Diamonds North Resources Ltd fka DDN

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Diamonds North Begins Exploring At Halkett Inlet Gold Property

VANCOUVER, July 16th, 2010 - Diamonds North Resources Ltd. (TSX-V: DDN) has commenced its 2010 exploration program on the Halkett Inlet Property located in Nunavut. A phase 1 program designed to develop drill targets on and around the HI-1 gold prospect is underway. HI-1 yielded several significant gold values in 2009 including a grab sample up to 24.3 g/T gold (see News Release NR09-15, October 19th, 2009).
The program will focus on mapping, prospecting, and systematic chip and channel sampling over the area around HI-1 in preparation for an anticipated drill program in August. The program will also include similar work on the HI-2 gold occurrence a gold bearing iron formation that may extend for 10's of kilometres (see News Release NR10-01, January 17th, 2010).
Initial observation at HI-1 from the 2010 program supports a relationship between gold mineralization and younger granitic intrusives. In addition, a much higher concentration of quartz feldspar dykes have been observed at HI-1.
"In one year the Company has developed a brand new gold district where initial samples have returned high grade gold. This season's program has the potential to add a lot of value quickly", says Mark Kolebaba, President & CEO of Diamonds North.
Project Background
HI-1 Gold Prospect is located in the northwestern part of the Halkett Inlet permit block. A continuous rock chip sample across an oxidized sulfide zone in 2009 yielded 9.4 g/T gold over 3 metres. A nearby grab sample of un-oxidized altered quartz feldspar dyke devoid of sulfides contained 24.3 g/T gold.
The oxidized sulfide zone, has been observed over a length exceeding 100 metres and up to 3 to 8 metres wide, increasing up to 20 metres wide locally. The gold bearing quartz feldspar dyke is part of a larger dyke swarm that extends laterally tens of metres beyond the oxide zone. The discovery of gold in both the quartz feldspar dyke and the surrounding oxide zones significantly increases the potential strike, width and grade of the HI-1 Gold Prospect.
HI-2 Gold Prospect was identified by regional prospecting. Grab samples from an iron formation with highly anomalous gold content include 3 samples greater than 0.5g/T, including one sample with 1.2 g/T gold. The iron formation was traced by helicopter prospecting and sampling for more than 6.5 kilometres and based on interpretation of airborne magnetics may extend for 13 to 18 kilometres in strike length. The iron formation measures 1 to 5 metres, wide and in areas of intense folding up to 25 metres wide. HI-2 is only 5 kilometres from tide water and 25 kilometres from HI-1.
Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons as defined by National Instrument 43-101, reviewing this project. They are responsible for the design and conduct of exploration programs and the verification and quality assurance of analytical results.
About Diamonds North
Diamonds North Resources is rapidly evolving and committed to building long-term value for shareholders through ongoing discoveries and leveraging business opportunities from our vast land holding.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba
President & CEO
For additional information please contact: Nancy Curry
VP Corporate Communications
Diamonds North Resources Ltd.
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Website: ? www.diamondsnorth.com