Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

December 20, 2010 16:39 ET

Diamonds North Reports Results for Beluga-3 & Continues to Define New Drill Targets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2010) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) reports 82 diamonds on or above the 0.85 millimetre sieve were recovered from 19.0 tonnes of kimberlite (certified headfeed weight) collected from the Beluga-3 kimberlite on the Amaruk property in Nunavut. Compelling high interest indicator minerals recovered from till samples suggesting kimberlites with high diamond potential exist on the property and have not yet been discovered.

Kimberlite   Weight (tonnes)   TOTAL   0.85 mm   1.18 mm   1.70 mm   total >0.85
Beluga-3   19.0   82   50   27   5   82
Diamonds recovered from the Beluga-3 2010 drilling campaign

The 5 largest stones recovered remain on the 1.70 millimetre mesh. Beluga-3 is the most subtle magnetic target we have tested to date. While Beluga-3 is not of high interest at this time, this data demonstrates that kimberlites with a subtle magnetic response contain the largest diamonds discovered on the property to date. These subtle magnetic targets will continue to be the focus of the Company's exploration strategy. 

"We plan to implement an aggressive campaign to target the source of high interest indicator minerals associated with subtle geophysical features," says Mark Kolebaba President and CEO of Diamonds North. The Company is currently reviewing technological advances to apply to the Amaruk property to help identify new types of targets in this complex magnetic terrain.

The Beluga-3 samples were securely sealed at the drill site and shipped to the Geoanalytical Laboratories Diamond Services facility at the Saskatchewan Research Council. The GLDS operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E), General Requirements for the Competence of Mineral Testing and Calibration laboratories. As part of an ongoing Quality Control & Quality Assurance program, Diamonds North will conduct reviews and audits of results.

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. They are responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results.

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

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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