Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

October 29, 2009 16:00 ET

Diamonds North Expands Gold Targets on Amaruk

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces the discovery of 21 additional gold target areas on its 100% owned Amaruk property in Nunavut. These areas are in addition to the recently announced PB1 gold prospect where a continuous rock chip sample yielded 9.4 g/T gold over 3 metres and a nearby grab sample contained 24 g/T gold (see news release NR09-15, October 19th, 2009).

First pass regional prospecting of an 80 x 80 kilometre area on Amaruk has identified numerous gold occurrences predominantly in the central part of the Amaruk property:

  1. 3 regions with assays greater than 1.0 g/T gold
  2. 7 regions with samples yielding 100 ppb to 1.0 g/T gold
  3. 11 regions with elevated gold between 20 and 100 ppb

Each of these gold target areas are discrete and represent an exploration target area in the order of about 5 x 5 kilometres. All regions are within 50 kilometres of the coast.

"These are extraordinary results for first pass prospecting in such a large region never previously explored for gold. Based on the abundance of gold grains in till samples, the gold results at the PB1 prospect and the extent of areas with gold mineralization, I believe that we have just scratched the surface of a new gold district. The Company has begun planning for an extensive gold exploration program on Amaruk to coincide with our diamond program," says Mark Kolebaba, President & CEO of Diamonds North.

Prospecting was conducted in areas with abundant gold grains in till samples (see news release NR09-11, July 14th, 2009). A total of 207 rock samples were collected. These initial results outline 21 areas requiring immediate follow up prospecting and sampling prior to drilling. This is encouraging due to the fact that in most cases, only one day of prospecting along a single traverse by a two person prospecting team was conducted at each site with the objective of identifying bedrock sources. Bedrock gold sources have not yet been identified at some of the most significant gold in till anomalies on the property. The Company has also identified additional regions with anomalous gold in till samples that have not yet been prospected.

As part of the prospecting program, previous holes drilled by the Company on the property that intersected sulfide bearing rocks rather than kimberlite have been analyzed. Drill hole GA-5 (now named PB2) which contained gold is described below. Fifteen additional drill holes with sulfides will be reviewed for gold potential.

Geological site descriptions for regions with samples yielding greater than 1.0 g/T gold are provided below.

Rock samples with sulfides from a reverse circulation drill hole targeting kimberlite yielded 1.4 g/T and 1.0 g/T gold over 2 separate 1.5 metre intervals. Ten additional 1.5 metre samples from the drill hole have been submitted for assay. All samples contain sulfide minerals.

A small gold in till anomaly occurs down-ice of the drill hole, however, a much larger gold in till anomaly occurs 2 kilometres up-ice. Based on the glacial ice flow direction and the location of the drill hole in relation to the main till anomaly, much more gold mineralization is expected immediately up-ice of PB2.

At PB3, four grab samples were collected from rusty gossan zones in probable metasedimentary rocks. Sulfides including pyrite and chalcopyrite were observed. The best assays contain 1.2 g/T and 0.6 g/T gold and up to 49.5 g/T silver. Base metal values are elevated (0.14% Cu, 0.57% Pb and 0.29% Zn). Similar gossan zones were observed over an area spanning about 1 kilometre.

At PB4, abundant sulfide bearing angular boulders were identified over an area spanning approximately 1 kilometre. The source of the boulders appears to be the contact of a quartz diorite pluton intruding metasedimentary rocks. A total of five samples were collected for assay. Sample 24236 which is the closest sample to the quartz diorite contact yielded 1.0 g/T gold.

Planning is underway for an extensive gold exploration program to begin in the first quarter of 2010. The PB1 Gold prospect is considered high priority for drilling and plans for the other 21 gold prospects include detailed mapping and prospecting in preparation for drilling. Plus additional prospecting will be conducted on other unexplored till anomalies.

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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