Mr. Paul Brockington reports

MARGARET LAKE DIAMONDS INC. ANNOUNCES NON BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF UP TO $700,000

Margaret Lake Diamonds Inc. has arranged a non-brokered private placement of up to seven million units at a price of 10 cents per unit, for aggregate gross proceeds of up to $700,000.

Each unit shall consist of one common share of the company and one-half of one transferable common share purchase warrant, with each warrant entitling the holder thereof to acquire one additional common share at a price of 30 cents for a period of 24 months following closing of the offering, subject to acceleration. In the event the closing price of the common shares on the TSX Venture Exchange is greater than 40 cents per common share during any 20-consecutive-trading-day period, the company may accelerate the expiry date by giving notice to the holders thereof through a news release, and in such case, the warrants will expire on the 21st business day after the date on which such notice was given to the holders by the company.

The company may pay finders' fees of 6 per cent in cash and 10 per cent in units under the offering in accordance with applicable securities laws and the policies of the exchange. The net proceeds from the offering will be used for the company's planned coming drill program on the Margaret Lake property during the first quarter of 2017 and for continuing general and administrative expenses.

In addition, the company announces the granting of 1,075,000 incentive stock options to certain directors, officers and consultants to purchase up to 1,075,000 common shares under the company's incentive stock option plan. The options will be granted for a period of five years commencing on Oct. 1, 2016, and are each exercisable at a price of 15 cents per common share.

Closing of the offering is subject to receipt of applicable regulatory approvals, including the approval of the exchange. The securities issued will be subject to a standard four-month-and-one-day hold period.

We seek Safe Harbor.