Diamondex Resources Ltd.

Diamondex Resources Ltd.

December 19, 2008 15:46 ET

Diamondex Announces Canada Nickel Litigation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex" or the "Company") announces that it has been served by Canada Nickel Corp. ("Canada Nickel") with a writ of summons and statement of claim claiming rescission of an agreement dated June 3, 2008 originally entered into between J. Proust & Associates Inc. ("Proust") as optionee and Diamondex and its subsidiary Nickel Bay Resources Inc. as optionor respecting the James Bay Lowlands nickel project. The agreement was assigned by Proust to Canada Nickel, a private company which was intending to make a public offering but has failed to do so. Canada Nickel also seeks a return of the funds it has advanced to Diamondex pursuant to the agreement and unspecified damages. Diamondex has given notice to Canada Nickel that it is in default of its payment obligations under the agreement and that failure to remit $2,000,000 within 30 days from December 16, 2008 will result in termination of the agreement and the option.

Diamondex considers Canada Nickel's legal action to be without merit and will vigorously defend the action and counterclaim for damages and for costs.


Randy C. Turner, President and Chief Executive Officer

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