Chalice Diamond Corp.

Chalice Diamond Corp.

May 28, 2009 11:02 ET

Chalice Diamond Corp. Receives $348,040 From Exercise of Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2009) - Chalice Diamond Corporation (TSX VENTURE:COD)(the "Company") is pleased to announce that it has received $348,040 from the exercise of 4,972,000 warrants from a total of 15,578,069 granted warrants that expired on May 10, 2009.

The monies received are in addition to the recent receipt of $421,908 from the Ontario government (see news release April 24, 2009) for the sale of helicopter-borne VTEM system electromagnetic and magnetic data covering some of the Company's landholdings in the Chapleau-Wawa diamond district of Ontario. The purchase agreement did not include data from core projects in the region.

The exercise of the warrants combined with the previous sale of high-quality VTEM data to the Ministry of Northern Development and Mines are timely events as they provide new funds for ongoing exploration programs without stock dilution to shareholders. Chalice Diamond intends to use these proceeds to fund exploration and drilling programs designed to further test priority targets within its Ontario land package.

Drilling commenced on the Company's Bird Property on May 7, 2009 (see news release May 7, 2009) and is still ongoing. The Bird reverse magnetic anomaly is a potentially significant nickel-copper-platinum group element (PGE) exploration target. The anomaly is similar to, but larger than the geophysical signature for rocks hosting Kennecott's Eagle deposit in Michigan, which hosts a reserve of 5.2 million tons grading 3.68% nickel, 3.06% copper, 0.1% cobalt, with platinum and gold values.

Also slated for upcoming exploration are a number of gold and VMS targets on properties shared with joint venture partner, Klondike Gold Corp.

For a complete overview of the Company's Chapleau-Wawa project click on the following link:

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.

For further information contact: Kevin Hull, Hughes Exploration Group
Phone: (604) 685-2222

Or visit Chalice Diamond's web-site: for current
information and to see Smartstox interviews with company Chairman Richard
Hughes and President and CEO John Keating.

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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