Kingfish Property, Northwest Territories

Location: The Kingfish property is located approximately 260 kilometres northeast of Yellowknife, Northwest Territories and is situated immediately east of the Camsell Lake Property, which hosts the Snap Lake diamond deposit. Size: 21 mineral claims totaling 52,149 acres Ownership: Diamondex 100% Expenditures: To date: C$1.8 million

Prospective geologic setting as the property joins both the Camsell Lake claim block, which hosts the Snap Lake diamond deposit and the Gahcho Kué property, which hosts the Kennady Lake kimberlites. De Beers Canada Mining Inc is currently developing both of these properties.

Overview:

In March 2003, shortly after acquiring the Kingfish property, Fugro Airborne Surveys flew a 6,000 line-kilometre airborne survey over the entire property. From this survey, 23 priority targets were selected for further investigation, 3 of which were gridded and had ground geophysical surveys completed. During further summer exploration programs, all 23 geophysical targets selected from the airborne survey were evaluated on the ground, with at least 8 of these targets warranting further investigation by down-ice till sampling or ground geophysical surveying. A total of 265 till samples were collected property-wide, this includes samples taken down-ice of priority geophysical anomalies. Bedrock geology mapping and some quaternary mapping were also completed in July 2003.

A detailed 1,592 line-kilometre RESOLVE helicopter-borne mag/EM survey, conducted by Fugro Airborne Surveys, was completed over the Kingfish property during Q2 2005. To date, a total of 7,604 line-kilometres of airborne mag/EM has been carried out over the property at 100 metre line-spacings and 10 detailed ground geophysical grids have been evaluated over high priority airborne anomalies.

A total of 665 till samples have been collected from the property, with several anomalous concentrations of kimberlite indicator minerals outlined.

During the spring of 2005, a detailed 1,592 line-kilometre RESOLVE mag/EM survey was completed over the Kingfish property. To date, a total of 7,604 line-kilometres of airborne mag/EM has now been carried out over the property. This survey defined several prospective geophysical targets to be later evaluated by ground investigations and till sampling during the summer program.

The 2005 summer exploration program on the Kingfish property consisted of the collection of 136 follow-up till samples to evaluate 12 geophysical anomalies outlined from previous airborne survey data. Geophysical targets were visited on the ground and till samples were collected where warranted to help resolve potential drill targets. Detailed ground magnetic surveys were conducted over two high-priority geophysical anomalies.