Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

July 06, 2011 11:25 ET

Diamonds North Closes Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2011) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) reports that the non-brokered private placement announced on June 22, 2011 has closed for gross proceeds of $750,000. The Company has issued 4,687,500 flow-through common shares and paid fees of $32,500 in connection with the financing. The securities issued hereunder are subject to a four month hold period and may not be traded until November 5, 2011.

The recently announced Esker Gold Property (see June 3, 2011 news release) 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 Electro-magnetic (EM) airborne data (see March 24, 2011 news release). 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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