Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

November 16, 2006 14:53 ET

Diamonds North Announces Closing of $7 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Diamonds North Resources Ltd. (TSX VENTURE:DDN) (the "Company" or "Diamonds North") announces that it has closed its brokered private placement of 7,368,422 flow-through common shares of the Company at a price of $0.95 per share for aggregate gross proceeds of $7,000,000 (the "Offering"). Clarus Securities Inc. acted as lead underwriter, with a syndicate that included Loewen, Ondaatje, McCutcheon Limited and Raymond James Ltd. (the "Underwriters"). The Offering includes shares issued pursuant to the exercise of an over allotment option granted to the Underwriters.

In connection with the Offering, the Underwriters have been paid a 7% cash commission. In addition, the Underwriters were issued brokers warrants entitling them to purchase up to 515,789 non-flow through common shares for a price of $0.85 per share, expiring February 16th, 2008.

All securities issued pursuant to the private placement are subject to a hold period and may not be traded until March 17, 2007.

Diamonds North plans to use the net proceeds of this financing primarily to fund the exploration drill programs on its core diamond projects including the Amaruk project. The Company recently announced (September 20, 2006) the first 5 kimberlites drilled on the Amaruk project and is planning an aggressive target testing program. Immediate plans include formalizing budgets and contracts to secure drill rigs and helicopters for this exploration program.

Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.

ON BEHALF OF THE BOARD OF DIRECTORS

Mark Kolebaba, President & CEO

Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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