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Margaret Lake Diamonds provides update on Letain Awaruite Nickel project

Corporate Updates

Margaret Lake Diamonds provides update on Letain Awaruite Nickel project

VANCOUVER, B.C. / November 2, 2021 / Margaret Lake Diamonds Inc. ("MLD" or the

"Company") (TSXV:DIA) (FKT:M85) (OTC PINK:DDIAF) is pleased to announce it has now

received the analysis and mineralogy results of the rock chip samples from the Letain Property

located within the Cassiar Mountains approximately 70 kilometers ESE of Dease Lake in

northern BC. The Letain Ni-(Co-Cr) property covers part of the Cache Creek Complex, which is

an obducted ophiolitic sequence. Early exploration work demonstrates that ultramafics host

natural occurring Ni-Fe alloys, and that fine to medium awaruite grains are disseminated in the

serpentinized host rock. The peridotite also contains late stage fracture filling nephrite

(associated with apple green coloured, sheared texture picrolite and lizardite) hosted in

antigorite-magnetite bearing serpentinite. In 2011, First Point Minerals conducted rock chip

sampling that confirmed the presence of awaruite disseminated within the ultramafic (peridotite,

dunite, mafic dyke) complex.

Fieldwork carried out by Margaret Lake in 2021 included 10 outcrop rock chip samples (1 meter

chip channel interval and 4 kilogram size) taken from a 100 X 350 meter area located in the

northeast (lower elevation) portion of the Letain nickel property. Rock samples were shipped to

SGS Canada (Burnaby, BC, ID 18701-01). A total of 9 out of 10 rock samples (Let-2-10),

averaged 17.2% total magnetic separated minerals. Rock chip sample Let-1, a 1-meter wide dyke

(distinct lithology from the other 9 samples), returned 0.74% total magnetic minerals and was not

included in the composite sample. QEMSCAN (quantitative evaluation of materials by scanning

electron microscope) analysis of the composite sample identified minor awaruite, Ni sulphides,

Cr-minerals, magnesite/brucite, Cu sulphides, Fe sulphides, titanite, andradite and apatite in a

gangue of serpentine, olivine, magnetite, amphibole, clinopyroxene, mica, quartz, carbonate,

chlorite. QEMSCAN reports 0.02% awaruite in the composite sample as fine grain size (4-12

micrometers) and does not list any coarse grain awaruite (>100 micrometer equal to 1/10 of a

mm). The presence of awaruite is of significance because it is a rare mineral and the highly

magnetic coarse grain awaruite separates readily in Davis Tube testing. SGS Canada is writing a

final report on the preliminary results of testing, and Margaret Lake will use the data for

evaluating exploration for coarse grain awaruite, further sampling is planned. A Cumulative

Retained Grain Size distribution chart as follows:

Figure 1 – Note the red line provides a good idea of the fine grain nature of the awaruite

The area of awaruite and other nickel-bearing minerals (with elevated Co and Cr) are within a

800 X 1,500 meter area hosted in serpentine-olivine-magnetite. Further geochemical sampling,

magnetometer surveying, QEMSCAN and preliminary metallurgy is planned for a larger area of

the property, in order to drill test the most prospective awaruite bearing mineralization.

Geochemical analysis of 10 rock samples by SGS are reported as follows:

Sample#

Ni

%

Co

%

Cr

%

Mg

%

Fe

% S %

Let-1 0.02 0.006 0.04 6.69 11.37 0.016

Let-2 0.21 0.011 0.24 24.49 4.3 0.036

Let-3 0.21 0.01 0.28 24.68 5.6 0.017

Let-4 0.23 0.01 0.29 24.74 5.46 0.02

Let-5 0.21 0.013 0.3 18.66 13.32 0.007

Let-6 0.21 0.011 0.26 25.57 6.32 0.007

Let-7 0.22 0.011 0.27 22.69 6.3 0.009

Let-8 0.22 0.01 0.25 24.27 5.94 0.006

Let-9 0.22 0.01 0.26 21.06 8.37 0.006

Let-10 0.22 0.009 0.26 24.07 4.82 0.009

Average of 0.22 0.01 0.27 23.36 6.71 0.01

rock samples

Let-2 to 10

Qualified Person

Andris Kikauka (P.Geo) is a non-independent Qualified Person within the meaning of 43-101,

and has prepared, reviewed and approved technical information in this press release.

Contact Information

Neil Foran

Chief Executive Officer

(604) 681-7735

[email protected]

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 id entified 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 m ore 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.