Diamondex Resources Ltd.

Diamondex Resources Ltd.

June 07, 2007 18:30 ET

Diamondex to Purchase Trigon's Diamond Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 7, 2007) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") is pleased to announce that it has entered into an agreement (the "Agreement") with Trigon Uranium Corp. ("Trigon") under which Diamondex has agreed to purchase Trigon's diamond properties, free and clear of all liens, charges, encumbrances and third party interests, for a total consideration of $3.225 million.

Under the terms of the Agreement, as consideration for Trigon transferring these assets to Diamondex, Diamondex shall pay to Trigon a total of $3,225,000, composed of: (i) a non-refundable cash deposit of $25,000 which Diamondex paid upon the signing of a letter of agreement; (ii) the issuance of 6,400,000 common shares of Diamondex (the "Shares") on closing; and (iii) additional Shares to a maximum of 3,600,000 additional Shares on July 15, 2008 if the 30-day average price of the Shares is less than $0.50 prior to that date. The initial 6,400,000 shares will be subject to a 12 month hold period from the closing date, which is to be July 15, 2007, or such other date as the parties may agree in writing.

The closing of the sale is subject to a number of conditions, including:

a) satisfactory completion of due diligence by Diamondex;

b) Trigon determining that the sale of all the Assets can be executed on a basis fully free of taxation to Trigon; and

c) receipt of all necessary regulatory and third party approvals or consents, and the issuance of any necessary waivers.

Trigon holds six prospective diamond properties located in the James Bay Lowlands area of Ontario, and in the Slave and Rae cratons of the Northwest Territories and Nunavut. One of these projects is 100% owned by Trigon and the other five are held under joint ventures. Trigon's interest in these six properties ranges from 40% to 100%, and they are the operator of all the projects (See SEDAR for Trigon's diamond property descriptions). To date, Trigon has spent approximately $11 million on exploration on these project areas.

These properties include the Weiland project, located in the Kyle Lake kimberlite cluster area of the James Bay Lowlands of Ontario, approximately 120 kilometres west of DeBeers' Victor kimberlite pipe, known for its high quality diamonds. The property is held in a 40:60 joint venture with DeBeers Canada Inc.

The 100% owned Viking property covers a 4 million acre area of interest in northwestern Ontario. The project area has been found to host abundant KIMs, many exhibiting characteristics indicating proximity (possibly less than 10 kms) to their source.

The RAM and SHU properties are located approximately 140 kilometres northeast and 120 kilometres east of Yellowknife, NWT, respectively. These projects are held under a joint venture agreement with Stornoway Diamond Corporation (Trigon 46.79% : SWY 53.21%). On the RAM property, geochemical evidence indicates that this part of the Slave Craton is underlain by a very thick lithosphere which is favourable for diamond bearing kimberlites, while the SHU claims are located in the suspected source area of a distinct train of mantle derived indicator minerals identified by Trigon during their 2003 and 2004 reconnaissance work.

The IC and TIM properties are located southeast of Kugaaruk, Nunavut. The IC property is also held under a joint venture agreement with Stornoway Diamond Corporation (Trigon 46.67% : SWY 53.33%). The TIM property is held under a joint venture agreement with Committee Bay Resources Ltd. (Trigon 51% : Committee Bay Resources 49%). Trigon's interest in TIM is a part of the IC Option Agreement between Trigon and SWY.

Diamondex considers this acquisition key to its portfolio to advance development of its diamond properties in Canada.


Randy C. Turner, President

Caution Regarding Forward-Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the ability of the Company to continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs; inability to fund the Company's share of costs incurred under joint venture agreements to which it is a party, and reduction or elimination of its joint venture interest as a result; competition within the minerals industry to acquire properties of merit, and competition from other companies possessing greater technical and financial resources; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or other factors related to exploring in the north,
such as the availability of essential supplies and services; factors beyond the capacity of the Company to anticipate and control, such as the marketability of diamonds, government regulations relating to health, safety and the environment, the scale and scope of royalties and taxes on production, and demands for "value added" processing of rough diamonds in northern Canada; unusually mild winter conditions affecting or delaying the opening of the winter roads and resulting difficulties in transporting materials needed to support various exploration projects and resulting increased costs of transport by air; the availability of experienced contractors and professional staff to perform work in a competitive environment and the resulting adverse impact on costs and performance and other risks and uncertainties, including those described in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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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