

Figure 3: Regional aeromagnetic map indication the relevant positions of (a) aeromagnetic anomalies MX01 and MX14, (b) the positions of diamond sample MX1402 and the original diamond positive sample in the MSC Grid area, MSC119, and (c) the position of sample MX0109 containing large ilmenites attached to altered kimberlite. : http://media3.marketwire.com/docs/1026675_Fig3.jpg