Dianor Resources Inc.

Dianor Resources Inc.

October 24, 2006 17:26 ET

Dianor Resources Issues Five Million Shares Following Exercise of Warrants by Ernst & Young Inc.

VAL-D'OR, QUEBEC--(CCNMatthews - Oct. 24, 2006) - This news release is not for distribution to United States newswire services or for dissemination in the United States.

Dianor Resources Inc.(TSX VENTURE:DOR) is pleased to announce that it has issued five million common shares to Ernst & Young Inc., the trustee for the bankruptcy of Mr. Vincent Lacroix, following the exercise by Ernst & Young Inc. of warrants issued by Dianor in April 2005. The five million shares were issued at a price of $0.75 per share, for proceeds to Dianor of $3,750,000.

To Dianor's knowledge, Ernst & Young Inc. now administers 10,594,100 common shares of Dianor, representing 8.1% of Dianor's 130,224,737 issued and outstanding shares. Ernst & Young Inc. has previously announced that any sale of these Dianor shares until December 31, 2007 will require the prior consent of Westwind Partners Inc.

The proceeds from the exercise of the warrants will be applied primarily toward continued exploration of Dianor's properties and for working capital and general corporate purposes.

Dianor also announces that an aggregate of 650,000 stock options granted on October 13, 2006 at an exercise price of $0.70 per share have been repriced to $0.80 per share. The adjusted exercise price of the stock options reflects the price at which Ernst & Young Inc. sold 15 million common shares of Dianor on October 20, 2006 through the facilities of the TSX Venture Exchange.

"Even though the options were granted at a Board meeting held one week before the sale by Ernst & Young Inc., and before Dianor had any knowledge of the transaction, we have repriced the stock options to remove any doubt that might exist among our shareholders", said John Ryder, Dianor's President.Dianor is an innovative exploration company focused on diamond exploration. The Company has entered into option/joint ventures in Quebec and Ontario with numerous exploration companies to explore for and discover diamond deposits.

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.

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

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