STAR - ORION SOUTH DIAMOND PROJECT COMMENCEMENT OF ORION SOUTH PILOT HOLE DRILLING FOR BULK SAMPLING PROGRAM George H. Read, P. Geo., Seni or Vice President Exploration and Development of Star Diamond Corporation (“Star

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NEWS RELEASE January 24, 2018

TSX: DIAM Saskatoon, Saskatchewan

STAR - ORION SOUTH DIAMOND PROJECT

COMMENCEMENT OF ORION SOUTH PILOT HOLE DRILLING FOR BULK SAMPLING PROGRAM

George H. Read, P. Geo., Seni or Vice President Exploration and Development of Star Diamond Corporation (“Star

Diamond” or the “Corporation”) is pleased to announce that Rio Tinto Exploration Canada (”RTEC”) has

commenced the sonic and core drilling of up to 25 pilot holes on the Orion South Kimberlite. T he sonic drilling

provides a detailed log of the overburden stratigraphy above the kimberlite, while the core holes are being drilled

to generate detailed log s of the kimberlite geology at each locality in preparation for RTEC’s bulk sampling with

the Trench Cutter Sampling Rig. The Orion South Kimberlite is located within the Corporation’s Star - Orion South

Diamond Project, in the Fort à la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions

held 100 percent by Star Diamond.

The sonic drilling is being conducted by Boart Longyear Inc. using two drill rigs, while the core drilling program is

being conducted by George Downing Estate Drilling Ltd. also using two drill rigs. RTEC geologists are responsible

for the supervision of the drilling program s. Detailed geotechnical logging of the core collected by the sonic rig is

being completed by Clifton Associates Ltd. Star Diamond and RTEC geologists are in the process of completing the

detailed core logging.

Senior Vice President Exploration and Development, George Read, states: “ Detailed logging of these pilot sonic

and core holes is most important in order to understand the internal structure of the overburden and kimberlite

to facilitate RTEC’s bulk sampling. This detailed understanding of the internal structure of the kimberlite will

ensure that kimberlite units with different diamond populations are collected as separate samples during the

future bulk sampling.”

Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and

development of mineral properties. Shares of the Corporation trade on the TSX Exchange under the trading

symbol “DIAM”. The Corporation’s Fort à la Corne kimberlites (including the Star - Orion South Diamond Project,

or “Project”) are located in central Saskatchewan in close proximity to established infrastructure, including paved

highways and the electrical power grid, which provide significant advantages for future mine development. RTEC

refers to Star Diamond’s mineral dispositions in the Fort à la Corne diamond district as Project FalCon.

All technical information in this press release has been prepared under the supervision of George Read, Senior

Vice-President of Exploration and Development, a regis tered Professional Geoscientist in the Provinces of

Saskatchewan and British Columbia and Mark Shimell, Project Manager, a registered Professional Geoscientist in

the Province of Saskatchewan, who are the Corporation’s “Qualified Persons” under the definition of NI 43-101.

Caution Regarding Forward-Looking Statements

This news release contains forward -looking statements as defined by certain securities laws, including the "safe harbour" provisions of

Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward -looking information is often,

but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "targ et", "project",

"guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an

outlook. In particular, statements regarding the Corporation's future operations, future exploration and development activities or oth er

development plans constitute forward -looking statements. B y their nature, statements referring to mineral reserves, mineral resources,

PEA or TFFE constitute forward-looking statements.

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Forward-looking statements contained or implied in this press release inclu de, but are not limited to, RTEC’s and the Corporation’s

objectives for the ensuing year, including the proposed bulk sampling program.

These forward-looking statements are based on the Corporation's current beliefs as well as assumptions made by and information currently

available to it and involve inherent risks and uncertainties, both general and specific.

Risks exist that forward -looking statements will not be achieved due to a number of factors including, but not limited to, developments in

world diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and other currencies relative to the

US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of the Corporation

or its partners, the effects of competition in the markets in which the Corporation operates, the impact of changes in the la ws and

regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and

infrastructure risks and the additional risks described in the Corporation's most recently filed Annual Information Form, annual and interim

MD&A. The Corporation's anticipation of and success in managing the foregoing risks co uld cause actual results to differ materially from

what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward- looking statements to be reasonable based on information

currently available to i t, those assumptions may prove to be incorrect. When making decisions with respect to the Corporation, investors

and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other

uncertainties and potential events. Unless required by applicable securities law, the Corporation does not undertake to update any

forward-looking statement that is made herein.

For further information: [email protected] or (306) 664-2202

www.stardiamondcorp.com

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