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Margaret Lake Diamonds announces Arctic Star provides details of the sequoia kimberlite

Corporate Updates

Margaret Lake Diamonds announces Arctic Star provides details of the sequoia kimberlite

VANCOUVER, BC / JUNE 2 9, 2021 / Margaret Lake Diamonds Inc. ("MLD" or the "Company")

(TSXV:DIA) (FKT:M85) (OTC PINK:DDIAF) is pleased to announce it has received more detailed

geological logs for the Sequoia kimberlite. Dan Gainer, P. Geo, has logged the core in Yellowknife. Dan is

a geologist who is knowledgeable in kimberlite geology.

The Sequoia kimberlite is thought to be a number of kimberlite intrusive and volcanic events that have

coalesced into an approximately 1 km long and 200 m wide kimberlite complex. Arctic -drilled two holes

232 m apart into different sectors of a gravity low (less dense) and resistivity (more conductive) geophysical

anomaly, interpreted as mapping the complex. The holes intersected contrasting kimberlite types

confirming the complex consists of multiple volcanic events. Each volcanic event can have different

diamond grades and in some cases different diamond qualities (average values).

Table 1 summarizes the geology from the two Sequoia drill holes. Kimberlites are relatively small volume

volcanoes and volcanic rock terms are applied to describing the different rock types. The term

Volcanoclastic means that this rock was formed relatively near surface and that the material was part of

probably explosive eruption. They are fragmental rocks and the matrix consists of either muds derived from

the surface or ash derived from the eruption, or combinations of these. Often the fragments are dominated

by the local country rock the kimberlite intruded into. Kimberlite clasts also occur along with crystals

(xenocrysts) from the mantle and the kimberlite melt.

The term Coherent kimberlite, describes a fragmental rock where kimberlite fragments dominate, the matrix

consists of kimberlite. This rock type is thought to be intrusive or extrusive.

Kimberlite core observations and geological interpretations can estimate the potential for each particular

rock type to carry commercial (>1mm diameter) diamonds. Rock types that are fine grained, grains size

<1mm have a low potential. Rock types where >1mm crystals and kimberlite fragments dominate have

higher potential.

Other visual aspects of the core are the presence and abundance of indicator minerals. Diamonds are formed

at >150km depth and under great pressure and subsequently brought to the surface via the eruptive

kimberlite event. Along with diamonds and in 2 to 3 orders of greater abundance come other unique

minerals (indicator minerals), as they are also formed under high pressure. Indicator minerals were noted

in all the rock types observed in the two Sequoia drill holes. The Coherent kimberlite and the lower

Volcanoclastic kimberlite are thought to have the best diamond potential due to the abundance of indicator

minerals and the coarse grain size. There are other aspects that control the diamond content so it needs to

be noted that a rock that is considered to have high potential will not necessarily contain economic amounts

of diamonds.

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Table 1 Summarizes the geology from the Sequoia kimberlite hole, DG-2021-04

Drill Hole From To Interval Geology

DG-2021-04 0m 28m 28m Overburden

28m 51.29m 23.29m Resedimented Volcanoclastic

Kimberlite (RVK)

51.28m 89.38m 37.95m Coherent Kimberlite (CK)

89.38m 101.26m 11.88m Volcanoclastic Kimberlite

transitional into Coherent

Kimberlite. (VKt)

101.26m 105.25m 3.99m Coherent Kimberlite (CK)

105.25m 123.49m 18.34m Transitional Volcanoclastic

Kimberlite. (VKt)

123.49m 154m 30.51m Volcanoclastic Kimberlite (VK)

A total of 126m of kimberlite, 18% RVK, 33% CK, 24% VKt, 25% VK.

Table 2 Geological summary of the kimberlite in Drill hole DG 2021-05

Drill Hole From To Interval Geology

DG-2021-05 0m 16.8m 16.8 m Overburden

16.8m 33.53m 16.73 m Granite

33.53m 53.7m 37.95m Volcanoclastic Kimberlite (VK)

53.7m 63.35m 9.65m Altered Kimberlite (AK)

63.35m 83.39m 20.04m Coherent Kimberlite (CK)

83.39m 94.45m 11m Granite

A total of 66.59m of kimberlite, 57% VK, 30% CK, 13% AK.

The NQ size kimberlite drill core was mechanically split and sent to SRC laboratory in Saskatoon. Samples

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

possible). Table 3 lists the samples sent for the Sequoia kimberlite. Once all the samples from each

kimberlite are processed, the laboratory will release the results.

Table 3

Drill Hole No of Samples Weight

DG2021-04 30 229.45

DG202105 10 76.63

Total 306.08kg, 40 samples.

The following figures give examples of the kimberlite types and indicator minerals found at the Sequoia

kimberlite.

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Figure 1: An example of a mantle nodule from the Sequoia kimberlite, Drill hole DG-2021-05, light

green olivine, apple green chrome diopside.

Figure 2: An example of Volcanoclasitc kimberlite from, DG-2021-04.

Figure 3: Coherent kimberlite, DG-2021-04

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Figure 4: Volcanoclstic Kimberlite from DG-2021-05 on the left and the altered kimberlite of the right.

The altered kimberlite is most likely a transitional to Coherent kimberlite. This type of alteration would

not be diamond destructive.

Qualified Person

The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist with over 30 years’

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

National Instrument 43-101.

Contact Information

Neil Foran

Chief Execut ive 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 identi fied 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 provide d 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 .