Dianor Resources Inc.

Dianor Resources Inc.

February 28, 2011 19:42 ET

Dianor Delivers Notice for Draw Down of $176,669 Under $30 Million Equity Line of Credit With Kodiak Capital Group, LLC


Dianor Resources Inc. (TSX VENTURE:DOR)(OTCQX:RSDNF) announces that it has sent a notice to Kodiak Capital Group, LLC for a draw down of $176,669 under its $30 million equity line of credit with Kodiak Capital (press releases March 3rd 2010, July 19th 2010 and September 20th 2010).

In accordance with the Amended and Restated Standby Equity Distribution Agreement dated July 9, 2010 between Dianor and Kodiak Capital, as amended, the common shares to be issued to Kodiak Capital under the draw down will be issued at a price per share equal to the volume weighted average price of Dianor's common shares on the TSX Venture Exchange for the five consecutive trading days (March 1 to March 7, 2011) following the delivery of the draw-down notice to Kodiak, less a discount of 10%. Under the policies of the TSX Venture Exchange, the minimum issue price per share is $0.05. Based on a minimum issue price of $0.05, the maximum number of common shares that can be issued by Dianor under this initial draw down is 3,533,380. The closing price of Dianor's shares on the TSX Venture Exchange on Friday, February 25, 2011 was $0.055. Closing of the draw down of $176,669 will take place on March 14, 2011.

Dianor's final base shelf prospectus dated September 13, 2010 with respect to the equity line of credit is available under Dianor's company profile on SEDAR at www.sedar.com. Following completion of the draw-down pricing period, Dianor will file a prospectus supplement qualifying the issue and sale of the shares to be issued to Kodiak Capital under the draw down.

About Kodiak Capital Group, LLC

Kodiak Capital Group, LLC is engaged in assisting growth companies in all facets of their long term strategy by providing capital and progressive business solutions. Kodiak manages a portfolio of investments in public and private equities. Founded in 2009, Kodiak has already transacted in excess of $500 million in financing for companies across a multitude of industries, including biotechnology, business services, consumer products, defense, healthcare, Internet, manufacturing, medical devices, natural resources, oil and gas, renewable energy and wireless communications. Headquartered in New York City, Kodiak has assisted companies throughout North America and Australia.

More information can be found at: www.kodiak-capital.com

About Dianor

Dianor is an innovative exploration company focused on advancing diamond exploration properties in the Superior Craton of Canada. The Leadbetter Diamond Project is its most advanced project and is geographically well situated and easily accessible, some 12 kilometres north east of Wawa in Northern Ontario. Substantial exploration work has been conducted on the project since 2005 and in May 2009, the Company received government approval to proceed with a 50,000 tonne bulk sampling programme of the 2.697 Ma old Archean Conglomerate. A preliminary tonnage estimate for this conglomerate is in the range of 549 million to 583 million tonnes (press release July 24th 2007). In addition to diamonds, the conglomerate contains gold, sapphires and rubies (press release January 18th 2007). In 2008, additional diamond discoveries, including rare purple diamonds, were made by the Company in rocks of similar type, age (Archean) and geological settings (press release March 3rd, April 10th, & May 13th 2008) in Quebec. The Quebec diamond properties have increased our portfolio of low cost, accessible exploration targets. These diamond discoveries (Ontario and Quebec) are both unique and amongst the oldest diamond-bearing occurrences in the world.

You can also visit our Web Site: www.dianor.com

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Dianor Resources Inc. ("Dianor"). Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Dianor will derive therefrom. Forward-looking information is based on the estimates and opinions of Dianor's management at the time the information is released and Dianor does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Version française disponible sur www.dianor.com seulement

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Dianor Resources Inc.
    Mr. John Ryder, P. Geo.
    819-825-7545 (FAX)
    Dianor Resources Inc.
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7545 (FAX)
    Resultz Media Group Corp., RMG IR
    Mr. Tyler M. Troup, B.Comm
    Senior Associate
    519-979-7820 (FAX)