Diamond Exploration Inc.

Diamond Exploration Inc.

January 26, 2009 08:30 ET

Diamond Exploration Inc.: Macro Diamonds at New Cobalt Option

OTTAWA, ONTARIO--(Marketwire - Jan. 26, 2009) - Diamond Exploration Inc. (TSX VENTURE:DIX) announced today that it has entered into an Agreement with International Millennium Mining Corp. ("IMMC") whereby Diamond Exploration can earn a fifty-one percent (51%) interest in International Millennium's "Cobalt Property".

Management Observations:

- Previous work included mapping trenching, till sampling and core drilling.

- Anomalous kimberlite indicator minerals (pyrope garnet, chrome diopside, ilmenite and chromite) in tills have provided a target area focus.

- Moreover, a zone of lamprophyre dykes and lamprophyric breccias has been delineated within a 600 metre wide corridor along a distance of approximately 3,000 metres.

- A 9.3 kilogram sample of lamprophyre core from one of the drill holes contained 4 macro-diamonds, the largest being 1.36mm by 1.20mm by 1.12mm, and 91 micro-diamonds.

- This diamond discovery was from a multi-phased xenolith-bearing lamprophyre dyke system, approximately 6 metres wide in its surface exposure.

Exploration by IMMC has focused on only two of the more than 20 known lamprophyre zones. The diamond-bearing lamprophyre breccia is coincident with a crudely circular magnetic low as defined by an airborne magnetic survey. Other magnetic low targets form a very distinct northeasterly trend that has not been explored. Additionally, none of the kimberlite indicator mineral anomalies has been followed up. Airborne magnetic surveys have defined several prospective targets with kimberlitic signatures that warrant evaluation.

The Diamond Exploration Inc. technical team believes that diamond stability field conditions exist within the mantle root beneath the Cobalt area and the presence of diamond-bearing lamprophyres confirms that the mantle is fertile for diamonds in this region. Follow up work will focus on assessment of priority kimberlite targets and additional evaluation of the most prospective of the lamprophyre breccias.

The "Cobalt Property" is located within Lorrain and Gillies Limit North Townships in the Larder Lake Mining Division, Ontario. The Property comprises two hundred and fifty (250) claim units in thirty-six (36) contiguous mining claims enclosing approximately four thousand (4,000) hectares.

Under the terms of the agreement, Diamond Exploration shall be entitled to earn a fifty-one percent (51%) interest by:

(a) Spending one million dollars ($1,000,000) on exploration over a period not exceeding ten (10) years from the date of the Agreement, at a rate averaging no less than one hundred thousand dollars ($100,000) per year, provided that excess spending in one year can be credited against the commitment in subsequent years, thereby averaging no less than one hundred thousand dollars ($100,000) per year on a cumulative basis; and

(b) After Diamond Exploration has expended the aforementioned one million dollars ($1,000,000), delivering to IMMC five hundred thousand (500,000) DIX fully-paid and non-assessable common shares.

"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

Contact Information