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# Wed Aug 23, 2006
Target Testing Underway at Amaruk -- New Kimberlite Discovered

  Vancouver, August 23, 2006 -- Diamonds North Resources Ltd. (DDN -- TSX Venture) announces the discovery of Qavvik (Wolverine), a new kimberlite on the central block of the 100% owned Amaruk property in the Pelly Bay Diamond District of Nunavut. Drilling will continue to test a variety of targets across the central block of the Amaruk property.

The new Qavvik kimberlite is represented by a 240 x 180 metre magnetic anomaly. This is the first kimberlite pipe discovered by drilling on the property. The Company has identified several similar geophysical anomalies for future testing.

The physical and lithological characteristics of the Qavvik kimberlite are very different from other kimberlite found at the surface on the property to date. Qavvik is a soft, coarse-grained olivine macrocrystic kimberlite with visually identified pyrope garnets and possible upper diatreme textures. Approximately 430 kilograms (estimated field weight) of the Qavvik kimberlite from two vertical reverse circulation (RC) drill holes have been collected for microdiamond analysis. The Qavvik kimberlite is covered by approximately 30 metres of overburden sediments.

Mark Kolebaba, President of Diamonds North states "This is a great looking kimberlite with large size potential in a proven diamond district. We are very eager to receive the diamond results for this pipe."

The Company has engaged a light weight RC drill with the ability to penetrate to a depth of about 100 metres, allowing the Company to test numerous anomaly types across the property at low cost. Drill results for the remainder of the program will be summarized and reported at the end of the program. The Company has identified approximately 420 geophysical anomalies on the central block to date from the 2004 and 2005 airborne surveys. The anomalies form a full range of priority targets which include magnetic high and low signatures and several targets in the 3 to 10 hectare size range.

The southeastern extent of the previously announced Umingmak kimberlite pipe (discovered in 2005 by prospecting) was also tested by drilling. Approximately 570 kilograms (estimated field weight) of kimberlite have been collected for microdiamond analysis.

In addition to the discovery of the Qavvik kimberlite by drilling, the Company continues to discover kimberlite by prospecting. Numerous kimberlite float occurrences have been identified including 7 occurrences with at least 50 to 200 kilograms available for microdiamond analysis. Several of the kimberlite occurrences are near untested geophysical targets.

The Pelly Bay region is Canada's newest diamond district. Diamonds North has the largest land position in the region and is exploring a kimberlite field with proven diamondiferous kimberlite and exceptional diamond characteristics. With the recent discovery of kimberlite by drilling, the Company believes that the Amaruk project offers shareholders increased opportunity of discovering Canada's next diamond mine.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons reviewing the data for the project.

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


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.

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