Contact Diamond arranges and closes financing Stock Symbol: CO (TSX) TORONTO, July 27 /PRNewswire-FirstCall/ -- Contact Diamond Corporation announced today that it has agreed to and closed a private placement from treasury of 3,700,000 shares to flow-through investors for total proceeds of $2.035 million. Under the terms of the private placement, Contact Diamond will renounce an equivalent amount of tax deductions from its exploration program expenditures to the investors. About Contact Diamond Corporation Contact Diamond Corporation is an exploration and development company with diamond properties in Ontario, Quebec, Northwest Territories and Nunavut. Timiskaming, at the Ontario-Quebec border, is its leading project. Agnico-Eagle Mines Limited (NYSE:AEMNYSE:TSX:NYSE:AGE) is currently the largest shareholder of the corporation. Cautionary Statement Regarding Forward-Looking Information Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "potential", "estimate", "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, the lack of a quoted market for diamonds, the possibility of project cost overruns or unanticipated costs and expenses, a history of net losses, dependence on the support of a significant shareholder, uncertainties relating to the availability and costs of financing needed in the future and other factors usual to the mining industry. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. DATASOURCE: Contact Diamond Corporation CONTACT: Matt Manson, President & COO, David Smith, Investor Relations, (416) 947-1212

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