Diagem Temporarily Halts Field Exploration Activities

Diagem Inc. ("Diagem" or "the Company")(TSX VENTURE:DGE) temporarily froze its
exploration activities in the Juina Diamond Province of Mato Grosso, Brazil and
has initiated procedures to significantly reduce its Brazilian workforce until a
resolution to the embargo imposed by the Brazilian Federal Environmental Agency
("IBAMA") is reached.


Diagem's legal counsel in Brazil is confident that the IBAMA embargo can be
nullified in a relatively short period of time as the deforestation was not
performed by Diagem, but by other non-related parties prior to Diagem starting
its evaluation program.  Diagem is also confident that it will successfully
contest an unjustified C$1.1 million fine that is considered illegal, abusive
and excessive in this context.


The Company is dedicating its financial and human resources to reversing the
embargo. However, during this mandated standby, the Company will continue to
comply with obligations to the government and other stakeholders and to maintain
its surface and mineral rights, facilities and assets in good standing to the
extent permitted by the law.


"The Chapadao Kimberlite Project has the potential to become a major employer in
the community and has the promise of a significant return for the shareholders
who have long supported the Company," commented Denis Francoeur, CEO of the
Company. "The goal of the Company is to rapidly resume evaluation work on the
project, which is undoubtedly in the best interest of the shareholders and the
community of Juina.  Diagem plans to rehire the laid-off employees once the
embargo is lifted".


The IBAMA Campaign

The IBAMA intervention is part of a widespread campaign aimed at eradicating the
illegal deforestation of native Amazonian forest.  The IBAMA campaign was
instituted by Brazilian president Luiz Inacio Lula da Silva who has been on the
defensive and under intense pressure both by strong local and international
lobby groups and by the government's opposition parties regarding the ongoing
devastation of the Amazonian forest.


IBAMA chose the State of Mato Grosso to launch its campaign against Amazonian
deforestation with a work force of 200 people operating from five land bases
with support from two air bases. By April 30th, in Mato Grosso alone, 363
infractions were issued with fines totalling the equivalent of C$43 million. 
All other Amazonian states will be under similar scrutiny according to news
reports.  


In apparently unrelated matters, shortly after the initiation of the IBAMA
campaign, both the Minister of the Environment and the President of IBAMA
resigned their positions.


About Diagem

Diagem Inc. is an exploration-stage Canadian public company focused on primary
diamondiferous resources in the Juina Diamond Province of Mato Grosso, Brazil,
where it controls a large portfolio of mineral properties.  The Company has one
development stage project and two recently discovered clusters of kimberlite
pipes believed to be significant sources of Juina's historical alluvial diamond
production.


Forward-looking statements

Except for statements of historical fact, all statements in this news release,
without limitation, regarding new projects, acquisitions, future plans and
objectives are forward-looking statements which involve risks and uncertainties.
 There can be no assurance that such statements will prove to be accurate;
actual results and future events could differ materially from those anticipated
in such statements.