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Margaret Lake Diamonds Inc. Continues to Work ON Flow Through and Non-Flow Through Private Placement

Financings

MARGARET LAKE DIAMONDS INC.

MARGARET LAKE DIAMONDS INC. CONTINUES TO WORK ON FLOW THROUGH AND

NON-FLOW THROUGH PRIVATE PLACEMENT

TSXV: DIA

May 15, 2018, Vancouver, British Columbia - Margare t Lake Diamonds Inc. (TSXV:DIA,

FSE:M85) (the “ Company ”) announces that is continuing its non-brokered private placement of

flow-through units (“ FT Units ”) at a price of $0.13 per FT Unit (the " FT Offering ") and non-flow-

through units (the “ NFT Units ”) at a price of $0.12 per NFT Unit (the “ NFT Offering ”) as

previously announced. A first tranche of the FT Off ering and NFT Offering closed for gross

proceeds of $495,500 in April as announced on April 17, 2018. The maximum gross proceeds

under the FT Offering and NFT Offering is $2,201,000 (including the first tranche).

Each FT Unit consists of one flow-through common sh are and one share purchase warrant (a

“Warrant ”). Each Warrant is exercisable to acquire one addi tional common share of the

Company for a period of three years at a price of $ 0.20 per common share, subject to

acceleration. Each NFT Unit consists of one common share and one Warrant (on the same

terms as described above).

If the Common Shares have a closing price on the TS X Venture Exchange (the “ Exchange ”) of

greater than $0.30 per Common Share for a period of 10 consecutive trading days (on a VWAP

basis), the Company may accelerate the expiry date of the Warrants by giving notice to the

holders thereof and, in such case, the Warrants wil l expire on the 30 th day after the date on

which such notice is given to the Warrant holder by the Company.

The Company may pay finders’ fees under the FT and NFT Offering in accordance with

applicable securities laws and the policies of the Exchange. The gross proceeds from the FT

Offering will be used to fund the drill program on the Company’s 100% owned Margaret Lake

property and to conduct additional ground geophysic s and exploration on the Diagras property

owned 60% by the Company and 40% by Arctic Star Exp loration Corp.(TSXV :ADD) under a

joint venture agreement. The proceeds from the NFT Offering will be used for exploration, to

pay offering expenses and finders’ fees and for general working capital.

Closing is subject to receipt of applicable regulat ory approvals including the approval of the

Exchange. The securities issued will be subject to a standard four month and one day hold

period.

About Margaret Lake Diamonds Inc.

Margaret Lake Diamonds Inc. (TSX.V: DIA) is a diamo nd exploration company focused on the

Northwest Territories, Canada with two exploration properties. The Margaret Lake project is

adjacent to the Kennady North project of Mountain Province Diamonds and in close proximity to

Gahcho Kué, the newest Canadian diamond mine owned by De Beers and Mountain Province

Diamonds. The Company also has a 60/40 joint ventur e with Arctic Star Exploration Corp.

(TSX.V: ADD) to explore the Diagras property, which is comprised of 23 claims totaling 18,699

hectares located in the prolific Lac de Gras diamond field

ON BEHALF OF THE BOARD OF DIRECTORS

“Paul Brockington”

Paul Brockington, President and Chief Executive Officer

– 2 –

31353528.1

For further information, please contact:

Margaret Lake Diamonds Inc.

Paul Brockington President and CEO

Phone: 1.604.630.2810

Email: [email protected]

Web: www.margaretdiamonds.com

Forward-Looking Statements

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

uncertainties regarding future events. Such forward -looking information can include without

limitation statements based on current expectations involving a number of risks and

uncertainties and are not guarantees of future perf ormance of the Company. Actual results and

future events could differ materially from anticipa ted in such information. These and all

subsequent 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.

Neither TSX Venture Exchange nor its Regulation Ser vices Provider (as that term is defined in

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

this release.