Diagem: Brasilia Reviewing the Lifting of the Chapadao Embargo

MONTREAL, QUEBEC, Sep 02 (MARKET WIRE) --
Following an audience with the president of IBAMA in Brasilia, Brazil on
August 27th, 2008, Diagem Inc. ("Diagem" or "the Company")(TSX VENTURE:
DGE) is confident that the embargo on the Chapadao Kimberlite Project can
be lifted in the weeks to come. The invalidity of the embargo and related
fines have been fully documented and demonstrated by Diagem. The
administrative and legal process can be a lengthy one in Brazil but the
IBAMA President, Mr Roberto Messias has promised to rectify any prejudice
caused to the Company by processing the case in Brasilia in a swift
fashion.

Denis Francoeur, CEO of Diagem commented: "The defence prepared by our
Brazilian legal counsel is based on independent engineering reports
documenting the invalidity of the embargo. The documented facts have
further been reviewed by an independent environmental firm from Curitiba,
Brazil. The presentation of the facts has also lead to the Company
receiving political support from the Brazilian Senate. This further
strengthens the validity of Diagem's claims and chance for a resolution
to the issue. The president of IBAMA recognised these facts and has
promised to accelerate a decision through an internal review in Brasilia,
aimed at confirming the facts presented by Diagem and quickly rectifying
the situation."

Resolution of these matters will allow Diagem to focus energies on
resuming field activities on the Chapadao Project as soon as possible. In
addition, the previous embargo on Property 213 will be reviewed in
conjunction with the Chapadao embargo. Release of the embargo on Property
213 would provide access to a second pilot plant and Flowsort facility
that would increase our processing capability.

Just prior to the embargo on the Chapadao Project, the Company had
recovered 658 commercial-size (coarser than 1.7mm) diamonds weighing
146.2 carats from 231 cubic metres of the Chapadao diamondiferous
ash-fall layer in two bulk tests (see press releases dated April 28 and
May 28, 2008). The parcel included a 6.2 carat gem-quality diamond and a
total of 14 diamonds (all gem or near-gem quality diamonds) weighing more
than one carat each. Approximately 25 diamond drill holes had also been
completed to test kimberlite targets (see press releases dated March 26
and April 15, 2008). All holes intersected crater facies kimberlitic
material. The diatreme or intrusive portion of the kimberlite bodies has
not yet been intersected. Additional geophysical work is contemplated
including ground gravimetic surveys to help with the drill targeting.

Environmental Impact Studies Ongoing on Several Properties

The Company is also active completing environmental impact studies on
four separate projects including: 1) Chapadao: Property 370/98 and the
adjoining Property 108 where a final exploration report has been
approved; 2) Property 213 which is under application for a mining
concession; 3) Property 214 which hosts to the Collier 04 development
block and the yet to be drilled high-potential Acuri cluster of
kimberlite pipes; and 4) on joint venture Property 1000 in the 21 de
Abril River area.

Property 213

Property 213 has a NI 43-101 compliant diamond alluvial indicated
resource of 207,000 cubic metres at an estimated grade of 0.22 carats per
cubic metre representing an in-situ content of 45,800 carats. During
experimental mining in 2003, the Company extracted 3,755 carats at a
grade of 0.31 carats per cubic metre. Additional mineralized gravel
deposits downstream the resource block have been delineated along an
eight kilometre section of the Sorriso Creek covered by the property.
Bulk sample tests must be conducted before a resource can be confirmed.

21 de Abril River Area

In 2007, Diagem announced (press release dated October 10, 2007) the
discovery of a new cluster of potential kimberlite pipes located 35
kilometers southwest of the Chapadao Project and immediately upstream
from the diamond-rich alluvial flats of the 21 de Abril River. The
presence of more than a dozen kimberlitic bodies is suggested by
short-transient picro-ilmenite anomalies confirmed by microprobe
analyses. Intense surface weathering, however, has not permitted
confirmation of the kimberlitic nature of the host rock by petrographic
and geochemical means. Deeper sampling will be required. Diagem has a
100% interest in 80,000 hectares of mineral claims surrounding the 1000
Property which has been idle since 2002 but which has seen significant
historical artisanal mining activity in the past.

This press release has been reviewed by Christophe Le Noan, M.Sc, Geo.,
Diagem's qualified person under National Instrument 43-101.

About the Chapadao Discovery

Previous field work by Diagem identified kimberlite targets suggesting
the presence of pipe-like kimberlitic bodies forming a tight cluster.
Interpretation was based on ground magnetic anomalies and field
observations. Independent petrographic, mineralogical and geochemical
studies were conducted on the surface exposures in 2007 and have
confirmed the presence of crater facies kimerlitic rocks at the targeted
localities (press releases of October 10th and November 27th, 2007). A
near-surface non-consolidated "ash-fall diamondiferous kimberlitic"
layer(s) is also present, associated to the crater-facies kimberlitic
rocks. This particular unit also referred to as "Tuff-Ring Deposit"
varies in thickness between 0.5 and 2.0 metres (0.6 metres on average)
occurs over an extensive area and could be mined with the same economic
parameters of a gravel deposit. Preliminary bulk sampling, conducted in
November and December of 2006, indicated in situ diamond grades ranging
between 0.28 and 1.26 carats per cubic metre (see press release dated
January 11, 2007). A total of 849 diamonds coarser than 1.7 millimetres
and weighing 155 carats were recovered, including a 4.67 carat diamond
and eight diamonds ranging between 1.20 and 1.34 carats. The Chapadao
area is also known for the occurrence of rare and valuable type IIa
diamonds often in a fancy pink colour (see press release dated November
13, 2007). The Chapadao area is accessible year round and parts of the
potential deposits would be amenable to open pit mining which translates
into low extraction costs.

About Diagem

Diagem Inc. is an exploration-stage Canadian public company focused on
primary diamondiferous resources in the Juina Diamond Province of Mato
Grosso, Brazil, where it controls a large portfolio of mineral
properties. The Company has one advanced development stage project and
two recently discovered clusters of kimberlite pipes believed to be
significant sources of Juina's historical alluvial diamond production.

Forward-looking statements

Except for statements of historical fact, all statements in this news
release, without limitation, regarding new projects, acquisitions, future
plans and objectives are forward-looking statements which involve risks
and uncertainties. There can be no assurance that such statements will
prove to be accurate; actual results and future events could differ
materially from those anticipated in such statements.

THE TSX
VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS PRESS RELEASE

Contacts:
Diagem
Denis Francoeur
CEO
514-448-4961 (ext. 505)

Diagem
Paul Einarson
CFO
514-448-4961 (ext. 502)
www.diagem.com

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