DIAZ CLOSES $650,000 FLOW-THROUGH SHARE FINANCING

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Dec. 20 /CNW/ - Diaz Resources Ltd. (TSX: DZR) ("Diaz") announces it has closed an issue, on a private placement basis, of 5,000,000 common shares ("Common Shares") of Diaz at a price of $0.13 per share for aggregate gross proceeds of $650,000 (the "Private Placement").  Diaz paid commissions of $16,843 in respect of the Private Placement.  An insider of Diaz purchased 142,577 Common Shares under the Private Placement.

Diaz intends to use the proceeds of the Private Placement to incur eligible exploration expenditures that will be renounced to subscribers as Canadian Exploration Expenses effective on or before December 31, 2010.

Diaz is an oil and gas exploration and production company based in Calgary, Alberta.  Diaz's current focus is on oil development and exploration in Alberta and Saskatchewan.

ADVISORY: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement. Although Diaz believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Diaz can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by Diaz might change if the board of directors of Diaz determines that it would be in the best interests of Diaz to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and Diaz undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

NEITHER THE TORONTO STOCK EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TORONTO STOCK EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information:

Robert W. Lamond, Chairman  - or - Donald K. Clark, Chief Operating Officer
DIAZ RESOURCES LTD.
Telephone:  [phone]
Fax:  [phone]
Website:  www.diazresources.com
Email:  [email protected]
TSX:  DZR