Diamond Exploration Inc. and International Millennium Sign Formal Agreement on Cobalt Ontario Diamond Prospect

OTTAWA, ONTARIO, Jun 26 (MARKET WIRE) --
Diamond Exploration Inc. ("DIX" or the "Company")(TSX VENTURE: DIX) and
International Millennium Mining Corp's ("IMMC")(TSX VENTURE: IMI)
announce, as a follow-up to their respective January 26 and 27, 2009 news
releases, that they have signed a formal Option and Joint Venture
Agreement whereby DIX is granted the sole and exclusive right and option
to earn fifty-one percent (51%) interest, subject to a one percent (1%)
net smelter return royalty, in thirty-six (36) mining claims (250 claim
units) comprising IMMC's Cobalt Area Property in Ontario. Under terms of
the agreement, which is subject to TSX Venture Exchange acceptance, DIX
may earn a 51% interest in the property by expending $1,000,000 over a
period of up to ten (10) years at an average rate of not less than
$100,000 per year and by issuing five hundred thousand (500,000) shares
to IMMC. Following DIX's acquisition of an interest in the property,
further exploration and development of the project will be the subject of
a joint venture between the parties.

Exploration by IMMC of the property, located just south of the town of
North Cobalt, has focused to date on only two of the more than 20 known
lamprophyre zones. Airborne magnetic surveys have defined several
prospective targets with kimberlitic signatures that warrant evaluation.
Additionally, none of the kimberlite indicator mineral anomalies has been
followed up.

The DIX technical team believes that diamond stability field conditions
exist within the mantle root beneath the Cobalt area. The presence of
diamond-bearing lamprophyres confirms that the mantle is fertile for
diamonds in this region. Follow up work will focus on assessment of
priority kimberlite targets and additional evaluation of the most
prospective of the lamprophyre breccias.

About Diamond Exploration Inc.

Diamond Exploration Inc. is a diamond exploration company that has been
focused, since 2001, on exploration in the far northern regions of
Canada's Territories including Yukon, Northwest Territories and Nunavut.
The Company's common shares trade on the TSX Venture Exchange under the
symbol: DIX.

"This Press Release may contain forward looking
statements that involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's expectations
and projections. The TSX Venture Exchange has not approved or disapproved
of the information contained in this Press Release."

Contacts:
Robin Dow
1-888-834-7708
robin@dowgroup.ca

Bay Street Connect:
Gus Garisto
1-416-607-6023
gus@baystreetconnect.com

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