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Margaret Lake Diamonds Closes Non Brokered Private Placement for Gross Proceeds of $365,000 and Announces Award of A Grant by NWT Under The Mining Incentive Program

Financings

MARGARET LAKE DIAMONDS INC.

Margaret Lake Diamonds Closes Non Brokered Private Placement for Gross

Proceeds of $365,000 and Announces Award of A Grant by NWT Under The

Mining Incentive Program

June 12, 2017, Vancouver, British Columbia - Margar et Lake Diamonds Inc. (TSXV: DIA, FSE:

M85) (“MLD” or the “Company”) announces the closing of the previously announced non-

brokered Flow Through Private Placement (the ‘’Offering”) of 3,650,000 units (each a “Unit”) at

a price $0.10 per Unit, for aggregate gross proceeds of $365,000.

Each Unit consists of one Flow Through common share of the Company and one-half of one

transferable non flow through common share purchase warrant (“Warrant”) with each whole

Warrant entitling the holder thereof to acquire one additional non flow through common share

at a price of $0.15 until June 13, 2018.

In connection with the closing of the Offering the Company paid finder’s fees of $12,600 and

210,000 Units to certain finders in accordance with applicable securities laws and policies of the

Exchange. The net proceeds will be used for explora tion expenditures on the two diamond

exploration properties of the Company.

In addition, the Company is pleased to announce tha t the NWT has offered it a grant under the

Mining Incentive Program. This award relates to the Margaret Lake project and states ‘Your

Margaret Lake project was highly ranked and approve d for funding at 50%. The total value of

your MIP funding for 2017-2018 is $36,601.25.’ The Company appreciates this acknowledgment

from the Territorial government.

About Margaret Lake Diamonds Inc.

Margaret Lake Diamonds Inc. is a diamond exploratio n company focused on the Northwest

Territories with the Margaret Lake property in prox imity to Gahcho Kué, the new Canadian

diamond mine owned by De Beers and Mountain Provinc e Diamonds, and adjacent to the

ongoing advanced exploration by Kennady Diamonds. I n addition the Company has a joint

venture with Arctic Star Exploration Corp. on the D iagras property in the Lac de Gras area in

proximity to the Ekati and Diavik producing diamond mining operations. The Board of Margaret

Lake Diamonds Inc. is comprised of persons with com bined involvement of over 50 years in the

Canadian diamond sector.

ON BEHALF OF THE BOARD OF DIRECTORS

“Paul Brockington”

Paul Brockington, President and Chief Executive Officer

For further information, please contact:

Margaret Lake Diamonds Inc.

Paul Brockington

President and CEO

Phone: 604-630-2810

Website: www.margaretlake.ca

Forward-looking Information

This news release contains forward-looking informat ion that involve various risks and uncertainties

regarding future events. Such forward-looking info rmation can include without limitation statements

based on current expectations involving a number of risks and uncertainties and are not guarantees of

future performance of the Company. Actual results a nd future events could differ materially from

anticipated in such information. These and all subs equent written and oral forward-looking information

are based on estimates and opinions of management on the dates they are made and expressed qualified

in their entirety by this notice.

The Company assumes no obligation to update forward -looking information should circumstances or

management’s estimates or opinions change. Neither TSX Venture Exchange nor its Regulation Services

Provider (as that term is defined in the policies o f the TSX Venture Exchange) accepts responsibility for

the adequacy or accuracy of this release.