07/20/2006 Diagem Completes an Equity Financing

[Zoinkers]

Press Release Source: Diagem Inc.


Diagem Completes an Equity Financing
Thursday July 20, 12:06 pm ET


MONTREAL, QUEBEC--(CCNMatthews - July 20, 2006) - Diagem inc. (TSX VENTURE:DGM - News; "Diagem" or the "Company"") is pleased to announce that it has completed an equity issuance of $6,536,476 comprising 65,364,760 shares at $0.10 per share. This issuance is pursuant to the previously announced private placement which has raised $4,575,000 together with the conversion of all outstanding shareholder loans totalling $1,961,476 in capital and accrued interest with the result that the Company is presently without debt.
The net cash proceeds of the financing will be used to fund the Company's ongoing exploration in Brazil for both primary and secondary sources of diamonds and provide working capital.


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
Chief Executive Officer
[phone] or [phone] (direct)
[phone] (FAX)
[e-mail]

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


--------------------------------------------------------------------------------
Source: Diagem Inc.