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Encouraging Diamond Indicator Chemistry reported from the Arbutus Kimberlite Discovery, Diagras Project, NT 1. A total of 3kg of Arbutus kimberlite was processed at CF Minerals of Kelowna and interpreted by Dr. Chuck Fipke

Corporate Updates

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Encouraging Diamond Indicator Chemistry reported from the Arbutus Kimberlite Discovery,

Diagras Project, NT

1. A total of 3kg of Arbutus kimberlite was processed at CF Minerals of Kelowna and

interpreted by Dr. Chuck Fipke

2. He reports that Arbutus Kimberlite should have excellent diamond potential with some of

the best chemistries he has seen, with abundant indicators in a relatively small sample.

3. Dr. Chuck Fipke, created the Canadian diamond industry when his work led to the

discovery of the Ekati diamond mine in the Lac de Grad kimberlite field.

4. The lab has a large global database of minerals that are inclusions in diamonds. These

have unique chemistries. Many of the indicators from Arbutus exhibited similar chemistry.

October 3, 2022 - VANCOUVER, BC / October 3, 2022 / Margaret Lake Diamonds Inc. ("MLD" or

the "Company") (TSXV: DIA) (FKT:M85A) (OTC PINK: DDIAF) is pleased to announce diamond

indicator mineral "DIMS" analysis and classification has been completed by C.F. Mineral

Research Ltd, on core sample from the Arbutus Kimberlite discovery, of the Diagras project NT.

The Diagras project is a joint venture between Arctic Star Exploration Corp. ( 81.5%) and

Margaret Lake Diamonds Inc. ( 18.5%).

Mr. Patrick Power, President of Arctic Star, commented, "Indicator minerals are an important

adjunct, when first encountering a new kimberlite discovery. Dr. Fipke's results and

interpretation are telling us that:

1. That the kimberlite is multi-phase, with one of the phases having superior chemistry to

the others

2. The chemistry is some of the best Dr. Fipke has seen when compared to his global

database of diamond inclusions, the results here have a higher percentage and are more

abundant by weight of samples that he has encountered previously.

3. The chemistry is also permissive for large diamonds.

We provide the full report from Dr Fipke below:

Three small core samples of kimberlite weighing 0.97, 0.81 and 1.22 kilograms were submitted

by Arctic Star Exploration to C.F. Mineral Research Ltd. for extraction, microprobing and

classifying of any contained diamond indicator minerals.

According to Arctic Star the three pieces originated from various parts of the Arbutus kimberlite

in which 143.05 kilograms of kimberlite from two drill holes contained 61diamonds.

A summary sheet of the diamond indicators recovered, microprobed and classified is given as

Table 1. An asterisk "*" present in a column type/header [G10* pyropes, Di*G9/11 pyropes,

Di$* clinopyroxenes (Cr diopsides), Di* chromites, G1* eclogitic garnets, and Di* olivines]

means that the indicator minerals recovered match the compositions of indicator minerals

included in diamond, intergrown with diamond or are from diamond bearing xenoliths. About

11,000 of such diamond inclusion indicators from worldwide sources are present in the C.F.

Mineral Research database. The type and numbers of kimberlite indicators in Table 1 suggest

that all three samples may originate from differing kimberlite phases in the same kimberlite.

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Sample DG-2022-08 weighing 970 gms contained only a single G10* pyrope and a single G1*

eclogitic garnet. However the sample contained 92 Di* chromites and 36 Di* olivines. Moreover,

the sample contained a Di$* clinopyroxene and five Di* G9/11 pyrope garnets that are sourced

from Lherzolite which are known to contain small quantities of very large diamonds. Such

Lherzolite minerals are included in diamonds greater than 52 carats from the Ekati Diamond

Mine, Canada and are present at the Premier Mine, South Africa, the Lacara Mine, South Africa

and the Letzing Mine, Lesotho. The last mine is known to contain huge diamonds with no or rare

small diamonds.

Sample DG-2022-09B, weighing 810 gms also only contained a single G10* pyrope garnet and

no Di*G9/11 pyrope garnets but contained 68 Di* chromites, 41 Di* olivines and 67 G1*

ecologitic garnets. Thus, this sample is dominated by G1* ecologitic garnets from a diamond

bearing ecologite source but also contains 3 Di$* clinopyroxenes from a Lherzolite source

described above.

