Diadem Resources Ltd.

Diadem Resources Ltd.

April 08, 2010 14:25 ET

Diadem Closes Equity Financing of $350,000 and Applies for an Additional $100,000 of Equity Financing

MONTREAL, QUEBEC--(Marketwire - April 8, 2010) - Diadem Resources Ltd. (TSX VENTURE:DRL)

Diadem Resources Ltd. ("Diadem" or the "Company") announces today that on April 7, 2010 it closed the second tranche of its previously announced private placement to raise $350,000 through the sale of 7,000,000 Units at $0.05 per Unit.

The first tranche of the above-mentioned private placement closed on March 9, 2010 and involved the issuance of 8,000,000 Units for gross aggregate proceeds of $400,000.

Each Unit issued is comprised of one (1) Common Share of the Company and one (1) common share purchase warrant ("Warrant"), each Warrant being exercisable to acquire one (1) Common Share of the Company at an exercise price of $0.10 within the first year of Closing and $0.20 within the second year of Closing.

All securities issued are subject to a minimum hold period of four (4) months from the date of their respective issuance.

As a result of the closing of the second tranche, the Company currently has outstanding 34,944,647 common shares. On a fully-diluted basis and after giving effect to the exercise of all outstanding share purchase warrants (including those issued pursuant to this private placement) and incentive stock options granted under its stock option plan the Company has 52,434,647 common shares outstanding.

A finders fee pursuant to the second tranche consists of a cash payment in the amount of $23,400.

The Company also announces today that it has applied to the TSX Venture Exchange to complete a subsequent equity private placement to raise an additional $100,000 through the issuance of 1,818,182 Units, at a price of $0.055 per Unit. The Units proposed to be issued pursuant to this private placement will have the same terms (other than pricing) as those Units issued pursuant to the placement that closed on March 9, 2010 and April 7, 2010.

To clarify the Company's Press Releases of March 30 and March 31, 2010, assuming the Company receives TSX Venture Exchange approval and therefore completes the $100,000 equity financing as described herein, the Company will have raised an aggregate of $850,000 in 2010 through the issuance of a total of 16,818,182 Units. Other than as described herein, no other private placements remain pending.

The gross proceeds of both placements will be used for working capital purposes.

Additional information about Diadem Resources Ltd. may be found on its web page (www.diademresources.com) and under Diadem's profile on www.sedar.com.

Cautionary Statement

This press release may contain certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are various risks detailed from time to time in the filings made by the Company with securities regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.

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