Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

June 22, 2011 09:35 ET

Diamonds North Announces Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces a non-brokered private placement to raise up to $750,000 through the sale of flow-through shares at a price of $0.16 per share, subject to TSX Venture Exchange approval.

Finders' fees of 5% may be payable on a portion of the placement. The proceeds from the private placement will be used to finance work on the company's exploration projects in Northern Canada.

The recently announced Esker Gold Property (see news release 11-10, June 3, 2011) which covers several kilometres of gold bearing stratigraphy will be a priority for exploration in 2011. Multiple drill holes intercepted gold mineralization as high as 8.2 g/T gold over 13 metres, including 17.7 g/T gold over 5.7 metres; and 2.4 g/T gold over 71 metres which includes several high grade zones. For a video presentation on this project visit our website www.diamondsnorth.com.

Another priority for 2011 will be the evaluation of a new generation of kimberlite targets. It was previously reported that Diamonds North had identified several new kimberlite targets on the Amaruk property using electromagnetic (EM) airborne data (see news release 11-05, March 24, 2011). Diamonds North has adopted the use of this innovative electromagnetic (EM) geophysical method that is interpreted to penetrate the conductive overburden cover in the region. This targeting has led to the identification of sizable kimberlite targets (greater than 400 metres in diameter) with kimberlite indicator mineral support.

About Diamonds North

Diamonds North Resources Ltd. is rapidly evolving and committed to building long-term value for shareholders through ongoing discoveries and leveraging business opportunities from our vast land holding.

On behalf of Diamonds North Resources Ltd.

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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