Diamonds North Identifies IOCG Targets at Hepburn Property

VANCOUVER, BRITISH COLUMBIA, Jan 22 (MARKET WIRE) --
Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces that it has
delineated two large scale Iron Oxide Copper Gold (IOCG) targets on the
Hepburn Property located in the Northwest Territories.

The south IOCG target is over 2.5 kilometres long and up to 200 metres
wide. The target is defined by a strong and continuous east-west trending
Induced Polarization (IP) chargeability anomaly that extends over this
target is open to the west and southeast (See copper and silver maps on
our website www.diamondsnorth.com).

The IP anomaly is associated with several other features commonly
associated with known IOCG deposits, this includes:

1. A regional magnetic anomaly
2. A regional radiometric anomaly
3. Extensive zones of brecciation
4. Strong magnetite, potassic, hematite, chlorite and sericite alteration
5. Zones of anomalous to high grade copper, silver, gold, bismuth and
uranium mineralization
6. Proterozoic intrusive rocks
7. Large, deep-seated faults and graben structures

"IOCG orebodies range from 10 million to 4 billion tonnes and can have
grades between 0.2 to 5% copper. They commonly produce important
by-products such as gold, silver, uranium and bismuth. At this stage,
Hepburn is demonstrating many of these qualities as it is a large scale
target with key IOCG alteration, structure and mineralization
characteristics. An initial drill program could significantly advance
this project," says Mark Kolebaba, President and CEO of Diamonds North.

In 2011, 24 line kilometres of IP were surveyed and 61 samples were
collected from the property. Table 1 shows a compilation of selected
samples highlighting the south target. The geochemistry shows high copper
(up to 19.8%), silver (up to 123 g/T) and uranium (up to 4340 ppm) assays
associated with elevated gold (up to 0.275 g/T) and bismuth (up to 0.17%)
assays.

Table 1: South Zone
----------------------------------------------------------------------------
Sample Copper % Silver (g/T) Gold (g/T) Uranium (ppm) Bismuth %
----------------------------------------------------------------------------
1 19.8 72 0.072 0.169
----------------------------------------------------------------------------
2 7.6 32.5 0.216 0.124
----------------------------------------------------------------------------
3 5.8 31.1 0.15 0.0356
----------------------------------------------------------------------------
4 4.1 123 0.258 264 0.028
----------------------------------------------------------------------------
5(i) 2.49 13.3
----------------------------------------------------------------------------
6(i) 1.44 19.4 0.019
----------------------------------------------------------------------------
7 1.07 8.9
----------------------------------------------------------------------------
8 0.91 3.3 0.0252
----------------------------------------------------------------------------
9 0.653 3.2
----------------------------------------------------------------------------
10 0.616 10.5
----------------------------------------------------------------------------
11 0.526 3.4
----------------------------------------------------------------------------
12 0.467 5.6
----------------------------------------------------------------------------
13 0.376 3.4
----------------------------------------------------------------------------
14(i) 0.232 3.4 0.275 0.0173
----------------------------------------------------------------------------
15 0.126 7.2 2010
----------------------------------------------------------------------------
16 0.0379 0.1 4340
----------------------------------------------------------------------------

(i) All grab samples with the exception of samples 5, 6 & 14 are chip
samples over 0.5, 0.4 & 0.55 metres respectively. Samples were collected
from 2006 through 2011.

A second large target, 500 metres to the north, is outlined by a 2
kilometre long, 500 metre wide IOCG style alteration zone which includes
magnetite, hematite, sericite and chlorite. This zone contains high
copper (up to 40.2%) silver (up to 1129 g/T), uranium (up to 3099 ppm)
and gold up to (0.635 g/T) values. The IP over this target forms a
narrower east-west trending anomaly that extends for at least 600 metres
and is open at either end due to lack of surveying. The geochemical
values and alteration patterns show this to be a target worthy of further
follow-up work.

Table 2: North Zone
----------------------------------------------------------------------------
Sample Copper % Silver (g/T) Gold (g/T) Uranium (ppm)
----------------------------------------------------------------------------
1 40.2 197 0.635
----------------------------------------------------------------------------
2 30.9 133 0.151
----------------------------------------------------------------------------
3 23.4 116 0.202
----------------------------------------------------------------------------
4 15.5 70 0.136
----------------------------------------------------------------------------
5 9.22 41 0.044
----------------------------------------------------------------------------
6 5.08 35.2
----------------------------------------------------------------------------
7 3.29 1129 0.052 215
----------------------------------------------------------------------------
8 2.97 156 0.06
----------------------------------------------------------------------------
9 2.57 18.6
----------------------------------------------------------------------------
10 2.07 46 608
----------------------------------------------------------------------------
11 1.65 729 3099
----------------------------------------------------------------------------
12 1.18 77.6 0.196
----------------------------------------------------------------------------
13 1.09 5.2
----------------------------------------------------------------------------
14 1.09 10.3
----------------------------------------------------------------------------
15 1.04 3.8
----------------------------------------------------------------------------
16 0.79 3
----------------------------------------------------------------------------
17 0.671 2.6
----------------------------------------------------------------------------

Grab samples were collected from 2006 through 2011.

Further interpretation and modeling of the IP data to better define drill
targets is underway. Currently a 2500 metre program is recommended for
Hepburn.

The Hepburn target lies within the Great Bear Magmatic Zone which is
considered one of Canada's most prospective IOCG terrains. The NICO and
Sue-Dianne deposits are local examples of IOCG deposits within the Great
Bear Magmatic Zone. Other world examples include Olympic Dam, Ernest
Henry, Candelaria and Manto Verde deposits (see our website
www.diamondsnorth.com for estimated size and grades of these IOCG
deposits).

Graham Gill (P. Geo) is Diamonds North's qualified persons as defined by
National Instrument 43-101, reviewing this project.

All samples collected in 2011 were shipped in sealed containers and
processed at the Saskatchewan Research Council (SRC) Geoanalytical
Laboratories, which is an ISO/IEC 17025 accredited laboratory for mineral
analysis testing. Samples were analyzed using SRC's Uranium Exploration
ICP Package, which includes uranium by total digestion ICP-OES analyses
and uranium by partial digestion ICP-OES analyses. All samples having
more than 1,000 ppm uranium were assayed using a uranium assay
dissolution procedure. SRC is accredited by the QMI Quality Registrars to
ISO 9001:2000, and by the Standards Council of Canada to ISO 17025. A
standard aqua-regia digestion and ICP-AES package was used on all
samples. Ore grade assays were analyzed by Atomic Absorption.

Diamonds North will be exhibiting (Booth #1034) at the Vancouver
Resources Investment Conference January 22-23rd 2012 held at the
Vancouver Convention Centre West. For more information and to
pre-register go to www.cambridgehouse.com. Diamonds North will also be
exhibiting (Booth #B20) at the AMEBC Mineral Exploration Round Up January
25-26th held at the Westin Bayshore Hotel. For more information go to
www.amebc.ca.

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba, President & CEO

Statements in this press release, other than purely historical
information, including statements relating to the Company's future plans
and objectives or expected results, may include forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in
resource exploration and development. As a result, actual results may
vary materially from those described in the forward-looking statements.

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

Contacts:
Diamonds North Resources Ltd.
Troy Shultz
Manager, Corporate Communications
(604) 689-2010
(604) 484-7143 (FAX)
info@diamondsnorth.com
www.diamondsnorth.com

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