Dianor Resources Inc.

Dianor Resources Inc.

December 01, 2009 11:49 ET

Dianor Resources Inc.: Leadbetter Diamond Project-Annual Surface Rights Payment Made

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VAL-D'OR, CANADA--(Marketwire - Dec. 1, 2009) -


Dianor Resources Inc. (TSX VENTURE:DOR) announces that it has made its final 2009 contractual payments totalling $1,078,575 to Mr. Joseph Leadbetter and persons associated with him under a previously-announced definitive agreement for the sale of surface rights to the Leadbetter Extension Property to Dianor and a related agreement for the immediate suspension and eventual termination of an Excavation Contract between Dianor and Mr. Leadbetter (press releases December 1st and 4th 2008). The next payment by Dianor under the agreements is due on November 30, 2010 and no other payments by Dianor to Mr. Leadbetter or persons associated with him are required with respect to the Leadbetter Diamond Project. The Leadbetter Diamond Project is the Company's flagship project and is located near Wawa, Ontario.

The definitive agreements for the sale of surface rights to the Leadbetter Extension Property to Dianor and immediate suspension and termination of the Excavation Contract were signed on November 28, 2008. They provide that Dianor is required to pay Mr. Leadbetter and persons associated with him a total of $5 million in cash under a payment schedule which started on January 31, 2009 and which runs until November 30, 2012. To date, Dianor has made payments totalling $1,450,000. The Excavation Contract will be automatically terminated when Dianor has completed the payments. The surface rights to the Leadbetter Extension Property are registered in Dianor's name and Dianor has granted a mortgage over the surface rights to Mr. Leadbetter and persons associated with him as security for payments due under the agreement.

As previously reported (press release December 4th 2008), Dianor has completed the acquisition of a 100% undivided ownership interest in the Leadbetter Property and Leadbetter Extension Property. The two properties are subject to a 20% gross overriding royalty (GOR) for diamonds and a 1.5% GOR for all other metals and minerals in favour of the optionors of the properties. The Leadbetter Extension Property is also subject to a 10% royalty for all minerals in favour of a third party. Dianor has reduced GOR for diamonds by 4.56%.

In May 2009, Dianor announced that its Northern and Central Decline Advanced Exploration/Rehabilitation/Closure plans for a 50,000 tonne bulk sampling programme on the Leadbetter Diamond Project have been approved by, and filed with, the Ontario Ministry of Northern Development and Mines (press release May 13th 2009). Under this bulk sampling programme, diamonds, rubies and sapphires from the excavated Archean (2.69 billion years) conglomerate will be extracted by on-site DMS (Dense Media Separation) processing, followed by X-ray, grease tabling and optical sorting of the concentrates; gold will be recovered by use of a Nelson concentrator. It is expected that from 12,000 to 20,000 carats of diamonds will be recovered from the conglomerate, to determine diamond grade and per carat diamond values (US$). The recovery of rubies, sapphires and gold will provide information on their potential benefit to the economic feasibility of the project.

In Ontario, this represents a major regulatory requirement prior to commencing an advanced exploration programme and is recognized as an important milestone in the progress of the Leadbetter Diamond Project, since commencement of exploration on the property began in April 2005.

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.

Neither 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 the release.

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