Diamondex Resources Ltd.
TSX VENTURE : DSP

Diamondex Resources Ltd.

July 04, 2005 18:02 ET

Diamondex Resources Ltd.: Second Tranche of Financing Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 4, 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 second and final tranche of its non-brokered private placement of units with Barrick Gold Corporation ("Barrick") previously announced on May 2, May 11, and May 27, 2005. Barrick was issued an additional 3,561,111 units at a price of $0.90 per unit for total gross proceeds to Diamondex of an additional $3,204,999. Each unit is comprised of one common share of Diamondex and one common share purchase warrant; each whole warrant exercisable until July 4, 2007, into an additional common share of Diamondex at a price of $1.25 per common share. As a consequence of the second tranche closing, Barrick holds 14.40% of the outstanding share capital of Diamondex (25.18% assuming full exercise of the private placement warrants issued to Barrick).

No finder's fee or commissions were paid in connection with the private placement. All securities issued pursuant to the private placement bear a four month hold period expiring on November 5, 2005.

The cumulative sum raised to date amounts to $11,034,999 pursuant to this non-brokered private placement previously announced on the dates set forth above and on June 1, and June 14, 2005.

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

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 Brodeur Peninsula areas, as well as the Coronation Gulf district of Nunavut and northern Quebec. Diamondex holds up to a 100% interest in 18 diamond properties totalling approximately 8.5 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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