CHALICE DIAMOND CORP.

#711 – 675 West Hastings Street, Vancouver, B.C.  V6B 1N2 Telephone:  604-685-2222 Fax: 604-685-3764

TSX-V: COD

www.chalicediamonds.com

FOR IMMEDIATE RELEASE

February 26, 2008

DIAMOND DISCOVERIES

Chalice Diamond Corp. (TSX-V: COD) has systematically staked or acquired the largest land package in one of Ontario’s most potential diamond bearing areas.  Within only 2 years the Company and its predecessor Golden Chalice Resources Inc.(GCR) have identified large diamond potential in areas that have had very limited diamond exploration in the Wawa - Missanabie region of Ontario.   COD’s land position covers more than 420,000 acres or 170,000 hectares within an area that stretches 75 km long by 35 km wide.  Drilling is planned to commence this Spring to test wide diamond bearing kimberlite dykes and potential kimberlite pipes identified by ground and airborne geophysical surveys.  COD’s early success in discovering diamonds is due in part to strategic joint venture partnerships that have allowed the company to maximize funding and exploration activity.

The Wawa area is historically known for being prolific in diamonds within Archean rocks that are over 2.5 billion years old.  COD has discovered that younger rocks in the area may have greater potential to contain large diamonds.   The rationale for this is that two younger dykes that COD has been exploring contain multiple phases of kimberlite.  Certain phases of kimberlite appear to contain more diamonds than others.  Equally important to the diamonds that have been found is the chemistry of the Kimberlite Indicator Minerals (KIMs) that were recovered from the dykes.  The KIMs chemistry indicates that the dykes tapped the diamond field of the mantle where either large diamonds are present or no diamonds at all.  The small sampling that has been done by COD clearly indicates the presence of diamonds.  Therefore, there is good potential for large diamonds to be present. The table below shows the number of microdiamonds recovered from dyke material.

These 2 kimberlite dykes, called GC1 and Fletch, were first discovered by prospectors in the late 1990’s but were never explored.  Trenching by COD has traced the dykes for up to 600 metres along strike with the dykes still open in both directions.  Recently, 16 microdiamonds have been retrieved through caustic fusion from the GC1 dyke and 8 microdiamonds have been discovered from separate sample sites on the Fletch occurrence. The dykes range from 0.5m to over 5m in width.  They have subvertical dips that are an orientation preferred for mining.  The dykes are accessible by road with power and infrastructure in the area.  These factors greatly improve the exploration and development potential as compared to the far northern reaches of Canada where access, exploration and development costs can be prohibitive.  

In addition, COD’s exploration activities have resulted in the discovery of 13 new dykes that have KIM chemistry similar to the GC1 and Fletch dykes.  There are also 5 kimberlite boulders that have been discovered with good KIM chemistry.   These boulders are in new areas that will be followed up by prospecting, ground geophysics and geochemistry this summer.

COD has also discovered 35 diamonds in an 8.4 kg rock sample which included 5 macrodiamonds.  The rock is on strike with and is similar to diamond bearing rocks found at Dianor Resources Ltd’s Leadbetter Diamond Discovery.  This and other results were announced in GCR’s press release of April, 17, 2007.   Sampling of rock outcrops in the area have also discovered additional diamonds, see Corbiere Diamond table below.  Larger samples have since been collected over a large area (225m by 300m).  These samples are currently being tested for diamonds by caustic fusion analysis.  Mapping by Dr. Trygve Hoy has not only outlined the favourable Leadbetter stratigraphy on COD’s Corbiere Property, but has also led to the discovery of a diamond in a volcanic breccia on COD’s Esquega Property.

All these new discoveries have been the result of 2 years of systematic exploration by GCR and COD as follow-up to KIM in till anomalies and airborne geophysical surveys by the Ontario Geological Survey and Ministry of Northern Development and Mines.  To date, ground geophysical surveys have evaluated 92 circular airborne magnetic targets that could be kimberlite pipes.   The exploration team has also collected a total of 890 till samples, 407 rock and 93 stream sediment samples. The initial results of this sampling have contributed to the discovery of new kimberlite dykes. COD is looking forward to receiving results from more than 300 of the samples that have been submitted for analysis. 

The diamonds mentioned in this release were recovered by caustic fusion at SGS Laboratories in Lakefield, Ontario.   The KIMs were recovered by heavy mineral separation at True North Mineral Laboratory in Timmins and sent to C.F. Mineral Research Ltd., in Kelowna British Columbia for x-ray diffraction analysis and chemical classification of diamond potential.    

Chalice Diamond Corp. is a newly formed company that was formed as a result of a plan of arrangement with Golden Chalice Resources Inc. and has been recently listed on the TSX Venture Exchange.  Various portions of COD’s large prospective diamond land package are being explored in conjunction with Joint Venture partners including Klondike Gold Corp., Amador Gold Corp., Kalahari Resources Inc., Sedex Mining Corp., Abitibi Mining Corp. or Kootenay Gold Inc.  To view a map showing the joint venture property holdings, please visit the Chalice Diamond web sit at www.chalicediamonds.com.

MISSANABIE AREA DIAMONDS

CORBIERE AREA DIAMONDS

Peter Caldbick, P.Geo. is a qualified person for the purposes of National Instrument 43-101 and has read and approved the contents of this news release.

About Chalice Diamond Corp.

ChaliceDiamond Corp. a the spin-off company from Golden Chalice Resources Inc. and, in conjunction with joint venture partners, holds a large prospective diamond area play lying between Chapleau and Wawa, Ontario.

CHALICE DIAMOND CORP.

On behalf of the Board of Directors

/s/ “Richard Hughes”

Richard Hughes, Chairman

For Further Information Contact: The Hughes Exploration Group

Phone: (604) 685-2222 or visit Chalice Diamond’s web-site: www.chalicediamonds.com

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation’s control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

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