August 16, 2006 12:34 ET

Detailed Geophysical Survey Completed on Dios' Chibouki Project, Quebec: Ground Follow-Up of Kimberlite Targets

MONTREAL, CANADA--(CCNMatthews - Aug. 16, 2006) - A GEOPHYSICAL SURVEY WAS COMPLETED ON THE CHIBOUKI PROJECT OF DIOS EXPLORATION INC. (TSX VENTURE:DOS) in the southern James Bay region of Quebec. This detailed tight-spacing low altitude helicopter borne magnetic survey returned significant results suggesting kimberlite targets at the head of previously delineated kimberlite indicator mineral dispersal trains.

Follow-up exploration activities on CHIBOUKI are currently underway consisting of kimberlite float prospecting and high priority till sampling with diamond drilling planned in the very short term on some of these targets following the current campaign results. These kimberlite targets from this current geophysical survey were evaluated and confirmed by different independent industry specialists.

Some different soil geochemistry surveys and tests were also completed on some five previous geophysical targets and one of them was deemed a very high probability kimberlite target by an independent laboratory and will be drilled this Fall also.

Work by DIOS had returned encouraging microprobe data results from kimberlite indicator mineral dispersal train delineation on the CHIBOUKI PROJECT. Glacial geological studies confirmed distinct well defined glacial dispersal trains.

The CHIBOUKI property has good road access in the southern end portion of the Mistissini-Lemoyne Structure hosting several kimberlites further north, including the DIOS' HOTISH kimberlites and the Ashton Mining of Canada -SOQUEM Renard diamondiferous cluster currently being bulk sampled.

DIOS, a leader in diamond exploration in Quebec, owns 100 % of some 3,000 sq. kilometres of prospective diamond potential mining rights. With only 14,766,968 shares issued, DIOS is in a good financial position with a high leverage following a new kimberlite discovery.

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

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