Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On August 13, 2012, the Board of Directors of Scio Diamond Technology Corporation (the "Company") voted to expand the size of the Board of Directors from four members to five members and appointed Mr. Bernard M. McPheely to fill the newly created vacancy, effective immediately.

Mr. McPheely was elected to the Board of Directors pursuant to an understanding with the Thomas P. Hartness Revocable Trust dated July 30, 2010 (the "Trust"). As previously disclosed in the Company's Form 8-K filed with the Securities and Exchange Commission (the "SEC") on May 10, 2012, under the terms of the Company's subscription agreement with the Trust, the Company was obligated to increase its Board of Directors by one director and to appoint one designee of the Trust to the Board promptly following the closing of the sixth Investment by the Trust. Pursuant to their respective subscription agreements with the Company, the Trust and the Bernard M. McPheely Revocable Trust u/a DTD May 25, 2012, of which Mr. McPheely serves as trustee, have purchased 2,500,000 and 250,000 Units of the Company, respectively, each Unit consisting of one share of Company common stock and a warrant to purchase one share of Company common stock at a price of $1.60 per share, as described in the Company's Form 8-K filed with the SEC on May 10, 2012.

Although Mr. McPheely may serve on committees of the Board in the future, he has not yet been named to any such committees. In accordance with the standard compensation arrangements for our directors, Mr. McPheely will receive $1,250, plus related expenses, per board meeting.

---