Diamondex Resources Ltd.

Diamondex Resources Ltd.

May 17, 2006 16:21 ET

Diamondex Announces Saskatchewan Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") is pleased to announce the recent acquisition of the Summit Lake project in east-central Saskatchewan. (See www.diamondex.net for project location).

Summit Lake Property, Saskatchewan

The Company has entered into an option and joint venture agreement with Adamas Minerals Corp. of Prince Albert, Saskatchewan to explore 17 mineral claims (the "Summit Lake property") covering a total of 4,980 hectares in an area located approximately 135 kilometres northeast of Prince Albert. The option agreement is subject to acceptance by the TSX Venture Exchange.

Under the terms of the option agreement, Diamondex has the right to earn a 60% undivided interest in the Summit Lake property. To acquire this interest, Diamondex must: (a) make an initial cash payment of $10,000 and issue 25,000 common shares; (b) issue a further 25,000 common shares by January 3, 2007 and an additional 100,000 common shares by January 3, 2008; and (c) incur $1,500,000 of exploration expenditures by January 3, 2008. Upon Diamondex earning its 60% undivided interest, a joint venture will be formed, with Diamondex as operator holding a 60% interest. Thereafter, exploration on the Summit Lake property will be funded by Diamondex and Adamas in proportion to their respective interests in the joint venture.

Adamas will retain a 1% gross overriding royalty interest in any production from the Summit Lake property, but after Diamondex has earned its 60% undivided interest, it may elect at any time to purchase the royalty interest upon payment of the sum of $3.0 million.

Diamondex geophysicists have evaluated the airborne magnetic survey data provided by Adamas and have identified a number of isolated, rounded to elliptical, and non-conformable (disrupting local magnetic lineaments) anomalies. Management is of the view that, given the occurrence of these anomalies in a geologically similar environment to the Fort a la Corne kimberlite field, there may be potential for kimberlites on the optioned mineral claims. An exploration program of ground gravity surveys followed by drilling of targets of merit, is currently being compiled with an estimated 2006 budget of $400,000.

David Clarke, P.Geol., MSc., Vice President of Exploration for Diamondex Resources Ltd. is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamondex Resources Ltd.


Randy C. Turner, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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