Diamondex Resources Ltd.

Diamondex Resources Ltd.

June 12, 2007 08:07 ET

Diamondex Resources Ltd. Announces Pricing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 12, 2007) -


Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex" or the "Company") is pleased to announce that its private placement announced yesterday has been priced. A total of 14,286,000 common shares ("Common Shares") and 17,650,000 flow-through common shares ("Flow-Through Shares") of the Company will be issued under the private placement at a price of C$0.28 per Common Share and C$0.34 per Flow-Through Share (the "Offering").

Diamondex has engaged a syndicate of agents led by Genuity Capital Markets, and including Toll Cross Securities Inc and Versant Partners Inc. (the "Agents"), to complete the Offering on a marketed reasonable best efforts agency basis.

The Common Shares and Flow-Through Shares will be offered and sold by way of private placement exemptions in all provinces and jurisdictions of Canada other than Quebec mutually agreed to by the Company and the Agents, into the United States in such manner as not to require registration under the United States Securities Act of 1933, as amended, and in jurisdictions outside of Canada and the US.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the acceptance of the TSX Venture Exchange.

The net proceeds from the sale of the Offering will be used to fund the acquisition and exploration of Buffalo Hills, as well as, exploration at the Company's Lena West, Brodeur and other properties, working capital and general corporate purposes.

The Offering is expected to close on or before June 28, 2007. The Agents will be granted an option to purchase up to an additional 15% of the number of Common Shares and Flow-Through Shares sold to cover over-allotments, if any, on the same terms and conditions as the securities issued under the Offering. All securities issues in connection with the Offering will be subject to a four month hold period. The Agents will receive a cash commission of 7.0% of the gross proceeds raised in this private placement and compensation warrants (the "Compensation Warrants") entitling the Agents to purchase such number of common shares as is equal to 7.0% of the aggregate number of Common and Flow-Through Shares sold pursuant to the private placement. Each Compensation Warrant will entitle the Agents to purchase one common share of the Company at an exercise price equal to the higher of the Market Price (as defined in TSXV policies) and issue price of the Common Shares for a period of 12 months following the closing.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

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