Black Diamond Group Limited Closes Private Placement of $62 Million 5.44% Senior Secured Notes Due 2019

CALGARY, ALBERTA--(Marketwire - July 7, 2011) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of modular accommodation and energy services in North America, is pleased to announce that it has closed a private placement of long-term debt in the form of senior secured notes.

The total principal amount of Cdn. $62 million senior secured notes was issued to Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity Company. The notes have an interest rate of 5.44% per annum and are due in 2019. The amortizing scheduled repayments of the notes will begin in 2015. The notes are secured and will rank equally with the Company's senior credit facilities.

Proceeds from the offering will be used to repay a portion of the Company's outstanding debt under its senior credit facilities and for ongoing capital expenditures and general corporate purposes.

The notes have not been registered in the United States under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act.

ABOUT BLACK DIAMOND

Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.

Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.

Reader Advisory

Certain information in this news release contains forward-looking statements including, without limitation, the anticipated use of proceeds of the offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the risk that Black Diamond will expend the net proceeds of the equity offering in a manner different than that indicated, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.