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      News Release - Friday, July 16, 2010
      Diamonds North Begins Halkett Inlet Gold Program
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VANCOUVER, July 16th, 2010 - Diamonds North Resources Ltd. (TSX-V: DDN)
has commenced its 2010 exploration program on the Halkett Inlet
Property located in Nunavut. A phase 1 program designed to develop
drill targets on and around the HI-1 gold prospect is underway. HI-1
yielded several significant gold values in 2009 including a grab sample
up to 24.3 g/T gold (see News Release NR09-15, October 19th, 2009).

The program will focus on mapping, prospecting, and systematic chip and
channel sampling over the area around HI-1 in preparation for an
anticipated drill program in August. The program will also include
similar work on the HI-2 gold occurrence a gold bearing iron formation
that 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 a
relationship between gold mineralization and younger granitic
intrusives.  In addition, a much higher concentration of quartz
feldspar dykes have been observed at HI-1.

"In one year the Company has developed a brand new gold district where
initial samples have returned high grade gold. This season's program
has the potential to add a lot of value quickly", says Mark Kolebaba,
President & CEO of Diamonds North.

Project Background

HI-1 Gold Prospect is located in the northwestern part of the Halkett
Inlet permit block. A continuous rock chip sample across an oxidized
sulfide zone in 2009 yielded 9.4 g/T gold over 3 metres. A nearby grab
sample of un-oxidized altered quartz feldspar dyke devoid of sulfides
contained 24.3 g/T gold.

The oxidized sulfide zone, has been observed over a length exceeding
100 metres and up to 3 to 8 metres wide, increasing up to 20 metres
wide locally. The gold bearing quartz feldspar dyke is part of a larger
dyke swarm that extends laterally tens of metres beyond the oxide zone.
The discovery of gold in both the quartz feldspar dyke and the
surrounding 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 samples
from an iron formation with highly anomalous gold content include 3
samples greater than 0.5g/T, including one sample with 1.2 g/T gold.
The iron formation was traced by helicopter prospecting and sampling
for more than 6.5 kilometres and based on interpretation of airborne
magnetics may extend for 13 to 18 kilometres in strike length. The iron
formation measures 1 to 5 metres, wide and in areas of intense folding
up to 25 metres wide. HI-2 is only 5 kilometres from tide water and 25
kilometres from HI-1.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's
qualified persons as defined by National Instrument 43-101, reviewing
this project. They are responsible for the design and conduct of
exploration programs and the verification and quality assurance of
analytical results.



About Diamonds North
Diamonds North Resources is rapidly evolving and committed to building
long-term value for shareholders through ongoing discoveries and
leveraging business opportunities from our vast land holding.

On behalf of Diamonds North Resources Ltd.



Mark Kolebaba
President & CEO

For additional information please contact:
Nancy Curry
VP Corporate Communications 
Diamonds North Resources Ltd.
Telephone: (604) 689-2010
Facsimile: (604) 484-7143
Email:     info@diamondsnorth.com
Website:   www.diamondsnorth.com  

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. 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.

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Copyright (c) 2010 DIAMONDS NORTH RESOURCES LTD. (DDN)  All rights
reserved.  For more information visit our website at
http://www.diamondsnorth.com/ or send mailto:info@diamondsnorth.com
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