Diamondex Resources Ltd.

Diamondex Resources Ltd.

November 29, 2007 09:30 ET

Diamondex Resources/Shore Gold to Process 480 Tonnes of Buffalo Hills Kimberlite

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2007) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") and Shore Gold Inc. (TSX VENTURE:SGF) ("Shore") are pleased to provide an update on the Buffalo Hills Project located in north central Alberta (see www.diamondex.net for property location).

2007 Exploration

During the first quarter of 2007, and prior to the acquisition of an interest in the Buffalo Hills property by Diamondex and Shore, Stornoway Diamond Corporation undertook a $2.2 million exploration program on the Buffalo Hills project. This program consisted of a kimberlite sampling as well as definition-style diamond drilling on the K14/BH225/K91 kimberlite corridor and the K6 kimberlite (see inset table).

Kimberlite K6 K14 K91 BH225 Totals
Kimberlite sample (tonnes) 180 300 - - 480
Number of drill tests 1 6 14 2 23
Metres of drilling 181 1,119 546 364 2,210

The K14, K91 and BH225 kimberlites are located within a corridor that measures approximately 2 kilometres in length. Based on the limited existing drill data, these three kimberlites, taken together, have the potential to host significant tonnage. A 36 tonne sample taken from K91 in 1998 returned an estimated diamond content of 13 carats per hundred tonnes (cpht). A cumulative 524 tonne sample collected at K14 in 1997 and 1998 returned an estimated diamond content of 12 cpht with the largest diamond recovered weighing 1.3 carats. The K6 kimberlite, located approximately 10 kilometres south of K14, has produced an average value of 7.2 cpht from sampling campaigns conducted in 1997 and 2002 that collected a combined total of 19.2 tonnes of kimberlite. A 0.76 carat yellow diamond recovered from the 1997 sampling program is of special interest.

An aggregate of 480 tonnes of kimberlite was recovered from K14 and K6 in January of 2007. This material is currently being transferred to Shore's processing plant at Fort a la Corne, Saskatchewan. Shore's on site processing facility, which was originally commissioned in February of 2004, includes a front end (crush, scrub and screen) and dense media separation plant (DMS) that can process up to 200 tonnes of kimberlite per day. The final plant products are X-Ray Flowsort and grease table concentrates, which are collected in sealed containers and transferred, by secure carrier, to an independent sorting laboratory for diamond recovery. Processing of the latest Buffalo Hills bulk sample will commence during December and it is expected that diamond counts will be delivered to the JV partners during the first quarter of 2008.

The 1,590 metres of HQ3 diamond drill cores recovered during the first quarter of 2007 are currently subject to the same detailed and quantitative logging methods Shore's geologists have successfully applied to cores recovered from the Star Diamond and the FALC-JV Projects. This limited amount of material will help in the initial development of geologic models for the tested pipes. Any future drilling in the project area by the JV partners will emphasize the importance of recovering quality drill cores to facilitate geologic modeling of the individual kimberlite bodies.

The 2008 Exploration Program for the Buffalo Hills Project is currently being developed by the JV's Technical Committee. Details of the Program will be released following its adoption by the Management Committee. It is expected that field operations will get underway in January of 2008.

Overview of the Buffalo Hills Project

Diamondex and Shore acquired Stornoway Diamonds Corporation's share of this project in July 2007 for a total cash consideration of $17.5 million. Pursuant to the acquisition, Shore and Diamondex each acquired a 22.5% interest in the Buffalo Hills Joint Venture, in which Encana Corporation holds a 43% interest and Pure Diamonds Exploration Inc. holds the remaining 12% interest. Diamondex and Shore can increase their combined interest to 72.5% by spending $15 million prior to April 30, 2010. Diamondex is the Operator of the Buffalo Hills Joint Venture.

The Buffalo Hills Project is the third largest known district of significantly diamond bearing kimberlite in Canada after Lac De Gras in the Northwest Territories and Fort a la Corne in Saskatchewan. Previous exploration on this project by Ashton Mining, Encana and Pure Diamonds from 1997-2006, totaled $30 million, which resulted in the discovery of 38 kimberlites, 26 of which were diamondiferous. These kimberlites range in size from 1 to 47 hectares. Six mini bulk samples were also carried out, with the largest bulk sample conducted at K14 where 479 tonnes were extracted yielding a grade of 12 cpht. A 22.8 tonne sample extracted from K252 yielded a grade of 55 cpht.

David Clarke, P.Geol., MSc., Senior Vice President of Exploration for Diamondex Resources Ltd. is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamondex Resources Ltd.


Randy C. Turner, President

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