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Margaret Lake Diamonds Annual General Meeting and Old Nick outcrop and grab sample results

Drill Results Exploration Programs Sampling & Geoscience Results Shareholder Meetings

Margaret Lake Diamonds Annual General Meeting

and Old Nick outcrop and grab sample results

VANCOUVER, BC / August 16 th, 2021 / Margaret Lake Diamonds Inc. ("MLD" or the

"Company") (TSXV:DIA) (FKT:M85) is pleased to announce at the Company’s Annual

General Meeting held Thursday August 5 (the “Meeting”), all resolutions proposed were duly

passed by the shareholders of the Company.

Shareholders of the Company approved and re-appointed Neil Foran, Jim Wiesenberg, Patrick

Butler and George Kovalyov as Directors for the Company.

Dale Matheson Carr-Hilton Labonte LLP, Chartered Professional Accountants, were re-

appointed as the Company’s auditor for the ensuing year and the Board of Directors were

authorized to fix the remuneration to be paid.

Shareholders also approved both the Company’s 10% “rolling” stock option plan and

amendment to its article for the Advanced Notice Policy.

The Board of Directors and Management would like to thank all shareholders for their continued

support and confidence.

Outcrop and grab sample results

The Company recently carried out rock chip sampling of nickel-cobalt bearing mineralized

outcrop (and angular float) located on its Old Nick Nickel-Cobalt property. A total of 11 rock

chip samples were collected from the east-central portion of the property and sent to Actlabs

(Kamloops, B.C.) for 8 Peroxide Fusion ICP, which delivered the following results:

ID # Type Lithology Co % Cr

%

Ni % S % Mg

%

Ca

%

Fe

%

21-2 outcrop altered mafic rocks 0.019 0.35 0.201 4.05 3.14 1.28 12.5

21-3 outcrop arenaceous metasediment 0.004 0.16 0.058 1.19 0.81 0.04 3.67

21-4 outcrop altered mafic rocks 0.01 0.16 0.243 1.89 8.24 2.72 10.6

21-5 grab altered mafic rocks 0.011 0.19 0.263 2.04 8.46 2.25 11.5

21-6 outcrop arenaceous metasediment 0.01 0.17 0.253 1.72 9.01 5.69 9.55

21-7 grab arenaceous metasediment 0.018 0.2 0.297 1.6 6.95 0.53 15.3

21-8 outcrop arenaceous metasediment 0.005 0.15 0.118 2.05 14.1 5.71 6.75

21-9 grab arenaceous metasediment 0.006 0.2 0.131 1.79 3.93 3.36 7.1

21-

10

grab altered mafic rocks 0.011 0.33 0.211 1.46 6.35 9.49 6.98

21-

11

grab altered mafic rocks 0.009 0.4 0.151 1.44 4.69 8.86 7.77

21-

12

outcrop arenaceous metasediment 0.009 0.31 0.178 1.1 6.36 10.4 7.28

11 ROCK SAMPLES

AVERAGE=

0.01 0.24 0.19 1.85 6.55 4.58 9

(Source: Actlabs report # A21-11010)

A total of six outcrop samples were taken across an interval of 0.5-1 meter and five grab samples

consisted of angular float boulders. Sample lithology (rock type) was identified as altered mafic

rocks or arenaceous metasediments (sericitic quartzite). Alternate mixing zone of the two rock

types (altered mafic and sericitic quartzite), appears to be a favourable environment of deposition

for Ni-Co-Cr bearing mineralization.

Management intends to explore the depth and lateral extension of the main mineral zone in

addition to heap leach SX/EW metallurgical testing of Old Nick mineralization from drill core

samples.

The Old Nick deposit consists of two northeast trending stratiform-type nickel mineralized

zones. The deposit was discovered in the 1960's and fieldwork identified two generations of

pentlandite occurring interstitially within the pyrrhotite. Elevated nickel values are associated

with mariposite (fuchsite) bands and extensive alteration haloes. The dunite (peridotite) and

quartzite had similar Ni/Cr values suggesting a common source of metal mineralization.

Chromium occurs in mariposite (fuchsite). The Upper Zone has an average width of 100 meters

while the Lower Zone is approximately 10 to 20 meters wide. Laterally the zones extend for at

least 500 meters along strike. The deposits are hosted in Paleozoic-aged Anarchist Group meta-

sediments and mafic rocks and the nickel-bearing zones contain increased calcite-silica-sericite-

epidote-fuchsite alteration related to pentlandite-pyrrhotite bearing mineralization. There is

significant potential to expand the deposit both along strike and down the dip of the known

mineralization as well as within the same prospective stratigraphy elsewhere on the property.

Bench scale and column leach testing by Applied Mine Technologies Ltd in 1995 – 1996

indicated the potential for economic recovery of nickel and cobalt by acid heap leaching and

selective recovery by the Solvent Extraction / Electrowinning (SX/EW) mineral processing.

Margaret Lake Diamonds intends to do further leach tests to verify this favourable information.

Makepeace (2007) defined a historic “Inferred Mineral Resource estimate” of 17.24 million

tonnes at a grade of 0.1914 %Ni and 0.0095 %Co, with a nickel cut off grade of 0.14 %Ni. This

is not a current resource and is not being relied upon by Margaret Lake Diamonds. Continued

drilling is required to confirm the scale of the mineralized zone.

Qualified Person

The Qualified Person for this news release is Jo Shearer, an independent economic geologist

with extensive experience in mineral exploration throughout North America. A Qualified Person

under the provisions of National Instrument 43-101.

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 a re 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 th ose 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.