RE: News OUT News Release - Friday, July 16, 2010 Diamonds North Begins Halkett Inlet Gold Program=======================================================================VANCOUVER, July 16th, 2010 - Diamonds North Resources Ltd. (TSX-V: DDN)has commenced its 2010 exploration program on the Halkett InletProperty located in Nunavut. A phase 1 program designed to developdrill targets on and around the HI-1 gold prospect is underway. HI-1yielded several significant gold values in 2009 including a grab sampleup to 24.3 g/T gold (see News Release NR09-15, October 19th, 2009). The program will focus on mapping, prospecting, and systematic chip andchannel sampling over the area around HI-1 in preparation for ananticipated drill program in August. The program will also includesimilar work on the HI-2 gold occurrence a gold bearing iron formationthat 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 arelationship between gold mineralization and younger graniticintrusives. In addition, a much higher concentration of quartzfeldspar dykes have been observed at HI-1."In one year the Company has developed a brand new gold district whereinitial samples have returned high grade gold. This season's programhas the potential to add a lot of value quickly", says Mark Kolebaba,President & CEO of Diamonds North.Project BackgroundHI-1 Gold Prospect is located in the northwestern part of the HalkettInlet permit block. A continuous rock chip sample across an oxidizedsulfide zone in 2009 yielded 9.4 g/T gold over 3 metres. A nearby grabsample of un-oxidized altered quartz feldspar dyke devoid of sulfidescontained 24.3 g/T gold.The oxidized sulfide zone, has been observed over a length exceeding100 metres and up to 3 to 8 metres wide, increasing up to 20 metreswide locally. The gold bearing quartz feldspar dyke is part of a largerdyke swarm that extends laterally tens of metres beyond the oxide zone.The discovery of gold in both the quartz feldspar dyke and thesurrounding 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 samplesfrom an iron formation with highly anomalous gold content include 3samples greater than 0.5g/T, including one sample with 1.2 g/T gold.The iron formation was traced by helicopter prospecting and samplingfor more than 6.5 kilometres and based on interpretation of airbornemagnetics may extend for 13 to 18 kilometres in strike length. The ironformation measures 1 to 5 metres, wide and in areas of intense foldingup to 25 metres wide. HI-2 is only 5 kilometres from tide water and 25kilometres from HI-1.Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North'squalified persons as defined by National Instrument 43-101, reviewingthis project. They are responsible for the design and conduct ofexploration programs and the verification and quality assurance ofanalytical 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