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MONTREAL, QUEBEC--(Marketwire - July 20, 2010) - Diadem Resources Ltd. (TSX VENTURE:DRL)

Diadem Resources Ltd. ("Diadem" or the "Company") announced today that it has entered into a financing agreement with the MineralFields Group for a private placement of up to 6,250,000 "Flow Through" Units at $0.16 per Unit to raise up to $1,000,000 of new working capital.

The placement is expected to close not later than July 26, 2010.

Each Unit will be comprised of one (1) "flow-through" Common Share of the Company and one half of one (1) transferable "non-flow-through" common share purchase warrant ("Warrant"), each Warrant being exercisable at an exercise price of $0.20 within the first year of Closing and $0.30 within the second year of Closing.

The private placement will be brokered and it is proposed that the broker will obtain a six percent (6%) cash finder's fee and two year "non-flow-through" finder's fee Options equal to eight percent (8%) of the number Units subscribed for, at an exercise price of $0.16 per Option. Each Option will include the same securities as a Unit, however, the common shares will not be "flow-through".

"We are very pleased to be commencing our relationship with MineralFields Group", said Aime Bertrand, CEO. "This is an important milestone in the growth of Diadem and we look forward to working with the MineralFields Group as we develop our diamond exploration programs in the Franklin Bay area of the Northwest Territories.

The Company currently has outstanding 39,349,014 common shares. Assuming consummation of this private placement there will be an additional 6,250,000 common shares outstanding (being 45,599,014 common shares) and, on a fully-diluted basis and after giving effect to the exercise of all outstanding share purchase warrants and incentive stock options granted under its stock option plan, the Company anticipates it would have 71,278,561 common shares outstanding.

About Diadem Resources Ltd.

Management of Diadem is focused on acquiring near-production mining opportunities in North America, especially those related to diamonds and gold. Its principal current activity is diamond exploration in the Franklin Bay area of the Northwest Territories. On that project Diadem operates a joint venture with its 50% partner Darnley Bay. 28 potential drill targets have been identified on the Parry Peninsula, which currently constitutes the Franklin Bay joint venture project area. A ground magnetic survey has been completed and the results are being analyzed and interpreted in order to focus on the most promising targets. When this analysis is completed, Diadem will finalize its drilling program for the current drilling season. All permits regarding the joint venture are in place and a proper camp site is being investigated in order to benefit both joint venture partners. Diadem recently entered into a joint venture arrangement with Darnley Bay Resources, details of which can be found in Diadem's press release of July 9, 2010 (found under the Company's profile on SEDAR).

Additional information about Diadem Resources Ltd. may be found on its web page ([ www.diademresources.com ]) and under Diadem's profile on [ www.sedar.com ].

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at [ www.mineralfields.com ]. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

Cautionary Statement

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review registered filings at [ www.sedar.com ].

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.