DIOS EXPLORATION TSX-V: DOS October 26, 2010
FOLLOW-UP ON U33 AREAS WITH UP TO 6 & 10 GRAMS GOLD PER TON IN TILL
AND LAC CARON CLAIM AGREEMENT
MONTREAL, QUEBEC, CANADA - DIOS EXPLORATION is currently completing a follow-up glacial sand sampling and prospecting program on its large wholly-owned U33 Diamond-gold exploration project, James Bay, Quebec, in areas where values such as 6 and 10 grams per ton gold in glacial till (heavy mineral concentrates) were returned from this summer till campaign, apart from the major gold glacial dispersal train confirmed recently.
In 2009, DIOS initiated a grass root reconnaissance airborne glacial sand sampling program of 88 samples for kimberlite indicator and heavy minerals, following which some 1,400 claims were staked as map designated cells during the next winter in 2010. In late spring 2010, 167 more till samples were taken and significant results again obtained confirming the occurrence of a major gold glacial dispersal train, indicating a different source than the Gold Conductor showing later discovered this summer. But other areas also returned very significant values such as 6 and 10 grams per ton gold in glacial till (heavy minerals concentrates) and are thus being followed up this fall.
OTHER MATTER -- LAC CARON AGREEMENT
Pursuant to an Option and Purchase Agreement dated the 1st day of October, 2010 between 2229667 ONTARIO INC., the "Optionor", and DIOS, the Optionor granted DIOS the right to earn a 100 % undivided interest in 35 mining claims situated near the U33 project. In order to maintain the Option in good standing, DIOS shall:
(a) pay to the Optionor $3,000 upon signing;
(b) issue to the Optionor 50,000 common shares of DIOS on or before the fifth business day following regulatory approval;
(c) pay to the Optionor a further $3,000 and issue 75,000 common shares of DIOS on the date which is 12 months following the date of regulatory approval
(d) pay to the Optionor a further $4,000 and issue 75,000 common shares of DIOS on the date which is 24 months following the date of regulatory approval.
The Optionor shall be entitled to a royalty equal to a 2% royalty from production payable from the 35 claims. DIOS may at any time purchase 50% of the Royalty Interest from the Optionor for $1,000,000 thereby leaving the Optionor with a 1% Royalty Interest. In the event of a discovery of a Diamond mine the Optionor shall be entitled to receive a Diamond Royalty of $1 per ton of ore processed. DIOS may at any time purchase 50% of the Diamond Royalty Interest from the Optionor for $1,000,000 leaving the Optionor with a $0.50 per ton Diamond Royalty Interest.
The technical content of this press release was prepared by Marie-Jose Girard, M.Sc., P.Geo, a Qualified Person pursuant to National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact :
Marie-Jose Girard, President & CEO
mjgirard@diosexplo.com
Tel. : (514) 483-5149
Fax : (514) 510-7964
Website : www.diosexplo.com