Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

August 24, 2007 15:21 ET

Diamonds North Completes Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2007) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) reports that the non-brokered flow-through private placement announced on July 19, 2007 and increased on August 15, 2007 has closed. A total of 4,551,000 flow-through shares at a purchase price of $1.00 per share have been issued.

Finders' fees of 5% cash and 6% warrants were paid as follows: Bolder Investment Partners Ltd. $15,000 and 18,000 warrants; Canaccord Capital Corporation $47,500 and 57,000 warrants; Clarus Securities Inc. $72,500 and 87,000 warrants; Global Maxfin Capital $1,000 and 1,200 warrants; National Bank Financial $6,750 and 8,100 warrants; NovaDX Ventures Corp. $25,000 and 30,000 warrants; and RBC Dominion Securities $50,000 and 60,000 warrants. The finders' warrants are exercisable at $1.00 and expire as follows: 231,300 are exercisable until August 15, 2008 and 30,000 are exercisable until August 22, 2008.

All the securities issued hereunder are subject to a four month hold period as follows: 4,001,000 flow-through shares and any shares issued on exercise of 231,300 warrants may not be traded until December 16, 2007; and 550,000 flow-through shares and any shares issued on exercise of 30,000 warrants may not be traded until December 23, 2007.

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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