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TSX Venture Exchange: DDN

VANCOUVER, June 19 /CNW/ - Diamonds North Resources Ltd. (TSX-V: DDN) (the Company) is pleased to announce a bought-deal private placement with a syndicate of underwriters led by Canaccord Capital Corporation and including Dundee Securities Corp., GMP Securities L.P. and Haywood Securities Inc. (collectively, the "Underwriters") of 1,905,000 units (the "Units") at a price of $1.05 per Unit and 6,667,000 flow-through common shares ("Flow-Through Shares") at a price of $1.20 per Flow-Through Share for aggregate proceeds of $10,000,650 (the "Offering"). A Unit will consist of one common share and one-half of one transferable common share purchase warrant (a "Warrant"). Each whole warrant will entitle the holder to subscribe for one additional common share at a price of $1.30 for a period of one year from the date of closing.

The Company also intends to complete a non-brokered private placement to raise up to $2,000,000 through the sale of a combination of Flow-Through Shares and Units.

In consideration for their efforts, the Underwriters will be paid a commission of 6% of the total proceeds raised in the Offering upon closing payable in cash. In addition, the Underwriters will receive underwriters' warrants ("Underwriters' Warrants") equal to 6% of the securities issued pursuant to the Offering. Each Underwriters' Warrant will be exercisable to acquire one common share for a period of twelve months from the closing at a price of $1.30 per share.

The Company has also granted the Underwriters an over allotment option to purchase additional, Flow-through Shares of $500,040 and Units of $1,500,030 for aggregate additional gross proceeds of CDN$2,000,070 exercisable 48 hours prior to closing.

The funds raised from the issuance of the Flow-Through Shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE"). The funds raised from the issuance of the Units will be used for the advancement of the Company's mineral assets and for general working capital purposes.

Diamonds North has discovered 25 kimberlites to date on the Amaruk property. Of the 22 analyzed kimberlites, more than 90% of the known kimberlites are diamondiferous and 50% exhibit diamond counts that require follow-up exploration. At least 500 geophysical targets remain to be tested on the property.

Diamonds North Resources is focused on discovering Canada's next diamond mine. The Company is rapidly evolving and committed to building long-term value through ongoing diamond discoveries.

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba President & CEO

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

SOURCE: Diamonds North Resources Ltd.

Nancy Curry, VP Corporate Communications, Diamonds North Resources Ltd., Telephone: (604) 689-2010, Facsimile: (604) 484-7143, Email: info@diamondsnorth.com; Website: www.diamondsnorth.com