Diamondex Resources Ltd.

Diamondex Resources Ltd.
Shore Gold Inc.

Shore Gold Inc.

April 26, 2007 17:52 ET

Diamondex and Shore Gold to Buy Interest in Buffalo Hills Project for $17.5 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2007) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") and Shore Gold Inc. (TSX VENTURE:SGF) ("Shore") are pleased to announce that they have entered into an agreement with Ashton Mining of Canada Inc. ("Ashton") (a wholly owned subsidiary of Stornoway Diamond Corporation) under which Diamondex and Shore have agreed to purchase Ashton's interest in the Buffalo Hills property in north central Alberta for a total consideration of $17.5 million. The agreement provides that Diamondex and Shore will pay $6.25 million and $8.75 million respectively in cash, and Diamondex will pay a further $2.5 million in the form of common shares of Diamondex.

The Buffalo Hills Project is presently a joint venture with Ashton Diamonds (Canada) Inc. (a wholly owned subsidiary of Ashton), EnCana Corporation and Pure Diamonds Exploration Inc. To date, the joint venture has spent in excess of $30 million on exploration including geophysics, drilling and mini-bulk sampling. Under the terms of this agreement, Diamondex and Shore have the right to acquire Ashton's approximate 45 percent interest in the project on a 50/50 basis, and have the option to increase their collective pro rata interest to 72.5 percent by funding the next $15 million of exploration expenditures before April 30, 2010.

The closing of the sale is subject to a number of conditions, including:

(a) satisfactory completion of due diligence by Diamondex and Shore;

(b) the execution of a formal purchase and sale agreement; and

(c) receipt of all necessary regulatory approvals and third party consents.

The transaction is also subject to a 30-day right of first refusal ("ROFR") of the two other joint venture partners with Pure Diamonds Exploration Inc. already having waived its ROFR. Upon closing, Diamondex will assume operatorship of the project.

The Buffalo Hills Project area is the third largest known district of significantly diamond-bearing kimberlites in Canada after Lac de Gras in the Northwest Territories and Fort a la Corne in Saskatchewan. To date, a total of 38 kimberlites have been discovered in the region, 26 of which are diamondiferous. These known kimberlite pipes range up to 47 hectares in surface area. Samples larger than ten tonnes have been collected from five of these bodies, three of which have returned a diamond content greater than 10 cpht. A 22.8 tonne sample collected from K252 in 2001 returned a diamond content of 55 cpht, the highest for the district determined to date. Four of the kimberlites are exposed in outcrop.

Diamondex and Shore believe the kimberlites in the Buffalo Hills region show the characteristic large tonnage, low grade and attractive diamond populations found in other regions that have either delivered significant economic rewards or are presently the subject of advanced exploration. Diamondex's President & CEO, Mr. Randy Turner, "Is excited about the opportunity to continue advancing this project with Shore Gold as a partner. We look forward to benefiting from Shore's technical expertise in a very similar geological environment at Fort a la Corne." Shore's President & CEO, Mr. Kenneth MacNeill stated, "We are pleased to participate with Diamondex in this early stage project. From the information reviewed, the similarities to our more advanced projects in central Saskatchewan are evident. While Shore's primary focus will continue to be the Fort a la Corne region in Saskatchewan, we see an opportunity to benefit from our association with Diamondex and their operatorship of Buffalo Hills."

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the ability of the Company to continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs; inability to fund the Company's share of costs incurred under joint venture agreements to which it is a party, and reduction or elimination of its joint venture interest as a result; competition within the minerals industry to acquire properties of merit, and competition from other companies possessing greater technical and financial resources; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or other factors related to exploring in the north, such as the availability of essential supplies and services; factors beyond the capacity of the Company to anticipate and control, such as the marketability of diamonds, government regulations relating to health, safety and the environment, the scale and scope of royalties and taxes on production, and demands for "value added" processing of rough diamonds in northern Canada; unusually mild winter conditions affecting or delaying the opening of the winter roads and resulting difficulties in transporting materials needed to support various exploration projects and resulting increased costs of transport by air; the availability of experienced contractors and professional staff to perform work in a competitive environment and the resulting adverse impact on costs and performance and other risks and uncertainties, including those described in each management discussion and analysis.
In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.


Randy C. Turner, President and CEO


Harvey J. Bay, CFO and COO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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