May 27, 2010 adminsns

Chalice Diamond Corp. Warrant Re-Pricing

VANCOUVER, BC – May 27, 2010 – Chalice Diamond Corp. (TSX-V:COD) (the “Company”) announces that, subject to the approval of the TSX Venture Exchange, the Company wishes to extend the term and reduce the exercise price of 14,675,860 warrants issued by the Company which currently expire on June 23, 2010 (the “Warrants”). The expiration date of the Warrants will be extended for an additional 18 months, expiring on December 23, 2011.

The warrant exercise price is amended to $0.10 up to and including December 23, 2010 If the closing price for the Company’s shares during this period is $0.13 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day. The warrant exercise price will be $0.15 up to and including June 23, 2011. If the closing price for the Company’s shares during this period is $0.20 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day. The warrant exercise price will be $0.20 up to and including December 23, 2011. If the closing price for the Company’s shares during this period is $0.26 or greater for 10 consecutive trading days, then the Warrantholder will have 30 days to exercise their warrants; otherwise the warrants will expire on the 31st day.

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.

For further information contact:

Alan Campbell or Kevin Hull, Investor Relations
Phone: (604) 639-4533
Email: info@chalicediamond.com

Or visit Chalice Diamond’s web-site: www.chalicediamond.com for current information and to see Smartstox interviews with company Chairman Richard Hughes.

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

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