Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

January 17, 2008 16:10 ET

Higher Nickel Values From Diamonds North's Nickel Discovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces nickel values as high as 1.71% from further outcrop sampling of the 100% owned Amaruk nickel discovery in Nunavut. The additional samples were assayed as follow-up to the initial discovery announced October 31st, 2007 (see News Release NR07-23).

Grab samples from the highly oxidized sulphide-rich outcrop have yielded nickel values ranging from 1.71 to 0.51% with significant copper and cobalt credits. Sample N-1 yielded 1.71% nickel, 0.47% copper and 0.06% cobalt. Assays from 11 samples collected are listed below.



Assay Results
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SAMPLE Ni (%) Cu (%) Co (%)
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N-1 1.71 0.47 0.06
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N-2 1.65 0.17 0.05
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N-3 1.60 0.17 0.07
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N-4 1.51 0.24 0.06
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N-5 1.47 0.16 0.05
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N-6 1.12 0.24 0.06
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N-7 0.68 0.21 0.02
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N-8 0.58 0.18 0.02
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N-9 0.57 0.19 0.01
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N-10 0.51 0.12 0.01
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N-11 0.51 0.19 0.02
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"The discovery of nickel on our Amaruk diamond property is a great example of how our shareholders can participate in yet another valuable opportunity on Diamonds North's vast landholdings," says Mark Kolebaba, President & CEO of Diamonds North.

The sulphide mineralized outcrop / subcrop is 20 to 30 metres wide and slopes gently into an extensive low lying area with no outcrop exposure. Associated with this location is a 700 to 1500 metre long magnetic anomaly with estimated widths ranging from 20 to 65 metres. Similar magnetic anomalies and oxidized sulphide zones exist elsewhere in the area, suggesting potential for additional drilling targets.

The presence of both semi-massive sulphides with higher metal values and disseminated sulphides with lower metal grades likely indicates that some of the nickel segregation took place in the original melt chamber. Sulphide mineralization occurs as pyrrhotite, pentlandite and chalcopyrite closely intergrown as disseminated specks, irregular clumps and semi-connected networks. Iron oxide associated with weathered sulphides is abundant supporting strong oxidization and leaching which may have resulted in possible metal loss.

Four additional samples collected closer to the country rock contact contain lower nickel values ranging from 0.06 to 0.15% and copper values ranging from 0.06 to 0.17%. Some of these samples appear highly leached and possibly affected by country rock contamination.

The Company is of the view that the Amaruk prospect represents the opportunity to test a major nickel-copper-cobalt target in an area previously unknown for base metals. Planning for a detailed EM survey over the area to better define drill targets is underway. Mobilization of a camp and geophysical crew is expected in March ahead of a drilling program that is tentatively scheduled for May.

The Company's principal focus remains on the exceptional diamond potential of the Amaruk property. That program has been escalated following the recently released diamond results from the property. Tuktu-1, Qavvik-3 and Qavvik-4 kimberlites yielded 550 diamonds from an 81.7kg sample, 183 diamonds from a 72.8 kg sample and 129 diamonds from a 65.7 kg sample respectively announced January 8th and 14th, 2008 (See News Releases NR08-01 & NR08-02).

Bernard Kahlert (P. Eng.) is Diamonds North's qualified person reviewing the geochemical data associated with the nickel prospect. Mr. Kahlert has been associated with several nickel discoveries including Forrestania and Maggie Hays Hill in Australia.

All samples were analyzed at ALS Chemex (ALS Laboratory Group-Mineral Division) in North Vancouver, BC. ALS Chemex is accredited by the QMI Quality Registrars to ISO 9001:2000, and by the Standards Council of Canada to ISO 17025. A standard aqua-regia digestion and ICP-AES package was used on all samples. Ore grade assays were analyzed by Atomic Absorption.

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

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba, President and 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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