Diamond International Exploration Inc.

Diamond International Exploration Inc.

February 04, 2010 09:30 ET

Diamond International Exploration Inc.: Closing of Brazilian Acquisition and Placement


Diamond International Exploration Inc. (the "Company")(TSX VENTURE:DIX) is pleased to announce it has received final approval of the TSX Venture Exchange for the purchase and sale contemplated in the agreement with Armex Mining Corp. and the concurrent private placement which were announced on July 13, 2009.

Under terms of the acquisition, the Company will acquire a group of diamond properties located in the state of Mato Grosso, Brazil near the town of Juina (the "Juina Properties") and two other properties located in the Rio Arinos and Rio Pari river valleys approximately 170 km north of the city of Cuiaba (the "Rio Properties") in consideration for the payment of $2,500,000. As part of the transaction, the Company will purchase all of the outstanding shares of Mineracao C.D.J. Ltda. a Brazilian corporation which holds the most advanced of the mineral properties together with other less advanced concessions or applications for concessions, and will thereafter obtain rights to the balance of the properties, subject to completion of filings and approval of the transfers the balance of the mineral concessions by the Brazilian National Department of Mineral Production (DNPM) and, for six of concessions, approval of the Labour Court in Juina, Mato Grosso. The Juina Properties will be subject to a 2% NSR in favour of Armex Mining Corp., but will not be subject to payment of advance royalties as previously announced. The two Rio properties will be subject to previously announced milestone payments of $2 million and $1.75 million respectively after proving a NI 43-101 compliant resource of not less than 500,000 ct of diamonds on each property.

The Company has also received approval to close a concurrent non-brokered private placement of 25,600,000 Units at a price of $0.10 per Unit, each unit being comprised of one common share and one five year common share purchase warrant entitling the holder to purchase one additional common shares at a price of $0.15 (the "Placement") which was also announced on July 13, 2009 and was closed in escrow shortly thereafter. Approximately half (12,500,000) of these Units will remain in escrow pending completion and registration of formal transfers of the Properties in the DNPM. One eighth (1/8) of the escrowed units (1,562,500 Units) will be released for each of the concessions upon completion of registration and transfer procedures in the DNPM.

Completion of the Placement will not result in the creation of a control person. Proceeds of the Placement will be used to fund the purchase of the properties and for working capital. All securities issued pursuant to the Placement will be subject to a four month hold period.

No finders fees are payable with respect to the property purchase or private placement.

Diamond International Exploration Inc. is an exploration stage junior mining company focused on identification, acquisition and evaluation of diamond- prospective mineral properties in Brazil and Canada. Mr. C. Stewart Wallis, P.Geo, is the Qualified Person as defined by National Instrument 43-101 for this project.

On behalf of the Board of Directors of DIAMOND INTERNATIONAL EXPLORATION INC.


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.

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the formal transfer of mineral concessions, the identification of any mineral resource and the anticipated business and financing plans of the Company. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for diamonds or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's page on SEDAR at www.sedar.com.

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