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Gold/Mining/Energy : Diamonds North Resources Ltd -- Ignore unavailable to you. Want to Upgrade?

To: Karl Zetmeir who wrote (325)	4/20/2006 10:18:28 AM
From: kidl	Respond to of 334

Diamonds North provides Thelon Uranium Project Update ccnm VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 20, 2006) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) provides an update on the Thelon Uranium project in the Northwest Territories. The Company has been informed that Pathfinder Resources Ltd (TSX VENTURE:PHR) and Bayswater Venture Corp (TSX VENTURE:BVE) have entered into a letter agreement to merge (announced April 19th, 2006 by Pathfinder). Pathfinder has an Agreement with Diamonds North to explore for uranium on the Company's Thelon project which currently covers approximately 1.2 million acres on the Thelon Basin in the Northwest Territories. Diamonds North believes that the Thelon Uranium project is a significant asset for Pathfinder as it represents over 50% of their land interests and will be a key project for the proposed merged company (MergeCo). Currently under the terms of the Agreement (see News Release NR05-11) Pathfinder can earn an 80% interest in the uranium rights of Diamonds North's Northwest Territories Thelon permits by making a cash payment of $100,000 (completed), issuing 2 million shares of Pathfinder in 3 stages (1 million shares have been issued), and completing exploration expenditures of $4 million over 3 years. Diamonds North will retain a 20% interest which is carried to completion of a bankable feasibility study on any uranium deposits found on the property plus 100% of all other mineral rights including diamond. The terms of the agreement will remain the same for MergeCo and MergeCo will become the operator for the uranium exploration programs. 2006 EXPLORATION PLANS FOR THELON URANIUM PROJECT Diamonds North has been informed by Pathfinder that starting in June a more than 7000 line-kilometre deep penetrating, electromagnetic (EM) survey will be conducted on the Thelon Uranium Project. Diamonds North estimates that the preliminary budget for the program is approximately C$1.5 million and will be funded by Pathfinder. The objective of the survey is to identify conductive graphitic sediments that maybe spatially associated with geologic structures and uranium mineralization, as observed in the Athabasca Basin. The Thelon Basin is geologically similar to the prolific Athabasca Basin located about 300 kilometres to the south. The Thelon Basin has a number of unconformity-related uranium prospects that have not received the intensity of exploration accorded to the Athabasca Basin. Major uranium mining companies actively exploring in the Thelon Basin include Cameco Corporation and Cogema Resources Inc. URANIUM NORTH RESOURCES CORP. On March 16, 2006, Diamonds North announced a proposal to form a separate company to explore for uranium. The new company, Uranium North Resources Corp., will acquire from Diamonds North one of Canada's largest prospective uranium land packages (more than 3.7 million acres, including the Thelon Uranium project). This transaction is in line with Diamonds North's business strategy of maximizing value, while maintaining its focus on diamond exploration. Under the terms of the proposed arrangement, Diamonds North's shares will be restructured into New Common Shares and Reorganization Shares on the basis that for each six common shares held on the completion date, six New Common Shares and one Reorganization Share will be issued to the shareholder. By a tax free share exchange, the holders of Diamonds North's Reorganization Shares will receive shares in Uranium North on the basis that one share of Uranium North will be issued to the shareholder for each Reorganization Share exchanged. Shareholders will vote on this proposal at the Company's Annual General Meeting to be held May 10th, 2006. Bruce Kienlen (P.Geol) and Graham Gill (P.Geo) are Diamonds North's qualified persons reviewing the data for these projects. 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 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. FOR FURTHER INFORMATION PLEASE CONTACT: Diamonds North Resources Ltd. Nancy Curry Corporate Communications (604) 689-2010 (604) 484-7143 (FAX) info@diamondsnorth.com www.diamondsnorth.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.