Diamonds North Resources Ltd V.DDN

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Majescor to Receive 1 Million Diamonds North Resources Shares from the Sale of its 50% Stake in the Banks Island Diamond Project, NWT MONTREAL, QUEBEC, Jul 05, 2007 (MARKET WIRE via COMTEX News Network) -- Majescor Resources Inc. (the "Company") (TSX VENTURE: MAJ) is pleased to announce that it has reached an agreement with Joint Venture partner Diamonds North Resources Ltd. ("Diamonds North") (TSX VENTURE: DDN) for the sale of Majescor's 50% interest in the Banks Island diamond project, located on the east coast of Banks Island, in the Northwest Territories. Under the terms of the agreement for the Banks Island project, which is subject to regulatory approval, Majescor will receive the following: - 1 million common shares of Diamonds North; - 1 million warrants exercisable at $1.50 for 2 years only if a minimum 200 metre diameter kimberlite pipe is confirmed on a designated 12-hectare size target. In this event, the warrants must be exercised within six months of the confirmation of kimberlite; - 1.5% Royalty on diamonds, metals and other mineral products in the 22 permits constituting the existing property, half of which is purchasable by Diamonds North at any time for $1,000,000. Marc-Andre Bernier, President and CEO of Majescor comments, "monetizing our 50% interest in the Banks Island diamond project, like the previous sale of our Brazilian diamonds assets in February, is the latest in a series of strategic corporate transactions implemented by Majescor in 2007 which are designed to sharpen the focus of the Company to Quebec and Madagascar, as a multi-commodity explorer. This second asset sale further augments Majescor's already strong treasury. The Company can thus continue to aggressively advance all of its projects well into the future and can also consider other corporate development opportunities to maximize shareholder value. Majescor shareholders will still be able to participate in the growth of the Banks Island diamond project through our significant ownership position in Diamonds North and the 1.5% Royalty on diamond production from the property. Working with the management of Diamonds North has been a pleasure and Majescor considers Diamonds North to be the premier junior diamond exploration company in Canada." For further information on Majescor, please visit the Company's new web-site at www.majescor.com The Banks Island project was initiated in 2003 as a 50:50 joint venture between Majescor and Diamonds North. As a result of regional reconnaissance work conducted in 2004 and 2005, several high interest kimberlite indicator minerals, some of which exhibit primary textures indicating nearby sources, were discovered in stream samples collected from the headwaters of several drainages kimberlite indicator minerals. During the summer 2006, the joint venture partners completed an airborne geophysical survey totaling 4,700 line km over a priority target area on the property. In January 2007 the Joint Venture partners announced that the airborne geophysical survey had delineated 65 geophysical anomalies that may be caused by kimberlite intrusions. Seven targets are considered moderate to strong priority, including a target estimated at 12 hectares (300 x 400 metres). The 12-hectare target is characterized by an obvious circular shape and a weak, well constrained magnetic signature. Based on this data the companies believe the Banks Island property may represent a new kimberlite district in Canada. This press release has been approved by Jacques Letendre, P.Geo., Principal Consultant and director of Majescor, acting as the "Qualified Person" for the company under National Instrument 43-101. Majescor Resources is a dynamic and well funded exploration company with uranium properties in Quebec's Otish mountains, two large uranium projects in the Nunavik district of northern Quebec, as well as a significant uranium interest in the Thelon Basin of Nunavut through its ownership position in Uranium World Energy. In addition to uranium, Majescor has the largest portfolio of diamond properties in Quebec, as well as diamond projects in Nunavut and in Madagascar. Majescor has further diversified its property portfolio by recently acquiring gold and base metal properties in Quebec and in Madagascar. The TSX Venture Exchange (TSX Venture) does not accept responsibility for adequacy or accuracy of this release. Contacts:Majescor Resources Inc.Todd OpalickManager Investor Relations613-241-5333613-241-8632 (FAX)[e-mail] Resources Inc.Marc-Andre BernierPresident and CEO613-241-5333613-241-8632 (FAX)[e-mail] SOURCE: Majescor Resources Inc. mailto:[e-mail] mailto:[e-mail] https://www.majescor.com Copyright 2007 Market Wire, All rights reserved.