Black Diamond Group Limited Announces Closing of $51.7 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - May 10, 2011) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of modular accommodation and energy services in North America, is pleased to announce that it has closed its previously announced bought deal common share financing with a syndicate of underwriters, led by Raymond James Ltd. and including BMO Capital Markets, CIBC World Markets Inc., GMP Securities L.P., Acumen Capital Finance Partners Limited, Cormark Securities Inc. and FirstEnergy Capital Corp. At closing, a total of 1,980,000 common shares of the Company were issued at a price of $26.10 per common share for aggregate gross proceeds of approximately $51.7 million, which included the full exercise by the underwriters of their over-allotment option to purchase an additional 180,000 common shares.

Black Diamond intends to use the net proceeds of the financing to fund its expanded 2011 capital expenditure budget, repay bank indebtedness and for general corporate purposes.

ABOUT BLACK DIAMOND

Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.

Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.

Reader Advisory

Certain information in this news release contains forward-looking statements including, without limitation, the anticipated use of proceeds of the offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the risk that Black Diamond will expend the net proceeds of the equity offering in a manner different than that indicated, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.