Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

July 10, 2008 12:30 ET

Diamonds North Closes Final Tranche of Non-Brokered Private Placement & Over $17 Million in the Treasury

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2008) -


Diamonds North Resources Ltd. (TSX VENTURE:DDN) (the "Company") announces it has closed the final tranche of the non-brokered private placement financing announced June 19th, 2008 and subsequently increased June 20th, 2008. A total of $552,550 was raised pursuant to the closing of the final tranche and involved the issuance of 16,833 Flow-Through Shares and 507,000 Non Flow-Through Units. The Company reports that it now has over $17 million in the Company's treasury.

Finders fees were paid consisting of $30,051 cash and the issuance of share purchase warrants entitling finders to purchase up to 28,620 common shares for a period of one year from the closing at a price of $1.30 per share.

All securities issued pursuant to the bought deal financing and the first tranche of the non-brokered private placement are subject to a statutory hold period expiring on November 10, 2008.

The funds raised from the issuance of the Flow-Through Shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE"). The funds raised from the issuance of the Units will be used for the advancement of the Company's mineral assets and for general working capital purposes.

Diamonds North has discovered 25 kimberlites to date on the Amaruk property. Of the 22 analyzed kimberlites, more than 90% of the known kimberlites are diamondiferous and 50% exhibit diamond counts that require follow-up exploration. At least 500 geophysical targets remain to be tested on the property.

Diamonds North Resources is focused on discovering Canada's next diamond mine. The Company is rapidly evolving and committed to building long-term value through ongoing diamond discoveries.

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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