Sample DG-2022-09A weighing 1220 gms contained 73 G10* pyropes, 110 Di* chromites, 44

Di* olivines, 32 G1* ecologitic garnets. In addition the sample contained two Di* G9/11 pyropes

and a single Di$* clinopyroxene. Thus these indicator minerals were sourced from diamond

bearing pyrope and chromite sources as well as a diamond bearing ecologite source as well as

from a Lherzolite source of large diamonds.

C.F. Mineral have never previously encountered such a rich source of G10-10* and G10-9*

composition pyropes along with significant diamond inclusion minerals from diamond bearing

chromite, Group 1 ecologite and Lhzerolite sources of diamond. According to the late Dr. John

Gurney, Head of the Department of Geochemistry, South Africa, G10-10* and G10-9*

composition pyropes are associated with the highest of diamond grades. We would expect the

kimberlite phase of DG-2022-09A to be loaded with diamonds and additionally contain some

very large diamonds.

Unfortunately only four picroilmenites were recovered from all three samples submitted.

Picroilmenites do not actually form with diamond but form from the kimberlite magma itself.

When 40 to 50 picroilmenites are present it is possible to predict whether or not the kimberlite

magma may have oxidized diamonds thus destroying small diamonds but leaving large

diamonds only partially oxidized. Of course diamonds encapsulated in xenoliths would be

insulated against an oxidizing kimberlite magma thus be recovered unoxidized.

If more of the DG-2022-09A phase is present we would expect correspondingly high diamond

grades. All three samples contain Lherzolite sources of diamond in which large diamonds are

expected with or without small diamonds. Overall, the DG-2022-09A phase Di* indicator results

are the best C.F. Mineral have ever encountered.

Note: Dr. Fipke personally owns Arctic Star shares.

Mr. Buddy Doyle, VP Exploration for Arctic Star, also commented. "Our general exporation

strategy is to locate new kimberlite discoveries. If the results of this work is encouraging we

return to the kiberlite and drill more to define its size and get a larger diamond samples. The

Arbutus kimberlite discovery has proven to be diamond bearing, with relatively larger stones

from a small sample. (see news release dated September 14/22 ). This along with the excellent

diamond chemistry reported here, demonstrates that this kimberlite deserves further attention.

Also notable, is that Arbutus lies to the south of the Finlay kimberlite. A historic kimberlite,

discovered in the 1990's, however, the previous workers never made the diamond content

public. We therefore also plan to test this kimberlite in the 2023 exploration program."

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Qualified Person

The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist with over 35

years of experience in diamond exploration, discovery, and evaluation. A Qualified Person under

the provisions of the National Instrument 43-101. Mr. Doyle has relied on the Technical

expertise of Dr. Fipke for portions of this news release.

The Diagras project is a joint venture between Arctic Star Exploration Corp. (currently 81.5%)

and Margaret Lake Diamonds Inc. (currently 18.5%).

On behalf of the Board

Margaret Lake Diamonds Inc.

"Yari Nieken"

President, Chief Executive Officer, Chairman

Tel: 604.328.0425 | Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy

of this release.

Disclaimer for Forward-Looking Information

Information set forth in this news release may involve forward-looking statements under

applicable securities laws. Forward-looking statements are statements that relate to future, not

past, events. In this context, forward-looking statements often address expected future business

and financial performance, and often contain words such as “anticipate”, “believe”, “plan”,

“estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”,

“could”, “should”, or “will” be taken or occur, including statements that address potential

quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed

timing of exploration and development plans, or other similar expressions. By their nature,

forward-looking statements involve known and unknown risks, uncertainties and other factors

which may cause our actual results, performance or achievements, or other future events, to be

materially different from any future results, performance or achievements expressed or implied

by such forward-looking statements. Such factors include, among others, the following risks: the

need for additional financing; operational risks associated with mineral exploration;

fluctuations in commodity prices; title matters; and the additional risks identified in the annual

information form of the Company or other reports and filings with the TSXV and applicable

Canadian securities regulators. Forward-looking statements are made based on management’s

beliefs, estimates and opinions on the date that statements are made, and the Company

undertakes no obligation to update forward-looking statements if these beliefs, estimates and

opinions or other circumstances should change, except as required by applicable securities laws.

Investors are cautioned against attributing undue certainty to forward-looking statements.