Diamondex Resources Ltd.
TSX VENTURE : DSP

Diamondex Resources Ltd.

May 27, 2005 18:53 ET

Diamondex Resources Ltd.: First Tranche of Financing Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 27, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

DIAMONDEX RESOURCES LTD. (TSX VENTURE:DSP) ("Diamondex") is pleased to announce that it has closed the first tranche of its non-brokered private placement of units with Barrick Gold Corporation ("Barrick") previously announced on May 2 and May 11, 2005. Barrick was issued 7,550,000 units at a price of $0.90 per unit for total gross proceeds to Diamondex of $6,795,000. Each unit is comprised of one common share of Diamondex and one common share purchase warrant; each whole warrant exercisable until May 17, 2007, into an additional common share of Diamondex at a price of $1.25 per common share. As a consequence of the first tranche closing, Barrick holds 10.95% of the outstanding share capital of Diamondex (19.73% assuming full exercise of the private placement warrants issued to Barrick).

All securities issued pursuant to the private placement bear a four month hold period expiring on September 18, 2005.

Subject to the approval of a majority of Diamondex shareholders, Barrick will be issued an additional 3,561,111 units on the closing of the second tranche of the private placement. Shareholder approval to the second tranche closing will be sought at Diamondex's annual general meeting scheduled for June 27, 2005.

Diamondex will use the proceeds from this financing for its current diamond exploration programs, acquisitions and general working capital.

Diamondex will not be proceeding with its private placement to Tell Investments LLP of an aggregate of 2,200,000 units.

Diamondex holds a very large and prospective portfolio of diamond exploration properties in the lower Mackenzie River area and the southern Slave Province of the Northwest Territories, the Melville and Boothia Peninsula areas, as well as the Coronation Gulf district of Nunavut and northern Quebec. Diamondex holds up to a 100% interest in 16 diamond properties totalling approximately 8 million acres.

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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