Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

January 17, 2010 08:00 ET

Diamonds North Discovers Another Gold Source on Amaruk

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2010) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces the discovery of a gold bearing iron formation on its 100% owned Amaruk property located in Nunavut. Initial regional prospecting returned grab samples with over 0.5 gram per tonne (g/T) gold including a sample yielding 1.2 g/T gold.

The sub-vertical sulfide rich iron formation was traced over more than 6.5 kilometres and measures 1 to 5 metres, wide and in areas of intense folding up to 25 metres wide. Pyrrhotite, pyrite and chalcopyrite occurs as disseminated and in semi-massive concentrations up to 50%. Several of the samples collected also returned anomalous copper up to 0.26%, nickel up to 0.11%, zinc up to 0.14% and silver up to 3.3 g/T.

"For a small investment of time and exploration funds, we have discovered a large number of gold prospects over a vast area. We have identified gold associated with shear zones, quartz feldspar porphyries and now iron formation. In 2010, we anticipate a considerable budget and program, which I believe will significantly advance several of the existing prospects and result in new discoveries," says Mark Kolebaba, President and CEO of the Company.

The iron formation is semi-coincident with three limbs of an apparent large regional fold that extends for more than 13 kilometres as interpreted from airborne magnetic data. Iron formation was reported on the third limb of this apparent fold by mapping and has not yet been prospected.

This new gold discovery, PB5, adds significant potential to the Amaruk project and further demonstrates this area as a new gold district. PB5 is 25 kilometres from the PB1 gold prospect that yielded up to 24.2 g/T gold and is in addition to the other 21 gold prospects already reported (see News Release NR 09-16, October 29th, 2009).

PB5 is only 5 kilometres from tide water which could provide future infrastructure benefits for the project area. Follow-up work is being planned for PB5 in 2010. Work will include geological mapping, detailed geophysics, prospecting and detailed channel sampling in preparation for drilling. The third limb of the large fold structure will be prospected to determine the extent of the iron formation.

Three of eleven grab samples collected from the iron formation returned gold values greater than 0.5 g/T; 6 returned gold values greater than 100 ppb.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons reviewing this project. They are responsible for the design and conduct of exploration programs and the verification and quality assurance of analytical results. All assay results are provided by ALS Chemex.

About Diamonds North
Diamonds North Resources is rapidly evolving and committed to building long-term value for shareholders through ongoing discoveries and leveraging business opportunities from our vast land holding.

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba
President & CEO

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

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

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