Diamondex Resources Ltd.

Diamondex Resources Ltd.

May 11, 2006 14:17 ET

Diamondex Budgets $11 Million for 2006 Exploration Programs

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") is pleased to provide 2006 exploration program updates and budgets for its Lena West, Lac des Bois, Pegasus, and Brodeur projects which total $9.0 million. An additional $2.0 million has been allocated for other projects and project generation (See www.diamondex.net for project locations).

Lena West Project, Northwest Territories

Approximately 70% of the 1,724 stream sediment samples collected from the Lena West project during the 2005 field season have undergone "picking" of the resulting concentrates for kimberlite indicator minerals (KIMs). It is expected that all picking will be completed and that the resulting KIMs will be morphologically examined and subjected to chemical analysis at the Diamond Research Institute in Novosibirsk, Siberia during the second quarter of 2006.

To date, a total of 5 high priority regions within the Lena West project area have been delineated for further detailed exploration. The 2006 exploration program will include the collection of 1,500 follow-up till and stream sediment samples, detailed airborne magnetic surveys for priority districts within the Lena West project area and the first diamond drilling programs within these districts.

Fugro Airborne Surveys Corp. has commenced flying a MIDAS II high-resolution aeromagnetic platform over 5 priority areas using flight lines spaced at 75 metres. In addition, Firefly Aviation Ltd. has initiated a high-resolution magnetic survey over a single target area using 100m flight lines. Combined, these two surveys represent a total of approximately 20,000 line-kilometres. These surveys are focused over terrains that have returned anomalous KIM counts, a high proportion of coarse grains, diamond prospective chemistry, and, in some cases, diamonds. The interpreted results from the geophysical surveys will help define the upcoming summer till sampling and diamond drill testing programs.

The above described exploration program, budgeted at approximately $5 million, has commenced and is expected to continue through to the end of the third quarter of 2006.

The Lena West Project is comprised of 34 prospecting permits and 489 mineral claims, totaling 3.34 million acres, centred approximately 900 kilometres northwest of Yellowknife and 200 kilometres southeast of Inuvik, Northwest Territories. The Lena West Project is 100% owned by Diamondex.

Lac des Bois Project, Northwest Territories

Detailed ground gravity surveys have recently been completed over previously delineated high priority magnetic targets within the Lac des Bois project area. In total, 10 grids covering 12 separate targets were surveyed. The resulting gravity anomalies have diameters ranging from 330 to 1,000 metres. Further modeling of these anomalies will facilitate the selection of targets for future diamond drill testing. Exploration expenditures at Lac des Bois for 2006 are budgeted at up to $1.5 million.

The Lac des Bois project area is located approximately 200 kilometres southeast of the Lena West project and comprises 172,552 acres. The Lac des Bois project is 100% owned by Diamondex.

Pegasus Project, Alberta

A 18,574 line-kilometre high resolution airborne magnetic survey (HRAM), flown at 100m line spacing, was completed over the Pegasus Project area during the first quarter of 2006. The processing of this data is underway, with results pending. The 2006 exploration program, with a budget of up to $1.6 million, will include 32,000 line-kilometres of airborne magnetic surveys due to commence this month. In addition, regional till and stream sediment sampling and detailed ground geophysical surveys is due to commence shortly. Targets of merit will be evaluated for drill testing later in the year.

The Pegasus Project is located in central Alberta. It is comprised of 111 Metallic and Industrial Mineral permits, encompassing approximately 2.35 million acres. Diamondex has recently entered into five, one-year option agreements with third parties to acquire an additional 17 permits, covering 0.36 million acres of lands internal to the Company's large land package. The project area is centred over basement rocks (the Loverna Block) that form part of the Archaean Hearne Province. Historically, till samples collected over the project area have provided some of the highest concentrations of G-10 garnet recorded in Alberta.

Brodeur Project, Nunavut

During the 2005 field season, a combined total of 24,025 line-kilometres of detailed magnetic and magnetic/EM geophysical surveys were flown over the Brodeur property. In addition, 661 till and stream sediment samples were collected over the project area and the results from these two exploration programs have defined several high priority targets for follow-up during the third quarter of 2006. A number of previously undiscovered kimberlite boulders (measuring up to 30 cm in diameter) were recovered down ice from several airborne geophysical targets during the 2005 exploration program. The boulders have been sent for diamond analysis and the results are expected to be delivered shortly.

To date, three kimberlite bodies have been outlined with the largest kimberlite, Tuwawi, having a surface expression approximately 4 hectares in size. The area surrounding Tuwawi was surveyed in some detail in 2005 and the interpreted results from the gravity and soil chemistry grids provides strong evidence that the dimensions of the intrusion increase significantly with depth. A budget of $0.9 million has been allocated for follow-up till and stream sampling, and detailed ground geophysical surveys.

The Brodeur Project is centred on the northern half of the Brodeur Peninsula of Baffin Island. Diamondex has the exclusive option to earn a 100% interest in the property, subject to an underlying Property Acquisition Agreement with Kennecott Canada Exploration Inc. To date, Diamondex has expended $1.91 million on the property. The property comprises 409,020 acres, covering 32 optioned claims and 6 prospecting permits and hosts three known diamond-bearing kimberlite bodies: Tuwawi, Nunuk, and Kuuriaq.

Corporate Update

Diamondex has recently completed a $16.55 million financing (See News release dated May 4, 2006). The net proceeds from this financing will be used for further exploration of the Company's key projects, ongoing acquisitions and for general corporate purposes.

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.


John A. McDonald, Director

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