Diamondex Resources Ltd.
TSX VENTURE : DSP

Diamondex Resources Ltd.

July 08, 2008 09:00 ET

Diamondex Grants Canada Nickel Corp. Option to Earn 51% Interest in Its James Bay Lowlands Properties for $5,000,000 Cash Payment and $20,000,000 Work Expenditures

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Diamondex Resources Ltd. (TSX VENTURE:DSP) (the "Company") is pleased to announce that it has signed an Option Agreement with the Canada Nickel Corp. ("Canada Nickel", a private Canadian corporation) under which Canada Nickel can acquire up to a 51% participating interest in the James Bay Lowlands Nickel Project (the "Project") located in the James Bay Region of northern Ontario (see www.diamondex.net for project location and description).

Under the terms of the Agreement, Canada Nickel can acquire a 51% interest by:

(a) having made a $5 million cash payment to Diamondex (which earns Canada Nickel a 10% interest in the Property); and

(b) funding $5 million in exploration expenditures on or before July 7, 2009 (which earns Canada Nickel a further 12% interest in the Property); and

(c) funding a further $7 million in exploration expenditures on or before July 7, 2010 (which earns Canada Nickel a further 14% interest in the Property); and

(d) funding a further $8 million in exploration expenditures on or before July 7, 2011 (which earns Canada Nickel a further 15% interest, for a total interest of 51%).

In addition, Canada Nickel will issue to Diamondex 250,000 share purchase warrants upon the completion of a going public transaction. Following Canada Nickel's exercise of the Option to earn a 51% undivided interest, Diamondex and Canada Nickel will form a participating Joint Venture for further exploration and development of the Property. Diamondex will be the Operator for the Project during the earn-in period.

Diamondex has recently completed a 5,105 line km VTEM survey over the eastern block of the Project area. This survey was successful in discovering 35 discrete late time basement conductors which are interpreted to be excellent targets for magmatic sulphide exploration. The interpreted strike lengths of the conductors range from 300 metres to 1,600 metres.

Geotech Ltd. has been contracted to fly VTEM over the remaining claim blocks of the Property (Areas 1 and 3) (see www.diamondex.net for project location and description). This 8,000 line km survey is expected to commence shortly. During this summer season, Diamondex and Canada Nickel will follow-up selected high-priority airborne anomalies with detailed ground geophysical surveys to further assist conductor characterization and ranking (including width, dip, depth, and ultra-low frequency EM response). These efforts will aid in the target selection for the initial diamond drill test program which is expected to get underway during Q4 of 2008 and be completed during Q1, 2009. It is expected that approximately 16 targets will be tested during this period.

With over 407,000 acres within 724 claims in the James Bay Lowlands, Diamondex is the largest property holder in the area, and has established a leading position in what could be one of Canada's last unexplored volcanic belts with demonstrated economic potential.

The current field program is being managed by Raymond Ashley, P.Geo., of Diamondex Resources Ltd. He is a Qualified Person in accordance with National Instrument 43-101, and has reviewed and approved the content of this press release.

DIAMONDEX RESOURCES LTD.

Randy C. Turner, President

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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