October 7, 2004

BELLINGHAM, WA, Oct 7, 2004 /PRNewswire-FirstCall via COMTEX/ --

North Star Diamonds, Inc. (NQB Pink Sheets: NSDM) is pleased to announce it has incorporated a wholly owned subsidiary to market Canadian Diamonds.

This is a strategic move for North Star Diamonds, Inc since Canada is now producing 16% of the world's diamonds. The diamonds originate from the mines in the North West Territories. This will lead to NSDM having its own brand of diamonds which it can market world wide, thus giving NSDM better returns.

NSDM is also pleased to inform shareholders that North Star Diamonds, Inc. is now operating at a profit due to its diamond sales. The profit from diamond sales will be used to finance the exploration program, as is already done by companies such as DeBeers and Aber.

Geophysical work has now begun on Phase 3 of the exploration program in Pelican Rapids (Swan River) which is located 235 miles NW of Winnipeg in Manitoba. This area has many Kimberlite Indicator Minerals and six to eight geophysical targets. The progress of this project will be posted on our website as soon as the images become available.

"We expect a busy season for diamond sales and also a busy exploration program" states Walter Stunder, President and CEO.

For further information on NSDM, visit www.northstardiamonds.net

Disclaimer: The Company relies upon the safe Harbor Laws of 1993, 1934, and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.

CONTACT: Toll Free: 1-877-454-7872, or Email: contact@northstardiamonds.net Walter Stunder, President

SOURCE North Star Diamonds, Inc.

Toll Free: 1-877-454-7872; Email: contact@northstardiamonds.net (NSDM)