Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

January 29, 2010 09:15 ET

Chalice Diamond Corp. 2010 Exploration Plans: Follow-up on 8.4 kg Grab Sample Yielding 35 Diamonds Including 5 Macrodiamonds

- FOLLOW-UP WORK TO BE COMPLETED AT CORBIERE WHERE AN 8.4 KG GRAB SAMPLE YIELDED 35 DIAMONDS INCLUDING FIVE MACRODIAMONDS AND ONE DIAMOND MEASURING 0.86 MM

- DRILL PROGRAM PLANNED FOR REID VEIN ON OLD CABIN PROPERTY WHERE GRAB SAMPLES HAVE RETURNED GOLD AS HIGH AS 211.82 G/T

- POTENTIAL JOINT VENTURE PARTNERS CURRENTLY REVIEWING DATA ON THE BIRD PROPERTY, PLANNING FOR SECOND PHASE OF EXPLORATION UNDERWAY

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2010)Chalice Diamond Corp. (TSX VENTURE:COD) (the "Company") is pleased to announce 2010 Exploration Plans for its Wawa-Chapleau properties. To view a map and summary of the Company's Chapleau-Wawa properties please click on follow-link:

http://www.brmstatpack.com/lt/1001/1022/chapleau-wawa

The Company will continue with its present assessment of the Chapleau-Wawa land package as a whole, on the basis of defining attractive diamond targets. The past three years have seen an extensive amount of exploration work and accumulation of data from till sampling, geophysical ground surveys, regional airborne VTEM surveys and prospecting. This has enabled the Company to compile regional trends and identify attractive kimberlite pipe targets. Targets are in the process of being compiled and defined based on attractive down ice kimberlite indicator mineral trains coupled with significant VTEM conductors and attractive ground magnetic signatures. The Company is also exploring the possibility of using soil gas hydrocarbon soil (SGH) analyses to further augment the targeting process.

Initial 2010 diamond exploration will focus on the Corbiere Township claims where an 8.4 kilogram grab sample yielded 35 microdiamonds including 5 macros (see news release April 18, 2007) within diamond bearing conglomerates similar to the rocks discovered on Dianor Resources Inc.'s Leadbetter property to the southwest. Drill testing of this favourable belt of conglomerates is being considered.

A number of diamond-bearing kimberlite dykes, such as the GCR and Fletch Dykes, have already been discovered and grab samples from them have produced microdiamonds. The Company plans to drill test these dykes later in the year.

On the Old Cabin gold project, the Company drill plans are currently being developed for the Reid vein where a grab sample yielded 211 g/t Au. Current plans are to start with a short hole underneath the Reid Vein to test the possibility of a vein system dipping and plunging to depth. 

Data compiled from the most recent drill program on the Bird project, which contains an extensive 6 km by 1.5 km reverse magnetic anomaly, is currently being evaluated. The Company is encouraged by the results thus far which have provided a better understanding of the geology of the reverse polarity anomaly, allowing for the expansion of the direction of geological targeting to include hydrothermal iron-oxide copper-gold ( IOCG) as well as deep seated magmatic nickel copper deposits.

The Company will continue to explore its significant land package utilizing a broad exploration strategy that will encompass diamond, gold, and base metal targets.

Peter Caldbick, P.Geo. has reviewed and approved the press release. Mr. Caldbick is the qualified person for the purposes of National Instrument 43-101 for the Company's Wawa project.

The Company would also like to announce two directors have been added to the Board. John de Jong has been appointed a director of Chalice Diamond Corp. effective December 29, 2009. Mr. de Jong has an extensive background in management, organizational protocols and project development which will serve the company well. He is the general manager of operations for Klondike Silver Corp in British Columbia and Yukon including Klondike Silver Corp's mining and milling operation at Sandon, BC. He is also a director of Abitibi Mining Corp., Amador Gold Corp., Golden Chalice Resources Inc., Klondike Gold Corp., Klondike Silver Corp., Sedex Mining Corp. and Zinccorp Resources Inc.

Darcy Hughes has also been appointed a director of Chalice Diamond Corp. effective December 29, 2009. Mr. Hughes has been involved with mineral exploration since 1983 and has served on the boards of various publicly traded companies in the mining and petroleum exploration fields, as well as private mining and manufacturing companies. He is the VP Corporate Admin and owner of Pro CNC, a manufacturing business in Bellingham, Washington, and is a director of the following Hughes Exploration Group publicly traded mining companies; Abitibi Mining Corp., Amador Gold Corp., Chalice Diamond Corp., Golden Chalice Resources Inc., Klondike Gold Corp., Klondike Silver Corp. and Sedex Minerals Corp.

The Company also announces the resignation of John Keating as President, CEO and director effective January 22, 2010. The Board of Directors expresses their thanks and appreciation to Mr. Keating for his invaluable contribution and service to the Company during his time as President. Richard Hughes has been appointed President and Chief Executive Officer of the Company.

The Company also announces it has granted 795,000 stock options to directors and officers of the Company and 690,000 stock options to employees and consultants at a price of $0.10 per share for a period of seven years.

About Chalice Diamond

Chalice Diamond Corp. is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.

Chalice Diamond Corp., in conjunction with joint venture partners, is continuing the search for diamond, base and precious metal deposits in the Wawa-Chapleau region of Ontario, where it has staked or optioned approximately 100,000 hectares of highly prospective ground.

Visit Chalice Diamond's web-site: www.chalicediamond.com for current information and to see Smartstox interviews with company Chairman Richard Hughes.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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

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