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Margaret Lake Diamonds announces Arctic Star provides details of the Birch Kimberlite Diagras, Lac De Gras, NWT

Corporate Updates

Margaret Lake Diamonds announces Arctic Star provides details of the Birch Kimberlite

Diagras, Lac De Gras, NWT

VANCOUVER, BC / June 3, 2021 / Margaret Lake Diamonds Inc. ("MLD" or the

"Company") (TSXV:DIA) (FKT:M85) (OTC PINK:DDIAF) is pleased to announce Arctic Star

Exploration Corp. (“Arctic Star” or the “Company”) has received more detailed geological logs

for the Birch kimberlite. Dan Gainer, P. Geo., has logged the core in Yellowknife. Dan is a

geologist who is familiar with kimberlites and has recognized two kimberlite types in the two

drill holes drilled at Birch.

Kimberlite 1 is described as a black olivine poor resedimented volcanoclastic kimberlite and

Kimberlite 2 as a grey clast supported olivine rich resedimented volcanoclastic kimberlite.

Kimberlite 1 has a high percentage of mudstones imparting the dark colour. Kimberlite 2 has an

abundant mantle derived fragments and indicator minerals whereas these are not common in

Kimberlite 1. It was noted that kimberlite 2 contained fragments of kimberlite 1.

Table 1 summarizes the geology from the 2 Birch kimberlite holes, the first drilled vertical and

the second drilled to the east at 82.2 degrees dip from the same location.

Table 1.

Drill hole From To Interval Geology

DG-2021-01 0m 28m 28m Overburden

28m 32.66m 4.66m Kimberlite 1

32.66m 35.4m 2.74m Kimberlitic 2

35.4m 50.36m 14.96m Kimberlitic 1

50.36m 54.45m 4.09m Kimberlitic 2

54.45m 62.78m 8.33m Kimberlitic 1

62.78m 71.71m 8.93m Kimberlitic 2

A total of 43.71m of Kimberlitic, 27.96m (64%) of Kimberlitic 1 & 15.76m (36%) of

Kimberlitic 2.

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Table 2.

Drill hole From To Interval Geology

DG-2021-02 0m 26.75m 26.75m Overburden

26.75m 34.96m 8.21 m Kimberlitic 1

34.96m 38.76m 3.8m Kimberlitic 2

38.76m 41.00m 2.24m Kimberlitic 1

41.00m 46.2m 5.2m Kimberlitic 2

46.2m 48.95m 2.75m Kimberlitic 1

48.95m 64.7m 8.93m Kimberlitic 2

Total 37.95m of kimberlite, 13.2m (35%) Kimberlite1 & 24.26m (65%) Kimberlitic 2.

Total kimberlite 81.66m

The kimberlite NQ size drill core was mechanically split and half of it was sent to CFM

laboratories in Kelowna for caustic fusion. Table 3 lists the samples sent to this laboratory. The

portions of the two kimberlite types from the two holes are 50/50.

Table 3 Sample weights sent for Caustic Fusion.

Hole Kimberlitic Sample Weight (kgs)

DG2021-01 Birch 78.74

DG2021-02 Birch 71.80

Total 150.54kg. 20 samples.

Samples were sent in 8kg charges (which represent approximately 4.3m of core separated by

geology where possible). The lab began processing 12 days ago, which has a rate of 3 samples

every two days.

Figure 1. Peridote Mantle nodules, left image chrome diopside, right image pyrope garnet hosted in olivine from

Kimberlitic 2, drill hole DG-2021-02.

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Figure 2. Images of the kimberlite core from the Birch Kimberlitic

Kimberlitic 1: Conspicuous white olivine in a dark mud derived matrix. Matrix supported, poorly sorted. About 20%

Olivine. with 5% broken fine to medium (1-4 mm) irregular, anhedral shaped macrocrysts and 15% occasionally

broken, subhedral, elongate, very very fine to fine (0.25-1 mm ) phenocrysts. All olivine is completely altered to light

green serpentine with minor carbonate. Country rock xenoliths comprise <10% of this core and are dominated by

weak to moderately altered granite, ranging in size from 0.2-1 cm with rare up to 10 cm observed. Less common

mudstone and diabase fragments up to 2 cm are also observed. Rare Indicators of 0.5-5 mm dark purple and red

pyrope with thin kelphitic rims are observed. Magmaclasts are rare and have thin incomplete or complete dark

brown rims around country rock fragments.

Kimberlitic 2: Dark grey colour comprised of closely packed olivine crystals and country rock xenoliths in black

mud matrix, clast supported. Olivine abundance is around 40-50% with an irregular coarse population 30% broken

fine to coarse (1-8 mm) irregular, anhedral shaped macrocrysts and occasionally broken, subhedral, elongate,

(0.25-1 mm) phenocrysts. All olivine is completely altered to light green serpentine with minor carbonate. Country

rock xenoliths comprise 10-20% of this core and are dominated by altered granite, ranging in size from 0.2-1 cm

with rare up to 10 cm observed. Less common mudstone and diabase fragments up to 2 cm are also recorded.

Matrix is black and composed of mud and minor lithic fragments with weak carbonate alteration. Indicators of 0.5-5

mm dark purple and red pyrope with thin kelphitic rims are common. <1mm bright green chrome diopsides are

observed. Magmaclasts are common with thin incomplete or complete dark brown rims around country rock

fragments. Autoliths of KIMB1 0.5-5 cm is observed. Mantle xenoliths of peridotite 0.5-1 cm are observed.

The company also received the final ground geophysical data from around the Birch discovery a

figure 3, summarizes these results. The Birch kimberlite occurs to the SE of the Black Spruce

Kimberlite discovered in the 1990’s by drilling a prominent magnetic low. The black ellipse in

the figure outlines that magnetic anomaly and is our best guess for its location. In the figure the

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ground Ohmmapper survey that measures resistivity, the colours highlight the more conductive

zones as the “hot” red/magenta colours. The Red ellispses are anomalies generated by a ground

gravity survey (Gravity lows). The data suggests the Birch kimberlite is a 150m long ellipse as

defined by the gravity and EM. The other red ellispses are secondary gravity anomalies.

Figure 3. Ohmmapper ground EM survey results: Arctic Star drill holes shown by the green dot, (DG-2021-01 and

02) and the black drill trace is DG2021-03 which intersected a kimberlite dyke. The Black ellipse is the Black

Spruce Kimberlite, defined by a magnetic low. The red ellispses are ground gravity anomalies.

Qualified Person

The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist that is

employed by and works for Arctic Star with over 35 years’ experience in diamond exploration,

discovery, and evaluation. A Qualified Person under the provisions of National Instrument 43-

101.

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Contact Information

Neil Foran

Chief Executive Officer

(604) 681-7735

[email protected]

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of

the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements

(collectively "forward-looking information") within the meaning of applicable securities laws.

Forward-looking information is typically identified by words such as: "believe", "expect",

"anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which,

by their nature, refer to future events. The Company cautions investors that any forward-

looking information provided by the Company is not a guarantee of future results or

performance, and that actual results may differ materially from those in forward-looking

information as a result of various factors. The reader is referred to the Company's public

filings for a more complete discussion of such risk factors and their potential effects, which

may be accessed through the Company's profile on SEDAR at www.sedar.com.