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DIAM.TO ·

STAR - Orion South Diamond Project 2019 Trench Cutter Bulk Sampling Completed ON STAR Kimberlite

Corporate Updates

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NEWS RELEASE October 8, 2019

Stock Symbol: DIAM: TSX Saskatoon, Saskatchewan

STAR - ORION SOUTH DIAMOND PROJECT

2019 TRENCH CUTTER BULK SAMPLING COMPLETED ON STAR KIMBERLITE

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

Diamond” or the “Corporation”) is pleased to announce that Rio Tinto Exploration Canada (”RTEC”) have

completed the drilling of ten bulk sample holes (trenches) to conclude their program on the Corporation’s Star

Kimberlite using the Trench Cutter Sampling Rig. The Star Kimberlite is located within 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 ten holes completed on the Star Kimberlite included a total of 2,351

metres of trench cutter drilling and intersected a total of 1,215. 5 metres of kimberlite. This kimberlite was

pumped to surface and recovered using a Kimberlite Separation Unit (“KSU”), with samples loaded and stored in

cubic metre bulk bags, which total 6,848 in number.

The drilling and sampling statistics for each of these ten trenches on the Star kimberlite are listed in the table

below (in order of drilling):

RTEC

Trench #

Days per

Trench

Average Production

(m/day)

Total Depth

(m)

Samples

Collected

Bags

Collected

19FALCT001 16 14.3 228.4 15 703

19FALCT004 15 15.6 233.8 15 771

19FALCT003 14 17.8 249.3 15 873

19FALCT007 10 22.5 225.1 14 613

19FALCT006 10 24.1 241.5 15 705

19FALCT005 13 17.7 230.3 13 683

19FALCT009 9 25.3 227.9 16 579

19FALCT008 9 25.6 230.6 14 543

19FALCT002 17 14.8 251.1 17 806

19FALCT010 11 21.2 233.0 17 572

Total 124 19.0 2,351.0 151 6,848

The Trench Cutter Sampling Rig consists of a Bauer BC 50 Cutter mounted on a Bauer MC 128 Duty -cycle Crane.

The depth of each trench is determined by kimberlite thickness. Trench 19FALCT002 confirmed that the Trench

Sampling Rig can reach its designed sampling depth of 250 metres below surface. The KSU is designed to recover

kimberlite fragments between 80 and 0.85 millimetres from the Trench Cutter Sampling Rig slurry. Kimberlite

collected is being stored in a secure storage area, until the on -site Bulk Sample Plant (“BSP”) has been fully

assembled and commissioned. Final diamond recovery will then be conducted by RTEC at a secure off-site facility.

Senior Vice President Exploration and Development, George Read, states: “ RTEC have successfully applied this

new sampling technology and completed the trench cutter bulk sampling program on the Star Kimberlite. This

ambitious sampling program required significant time to assemble all the components on site, but once it

commenced the trench cutter has operated efficiently and successfully , recovering a large (estimated by RTEC to

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be approximately 8,271 wet tonnes) bulk sample from the Star Kimberlite. Simultaneous to conducting the trench

cutter program, RTEC have been assembling the BSP , which is now at an advanced stage of construction. On ce

construction is completed, RTEC intends to commission the BSP using existing Orion South kimberlite that was

originally collected by the Corporation from the underground bulk sampling program performed in early 2009.

The use of Orion South material for commissioning the BSP will help ensure that the BSP is operating at its design

capacity before the commencement of the processing of the trench cutter samples that were collected from

RTEC’s 2019 bulk sampling program. RTEC’s bulk sampling program using the Trench Cutter has been designed to

recover high quality kimberlite samples and to help ensure that diamond breakage i s minimized. The successful

use of this new Trench Cutter Sampling Rig technology for the recovery of kimberlite bulk samples als o has the

ability to revolutionize future bulk sampling and mining of kimberlites, particularly for kimberlites characteristic of

the Fort à la Corne diamond district of central Saskatchewan, Canada.”

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 Corporation’s Fort à la Corne kimberlites (including the Star - Orion South Diamond Project,

or “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.

All technical information in this press release has been prepared under the supervision of George Read, Senior

Vice-President of Exploration and Development, a registered Professional Geoscientist in the Provinces of

Saskatchewan and British Columbia and Mark Shimell, Project Manager, a registered Professional Geoscientist 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 statements 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", "intend", "forecast", "targ et", "project",

"guidance", "may", "will", "should", "could", "estimate", "predict " or similar words suggesti ng future outcomes or language suggesting an

outlook. In particular, statements regarding the Corporation's future operations, future exploration and development activities or oth er

development plans constitute forward- looking statements. B y their nature, statements referring to mineral 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, RTEC’s and the Corporation’s objectives for the ensuing year, including 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 not 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 impact of changes in the laws and

regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, oper ational and

infrastructure risks and the additional risks des cribed in the Corporation's most recently filed Annual 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 mate rially from

what is anticipated in such forward-looking statements.

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

currently available to it, those assumptions may prove 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 foregoing factors and other

uncertainties and potential events. Unless required by applicable securities law, the Corporatio n 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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