Vaaldiam Closes $7,500,000 Private Placement of Special Warrants.

TORONTO -- Vaaldiam Resources Ltd. (TSX VENTURE:VAA) announced today that it has closed its previously disclosed bought deal private placement offering of Non Flow-Through and Flow-Through Special Warrants for aggregate gross proceeds of $7,500,000. The offering, which was comprised of 7,777,778 Common Share Special Warrants issued at a price of $0.90 per Common Share Special Warrant and 476,191 Flow-Through Special Warrants issued at a price of $1.05 per Flow-Through Special Warrant, was fully subscribed including the underwriters' over-allotment option.

Each Common Share Special Warrant is exercisable into one Common Share of Vaaldiam at no additional cost and each Flow-Through Special Warrant is exercisable into one Flow-Through Common Share of Vaaldiam at no additional cost. The Special Warrants shall be exercisable by the holders thereof at any time and will be automatically exercised at 5:00 p.m. EST on the earlier of the following dates: (i) the third business day after a receipt is issued by the last of the securities regulatory authorities in each of the jurisdictions in Canada in which purchasers of the Special Warrants are resident for a final prospectus qualifying the Common Shares and Flow Through Common Shares to be issued upon exercise of the Special Warrants; and (ii) the date which is four months and one day after the closing date. If Canadian provincial securities regulators have not issued a receipt for a final prospectus within 60 days of closing, the holder of each Common Share Special Warrant shall be entitled to acquire 1.1 Common Shares and the holder of each Flow-Through Special Warrant shall be entitled to acquire 1.1 Flow-Through Common Shares.

Proceeds of the offering will be used to advance the Brauna and Duas Barras projects in Brazil, the Hotish property in Quebec and for general corporate purposes.

Wellington West Capital Markets Inc. acted as lead underwriter for the offering together with a syndicate comprised of National Bank Financial Inc. and Westwind Partners Inc.

About Vaaldiam

Vaaldiam is a Canadian based diamond exploration company primarily involved in the exploration and development of the 247,085 hectare Pimenta Bueno diamond property in the state of Rondonia, Brazil currently under option to Rio Tinto. To date, 34 kimberlite pipes have been discovered within the property area. Twenty-four of the 34 known pipes occur in one large cluster and 15 of the 34 pipes have been found to be diamond-bearing on the basis of macro and micro diamond analyses. In an initiative aimed at generating early cash flow, Vaaldiam is also advancing development of its Duas Barras alluvial diamond property in Minas Gerais state, Brazil, targeting production in Q3 - 2006. A drilling program is also underway on the Brauna property in the state of Bahia in Brazil, where four kimberlite pipes are being delineated in advance of a mini-bulk sampling program scheduled for later this year. Vaaldiam also has an exploration option on the Hotish property in the Otish Mountain District of the Province of Quebec.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release.

Vaaldiam Resources Ltd. (TSX VENTURE:VAA)