Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.
Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

August 15, 2006 09:00 ET

Shear Minerals and Diamonds North to Explore the Sakari Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2006) - Shear Minerals Ltd. (TSX VENTURE:SRM) ("Shear") and Diamonds North Resources Ltd. (TSX VENTURE:DDN) ("Diamonds North") announce that the companies have entered into an Agreement whereby Shear can earn a 50% interest in approximately 42,000 acres of claims located within the southwest portion of Diamonds North's Amaruk project in the Pelly Bay Diamond District of Nunavut. The new Sakari property is located adjacent to the Darby project where a new kimberlite field was recently announced by Indicator Minerals Ltd and Teck Cominco Ltd.

Under the terms of the Agreement Shear can earn into a 50% interest in certain mineral claims totaling approximately 42,000 acres by making a payment of $97,000 in refundable deposits (completed), incurring exploration expenditures of $93,000 before September 30, 2006 plus an additional $93,000 in exploration before September 30, 2007. Diamonds North will operate the project.

To date, minimal work has been completed on the project with the exception of till sampling on a regional grid where kimberlite indicator minerals were recovered. In 2006 the partners are planning airborne geophysical surveying at 100 metre line spacing with possible target specific sampling follow-up.

The Pelly Bay region of Nunavut has emerged as Canada's newest diamond district. Recent kimberlite discoveries on the Amaruk project have yielded very encouraging diamond counts and excellent diamond characteristics (see Diamonds North News Release NR06-13, May 9th, 2006). More recent kimberlite discoveries in the region (Darby Project) confirm the existence of larger kimberlite bodies and the presence of multiple kimberlite fields.

Mr. Bruce Kienlen (P.Geol) is Diamonds North's Qualified Person for the project as defined under NI 43-101. Ms. Jennifer Burgess, P. Geol. of Burgess Diamonds, is a Qualified Person as defined under NI 43-101 and will be responsible for data review by Shear on this project.

Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.

Shear Minerals Ltd. is a Canadian-based exploration company focused on diamond exploration in the Canadian North where it explores in established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, seven of which are drill-ready. The Company has advanced its 51%-owned Churchill Diamond property in Nunavut from a conceptual grassroots project to a new kimberlite district.

ON BEHALF OF THE BOARDS OF DIRECTORS:

Mark Kolebaba, President & CEO

Diamonds North Resources Ltd.

Pamela Strand, President & CEO

Shear Minerals Ltd.

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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