Diadem Resources Ltd.

Diadem Resources Ltd.

June 17, 2010 12:13 ET

Diadem Resources Ltd. Receives Positive Environmental Screening Decision

MONTREAL, QUEBEC--(Marketwire - June 17, 2010) - Diadem Resources Ltd. (the "Company") (TSX VENTURE:DRL) is pleased to announce that it has received the decision letter from the Environmental Impact Screening Committee (EISC) for the Inuvialuit Settlement Region, recommending to the relevant permitting agencies that the Company be allowed to proceed with its proposed program for drilling and exploration for metals and diamonds on its currently held mineral properties for the 2010 to 2012 period.

The Company presented its program to the EISC on June 3, and the committee received input from seven Inuvialuit, territorial and federal agencies for its evaluation. The Company is now awaiting the following permits prior to commencing its drilling program:

  • Inuvialuit Land Administration – Land Use Permit
  • Environment and Natural Resources, Government of the Northwest Territories – Wildlife Research Permit
  • Aurora Research Institute – Scientific Research Permit.

The Company expects these permits to be issued in the near future.

During the period May 26 to June 11, 2010, Company personnel and consultants visited Paulatuk, Inuvik, Aklavik and Yellowknife to meet with a number of agencies and service providers to present the plans for the remainder of this year's exploration campaign, and additional drilling in 2011 and 2012.

The Company plans to begin mobilizing the drill camp, personnel, drilling equipment and field equipment to the property as soon as the permits are issued and the funding completed.

Furthermore, the Company is pleased to confirm that it has repaid all outstanding debts relating to its 2008 drilling program. These debts were paid through discounts varying between 25% and 50% of their initial amount by way of either cash or the Company's treasury shares (or a combination of the two). TSX Venture approval of same is being applied for.

The Company is presently under discussion with Darnley Bay Resources Limited, its partner in the Darnley Bay Penninsula. In order to reduce both parties' expenses, it is proposed to have a joint field camp and drilling contract.

The Company currently has outstanding 38,399,194 common shares. On a fully-diluted basis, the Company has 60,953,741 common shares outstanding.

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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