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DIAM.TO ·

STAR Diamond Corporation Announces Appointment of Lisa Riley to Its Board of Directors and the Formation of Special Committee

Management Changes

NEWS RELEASE February 3, 2020

TSX: DIAM Saskatoon, Saskatchewan

STAR DIAMOND CORPORATION ANNOUNCES APPOINTMENT OF LISA RILEY TO ITS BOARD OF

DIRECTORS AND THE FORMATION OF SPECIAL COMMITTEE

Star Diamond Corporation (TSX:DIAM) (“ Star Diamond” or the “ Corporation") is pleased to announce that Lisa

Riley has been appointed as an independent member of the board of directors (the “Board”) of Star Diamond.

“Lisa has had significant success throughout her career and her extensive experience advising mining companies

and investors will be invaluable to Star Diamond,” said Ewan D. Mason, Chairman of the Board. “We are very

pleased to have Lisa join our Board.”

As previously disclosed, Star Diamond received notice (the “ Exercise Notice”) in November 2019 from Rio Tinto

Exploration Canada Inc. (“RTEC”) advising that RTEC was exercising all four of its options under the Option to Joint

Venture Agreement dated June 22, 2017. The Board has formed a Special Committee of non -management

directors (Ewan D. Mason, Harvey J. Bay, Lisa K. Riley and C. Michael Ryer) to review and consider the Exercise

Notice, including whether the options have been validly exercised by RTEC, to oversee the Corporation’s dealings

with RTEC including in relation to the Exercise Notice and to consider the Corporation’s alternatives in the context

of the Exercise Notice.

About Star Diamond Corporation

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 Fort à la Corne kimberlites (including the Star - Orion South Diamond 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.

Caution Regarding Forward-Looking Statements

This press release contains “forward -looking statements” and/or “forward -looking information”, within the meaning of

applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward -looking

statements. Gener ally, forward -looking statements can be identified by the use of forward- looking terminology such as

“plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”,

“believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”,

“would”, or the negative connotation thereof. Forward -looking statements included or implied in this press release include

the review and consideration by the Special C ommittee of the Exercise Notice and statements relating thereto. These

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

currently available to the Corporation. Although management cons iders these assumptions to be reasonable based on

information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve

inherent risks and uncertainties, both general and specific, and risks exist t hat predictions, forecasts, projections and other

forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a

number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives,

expectations, anticipations, estimates and intentions expressed in such forward- looking statements.

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

www.stardiamondcorp.com

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