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Diadem to Form Diamond Exploration Joint Venture With Darnley Bay Resources Ltd.

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Business Editors

TORONTO--(BUSINESS WIRE)--Nov. 26, 2003

Diadem Resources Ltd. (TSX Venture:DIR) announced today that it had entered into an agreement to form a joint venture with Darnley Bay Resources Ltd. for diamond exploration in an area near Paulatuk in the Northwest Territories. The transaction will result from an acquisition from Carnarvon Capital Corporation of that company's right to enter into the joint venture. To acquire the rights to form the joint venture, Diadem will issue to Carnarvon Capital six million Diadem treasury shares, subject to regulatory approval.

Darnley Bay Resources' originally was attracted to the area by the discovery of the strongest isolated gravity anomaly in North America. This was interpreted to be caused by an intrusive body, host for most major base metal deposits of nickel/copper and platinum group elements in the world. In exploring for the intrusive, an aeromagnetic survey revealed numerous kimberlite targets similar to those at Lac de Gras, NWT, where two of the richest diamond deposits in the world are now being mined. This led to a diamond exploration program in a corridor covering some 8 million acres, 195 by 152 miles, in which diamonds have been found in till and drill core samples, many of which contain abundant kimberlite indicator minerals.

In 1999 and 2000, 625 till samples were collected, many containing kimberlite indicator minerals and three carrying diamonds. Ground geophysical surveys were completed on 41 of the targets and 28 were selected as priority...

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