Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

July 22, 2005 14:53 ET

Diamonds North Completes Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 22, 2005) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) reports the non-brokered private placement announced on June 27, 2005 was fully subscribed and has been completed. A total of 4,000,000 units at a price of $0.75 per unit were issued on July 20, 2005. Each consists of one common share and one non-transferable share purchase warrant. The warrant attached to the unit entitles the holder to purchase one additional common share, exercisable for two years from the closing date, at a price of $1.00 during the first year and at $1.50 during the second year. The units have a forced warrant conversion if Diamonds North's shares trade at $1.30 or higher for 10 consecutive days in the first year.

The securities are subject to a four month hold period and may not be traded until November 21, 2005.

Finders' fees were paid in cash and warrants (exercisable on the same terms as the unit warrants) as follows: Bolder Investment Partners Ltd. $26,250 and 42,000 warrants; Canaccord Capital Corp. $2,250 and 3,600 warrants; Global Resource Investments Ltd. $88,125; Haywood Securities $5,625.00 and 9,000 warrants; Pacific International Securities $1,875 and 3,000 warrants; and Quest Capital Corp. 141,000 warrants.

The net proceeds from the financing will be used primarily for exploration expenses on the Company's properties and for general working capital.

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


Mark Kolebaba, President

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

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