Diadem Resources Ltd.

Diadem Resources Ltd.

March 17, 2005 11:11 ET

Diadem Commences Airborne Survey On Franklin Diamond Exploration Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DIADEM RESOURCES LTD.

TSX VENTURE SYMBOL: DIR

MARCH 17, 2005 - 11:11 ET

Diadem Commences Airborne Survey On Franklin Diamond
Exploration Project

TORONTO, ONTARIO--(CCNMatthews - March 17, 2005) - Diadem Resources Ltd.
(TSX VENTURE:DIR) ("DIR") is pleased to announce that its 2005
exploration program on the Franklin diamond exploration project has
commenced with the mobilization of a Fugro Airborne Surveys Ltd.
airborne geophysical survey aircraft and crew to the community of
Paulatuk, NT. Fugro has been retained to complete an airborne magnetic
gradiometer survey of the property. The survey, consisting of some
50,000 line km, will initially focus on the Parry Peninsula Kimberlite
Field and complete a 100 meter in-fill survey over the known kimberlite
field with 200 meter coverage over selected areas of interest north of
the 68th parallel. The geology of the project area is such that it
facilitates direct targeting by airborne geophysics. Priority targets
will be the subject of detailed ground investigation during the 2005
summer months with the objective of delineating priority targets for
subsequent drill testing.

Furthermore, Diadem is pleased to announce that it has restructured the
terms of its option and joint venture agreement with Darnley Bay
Resources Ltd. Diadem's earn-in requirement on the lands north of the
68th parallel has been reduced to a further expenditure of $2,100,000
and the term extended to December 31st, 2007. This, in part, reflects
Darnley Bay Resources Ltd. intention to focus exclusively on its base
metal exploration project and not to participate in the exploration
south of the 68th parallel as per the initial terms of the option and
joint venture agreement. Accordingly, 100% interest in lands south of
the 68th parallel will be transferred to Diadem and Diadem will
independently pursue exploration opportunities south of the 68th
parallel. In addition, the terms of the Diamond Exploration Cooperation
Agreement between the Inuvialuit Regional Corporation and Diadem
Resources Ltd. and Darnley Bay Resources Ltd. have been amended and the
$2,000,000 exploration expenditure requirement by June 30th, 2005 has
been extended to September 30th, 2005. With respect to the
aforementioned Diamond Cooperation Agreement approximately $1,000,000
has been spent on lands north of the 68th parallel.

Diadem is a Toronto-based diamond exploration and development company.
Currently the Company is focused on its substantial land holdings in the
Franklin Bay area within the Inuvialuit settlement region of the
Northwest Territories. In addition to its activities on the Attawapiskat
diamond project, Diadem is exploring mineral claims in the Otish
Mountains region of Quebec and has a minority interest in a bedrock
diamond prospect in northeast California.

Rodney N. Thomas, President and Director, is a professional geologist
and responsible for the design, execution and quality assurance of the
Diadem exploration programs.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Diadem Resources Ltd.
    Rodney N. Thomas
    President
    (416) 729-2780
    (416) 369-6088 (FAX)
    rodney.thomas@diademresources.com
    www.diademresources.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of the information contained in this news release.