Mr. Bruce Counts reports

LITHOQUEST DIAMONDS COMMENCES NORTH KIMBERLEY 2018 FIELD PROGRAM

Lithoquest Diamonds Ltd. has initiated the 2018 field season on its 100-per-cent-owned North Kimberley diamond project located in Western Australia.

Initial work includes reopening the road into the project area. Exploration fieldwork is scheduled to begin in the first week of July and has two objectives:

1. To drill test high-priority targets 702 and 701 in order to:
   • Confirm the presence of kimberlite;
   • Obtain first estimates of kimberlite size and geometry;
   • Determine if geological variations (phases) exist within each kimberlite body;
   • Acquire samples of kimberlite for microdiamond testing;
2. To identify and evaluate potential drill targets using geological mapping, prospecting and ground geophysical surveying.

"The 2018 field season is an important milestone in the company's development," stated Bruce Counts, president and chief executive officer of Lithoquest. "The upcoming drill program is the first step in determining if a new and distinct field of diamond-bearing kimberlites is present on the North Kimberley diamond project."

Mobilization of the exploration camp will commence immediately after the road is reopened. The exploration team, including traditional owners from the community of Kalumburu, is scheduled to arrive on site in the first week of July.

Drilling is expected to commence in late July and will begin at target 702, where microdiamonds and kimberlite indicator minerals with diamond inclusion chemistry have been recovered from rock samples. It is anticipated that approximately 1,000 metres will be drilled at target 702 before the equipment is moved to target 701.

The exploration fieldwork program is expected to take approximately eight weeks to complete. Drill results will be released later in the year.

Qualified person

The technical contents of this news release have been reviewed and approved by Bruce Counts, PGeo, president, chief executive officer and a director of Lithoquest Diamonds and qualified person under National Instrument 43-101.

About Lithoquest Diamonds Inc.

Lithoquest is a Canadian diamond exploration company focused on the discovery and development of economic diamond deposits on its 100-per-cent-owned North Kimberley diamond project located in Western Australia, approximately 65 kilometres east of the community of Kalumburu.

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