STAR - ORION SOUTH DIAMOND PROJECT TECHNICAL UPDATE: TRENCH CUTTER BULK SAMPLING AND PROCESSING PLANT George H. Read, P. Geo., Senior Vice President Expl oration and Development of Star Diamond Corporation (“Star Diamond” or the “Corporation”) announces that Rio T into Exploration Canada (”RTEC”) ha

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NEWS RELEASE November 1, 2018

TSX: DIAM Saskatoon, Sa skatchewan

STAR - ORION SOUTH DIAMOND PROJECT

TECHNICAL UPDATE: TRENCH CUTTER BULK SAMPLING AND PROCESSING PLANT

George H. Read, P. Geo., Senior Vice President Expl oration and Development of Star Diamond Corporation (“Star

Diamond” or the “Corporation”) announces that Rio T into Exploration Canada (”RTEC”) has commenced the

winter shut down of the Trench Cutter Sampling Rig, which consists of a Bauer BC 50 Cutter mounted on a Bauer

MC 128 Duty-cycle Crane. Bauer Maschinen GmbH (“Bau er”) and Nuna Logistics Limited (“Nuna”) are in the

process of winterizing the Trench Cutter Rig and th e desanding plant. The winterizing includes the rem oval of

pumps, motors and electronics that will be stored i n heated sea containers on the site of the Star Kim berlite for

the winter months. The Star Kimberlite is located w ithin 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. RTEC refers to Star Diamond’s mineral dispositions in the Fort à la Corne diamond district as Project

FalCon.

The Trench Cutter bulk sample drilling was successf ully initiated in early October and the first hole reached a

depth of 37.1 metres below surface. The Trench Cutt er Sampling Rig successfully excavated the sand and till

overburden and returned a substantial proportion of large (up to 80 millimetre) fragments from the til l. The

encouraging performance of the Trench Cutter Sampling Rig was unfortunately constrained by the commissioning

of the desanding plant, which did not operate at de sign capacity. The design and construction of the d esanding

plant are being evaluated by RTEC with the intent that the desanding plant will be revised or replaced by the time

that RTEC's on-site bulk sample processing plant is commissioned in spring of 2019.

The final components of the bulk sample processing plant have been shipped, by sea, from South Africa. All

containers of bulk sample processing plant equipmen t are scheduled to reach Montreal, Canada in early

December 2018. The Tomra X-Ray Transmission (“XRT”) diamond sorter has already been delivered and is

currently being stored off-site in heated storage until it such time that it will be delivered to site, for incorporation

in the plant, in early 2019. The construction of a heated, on-site sample storage facility has been permitted and is

scheduled to commence in late November 2018.

Senior Vice President Exploration and Development, George Read, states: “The successful operation of, and

overburden excavation by, the Trench Cutter Sampling Rig bodes well for the future sampling of kimberl ite. RTEC

has indicated that the construction of the bulk sam ple processing plant and revisions to the desanding plant are

scheduled to be completed during the winter in prep aration for the recommencement of Trench Cutter bul k

sampling on the Star Kimberlite in spring of 2019.”

About Star Diamond Corporation

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

development of mineral properties. Shares of the Co rporation trade on the TSX Exchange under the tradi ng

symbol “DIAM”. The Corporation’s Star - Orion South Diamond Project is located in central Saskatchewan some 60

kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including

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

The Project recently received provincial approval b y the Saskatchewan Ministry of Environment (see New s

Release dated October 25, 2018), along with a previous positive Federal environmental decision).

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The Corporation recently announced the positive res ults of the independent Preliminary Economic

Assessment (“PEA”) on the Project. The PEA estimate s that 66 million carats of diamonds could be recov ered

in a surface mine over a 38-year Project life, with a Net Present Value (“NPV”) (7%) of $2.0 billion a fter tax, an

Internal Rate of Return (“IRR”) of 19% and an after -tax payback period of 3.4 years after the commence ment

of diamond production (see News Release dated April 16, 2018). Star Diamond commissioned the PEA and

related Technical Report for the Star and Orion Sou th Kimberlites and, as such, the PEA and Technical Report are

the sole responsibility of the Corporation. The PEA is based on exploration and evaluation work conduc ted up to

and including March 2017.

During 2017, the Corporation granted RTEC an option to earn up to a 60% interest in the Corporation’s Fort à la

Corne mineral properties (including the Star - Orio n South Diamond Project) on the terms and condition s

contained in the Option Agreement (see News Release dated June 23, 2017). 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 re gistered Professional Geoscientist in the Provinces of

Saskatchewan and British Columbia and Mark Shimell, Project Manager, a registered Professional Geoscie ntist 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 statemen ts 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", "int end", "forecast", "target", "project",

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

outlook. In particular, statements regarding the Co rporation's future operations, future exploration a nd development activities or other

development plans constitute forward-looking statem ents. By their nature, statements referring to mine ral reserves, mineral resources,

PEA or TFFE constitute forward-looking statements.

Forward-looking statements contained or implied in this press release include, but are not limited to, disclosure regarding the economics

and project parameters presented in the PEA, includ ing, without limitation, IRR, NPV and other costs a nd economic information, carats of

diamonds to be recovered, after-tax payback period, tonnes of kimberlite to be mined, carats per tonne to be recovered (grade), diamond

prices, project life, life of mine, capital costs, and length of pre-production period as well as stat ements with respect to environmental

permitting and approvals, the timing for revision o r replacement of the desanding plant, timing for de livery and construction of the bulk

sample processing plant, timing of construction of heated storage on-site and timing for recommencement of the 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 no t 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 impa ct of changes in the laws and

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

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

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

what is anticipated in such forward-looking statements.

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

currently available to it, those assumptions may pr ove to be incorrect. When making decisions with res pect to the Corporation, investors

and others should not place undue reliance on these statements and should carefully consider the foreg oing 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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