June 19, 2008 11:06 ET

Darnley Bay Resources Limited Update

TORONTO, ONTARIO--(Marketwire - June 19, 2008) - Further to its news releases of May 1, 2008 and May 7, 2008, Darnley Bay Resources Limited (TSX VENTURE:DBL) announces that it has completed settlement of its liability to a creditor of $57,000 by the issue of 142,500 common shares of the Company at $0.40 per share, and that it is not proceeding with the settlement of another liability to a creditor of $30,000 by the issue of 78,948 shares at $0.38.

In addition, a director of the Company has exercised 400,000 options at $0.13 for a total purchase price of $52,000.

The following is an update of further activities and developments:

Concession Agreement

A revised draft of the Concession Agreement for exploration and eventual development on the Paulatuk 7(1)(a) lands by the Company was received from the Inuvialuit Regional Corporation on June 13, 2008. It is currently undergoing a final legal review. It incorporates both metals and diamonds.

Exploration Program

The Company has engaged Kavik-Axys Inc. to assist in preparation of its application to the Environmental Impact Screening Committee (EISC) of the Inuvialuit Land Administration for a land access permit to conduct exploration in the vicinity of Paulatuk. Kavik-Axys is an Inuvialuit-owned environmental consultancy based in Inuvik. The application will be considered during the EISC's July 23-25 meeting. The exploration program is scheduled to commence in early August and be completed by mid-October, 2008. It will incorporate:

1. Geological sampling - sampling for base metals and diamonds of near-surface targets, interpreted from aeromagnetic data and mapped geology.

2. Airborne gravity survey - the survey will greatly improve the density and quality of coverage over the Darnley Bay gravity anomaly, to refine the targets located during the recent 3D modeling, to locate new targets and to prioritize the targets for drilling.

3. Airborne electromagnetic survey - the survey will focus on the gabbro sills that are mapped or interpreted from aeromagnetic data, to locate base metal targets for drilling.

4. Lake bathymetry and river flow studies - required to determine the optimal sources of water for drilling.

The results of the summer exploration program will be used to prepare the permit application for the winter drilling campaign.

The Company was formed in 1993 to explore and develop an area of geophysical significance in the Northwest Territories of Canada. Initial base metal exploration fortuitously resulted in the discovery of diamonds, indicating that the area is host to both metallic and non-metallic mineral deposit interests. The Company's objectives are to secure and maintain successful financing partnerships to continue exploration for both base metals and diamonds that will result in the development of a profitable mining venture.

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

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