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Big Red Diamond Corporation: Big Red Diamond Signs a Letter of Intent for a 50% Purchase and Joint Venture Agreement for the Br

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^{Published in Business and Finance on Wednesday, August 26th 2009 at 6:24 GMT, Last Modified on 2009-08-26 06:24:54 by Market Wire}  

MONTREAL, QUEBEC--(Marketwire - Aug. 26, 2009) - Big Red Diamond Corporation (TSX VENTURE:DIA) is pleased to announce that it has signed a Letter of Intent ("LOI") to enter into a 50% interest purchase and joint venture agreement with Melkior Resources Inc. (TSX VENTURE:MKR) regarding 3 claims (12 units covering 192 hectares) comprising the Bristol property ("Bristol") located in the Bristol Township of the West Timmins exploration area in the Porcupine mining division of the Province of Ontario. The LOI is subject to the signature of a Joint Venture Agreement as well as Board and regulatory approval.

The signature of this agreement will strategically expand DIA's current West Timmins property portfolio and give it a substantial participation in one of Canada's hottest exploration camp. The acquisition of the Melkior claims substantially improves DIA's coverage of favourable geology. This will add to DIA's existing 11 claims (61 units) in the West Timmins area, which DIA owns outright (100%), in the Bristol, Godfrey and Carscallen Townships.

Bristol is contiguous to DIA's Lakeshore and Bristol claims and is also contiguous to properties held by West Timmins and San Gold. The property is located 5 km North of Lake Shore's Timmins West deposit (1,2900,000 oz Au @ 10.4g/t) and 7 km North- East of Melkior's existing Carscallen property. Melkior's experience in the area will greatly assist DIA with the planned exploration of the land package.

To purchase a 50% interest in Bristol, DIA will issue 1 million treasury shares to Melkior and undertake to complete, on Bristol, $400,000 in exploration expenditures over a 48 month period from the signature date of the formal Joint Venture Agreement. Melkior will act as Joint Venture operator on Bristol and both parties have agreed to set up a Joint Venture Management Committee which will operate in accordance with standard Joint Venture requirements. Exploration should start soon after the signature of the JV Agreement.

The Compensation Committee of DIA has also granted a total of 2,000,000 options to its directors to purchase common shares in the Company. All options have an exercise price of $0.10, an exercise period of five years and a hold period of four months from the day of the grant.

The press release was reviewed by Clint Barr, Director of DIA. Mr. Barr, P. Geo., is a qualified person under National Instrument 43-101.

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