Diamondex Resources Ltd.

Diamondex Resources Ltd.

December 21, 2007 19:33 ET

Diamondex Resources Ltd.: $5,000,000 Private Placement Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2007) -


Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement financing (the "Private Placement"). In connection with the Private Placement, Diamondex issued a total of 19,300,000 flow-through common shares ("Flow-Through Shares") at a price of $0.25 per Flow-Through Share and 13,300,000 units ("Units") at a price of $0.20 per Unit for aggregate gross proceeds to Diamondex of $5,000,000. Each Unit consists of one common share and one half of one share purchase warrant, with each whole share purchase warrant exercisable until December 21, 2008, subject to acceleration of the expiry date in Diamondex's option in certain circumstances, for an additional common share of the Company at a price of $0.25 per common share.

In connection with the sale of certain Flow-Through Shares and Units, Diamondex paid to certain parties arm's length to Diamondex (the "Finders") a cash finders fee in the aggregate amount of $211,273 and issued to the Finders compensation warrants entitling the Finders to purchase until December 21, 2008 in the aggregate up to 914,394 common shares of Diamondex at a price of $0.25 per common share.

The net proceeds from the sale of Flow-Through Shares under the Private Placement will be used to incur Canadian Exploration Expenses for the purposes of the Income Tax Act (Canada). The net proceeds from the sale of the Units under the Private Placement will be used for working capital and general corporate purposes.

All securities issued or issuable in connection with the Private Placement are subject to a four month hold period expiring on April 22, 2008.

The securities offered have not been and will not be registered under the United States Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons in the absence of registration or an applicable exemption from the registration requirements.


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.

Contact Information