Diversified Resources to Purchase Interest in San Juan Basin

Diversified Resources, Inc. (OTCQB: DDRI) has entered into a definitive Purchase and Sale Agreement (PSA) to purchase 100% of a private seller’s interests located in the Horseshoe Gallup Field in Northwest New Mexico. The PSA covers 55 (48 productive) wells producing approximately 90 bbls of oil per day, along with all real, personal and mixed property associated with the production, maintenance and gathering of hydrocarbons on the approximate 10,400 acre lease.

Final closing is dependent upon customary due diligence, financing and approval of the mineral owners - the Ute Mountain Ute Tribe who have rendered their verbal approval for the purchase. A small percentage of the acreage and production is awaiting title verification from the adjoining Navaho Tribe and may not be included at closing. Final closing of the transaction is expected in the third calendar quarter of this year.

Paul Laird, President, CEO and Chairman of the Board of Diversified, commented: “We look forward to acquiring this acreage and production as well as working with the Ute Mountain Ute and Navajo Tribes to fully develop this resource. The acreage is located in the heart of a fairly new Mancos shale horizontal play that could contribute to significant company growth. The PSA reflects an increase in the total wells and acreage represented in the LOI we signed in March. The new agreement covers approximately 10,400 gross and net acres and at least 37 proved, undeveloped locations with many more possible locations. We believe we can increase production from the existing wells and enhance the resource’s potential via the application of state-of-the-art drilling, completion and recompletion technologies.”

The seller has agreed to take a combination of cash and stock in Diversified Resources, Inc.

DIVERSIFIED RESOURCES, INC.

Diversified Resources is a Colorado-based energy company focused on the development of its D-J Basin, Raton Basin and San Juan Basin assets.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release regarding our financial position, business strategy, and plans and objectives of management for future operations and industry conditions, are forward-looking statements. These forward-looking statements are based on current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.