September 23, 2010 adminsns

Chalice Diamond Corp. – Corporate Update

VANCOUVER, BC – September 23, 2010 – CHALICE DIAMOND CORP. (TSX-V: COD) (the “Company”) announces it will be consolidating its shares on a ten for one basis, which will result in a total issued and outstanding base of 10,989,152 shares.

Chalice Diamond Corp. was originally formed to explore and advance a large land package in the prolific Chapleau-Wawa diamond district of Ontario. Since exploration by the Company began, a number of diamond discoveries have been made which have not received sufficient follow-up work due to limited exploration funds. The Company’s new share structure will enable it to raise funds to advance its Wawa area projects without excessive dilution.

The Board of Directors (the “Board”) has unanimously approved a consolidation of its share capital on the basis of one (1) new common share for up to every existing ten (10) common shares (the “Consolidation”), subject to approval of the shareholders of the Company and regulatory approval. Where the exchange results in a fractional share, the number of common shares will be rounded to the nearest whole common share. The Board believes that the Consolidation will enhance the marketability of the common share as an investment and should facilitate additional financings to fund future operations. Shareholder approval of the proposed Consolidation will be sought at the Company’s upcoming Special Meeting of shareholders to be held on October 18, 2010. The record date for the proposed Consolidation will be set subsequent to both the requisite shareholder and regulatory approvals being obtained. The Company currently has a total of 109,891,518 common shares issued and outstanding and no preferred shares. In the event the required shareholder and regulatory approvals are obtained and the Company effects the full one (1) new common share for every existing ten (10) common shares Consolidation, the Company would have a total 10,989,152 common shares issued and outstanding.

About Chalice Diamond

Chalice Diamond Corp. is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.

Chalice Diamond Corp., in conjunction with joint venture partners, is continuing the search for diamond, base and precious metal deposits in the Wawa-Chapleau region of Ontario, where it has staked or optioned approximately 100,000 hectares of highly prospective ground.


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Select Sands America Corp. is a subsidiary of Select Sands Corp.


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