Mr. Yari Nieken reports

MARGARET LAKE DIAMONDS SETTLES CERTAIN OUTSTANDING DEBTS

Margaret Lake Diamonds Inc. has entered into binding agreements in respect of the settlement of three outstanding debts, totalling $428,537.02. The debt settlements will consist of the issuance of 918,121 units at a deemed price of 14 cents per unit to two creditors and 1,428,571 common shares in the capital of the company to a third creditor at a deemed price of 14 cents per common share. Each unit will comprise one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of 28 cents per common share for a period of two years from issuance. The debt settlements remain subject to the approval of the TSX Venture Exchange. The securities issued in connection with the debt settlements will bear a statutory four-month hold period from the date of issuance in accordance with applicable securities legislation.

About Margaret Lake Diamonds Inc.

Margaret Lake is a Canadian-based mineral exploration company. As part of its joint venture with Arctic Star Exploration, Margaret Lake holds an 18.5-per-cent interest in the Diagras diamond project, Northwest Territories. The property hosts 13 known kimberlites originally discovered by DeBeers in the 1990s and Margaret Lake believes there is an opportunity to apply modern exploration techniques to define additional kimberlites. Additionally, the company owns 100-per-cent interest in the Mormon Lake uranium property near Payson, Ariz.

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