Diadem Resources Ltd.

Diadem Resources Ltd.

February 01, 2011 12:18 ET

Diadem Announces Preliminary Results of Drill Program-Parry Peninsula, Northwest Territories and Updates African Transaction

MONTREAL, QUEBEC--(Marketwire - Feb. 1, 2011) - Diadem Resources Ltd. ("Diadem" or the "Company") (TSX VENTURE:DRL) is pleased to provide a preliminary overview of the exploration program that was carried out on the Franklin Diamond Project, a 50/50 joint venture with Darnley Bay Resources Limited, located on the Parry Peninsula, Northwest Territories.

A total of five diamond drill holes totaling 707.6 meters in length were drilled during August 2010 to test four (4) negative ground magnetic anomalies (anomalies MT112, MT113, MT102 and MT10) in an area where kimberlite intrusives were discovered in an earlier exploration program carried out in 2000 and 2001. One of the magnetic anomalies was tested with two holes. In addition, ground-based total field magnetic surveys were carried out over three separate grids to evaluate anomalies detected in an earlier airborne magnetic survey carried out by Diadem. As a result of this drilling, 3 new kimberlite intrusives were discovered. A single hole to test anomaly MT113 failed to intersect any evidence of kimberlite in the core.

Samples from each of the newly discovered kimberlites were submitted to CF Mineral Research Ltd of Kelowna, British Columbia to be examined for the presence of KIMs (kimberlite indicator minerals). Preliminary reports received from CF Mineral Research Ltd. indicate the presence of a high incidence of chrome diopside, olivine together with purple and orange garnets (kimberlite indicator minerals) in the samples submitted. Of particular note is the presence of one microdiamond, which measured approximately 0.25mm in diameter. A representative sampling of the KIMs will be scanned with an electron microscope, particularly those associated with the diamond that was recovered, and those with the best chemical compositions will be subjected to electron microprobe analyses. In addition, caustic fusion will be carried out to test for the presence of additional diamonds in the core.

This work is currently being carried out by CF Mineral Research Ltd. The results of these tests will be announced after the joint venture partners have had a chance to review and analyze them.

The technical information contained in this press release has been reviewed and approved by Mr. Thomas Skimming, P. Eng., Geologist and Director of Diadem Resources Ltd and a qualified person as defined by National Instrument 43-101.

The Company also announces today that it has received notice of termination from the proposed vendor in relation to the potential acquisition of the African properties. Diadem's Board is currently reviewing such notice. Additional information on such potential acquisition is included in Diadem's press releases of October 13, 2010 and November 15, 2010. 

About Diadem Resources Ltd.

Management of Diadem is focused on acquiring near-production mining opportunities in North America and Africa, especially those related to diamonds and gold. Its principal current activity is diamond exploration in the Franklin Bay area of the Northwest Territories. On that project Diadem operates a joint venture with its fifty percent (50%) partner Darnley Bay. Twenty potential drill targets have been identified on the Parry Peninsula, which currently constitutes the Franklin joint venture project area. Ground magnetic surveys over three of the targets have been completed in 2010. Additional surveys over another 38 targets are planned for 2011. When this is completed, Diadem will finalize its drilling program for the 2011 drilling seasons. Drilling of four targets in 2010 located three new kimberlite pipes, for a total of thirteen in this emerging district. All permits regarding the joint venture are in place for 2010 to 2012 and a proper campsite is being investigated in order to benefit both joint venture partners. Diadem recently entered into a revised joint venture arrangement with Darnley Bay Resources Limited, details of which can be found in Diadem's press release of July 9, 2010 (found under the Company's profile on SEDAR).

Additional information about Diadem Resources Ltd. may be found on its web page (www.diademresources.com) and under Diadem's profile on www.sedar.com.

Cautionary Statement

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such 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 statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review registered filings at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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