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Lithoquest recovers a microdiamond and indicator minerals at North Kimberley Diamond Project

Corporate Updates

NEWS RELEASE

December 6, 2018

TSX-V: LDI

Lithoquest recovers a microdiamond and indicator minerals at North Kimberley Diamond Project

VANCOUVER, B.C., December 6, 2018 – Lithoquest Diamonds Inc. (TSX-V: LDI) (“Lithoquest”, or the

“Company”) today announced the recovery of a n octahedral microdiamond and abundant kimberlite

indicator minerals from stream sediment and loam samples collected during its recently completed 2018

field program at its 100%-owned North Kimberley Diamond Project in Western Australia.

Highlights

• Kimberlite indicator minerals (“KIM’s”) have been recovered from stream sediment and loam

samples collected in four areas on the property in 2018. Results include more than 3,000 chromite

grains in one stream sediment sample and one microdiamond in a sample taken in a separate area.

• 130 kilograms of kimberlite core from this year’s drill program has been submitted for microdiamond

analysis. Results are expected in January 2019.

• The detailed airborne magnetic and radiometric survey tha t commenced in November is now

complete and will be used to identify targets in the upcoming drill program next year.

Stream Sediment and Loam Sample Results

Twenty-two samples were collected from several areas of interest during the 2018 field program with the

goal of identifying targets for follow -up in 2019 . The samples were submitted to Diamond Recovery

Services, an independent Australian laboratory based in Perth, for the recovery of KIM’s. Thirteen of the

samples returned KIM’s, including one microdiamond.

Abundant chromite grains were recovered from four target areas, including one sample that yielded more

than 3,000 grains. The presence of this concentration of indicator minerals suggests that the samples

were collected close to a kimberlite source. Picro-ilmenite grains were also observed in several samples

and a single microdiamond was recovered from a stream sediment sample. The microdiamond is

described as a whole, largely unresorbed, octahedral crystal with a pale brown colour.

Kimberlite Core

Approximately 130 kilograms of kimberlite core recovered from target 1804 has been submitted to the

Saskatchewan Research Council for micro -diamond analysis. Selected intervals of the core will also be

processed to recover kimberlite indica tor minerals prior to being tested for micro -diamonds. Results are

expected in January 2019.

Airborne Magnetic and Radiometric Survey

The detailed airborne survey that commenced in November (see November 14th, 2018 LDI news release)

is now complete. A total of 7,550 line-kilometres of data were collected along 50 metre spaced survey

lines with an instrument height of 25 metres. Data from the survey will be used to identify drill targets,

focusing on areas of the property where high-interest kimberlite indicator minerals have been recovered.

Qualified Person

The technical contents of this news release have been reviewed and approved by Bruce Counts, P. Geo.,

President, CEO and a Director of Lithoquest Diamonds Inc. and Qualified Person under National

Instrument 43-101.

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 Diamond Project located in Western

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

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

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

accuracy of this release.

FORWARD LOOKING INFORMATION

This news release includes certain information that may constitute “forward -looking information” under

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

Company’s strategic plans, future operations , future work programs and objectives. Forward -looking

information is necessarily based upon a number of estimates and assumptions that, while considered

reasonable, are subject to known and unknown 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. There can be no assurance that such information will prove to be accurate, as actual

results and future events could differ materi ally from those anticipated in such information. Accordingly,

readers should not 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 opini ons 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]