Mr. Neil Foran reports

MARGARET LAKE DIAMONDS PROVIDES CORPORATE UPDATE ON JOINT VENTURE WITH ARCTIC STAR

Margaret Lake Diamonds Inc.'s joint venture partner, Arctic Star Exploration Corp., will conduct a non-brokered private placement of up to $3.4-million. The private placement will consist of the issuance of up to 8,571,428 non-flow-through units at a price of seven cents for gross proceeds of up to $600,000 and up to 35 million flow-through units at a price of eight cents for gross proceeds of up to $2.8-million.

The Diagras diamond property in the Northwest Territories of Canada consists of 58 contiguous claims staked by Arctic Star, with an area of 48,346 hectares. The property is in joint venture with Margaret Lake whereby Arctic Star owns an 81.5-per-cent interest and Margaret Lake an 18.5-per-cent interest. The property is located in the northeastern part of the prolific Lac de Gras kimberlite field, 22 kilometres north-northeast of the Diavik diamond mine and 36 kilometres east of the Ekati diamond mine in NWT, Canada.

Artic Star received all the diamond results from the JV's spring 2021 drilling program, where five new kimberlites were discovered. Four of these kimberlites were processed by caustic fusion. The fifth kimberlite was not sampled being a small one-metre dike-like intercept. The results are listed in the order of the sequence they were discovered. The Sequoia results were previously released.

The Sequoia clearly stands out as having the highest diamond count. As previously described in news releases dated Sept. 9 and Sept. 15, the diamond results at Sequoia also hint at a coarser diamond size distribution, as does the diamond indicator chemistry.

Arctic Star now plans to complete 10 holes at the diamond-bearing Sequoia kimberlite complex. This drilling will help define the size of the complex, the microdiamond grade and geology. After drilling at Sequoia is completed, the drill will likely be redeployed to discover new kimberlites. Phase 1 of the airborne survey completed coverage of 46 per cent of the property in late 2021. The company's geophysical consultants have selected over 33 possible kimberlite targets from a review of this work, and ground crews are expected to be deployed to follow these up. Phase 2 of the airborne survey is also expected to be completed. Margaret Lake will be participating in the spring 2022 program.