Diagem Inc.
TSX VENTURE : DGM

Diagem Inc.

July 12, 2005 13:23 ET

Diagem Inc.: Management Changes and New Kimberlite Discoveries

MONTREAL, QUEBEC--(CCNMatthews - July 12, 2005) - The Board of Directors is pleased to announce the appointment of Claude Durocher, P. Geo. as Chief Executive Officer and Paul Einarson, C.A. as Chief Financial Officer of Diagem Inc. ("Diagem" or "the Company")(TSX VENTURE:DGM). Dr. Mousseau Tremblay remains as Chairman of the Board and will continue to advise the Company on technical matters and strategic issues. Diagem has made these appointments to strengthen the management team in order to advance its exploration and mining projects in Brazil and northern Ontario.

The Company is also pleased to announce the discovery of three new kimberlite occurrences on its 214 mining concession located in the Juina Diamond Region. To date, a total of nine kimberlite occurrences, including the Collier-04 diamondiferous kimberlite pipe, have been located on the concession. In the mid 1990s, Rio Tinto calculated a grade of 0.4 carats per tonne for Collier-04. In addition to further exploration work on the new occurrences, the Company wishes to test mine the Collier-04 pipe in order to evaluate its full economic potential. The Company has secured the required land access and will initiate activities upon receipt of the license of operation from SEMA (Brazilian environmental agency and recently announced successor of FEMA).

Historical diamond production by garimparos in the Chicoria Creek area, which straddles the adjoining Permit 213 and Mining Concession 214, has reputedly produced diamonds in excess of 200 carats in size. Trial mining by Diagem during a twelve week period in 2003 on Fazenda Chicoria Diamondiferous Gravel Resource Block No. 1 yielded 3,755 carats from a total of 11,175 diamonds, of which the largest was a 25 carat stone. It is estimated that this resource contains approximately 40,000 carats. This diamond resource occupies a relatively small area of 40 hectares within Diagem's total permit area of 120,000 hectares.

Upon his appointment as a member of the Board of Directors, the Company granted to Mr. Claude Durocher 250,000 options to purchase shares at $0.185. Pursuant to his appointment as the Chief Executive Officer of the Company, Mr. Durocher was granted an additional 500,000 options to purchase shares at $0.15.

For and on behalf of

DIAGEM INC.

"Mousseau Tremblay"

Chairman of the Board

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Contact Information

  • Diagem Inc.
    Paul Einarson, CFO
    (514) 866-6001 / (251) 347-2561
    (514) 866-6193 (FAX)
    www.diagem.com