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Star Diamond Announces Closing of Private Placement Financing

Press Release

April 6, 2022

SASKATOON, Saskatchewan, April 6, 2022 – Star Diamond Corporation (“Star Diamond” or the “Corporation”) is pleased to announce the completion of the previously announced non-brokered private placement (the “Offering”) of units of the Corporation (collectively, the “Units”) . Under the Offering, the Corporation issued an aggregate of 13,959,734 Units at a price of $0.30 per Unit for aggregate gross proceeds to the Corporation of $4,187,920.20. Each Unit is comprised of one common share in the capital of the Corporation (each a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.40 per Common Share at any time prior to April 6, 2024.

The net proceeds from the sale of the Units are anticipated to be used by the Corporation to: (i) settle its current working capital deficiency; (ii) for technical analyses and evaluations of the Corporation’s mineral property interests, including the Corporation’s interest in the Star – Orion South Diamond Project; (iii) and for general corporate purposes. Although the Corporation intends to use the net proceeds of the Offering as described, the actual allocation of the net proceeds of the Offering may vary from the anticipated uses, depending on future operations or unforeseen events or opportunities.

In connection with the Offering, the Corporation paid $20,736 in finder’s fees, equal to 6% of the gross proceeds raised by a finder under the Offering and issued finders an aggregate of 362,284 Common Shares and 362,284 finder’s warrants which entitle the holder thereof to purchase one additional Common Share at a price of $0.40 per Common Share at any time prior to April 6, 2024. Insiders did not participate in the Offering.

All securities issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the closing date of the Offering.

As originally announced on March 16, 2022, the Corporation may complete a second tranche of the issue and sale of Units under the Offering on or before April 29, 2022.

About Star Diamond

Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. The Common Shares trade on the Toronto Stock Exchange under the trading symbol “DIAM”. Star Diamond holds, through a joint venture arrangement with Rio Tinto Exploration Canada Inc. (a wholly-owned subsidiary of Rio Tinto), a 25% interest in certain Fort à la Corne kimberlites (including the Star – Orion South Diamond Project). These properties are located in central Saskatchewan, Canada and are 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:
[email protected]
or (306) 664-2202
www.stardiamondcorp.com

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