Diamondex Resources Ltd.
TSX VENTURE : DSP

Diamondex Resources Ltd.

June 27, 2005 17:25 ET

Diamondex Updates Lena West, Birch Island and Brodeur

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 27, 2005) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") is pleased to provide updates on its Lena West and Birch Island Projects, both located in the Northwest Territories, and the Brodeur Project, located in Nunavut (see www.diamondex.net for property locations).

Lena West Project, Northwest Territories

A major exploration program commenced on the Lena West Project during the first quarter of 2005. This program, budgeted at a minimum of $4.8 million, is comprised mainly of detailed ground geophysics, stream and till sampling, and diamond drilling. This program is designed to further evaluate and define airborne and/or geochemical targets outlined by exploration programs conducted during 2003 and 2004.

A total of 1,094 stream and till samples were collected during 2004, bringing the total to 2,238 samples collected to date over the Lena West area. All samples have now been processed and "picked" for heavy mineral concentrates. Several anomalous concentrates of fresh pyrope grains (up to 4mm) of lherzolitic and harzburgitic perioditic provenance (significant concentrations of G10s) have been recorded to date. As well, significant concentrations of ilmenite grains (up to 3mm) have also been recovered (see www.diamondex.net for mineral chemistry plots). A total of five diamonds, the largest being 1.5mm in the longest dimension, have also been recovered from the stream sampling programs during 2003 and 2004. Morphological studies of kimberlite indicator minerals (KIMs) indicate the presence of primary and secondary sedimentary collectors with a subset of grains indicating proximity to several source areas. Three major target areas, based on heavy mineral sampling, have been defined within the Lena West Property. A further 2,000 till samples will be collected during the third quarter to further define these areas for future drilling. Analysis of all KIMs were conducted at the Diamond Research Institute, Novosibirsk, Russia, under the direction of Dr. Nickolai Pokhilenko, principal consultant to Diamondex.

To date, approximately 135,000 line-kilometres of airborne magnetics have been carried out over the project area by Fugro Airborne Surveys, with 80 magnetic targets identified. During 2004, 20 of the airborne targets were further investigated with detailed ground magnetic surveys which covered 230 line-kilometres. In March and April of this year, four of these anomalies were subject to reflective/refractive seismic surveys, as well as transient electromagnetic (TEM) investigations.

A limited drill program has been carried out over several targets on the project area. Drilling has currently been suspended due to spring break-up conditions and difficult drilling conditions. Though no kimberlites were intersected, the geophysical targets have not been fully explained. A further 4,000 metres of drilling has been budgeted to be carried out during the third quarter following more detailed till sampling and further review and interpretation of both airborne and ground geophysical data.

The Lena West Project area, comprised of 139 prospecting permits and 33 mineral claims totaling 6,164,100 acres, is centred approximately 900 kilometres northwest of Yellowknife and 200 kilometres southeast of Inuvik, Northwest Territories. The Lena West Project is 100% owned by Diamondex.

Birch Island, Northwest Territories

Exploration has commenced over the Birch Island Property, located approximately 300 kilometres southeast of the main Lena West Project area, between Norman Wells and Tulita, NWT. The claims, totaling 27,116 acres, were staked over 21 high priority targets defined from airborne magnetic survey data. In order to better define diamond drill targets, Diamondex crews have been collecting geochemical samples and conducting detailed ground magnetic surveys in the area since June 15, 2005. Further detailed exploration is underway to define targets for future drilling.

Brodeur Property, Nunavut

McPhar Geosurveys Ltd. has commenced flying a fixed wing magnetic survey over selected portions of the Brodeur Property, which Diamondex recently optioned from Kennecott Canada Exploration Inc. (see NR of May 9, 2005). To date, 6,000 line kilometres of the planned 21,000 line-kilometre survey has been completed over the property. This survey is being flown at 100 metre line-spacings and it is expected to be completed within the next two weeks. In addition, a 3,000 line-kilometre Fugro RESOLVE airborne Mag/EM survey will commence during the week of July 1st over an area which includes three kimberlite intrusions (referred to as Tuwawi, Nunuk, and Kuuriaq), previously discovered by Kennecott. All three kimberlitic bodies are diamond bearing. The largest of these kimberlite bodies, Tuwawi, has a surface expression of approximately 4 hectares in size.

A summer exploration program of ground geophysics, till and stream sampling, surface prospecting and diamond drilling is also expected to commence during the first week of July. This program, estimated to cost $2 million, is designed to further define previous airborne magnetic targets for drilling, as well as to better define the size potential of the diamond-bearing Tuwawi pipe.

The Brodeur property is centred on the northern half of the Brodeur Peninsula of Baffin Island. Diamondex has the exclusive option to earn up to 100% on the property, subject to an underlying Property Acquisition Agreement with Kennecott Canada Inc. The property comprises a number of claims and Prospecting Permits totaling 403,580 acres and hosts 3 known diamond-bearing kimberlite bodies: Tuwawi, Nunuk, and Kuuriaq.

Miscellaneous

Diamondex is a well-financed exploration company holding a very large and prospective portfolio of diamond 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 in the Coronation Gulf district of Nunavut and northern Quebec. The company holds up to 100% interest in 15 diamond properties, totaling 8.3 million acres. The 2005 budget for Diamondex's major exploration program is estimated at $8.5 million. This budget includes airborne and ground geophysics, detailed till sampling and further drilling on high priority targets on the Lena West, Carat, Brodeur and Hilltop Projects.

David Clarke, P.Geol., M.Sc., 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.

DIAMONDEX RESOURCES LTD.

Randy C. Turner, President


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