Today's date: July 23, 2008

North Star Diamonds has now been re-organized into four companies by the way of three spin-offs.

North Star Strategic Minerals Inc.

This company was spun–off from North Star Diamonds Inc. on a one to one basis, each share holder of North Star Diamonds has received one share of North Star Strategic Minerals Inc. This company received all the assets of diamond exploration in Manitoba, all the records and claims. All geological information and records also belong to this company. North Star Strategic Minerals Inc. is in the process of going public, and intends to diversify by exploring for other metals in the area.

North Star Canadian Diamonds, Inc.

This company intends to continue and expand diamond sales by specializing in selling of Canadian Diamonds. Canadian Diamonds are in great demand as they are not conflict diamonds and meet all the requirement of the Patriot Act of the United States. Canadian Diamonds have also gained a reputation for their clarity, color and high quality. This spin-out was a 5:1 basis, for every five shares of the former NSDM owned one share of North Star Strategic Minerals was issued.

This company acquired all the assets of the North Star Diamonds Inc. including the website, www.northstardiamonds.net and www.northstardiamonds.ca

Black Sea Minerals Inc.

North Star assets in Ukraine were spin out into this company. Presently, due to political reasons, these projects are on hold. Black Sea Minerals Inc. is looking at other areas for projects. Presently gold and rare earth deposits are being investigated in Canada. This was spun-off on a 10:1 basis, which means for every 10 shares of NSDM you owned you received one share of Black Sea Mineral Inc. This spin-off is now complete and shared have been issued.

Chanaral Resources, Inc.

North Star Diamonds is now trading as Chanaral Resources, Inc (CRLR Pink Sheets)

For more information, see their website at www.chanaralresources.com