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DIAM.TO ·

Star Diamond Clarification for Existing Shareholders on Non-Brokered Private Placement Financing of up to C$2.0 Million

Financings

NEWS RELEASE December 22, 2023

TSX: DIAM Saskatoon, Saskatchewan

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Star Diamond Clarification for Existing Shareholders on Non-Brokered

Private Placement Financing of up to C$2.0 Million

December 22, 2023, Saskatoon, Saskatchewan, Canada: Star Diamond Corporation (TSX: DIAM) (“Star

Diamond” or the “Company”) notes that in response to a significant number of enquiries received from

existing shareholders regarding their eligibility to participate in the financing announced Dec 15, 2023 ,

the Company provides the following clarification:

The Company advises that if you are an existing shareholder interested in participating in the Offering at

a minimum subscription amount of $10,000, please contact Star Diamond Corporation by email at

[email protected] to discuss exemptions available for you under existing

securities law.

The Offering will consist of any combination of (i) units of the Company (“Units”) at a price of C$0.09 per

Unit; and (ii) "flow-through" units of the Company ("FT Units") at a price of C$0.11 per FT Unit, subject to

maximum aggregate gross proceeds of C$2.0 million. Each Unit shall consist of one common share of the

Company (which shall not be a “flow -through share”) and one common share purchase warrant (a

“Warrant”). Each FT Unit shall consist of one common share of the Company (a “FT Share”) and one

Warrant, each of which will qualify as a "flow -through share" for the purposes of the Income Tax Act

(Canada). Each Warrant will entitle the holder thereof to acquire one additional common share of the

Company (which shall not be a “flow -through share”) at an exercise price of C$0.14 for a period of 36

months from the date of issuance.

The Offering is expected to close in one or more tranches, the first of which will occur on or before

December 29, 2023 and involve the issuance of all FT Units issuable pursuant to the Offering. The

Company may close concurrent or subsequent tranches of Units pursuant to the Offering, on or prior to

January 26, 2024. The Offering is subject to the approval of the TSX. All securities issued in connection

with the Offering will be subject to a statutory hold period of four months plus one day from the closing

date of the Offering.

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 interest in the Fort à la Corne property 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: [email protected]

Website: www.stardiamondcorp.com

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This press release contains "forward -looking statements" and/or "forward -looking information"

(collectively, "forward-looking statements") within the meaning of applicable securities legislation. All

statements, other than statements of historical fact, ar e forward-looking statements. The use of any of

the words “anticipate”, “plan”, “aim”, “target”, “contemplate”, “continue”, “estimate”, “expect”,

“intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”,

“predict”, “forecast”, “pursue”, “potential”, “possible”, “capable” and similar expressions are intended to

identify "forward-looking statements. Forward-looking statements in this press release include, but are

not limited to, expectations regarding the completion of the Offering and the prospective nature of the

Company's property interests.

These forward-looking statements are based on Star Diamond'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, the receipt of applicable regulatory approvals, availability of

financing, the impact of changes in the laws and regulations regulating mining exploration, development,

closure, judicial or regulatory judgments and legal proceedings and the additional risks described in Star

Diamond's most recently filed Annual Information Form, and annual and interim MD&A.

Although management of Star Diamond considers the assumptions contained in forward -looking

statements to be reasonable based on information currently available to Star Diamond, those

assumptions may prove to be incorrect. When making decisions with respect to Star Diamond, investors

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

foregoing factors and other uncertainties and potential events.

Star Diamond does not undertake any obligation to release publicly revisions to any forward -looking

statement to reflect events or circumstances after the date of this release, or to reflect the occurrence of

unanticipated events, except as may be required under applicable securities laws. Investors should not

assume that any lack of update to a previously issued forward -looking statement constitutes a

reaffirmation of that statement. Continued reliance on forward -looking statements is at investors’ own

risk.

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

www.stardiamondcorp.com