STAR Diamond Provides Update Regarding Option to Joint Venture Agreement with RIO Tinto Exploration Canada Inc.
1
NEWS RELEASE February 18, 2020
TSX: DIAM Saskatoon, Saskatchewan
STAR DIAMOND PROVIDES UPDATE REGARDING
OPTION TO JOINT VENTURE AGREEMENT WITH RIO TINTO EXPLORATION CANADA INC.
SASKATOON, SASKATCHEWAN, February 18, 2020 - Star Diamond Corporation (TSX:DIAM) (“ Star
Diamond” or the “Corporation”) announced that, following a review conducted by Star Diamond’s
special committee of non -management directors, with assistance from the special committee’s
independent legal counsel, Star Diamond has today notified Rio Tinto Exploration Canada Inc.
(“RTEC”) that its purported exercise in November 2019 of its four options (the “ Options”) under
the Option to Joint Venture Agreement dated June 22, 2017 (the “ Agreement”) did not comply
with the terms of the Agreement. Star Diamond has also notified RTEC that its operations and
claimed expenditures in relation to the Corporation’s Star - Orion South Diamond Project located
in central Saskatchewan (the “Project”) did not comply with the Agreement.
Star Diamond has advised RTEC that it must immediately comply with all of its obligations under
the Agreement, including in connection with RTEC’s operations and expenditures in relation to the
Project, any exercise by RTEC of the Options, and the immediate provision to Star Diamond of all
information and data required under the Agreement.
While Star Diamond has not to date been provided with any meaningful data from RTEC’s drilling
operations at the Pro ject, Star Diamond believes that RTEC’s continuing actions and conduct in
relation to the Project are consistent with a belief by RTEC that the Project warrants significant
continued investment. Star Diamond believes that RTEC has expended significant fun ds at the
Project to date, and that RTEC intends to continue doing so during 2020. Star Diamond looks
forward to receiving all technical and other data from RTEC’s operations to date at the Project as
soon as practicable. Star Diamond is committed to tak ing all actions necessary to ensure that the
interests of the Corporation, its shareholders and its many Saskatchewan -based and other
stakeholders are protected in connection with the Project, including by enforcing all of Star
Diamond’s rights under the Agreement.
In light of the confidentiality restrictions included in the Agreement, pending a resolution of
matters between Star Diamond and RTEC, either through Court process or negotiated solution,
Star Diamond does not intend to comment further on these matters, except as may be required by
applicable securities laws.
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.
2
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. 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 this press release include statements relating to the
Corporation’s intentions with respect to its dealings with RTEC, including in relation to RTEC’s
purported exercise of the Options a nd the related issues Star Diamond has raised with RTEC.
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 th ese 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 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
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
- END -