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# Thu Jun 29, 2006
Diamonds North Announces Equity Financing

  VANCOUVER, June 29, 2006 - Diamonds North Resources Ltd. (TSX-V: DDN) announces that it has entered into an agreement with Loewen, Ondaatje, McCutcheon Limited, as lead agent, and Canaccord Adams (the "Agents") to act as agents in connection with a private placement financing of up to C$3,000,000 (the "Offering") on a best efforts basis.

The private placement will comprise of Flow-Through Shares at a price of $1.00 per Flow-Through Share.

The Agents will be paid a cash fee equal to 6% of the gross proceeds raised in the Offering. The Agents will also receive warrants (the "Agents Warrants") entitling them to purchase that number of common shares which is equal to 7% of the number of Flow-Through Shares sold by the Agents. The Agents Warrants will expire twelve months after the closing of the Offering. The exercise price for the Agents Warrants will be $1.00 per common share.

The Flow-Through Shares and the Agents Warrants will be subject to a hold period of four months plus one day from the closing of the Offering.

The gross proceeds of the financing will be used for the development of the Company's projects in Canada.

This private placement is subject to regulatory approval.

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

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba
President & CEO

For further information, please contact:
Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.

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.

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This page was created on Sat Oct 21, 2006 at 2:34:56 PM Pacific Time.