Diamondex drilling on Buffalo Hills

Diamondex Resources Ltd. and Shore Gold Inc. announces that diamond drilling has commenced on the Buffalo Hills Project located in northern Alberta.

Under this $7.0 Million exploration program, a 14,000 metre delineation drill program will focus mainly on the central corridor of the Buffalo Hills property. This program will commence at kimberlite K14, then proceed successively to kimberlites K91, BH225, K252, K6 and ultimately K5. It is anticipated that the drilling will take approximately 3 months to complete after which the PQ sized drill core will be logged and analyzed.

Preparations for the current exploration program have been underway for several weeks. Diamondex has acquired all necessary Provincial land use and private permits that allowed for the construction of winter roads, drill pads and a centrally located camp that can accommodate up to 30 people.

Diamondex and Shore acquired Stornoway Diamonds Corporation’s share of this project in July 2007 for a total cash consideration of $17.5 million. Pursuant to the acquisition, Shore and Diamondex each acquired a 22.5% interest in the Buffalo Hills Joint Venture, in which Encana Corporation holds a 43% interest and Pure Diamonds Exploration Inc. holds the remaining 12% interest. Diamondex and Shore can increase their combined interest to 72.5% by spending $15 million prior to April 30, 2010. Diamondex is the Operator of the Buffalo Hills Joint Venture with Diamondex and Shore each contributing 50% of the exploration expenditures.

The Buffalo Hills Project is the third largest known district of significantly diamond bearing kimberlites in Canada after Lac De Gras in the Northwest Territories and Fort a la Corne in Saskatchewan. Previous exploration on this project by Ashton Mining, Encana and Pure Diamonds from 1997-2006, resulted in the discovery of 38 kimberlites, 26 of which are diamondiferous.

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