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File: 20160906 Private Placement.doc

MARGARET LAKE DIAMONDS INC.
Suite 2050 - 1055 West Georgia Street P.O.Box 11121 - Royal Centre Vancouver, BC  V6E 3P3


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

                TSXV: DIA

September 27, 2016, Vancouver, British Columbia - Margaret Lake Diamonds Inc. (TSXV:DIA, FSE:M85) ("MLD" or the "Compa
--->ny") announces a non-brokered private placement (the "Offering") of up to 7,000,000 units (each a "Unit") at a price o
--->f $0.10 per Unit, for aggregate gross proceeds of up to $700,000.

Each Unit shall consist of one common share of the Company (a "Common Share") and one-half of one transferable common 
--->share purchase warrant (each whole such warrant a "Warrant"), with each Warrant entitling the holder thereof to acquir
--->e one additional Common Share at a price of $0.30 for a period of twenty-four (24) months following closing of the Off
--->ering (the "Expiry Date"), subject to acceleration. In the event the closing price of the Common Shares on the TSX Ven
--->ture Exchange (the "Exchange") is greater than $0.40 per Common Share during any twenty (20) consecutive trading-day p
--->eriod, the Company may accelerate the Expiry Date by giving notice to the holders thereof via news release, and in suc
--->h case the Warrants will expire on the twenty-first (21st) business day after the date on which such notice was given 
--->to the holders by the Company.

The Company may pay finder's fees of 6% cash and 10% 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 upco
--->ming drill program on the Margaret Lake Property during the first quarter of 2017, and for ongoing general and adminis
--->trative expenses.
 
In addition, the Company announces the granting of 1,075,000 incentive stock options to certain directors, officers an
--->d consultants to purchase up to common shares under the Company's incentive stock option plan. The options will be gra
--->nted for a period of five (5) years commencing on October 1, 2016, and are each exercisable at a price of $0.15 per Co
--->mmon Share.

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

About Margaret Lake Diamonds Inc. 

Margaret Lake Diamonds Inc. is a diamond exploration company focused on the Northwest Territories in proximity to Gahc
--->ho Kue, the newest Canadian diamond mine owned by De Beers and Mountain Province Diamonds, and adjacent to the ongoing
---> advanced exploration by Kennady Diamonds. The Board of MLD is comprised of persons with combined involvement of over 
--->50 years in the Canadian diamond sector.

ON BEHALF OF THE BOARD OF DIRECTORS 
 "Paul Brockington"

Paul Brockington, President and Chief Executive Officer 

For further information, please contact: 

Margaret Lake Diamonds Inc. 
Paul Brockington President and CEO 
Phone: 604-630-2810 

Website: www.margaretlake.com

Forward-looking Information 

This news release contains forward-looking information that involve various risks and uncertainties regarding future e
--->vents. Such forward-looking information can include without limitation statements based on current expectations involv
--->ing a number of risks and uncertainties and are not guarantees of future performance of the Company. Actual results an
--->d future events could differ materially from anticipated in such information. These and all subsequent written and ora
--->l forward-looking information are based on estimates and opinions of management on the dates they are made and express
--->ed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information
---> should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX 
--->Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.