Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

July 16, 2009 11:04 ET

Chalice Diamond Corp.: Mapping and Sampling of Gold Zones Underway on Claims Optioned to Strike Minerals Inc.

Recent Strike Drilling Intersects 298.43 g/t Au Over 0.49 Meters Mapping to Test Potential of Gold Zone Extending Onto Optioned Claims

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) and Abitibi Mining Corp. (TSX VENTURE:ABB) (the "Companies") are pleased to announce that Strike Minerals Inc. ("Strike") has launched a program of detailed geological mapping and sampling over a group of claims optioned by the Companies to Strike earlier this year. The optioned claims cover gold-bearing zones that are believed to be on strike with the main showing of Strike's Nicholson property northwest of Missinabie, Ontario.

Strike recently reported encouraging results from a 30-hole drilling program conducted at its Nicholson property, including 298.43 grams gold per tonne over 0.46 meters intersected at a vertical depth of 40.5 meters on the main showing.

Strike recognized the potential for the gold zone to continue onto claims held 75% by Chalice Diamond and 25% by Abitibi Mining and has optioned these claims surrounding their Nicholson property. Strike agreed to pay the Companies a total of $60,000 and 300,000 shares over a two-year period and also spend $300,000 to explore the claims by March 2012. Once these commitments are completed, Strike will have earned a 100% interest in the group of claims, subject to a 3% NSR.

Strike has a team of four geologists and assistants on the optioned claims. Work includes stripping, washing and channel sampling, along with detailed geological mapping and sampling. The program is designed to give Strike a better understanding of the geological structure of the entire property to permit more efficient exploration and development.

About Chalice Diamond

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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