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Lithoquest Diamonds Announces Non-Brokered Private Placement

Financings

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NEWS RELEASE

May 23, 2019

TSX-V: LDI

Lithoquest Diamonds Announces Non-Brokered Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN

THE UNITED STATES

VANCOUVER, B.C., May 23, 2019 – Lithoquest Diamonds Inc. (TSX-V : LDI) (“Lithoquest”, or the

“Company”) today announced that i t will conduct a non-brokered private placement (the “Offering”),

subject to the approval of the TSX Venture Exchange (the “Excha nge”), of up to 15,000,000 units at a

price of $0.10 per unit (the “Units”) for aggregate gross proceeds of up to $1,500,000.

Each Unit will consist of one common share of the Company and a net smelter royalty (“NSR”) on the

Company’s ownership interest in the North Kimberly Diamond Proj ect. The royalty rate of the NSR will be

determined at the ratio of 1% per $1,000,000 of gross proceeds.

“Lithoquest appreciates the continued support of its largest sh areholders to advance the North Kimberley

Diamond Project,” stated Bruce Counts, President and CEO of Lit hoquest Diamonds Inc. “The Company

is well prepared for the 2019 drill program and management is optimistic that results from work conducted

over the past year will lead to the discovery of diamond bearing kimberlites”.

The net proceeds of the Offering will be used to advance the Company’s North Kimberly Diamond Project

and for general corporate purpose s. Common shares acquired by t he placees will be subject to a hold

period of four months plus one day from the date of completion of the Offering, in accordance with

applicable securities legislation.

The Company anticipates that current insiders of the Company may participate in the Offering. Subject to

Exchange approval, cash finder’s fees in the amount of up to 6% of the gross proceeds may be paid to

persons who introduce the Company to investors.

About Lithoquest Diamonds Inc.

Lithoquest is a Canadian diamond exploration company focused on the discovery and development of

economic diamond deposits on its 100%-owned North Kimberley Dia mond Project located in Western

Australia, approximately 65km east of the community of Kalumburu.

Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined in the

policies of the TSX Venture Exchange) has reviewed or accepts r esponsibility for the adequacy or

accuracy of this release.

FORWARD LOOKING INFORMATION

This news release includes certai n information that may constit ute “forward-looking information” under

applicable Canadian securities legislation. Forward-looking inf ormation includes, but is not limited to, the

Company’s strategic plans, futur e operations, future work progr ams, objectives and completion of the

Offering. Forward-looking information is necessarily based upon a number of estimates and assumptions

that, while considered reasonable, are subject to known and unk nown risks, uncertainties, and other

factors which may cause the actual results and future events to differ materially from those expressed or

implied by such forward-looking information, including the ability of the Company to locate placees for the

Offering and the approval of the Offering by the Exchange. Ther e can be no assurance that such

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information will prove to be accurate, as actual results and future events could differ materially from those

anticipated in such information. Accordingly, readers should no t place undue reliance on forward-looking

information. All forward-looking information contained in this press release is given as of the date hereof

and is based upon the opinions and estimates of management and information available to management

as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-

looking information, whether as a result of new information, future events or otherwise, except as required

by law.

For further information, please contact:

Lithoquest Diamonds Inc.

+1 (778) 373-1485

[email protected]