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а Fri Nov 29, 2002
Summary Report of Third Quarter

а #24-02

Vancouver, November 29, 2002 - Diamonds North Resources Ltd. (DDN-TSX Venture) has released its B.C. Form 51-901F third quarter report containing financial statements in Canadian funds, prepared without audit, for the nine months ended September 30, 2002. Pursuant to the requirements of National Instrument 54-102, this news release provides a reasonable summary of the information contained in the quarterly report. Concurrently with this news release the Company is filing the quarterly report with the regulatory authorities through SEDAR (www.sedar.com) and has mailed it to shareholders whose names appear on the Company's supplemental list

Blue Ice, Victoria Island, Nunavut
The 2002 Victoria Island exploration program was designed to discover and recover samples of kimberlite to assess the diamond potential of each kimberlite. To increase the company's rate of success, high priority geophysical anomalies with high interest mineral chemistry were targeted for drilling. Also, four previously discovered kimberlites were retested on the basis that the mineral chemistry indicated higher diamond potential than first reported.

The Blue Ice Project is wholly owned and operated by Diamonds North. Six new kimberlite bodies were discovered in the 2002 exploration program; Virgo, Vega, Sculptor, Pegasus, Zeta and Carina. Additional testing was also done on the Sand Piper and Snow Bunting kimberlites. A total of 217 kg of kimberlite was sampled by splitting drill core plus an additional 750 kg of kimberlite was collected from sub crop from three separate discrete kimberlites. All of these kimberlite bodies occur along the 20 km long Galaxy Structure located on the Blue Ice property. To date the Company has only tested the Nunavut portion of the Galaxy Structure.

Encouraging diamond results have been received for Sand Piper, Snow Bunting, Vega and Carina. Laboratory results are pending for Zeta, Sculptor, Virgo and Pegasus.

Hadley Bay, Victoria Island, Nunavut
Diamonds North, project operator with partner Canabrava, discovered five new kimberlite bodies during the 2002 exploration drill program. A new cluster, named Apollo was discovered and includes the Apollo, Neptune, Diana and Pluto kimberlites. The fifth kimberlite discovered, Juno, is located near the King Eider kimberlite. The King Eider kimberlite pipe was drilled to evaluate its large geophysical signature and three new phases of kimberlite were discovered. In addition to drilling, a 20 kg sample of sub crop exposure was taken from the Turnstone kimberlite. A total of 1,000 kg of kimberlite from the Hadley Bay Project has been sent to SGS Lakefield for analysis.


Encouraging diamond results have been received for King Eider. Samples from Pluto, Apollo and Diana kimberlites produced no diamonds. Results are pending for additional samples of the Apollo and Diana kimberlites and for Turnstone, Juno and Neptune.

Yankee, Victoria Island, Nunavut
5 drill holes have been completed with no kimberlite intersections. Further work on the southern part of the property is required.

Wellington, Victoria Island, Nunavut
Ground and airborne geophysical surveys were completed in 2002. Several geophysical anomalies have been identified for follow-up work.

Washburn, Victoria Island, Nunavut Six geophysical anomalies remain to be drilled and several kimberlite dykes require trenching and sampling 2003.

Holman, Victoria Island, Northwest Territories
A helicopter-borne geophysical survey for 25 exploration targets is planned for 2003.

Misty Lake, Northwest Territories
Several kimberlite targets on the property require ground confirmation and potential drilling in March 2003.

Gten, Northwest Territories
Helicopter-borne magnetics and an EM survey have been completed. Targets will be identified for an anticipated drill program in 2003.

For the period ended September 30, 2002, the Company had a net loss of $409,975. General and administrative expenses for the period were $348,698. Debt financing costs includes the issuance of 890,000 common shares valued at $445,000 to Commander in consideration of a working capital loan. Legal fees of $35,029 were mainly due to the structuring of the Company. Investor relations expenditures for the period were $105,403.


The Company has incurred acquisition costs on its mineral properties in the aggregate of $1,770,345, which includes the issue of 4,951,032 common shares issued to Commander valued at $1,484,840. The remaining $285,505 of acquisition costs was incurred in connection with the staking of additional claims primarily on Victoria Island, which covers part of Nunavut and the Northwest Territories. The Company has incurred a total of $985,335, net of recoveries and option payments of $1,861,724, in exploration expenditures during the period. The majority of exploration expenditures consisted of drilling costs of $1,475,720 incurred on the Blue Ice, Hadley Bay and Yankee properties and geophysical costs of $858,933 incurred primarily on the Blue Ice, Hadley Bay properties. As at September 30, 2002, the Company had working capital of $594,429. The Company has sufficient working capital on hand to meet its ongoing obligations as they come due.

On July 15, 2002, the common shares of the Company were listed for trading on the TSX Venture Exchange.

On May 31, 2002, the Company issued 1,000,000 special warrants for net proceeds of $462,500, net of issue costs, pursuant to a private placement. The special warrants were convertible without additional consideration into 1,000,000 common shares and 500,000 share purchase warrants which are exercisable to acquire up to an additional 500,000 common shares at a price of $0.60 per share until July 15, 2003. The special warrants were automatically converted on July 15, 2002.

On July 15, 2002, the Company completed, with Haywood Securities Inc. (the "Agent") an initial public offering (the "Public Offering") of 3,000,000 units at $0.50 per unit for net proceeds of $1,291,082, net of Agent's commission and other share issue costs. Each unit consists of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share exercisable at a price of $0.60 per share until July 15, 2003.

In connection with the Public Offering, the Agent sponsored the Company's listing on the Exchange. The Agent received, as additional consideration, 500,000 share purchase warrants (the "Agent's Warrants"). The Agent's Warrants entitles the holder to acquire one common share exercisable at a price of $0.50 per share until July 15, 2003. In addition, the Agent received 100,000 common shares in the capital of the Company as a corporate finance fee.

On September 19, 2002, the Company granted stock options to acquire 100,000 common shares at $0.50 per share, exercisable up to September 18, 2007, to an employee of the Company.

On October 30, 2002, the Company completed a non-brokered private placement of 111,000 units at $0.55 per unit for proceeds of $52,644, net of a finder's fee of $1,650 and other share issue costs of $6,756. Each unit consists of one flow-through common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to acquire one additional flow-through common share exercisable at a price of $0.60 per share until October 29, 2003.

On November 6, 2002, the Company entered into an agreement with Dundee Securities Corporation and Haywood Securities Inc. (collectively the "Agents"), on a best effort basis, for a private placement of up to 3,575,000 units at $0.70 per unit for estimated gross proceeds of $2,502,500.

If completed, each unit will consist of one flow-through common share and one-half of a non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one non flow-through common share at a price of $0.80 per share for a period of twelve months after the closing date of the private placement.

The Agents will be paid a cash fee equal to 7.5% of the gross proceeds raised in the Offering. The Agents will also receive broker warrants (the "Broker Warrants") entitling them to purchase that number of common shares which is equal to 10% of the number of units sold. The Broker Warrants are exercisable at a price of $0.70 per share and will expire twelve months after the closing date.

Mark R. Kolebaba
President

For further information, please contact:
Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.
Telephone:
Facsimile:
Website: diamondsnorthresources.com
Email:

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