07/04/2006 Private Placement of Common Shares

[Zoinkers]

Press Release Source: Diagem Inc.


Diagem Intends to Proceed to a Private Placement of Common Shares
Tuesday July 4, 4:08 pm ET


MONTREAL, QUEBEC--(CCNMatthews - July 04, 2006) - Diagem inc. ("Diagem" or the "Company") announces its intention to proceed to a private placement of common shares at the price of $0.10 per share in order to raise between $4 million and $6 million of new funds. Concurrently with this placement and conditional on the closing thereof, certain shareholders who have made advances to the Company during the last year totalling approximately $1,900,000 have agreed to convert these advances and the interest accrued thereon into shares of the Company at the same price per share as the shares to be issued under the private placement.

The proceeds of the private placement will be used to fund the Company's diamond exploration program in Brazil for both primary and secondary sources of diamonds and for working capital purposes.

Diagem expects to close its private placement and the settlement of its debt to its shareholders within the next two weeks.

Denis Francoeur, Chief Executive Officer DIAGEM INC.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.



Contact:
DENIS FRANCOEUR
Diagem Inc.
Chief Executive Officer
[phone] or( 905) 845-1249 (direct)
[phone] (FAX)
[e-mail]
www.diagem.com

PAUL EINARSON
Diagem Inc.
Chief Financial Officer
[phone] Ext.: 251
[phone] (FAX)
[e-mail]
www.diagem.com


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Source: Diagem Inc.