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DIAM.TO ·

STAR Diamond Corporation Announces Closing of Private Placement

Financings

1

NEWS RELEASE December 20, 2018

TSX: DIAM Saskatoon, Saskatchewan

STAR DIAMOND CORPORATION ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Star Diamond Corporation (TSX:DIAM) ("the Corporation") is pleased to announce the successful closing

of a $1.25 million private placement of 4,808,153 Flow-Through Common Shares at a price of $0. 26 per

Flow-Through Common Share (the "Offering").

The proceeds from the sale of the Flow- Through Common Shares will be used by the Corporation to

incur Canadian exploration expenses (“Qualifying Expenditures”) prior to December 31, 201 9. The

Corporation will renounce the Qualifying Expenditures to subscribers of Flow -Through Common Shares

for the fiscal year ended December 31, 2018.

The Corporation paid certain finders (each a “Finder”) cash fees equal to 5% of the gross proceeds raised

by such Finder pursuant to the Offering, and issued such Finder warr ants equal to 5% of the number of

Flow-Through Common Shares attributable to such Finder pursuant to the Offering (the “Finder’s

Warrants”). The Corporation issued 240,408 in Finder’s Warrants in relation to the Placement,

exercisable at any time up to twe lve months following the closing of the Offering at $ 0.28 per share. All

securities issued pursuant to the Offering are subject to a four month hold period in accordance with

applicable securities laws and exchange regulations. The Offering is subject to T SX acceptance of

requisite regulatory filings.

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”.

Caution Regarding Forward-Looking Statements

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

United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements ,

other th an statements of historical fact, are forward -looking statements. Generally, 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 t his press release include the tax treatment of Flow -Through Shares and the use of the proceeds of the

Offering. 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 considers 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 uncertaintie s, both general and specific, and risks exist that 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 caus e the actual results to differ materially from the beliefs, plans, objectives,

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

This press release shall not constitute an offer to sell or the solicitatio n of an offer to buy the securities in any jurisdiction. The

Flow-Through Common Shares will not be and have not been registered under the United States Securities Act of 1933 and may

not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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

www.stardiamondcorp.com

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