Fort À La Corne Project Orion North Diamond Valuation And Proportions Of Type IIa Diamonds

Press Release

SASKATOON, Saskatchewan, May 16, 2023 – Star Diamond Corporation (TSX: DIAM) (“Star Diamond” or the “Company”) is pleased to announce that it has completed an estimate of the diamond valuation of three major kimberlite units within the Orion North Kimberlite. The diamond parcels included in this valuation are all from large diameter drill samples collected between 2006 and 2008 and are sampled from Early Jou Fou (“EJF”) kimberlite units that form the dominant, potentially economic lithologic units of the K120 and K147/K148 kimberlites. These diamond parcels have not previously been examined for diamond valuation. The K120 and K147/K148 kimberlites are the principal components of the Orion North cluster of contiguous kimberlites and the extents of these EJF units are shown on a Map of Orion North.

Highlights

• The diamond valuation exercise has shown that the diamonds found within the EJF units of the K120 and K147/148 kimberlites have high modelled diamond prices, between US$212 and US$288 per carat, as shown in the table below. The two highest value stones, from K147-K148-EJF4 and K120-EJF, respectively, are 6.89 carats (US$3,519.00 per carat, US$24,246.00) and 7.50 carats (US$3,520.00 per carat, US$26,400.00). These diamond parcels are too small (carats and stones) for rigorous diamond value estimates.
• The diamond typing exercise has shown the presence of high proportions of Type IIa diamonds in all three of these Orion North kimberlites. The EJF3 and EJF4 units of K147/K148 have anomalously high proportions of Type IIa diamonds of 41% and 63%, respectively, as shown in the table below. The diamonds analysed represent a spectrum of diamond sizes from +5 DTC (+0.05 carats) to 7 carats.
• A Target for Further Exploration (“TFFE”) completed by Star Diamond in 2014 (see News Release Mar 06, 2014), estimated that between 511 million and 609 million tonnes of the major EJF units, containing between 25 and 50 million carats, occur within the Orion North kimberlite cluster. This work enables Star Diamond to state that the Orion North Kimberlite is a diamond deposit with more than 500 million tonnes of potential mineable kimberlite.

Diamond Valuation

Diamond valuations and model prices, as shown in the table below, were completed by Mr. Nelson Karun, Diamond Specialist, for Star Diamond. The Parcel Price represents an estimate of the wholesale price for which the parcel could currently be sold. The Model Price is an estimate for a future price that considers the diamond size frequency distribution. The Low Model represents a minimum while the High Model does not represent a maximum.

Kimberlite	Number	Number	Parcel	Model	Low Model	High Model
	of	of	Price	Price	Price	Price
	Stones	Carats	(US$/Ct)	(US$/ct)	(US$/ct)	(US$/ct)
K120-EJF	3,162	273.93	202.55	267.77	200.83	401.66
K147-K148 EJF3	666	70.90	139.14	287.88	215.91	431.82
K147-K148-EJF4	940	81.61	374.45	211.74	158.80	317.60

As observed by Mr. Karun, diamonds from these kimberlite bodies exhibit good quality and colour, consisting significant collection colour (GIA: D-F) and there are high proportions of Gem and Near Gem and low proportions of Boart (Industrial). These diamond parcels include high yielding models. The proportion of diamonds in each parcel that exhibits strong fluorescence is very low (negligible)– as listed in the table below.

Kimberlite	Gem %	Near Gem %	Boart %	Strong Fluorescence %
K120-EJF	61.43	22.71	15.86	3.04
K147-K148 EJF3	73.67	16.28	10.06	3.30
K147-K148-EJF4	71.87	19.09	9.04	1.28

Diamond Typing

These three kimberlite units have diamond parcels with sufficient diamonds to conduct preliminary diamond typing studies. The number and the percentage of Type IIa diamonds for these Orion North EJF units studied are documented in the table below and show that these kimberlites have anomalously high proportions of Type IIA diamonds, particularly K147/K148-EJF4.

Orion North Diamonds (+5 DTC (0.05 carats) to 7 carats)

	Number of	Number of Type IIa	Percentage Type IIa
	Diamonds Typed	Diamonds	Diamonds
K120-EJF	1,545	167	10.81
K147-K148-EJF3	454	184	40.52
K147-K148-EJF4	514	326	63.42

Senior Vice President Corporate Development, George Read, states: “The model prices for these three early stage bulk samples of Orion North EJF are high (greater than US$200 per carat), while the model prices for K120-EJF (US$267.77 per carat) and K147/K148-EJF3 (US$287.88 per carat) are more than double the average US$ per carat price for all Canadian production in 2022 (US$115.56 per carat). All three parcels have significantly elevated proportions of Type IIa diamonds, with K147/K148-EJF3 and K147/K148-EJF4 being uniquely high and point toward an opportunity for the recovery of large diamonds (greater than 10.8 carats) from potential future production. The high diamond prices, uniquely high proportions of Type IIa diamonds, combined with more than 500 million tonnes of diamond bearing kimberlite, suggest that the Orion North kimberlite cluster presents a rare opportunity of future evaluation.”

Type IIa diamonds are very rare and generally account for less than 2 percent of all natural rough diamonds mined world-wide from kimberlite deposits. Only a small number of active diamond mines regularly produce Type IIa diamonds, with the most important of these mines being Letseng Diamond Mine in the Kingdom of Lesotho and, more recently, Karowe Diamond Mine in Botswana.

The Fort à la Corne Project is situated in central Saskatchewan some 60 km east of the city of Prince Albert. The Project occurs within a contiguous block of 191 mineral dispositions covering 44,534 hectares and includes 69 kimberlites, many of which are diamond bearing, in a linear array that trends from southeast to northwest.

All technical information in this press release has been prepared under the supervision of George Read, Senior Vice President Corporate Development, a registered Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimell, Vice President Exploration, a registered Professional

Geoscientist in the Provinces of Saskatchewan and Alberta, who are the Corporation’s “Qualified Persons” under the definition of NI 43-101.

About Star Diamond Corporation

Star Diamond is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading symbol “DIAM”. Star Diamond’s most significant asset is its 100% interest in the Fort à la Corne Project in central Saskatchewan. These kimberlites are located in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

For further information, please contact:

Phone: (306) 664-2202
Email: stardiamondcorp@stardiamondcorp.com
Website www.stardiamondcorp.com

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