Diamond Exploration Inc.

Diamond Exploration Inc.

June 26, 2009 09:00 ET

Diamond Exploration Inc. and International Millennium Sign Formal Agreement on Cobalt Ontario Diamond Prospect

OTTAWA, ONTARIO--(Marketwire - June 26, 2009) - Diamond Exploration Inc. ("DIX" or the "Company")(TSX VENTURE:DIX) and International Millennium Mining Corp's ("IMMC")(TSX VENTURE:IMI) announce, as a follow-up to their respective January 26 and 27, 2009 news releases, that they have signed a formal Option and Joint Venture Agreement whereby DIX is granted the sole and exclusive right and option to earn fifty-one percent (51%) interest, subject to a one percent (1%) net smelter return royalty, in thirty-six (36) mining claims (250 claim units) comprising IMMC's Cobalt Area Property in Ontario. Under terms of the agreement, which is subject to TSX Venture Exchange acceptance, DIX may earn a 51% interest in the property by expending $1,000,000 over a period of up to ten (10) years at an average rate of not less than $100,000 per year and by issuing five hundred thousand (500,000) shares to IMMC. Following DIX's acquisition of an interest in the property, further exploration and development of the project will be the subject of a joint venture between the parties.

Exploration by IMMC of the property, located just south of the town of North Cobalt, has focused to date on only two of the more than 20 known lamprophyre zones. Airborne magnetic surveys have defined several prospective targets with kimberlitic signatures that warrant evaluation. Additionally, none of the kimberlite indicator mineral anomalies has been followed up.

The DIX technical team believes that diamond stability field conditions exist within the mantle root beneath the Cobalt area. The presence of diamond-bearing lamprophyres confirms that the mantle is fertile for diamonds in this region. Follow up work will focus on assessment of priority kimberlite targets and additional evaluation of the most prospective of the lamprophyre breccias.

About Diamond Exploration Inc.

Diamond Exploration Inc. is a diamond exploration company that has been focused, since 2001, on exploration in the far northern regions of Canada's Territories including Yukon, Northwest Territories and Nunavut. The Company's common shares trade on the TSX Venture Exchange under the symbol: DIX.

"This Press Release may contain forward looking statements that 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 has not approved or disapproved of the information contained in this Press Release."

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