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Tuesday, 08/17/2010 11:50:56 AM

Tuesday, August 17, 2010 11:50:56 AM

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=======================================================================News Release 2010 - Tuesday, August 17, 2010Diamonds North Increases Extent Of HI-2 Iron Formation Over 800%======================================================================= VANCOUVER, August 17th, 2010 -- Diamonds North Resources Ltd. (TSX-V:DDN) has completed initial gold prospecting at the HI-2 iron formationon the 100% owned Halkett Inlet property located in Nunavut. The extentof iron formation and potential gold mineralization has now been tracedfor at least 55 kilometres, a significant increase from the 6.5kilometres (see News Release NR10-01, January 17th, 2010). A total of428 geochemical samples have been collected for analysis. "The 2010 prospecting campaign has been very successful as it has movedthis regional target quickly into what could be a very significant goldplay" says Mark Kolebaba, President & CEO of Diamonds North. The iron formation measures 1 to 3 metres wide and in some areas up to20 metres wide. Preliminary grab samples from HI-2 collected in 2009yielded assays between 0.7 and 1.2 g/T gold demonstrating that the ironformation is gold bearing. The HI-2 prospect is only 5 kilometres fromthe coast. Graham Gill (P. Geo) is Diamonds North's qualified person as defined byNational Instrument 43-101, reviewing this project. Mr. Gill isresponsible for the design and conduct of exploration programs and theverification and quality assurance of analytical results. About Diamonds NorthDiamonds North Resources is rapidly evolving and committed to buildinglong-term value for shareholders through ongoing discoveries andleveraging business opportunities from our vast land holding. On behalf of Diamonds North Resources Ltd. Mark KolebabaPresident & CEO For additional information please contact: 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 The TSX Venture Exchange has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this release. Statementsin this press release, other than purely historical information,including statements relating to the Company's future plans andobjectives or expected results, may include forward-looking statements.Forward-looking statements are based on numerous assumptions and aresubject to all of the risks and uncertainties inherent in resourceexploration and development. As a result, actual results may varymaterially from those described in the forward-looking statements. =======================================================================Copyright (c) 2010 DIAMONDS NORTH RESOURCES LTD. (DDN) All rightsreserved. For more information visit our website athttp://www.diamondsnorth.com/ or send mailto:info@diamondsnorth.com=======================================================================