MONTREAL, QUEBEC--(Marketwire - June 20, 2011) - Diadem Resources Ltd. (TSX VENTUTRE:DRL) - 

Diadem Resources Ltd. ("Diadem" or the "Company") announces today that, subject to TSXV approval, it seeks to consummate a private placement of up to 4,000,000 Units at $0.30 per Unit to raise up to $1,200,000 of new equity financing. Diadem expects this financing will close prior to the end of July, 2011.

It is anticipated that approximately eighty percent (80%) of the gross proceeds of the private placement will be used to fund DRL's exploration expenditures on the Parry Peninsula (NWT) while the remaining twenty percent (20%) will be used as general working capital. 

Each Unit is to be comprised of five (5) Common Shares of the Issuer. Specifically, each Unit will be comprised of four (4) "flow-though" Common Shares and one (1) "hard dollar" Common Share.

Additionally, each Unit will include five (5) Common Share Purchase Warrants with each Warrant being exercisable for one (1) Common Share at an exercise price of $0.10 per Common Share for a period extending eighteen (18) months from the closing of the proposed private placement.

The private placement is proposed to be non-brokered, however, the Issuer will welcome solicitations from licensed brokers to participate in the private placement. Upon acceptance of any such solicitation, the Issuer proposes to compensate the subject broker with up to ten percent (10%) cash and ten percent (10%) Broker Warrants relating to the amount of placement the subject broker is responsible for. Any Broker Warrants being exercisable for one (1) Common Share at an exercise price of $0.06 per Common Share for a period extending eighteen (18) months from the closing of the proposed private placement.

Only brokers that are at arm's length to the Issuer are eligible to receive compensation.

All securities issued pursuant to this private placement will be subject to a hold period that will extend, in the minimum, four (4) months subsequent to the closing of this proposed private placement.

The Company currently has outstanding 47,508,848 common shares. Assuming consummation of the full amount of this private placement, there will be an additional 20,000,000 common shares outstanding (being 67,508,848 common shares) and, on a fully-diluted basis and after giving effect to the exercise of all outstanding share purchase warrants, broker warrants and incentive stock options granted under the Company's stock option plan, the Company anticipates it would have 112,762,685 common shares outstanding.

About Diadem Resources Ltd.

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 fifty percent (50%) partner Darnley Bay. More than twenty potential drill targets have been identified on the Parry Peninsula, which currently constitutes the Franklin joint venture project area. Ground magnetic surveys over three of the targets were completed in 2010. Additional surveys over another 38 targets are planned for 2011. When this is completed, Diadem will finalize its drilling program for the 2011 drilling season.

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.

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. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. For more information on the Company, investors should review registered filings at www.sedar.com.