Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

July 21, 2011 09:45 ET

Diamonds North Initiates Prospecting on Fox Gold Property with Grab Samples as High as 43.9 g/T Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2011) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces the 2011 exploration program on the Fox gold property in Nunavut is underway. The program will focus on top priority areas identified during a comprehensive independent data review.

Highly anomalous gold has been reported from iron formation over a 2.2 kilometre strike length at Fox. In addition to grab samples that have assayed as high as 43.9 g/T gold, chip samples across the iron formation have yielded values as high as 5.8 g/t gold over 3.4 metres, 7.8 g/t gold over 2.2 metres and 9.8 g/t gold over 1.5 metres. This gold bearing iron formation has been folded and is in close proximity to the Pyke Fault which is believed to control mineralization at the Meliadine Gold deposit (resource of more than 5 million oz gold *).

An independent report commissioned by the Company states the Fox property is underexplored and has excellent potential to host significant gold mineralization. The area is structurally complex, anomalous gold is widespread and several favourable host rocks for gold in addition to iron formations, exist on the property including volcanic/sedimentary rocks and intrusive rocks.

The Fox property covers an estimated 45 kilometre strike length of prospective volcanic/sedimentary rocks with iron formation and intrusive rocks. Historically, prospecting on Fox focused exclusively on iron formation hosted gold. The 2011 program will further explore the iron formation and will focus on other target rocks on the property.

"Our Fox data review has identified new prospective targets for gold and we now have the opportunity to explore beyond the iron formation and expand the potential of the project," says Mark Kolebaba, President and CEO of Diamonds North.

The Fox Gold property is located 75 kilometres from the coastal Hamlet of Rankin and 65 kilometers North West of the Meliadine deposit.

The gold values reported are from assessment reports and have not been verified by the Company, however, the work appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality. Bruce Kienlen (P. Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons, as defined by National instrument 43-101, reviewing this project.

In addition to the Fox gold property the Company is actively exploring for gold on other Southern Nunavut properties including the Esker Property. To view a video presentation of the Esker Gold Property, visit our website www.diamondsnorth.com.

About Diamonds North

Diamonds North Resources 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

* Meliadine Resource estimate includes: measured, indicated and inferred categories. Extracted from: Comaplaex Minerals Corp.: Meliadine Gold Project, Nunavut, Canada. Technical Report. February 2010.

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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