Diamondex Resources Ltd.

Diamondex Resources Ltd.

October 11, 2006 18:00 ET

Diamondex Updates Lena West

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2006) - Diamondex Resources Ltd. (TSX VENTURE:DSP) ("Diamondex") is pleased to provide an exploration update on its Lena West project, as well as the recently acquired Warman and Summit Lake properties in central Saskatchewan (See www.diamondex.net for project locations).

Lena West Project, Northwest Territories

Drilling continues to test several target areas on the Lena West project. This program, designed to evaluate a minimum of 20 high priority targets within 7 prospective diamond districts, is based on both geochemical and/or geophysical results received to date. A budget of $1 million has been allocated for this drill program, which commenced in late August and will continue until freeze-up. Over 5,000 till and stream sediment samples have been collected over the project area since 2003, resulting in the recovery of several thousand kimberlite indicator minerals (KIMs) - electron microprobe data has recently been received from pyrope garnets recovered from the Lena West project indicating a high proportion of harzburgitic and lherzolitic provenance (See www.diamondex.net/s/NWT_Lena_West.asp for data).

During the 2006 field season, 1,500 stream sediment samples were collected, of which approximately 20% have been processed and analyzed for KIMs. In addition to the KIMs, a total of 14 diamonds have been recovered to date with a 3mm x 2mm stone recently recovered from a highly anomalous concentration of pyrope and ilmenite grains. In conjunction with the geochemical surveys, 20,000 line-kilometres of airborne magnetics (MIDAS) have been carried out to further define target areas. The total 2006 budget for the Lena West project is approximately $6 million, including this drill program. Results from this current program will be announced upon receipt and compilation of all analytical data.

The Lena West Project is comprised of 34 prospecting permits and 489 mineral claims, totaling 3.34 million acres, centred approximately 900 kilometres northwest of Yellowknife and 200 kilometres southeast of Inuvik, Northwest Territories. The Lena West Project is 100% owned by Diamondex.

Summit Lake Project, Saskatchewan

Field crews have recently conducted an initial geophysical investigation of several priority anomalies identified from an airborne magnetic survey data set provided by Adamas Minerals Inc. Diamondex geophysicists have identified isolated, rounded to elliptical, and non-conformable (disrupting local lineaments) anomalies that, given their occurrence in a geologically similar environment to the Fort a la Corne kimberlite field, could be indicative of kimberlite intrusions. The most recent detailed investigation included gravity and magnetic surveys over 4 of the airborne anomalies. Due to the amount of rain the area has received, all the planned anomaly investigations were not completed. Targets that have been surveyed are now ranked for drill testing priority.

Diamondex plans to return to the project area after freeze-up to complete detailed ground geophysical surveys over the remaining anomalies and to begin drill testing targets of merit. The Company has budgeted $400,000 for this first season of exploration at the Summit Lake project.

The Summit Lake Project is comprised of 17 mineral claims totaling 12,305 acres centered approximately 135 kilometres northeast of Prince Albert, Saskatchewan. Diamondex has a right to earn a 60% undivided interest in the property from Adamas Minerals Inc.

Warman Project, Saskatchewan

The Company has entered into an option agreement with Hartley and Associates and Mr. Michael Hartley of Edmonton, Alberta to explore 15 contiguous mineral claims (the "Warman Property") covering a total 9,201 hectares in an area located 30 kilometres north of Saskatoon, Saskatchewan. The option agreement is subject to acceptance by the TSX Venture exchange.

Under the terms of the option agreement, Diamondex has the right to earn up to a 100% interest in the Warman Property. To acquire this interest, Diamondex must: (a) make an initial cash payment of $50,000 and issue 50,000 common shares; (b) make further cumulative cash payments of $600,000 and issue a further 600,000 common shares by August 25th, 2010. Diamondex must also incur an aggregate of $10 million in exploration expenditures.

The Optionors will retain a 2.5% royalty interest in any production from the Warman Option.

Diamondex field crews have conducted an initial evaluation of the property, which hosts a large gravity anomaly that may be associated with kimberlite volcanism. Following the completion of more detailed geophysical investigations of the property, it is expected that diamond drill testing of resulting priority targets will be undertaken during the first quarter of 2007.

David Clarke, P.Geol., MSc., 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

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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