Pure Diamonds Exploration Inc.

Pure Diamonds Exploration Inc.

June 24, 2009 16:05 ET

Pure Diamonds Exploration Inc.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 24, 2009) - Pure Diamonds Exploration Inc. ("Pure Diamonds" or the "Company") (TSX:PUG) wishes to provide the following corporate update.

The Company has been informed by the Toronto Stock Exchange ("TSX") that it has commenced a de-listing review of the Company's common shares because the Company's Market Value of its listed securities has been below $3.0 million for 30 consecutive trading days. The Company is being reviewed under the TSX's Remedial Review Process and has been granted until June 29, 2009, to comply with all requirements for continued listing. As the Company's Market Value has not improved, the Company has applied to transfer its listed securities from the TSX to the Canadian National Stock Exchange ("CNSX"). Shortly after its listing on the CNSX, the Company proposes to do a share consolidation and name change to reflect the new direction the Company is taking. The Board of Directors believes that the Company's ability to identify new opportunities and projects and in turn conduct the equity financing required for its current operations and new ventures is contingent upon, among other things, a consolidation of its outstanding common shares.

At the Company's upcoming Annual General and Special Meeting of Shareholders to be held on July 21, 2009, Shareholders will be asked at the Meeting to approve a consolidation all of the issued common shares of the Company (of which 59,137,029 are currently issued) on the basis of every ten (10) old common shares, or such lesser number as the Company's Board of Directors may determine, being consolidated into one (1) new common share (the "Share Consolidation").

In conjunction with the Company's proposed Share Consolidation, management believes that changing the name of the Company to "Burnstone Ventures Inc." would be in the best interest of the Company as the proposed name better signifies the new direction the Company is taking. The new name, being more generic, will allow the Company to pursue a wider range of business opportunities as it would not, as far as the name is concerned, just be tied to one commodity. Diamonds, including the Baffin Island Project, will continue to be the Company's main focus for the time being.

To secure the funding necessary to continue exploration on the Company's Baffin Island property in a High Arctic location, or to secure a new property or pursue new ventures, it is necessary to proceed with the Share Consolidation and, to reflect this consolidation and Management's ongoing efforts to locate new prospective opportunities for the Company, proceed with the name change to Burnstone Ventures Inc. We remain confident in the potential of the Baffin Island property, and that the continued efforts of Diamondex Resources Ltd. and Shore Gold Inc. will provide rewarding results from the Buffalo Hills Project. In the meantime, the Company is reviewing and will continue to review new opportunities on behalf of its shareholders, with the intent of diversifying the commodity base and possibly the business base of the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

Contact Information

  • Pure Diamonds Exploration Inc.
    Gordon Keevil
    (604) 687-2038
    (604) 687-3141 (FAX)