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Margaret Lake Progresses Reliable and Affordable U.S. Energy Storage Company Evaluating New Lubrizol Electrolyte that Would Bring Reliability and Scale to Margaret Lake’s Vanadium Battery Solutions

Corporate Updates

Margaret Lake Progresses Reliable and Affordable U.S. Energy Storage

Company Evaluating New Lubrizol Electrolyte that Would Bring Reliability and Scale to Margaret

Lake’s Vanadium Battery Solutions

VANCOUVER, BRITISH COLUMBIA / May 28, 2020 / Margaret Lake Diamonds Inc.

(TSX.V: DIA / FKT: M85 / OTC: DDIAF) is pleased to announce as part of its efforts to

accelerate reliable energy storage through vanadium redox flow batteries (VFRB), the

company will soon begin testing a new vanadium electrolyte from The Lubrizol Corporation.

This electrolyte is essential in holding energy and electricity inside the battery, but it has

typically been available only through non-domestic sources, carrying significant transportation

costs, tariffs and time-intensive handling processes.

Margaret Lake’s VFRBs provide value for both utilities and commercial business. For utilities,

the batteries bring reliable energy storage, ensuring energy that is generated is captured and

not wasted, reducing the strain on the power grid by dispersing energy from renewable

sources. For businesses, the battery allows the capture of energy when it is more affordable or

available, enabling not only a sustainable power source but cost savings by supplementing

traditional energy sources.

Vanadium Electrolyte

The Vanadium electrolyte is core to the VFRB, and the unique physical characteristics of

vanadium are the primary reason behind the batteries’ high level of consistency and

performance, lack of degradation over time, and long life compared with lithium ion batteries.

The electrolyte makes up 35% of the cost of the VFRB for four hours of energy storage and

50% for eight hours of energy storage, making U.S.-based supply partners critical in enabling

affordable VFRBs for U.S. installations.

Battery Design

The Company’s proprietary Vanadium Flow Battery has been developed, tested and is patent-

protected. The flow battery design allows for limitation of storage only based on the capacity of

the electrolyte tanks versus the fixed capacity of lithium-ion. The battery is non-flammable and

non-explosive. There is no degradation as a result of cycling, partial charging, or time with a

100% depth of discharge and projected lifetime of 20 years. Battery efficiency is currently rated

at up to 80%. The battery is scalable into the MW-range through simple parallel connection of

multiple units. The systems are shipped in self-contained weatherproof and securely protected

housing. The systems can be managed and maintained by remote or online maintenance

through intelligent battery management. Temperature management and climate-controlled

containers eliminate weather impact on energy efficiency. The systems are designed for indoor

or containerized deployment in twenty- or forty-foot containers. The 40-foot design has a

capacity of 50kW output, 200kWh storage (Figure 1).

Figure 1 - 40Ft Container Format

Figure 2 – Cell Stack

Grid Scale Mass Storage

Designs have been completed for a 3.6MW output / 14.4kWh-28.8kWh energy storage system

to meet the growing demand for grid scale and renewables applications. There are a variety of

applications to support both renewables and existing infrastructure, as well as energy security.

Placing batteries at substations or near high-demand areas reduces need for new

infrastructure, such as transmission lines, substation capacity, and traditional power plants or

hydro dams. The power is often wasted in the night only for a lack of battery capacity. Grid

scale energy storage systems allow for charging at night during very low demand times (off

peak) and release that energy during the day during peak demand, reducing the need for new

transmission lines or power plants. This both increases overall efficiency and provides

backup/standby power for energy security and a robust and efficient energy infrastructure.

The same concept may be applied to time of day load shifting for renewables.

Factory

Margaret Lake is in commercial negotiations for a U.S. factory site in the North East. Factory

blueprint, process flow, equipment and personnel requirements have been completed for a

three-phase construction of a Vanadium Flow Battery Factory with an initial Phase I annual

output capacity of 50MW and 200MWh of storage. The factory is a joint venture between

Margaret Lake and KORID Energy of Korea; KORID is partially owned by DST Inc. (KOSDAQ:

033430) a factory automation and process equipment manufacturer serving the automobile,

food processing, mining and energy storage industries.

Remarks regarding the Joint Venture by Former Maine Secretary of Energy John Kerry and

former New York Governor George Pataki are available at https://youtu.be/KIre7TMNb5k .

Margaret Lake Diamonds

Margaret Lake Diamonds Inc. (TSX.V: DIA) is a Canadian technology and mineral exploration

company focused on construction of Vanadium Redox Flow Battery Factory in the United

States and Vanadium Exploration Globally. The Company continues to maintain an interest in

the Diagras Diamond property located approximately 50km from the Diavik and Ekati Diamond

Mines in the Northwest Territories of Canada.

Contact Information

Jared Lazerson

President and CEO

[email protected]

Web: www.margaretlakediamonds.com

System Integrators Contact

Neil Foran

CFO

[email protected]

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture) 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 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 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.