Diamonds North Resources Ltd V.DDN

Financing

[cautious36]

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Re:News Release - Monday, July 05, 2010
Diamonds North IncreasesFlow-ThroughFinancing
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VANCOUVER,July 5, 2010 - Diamonds North Resources Ltd. (TSX-V: DDN)
reports the privateplacement announced on June 15, 2010 has increased.

The Company intendsto complete a non-brokered private placement to
raise up to $1,600,000through the sale of flow-through shares. The
flow-through shares willcomprise up to 8,000,000 shares at
.20 per
share (the "Offering"). Theplacement is to finance the Company's
exploration programs.

Finder'sfees of 7% of the flow-through shares sold may be payable in
cash or shareson a portion of the financing to finders who assist in
the placement, aspermitted under applicable securities laws.

This private placement issubject to regulatory approval.

About Diamonds North

DiamondsNorth Resources is rapidly evolving and committed to building
long-term valuefor shareholders through ongoing discoveries and
leveraging businessopportunities from our vast land holding.

On behalf of Diamonds NorthResources Ltd.


Mark Kolebaba
President & CEO

Foradditional information please contact:
Troy Shultz
CorporateCommunications
Diamonds North Resources Ltd.
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Website:www.diamondsnorth.com

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Copyright(c) 2010 DIAMONDS NORTH RESOURCES LTD. (DDN) All rights
reserved. For moreinformation visit our website at
https://www.diamondsnorth.com/ or sendmailto:[e-mail]
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[romanko]

I don't understand. Does this mean that the initial offering has been fully subscribed?

[cautious36]

Generally it does. I suspect that in most cases the company deliberately says they want less than they really do to ensure that the PP is not under subscribed.

[romanko]

Dilution aside, that's a good sign, considering the stock is currently trading below 20cents.