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Crystal Exploration - New Target Drilling Program

Exploration Programs

WEB: WWW.CRYSTALEXPLORATION.COM

EMAIL: [email protected]

TELEPHONE: 604 260 6977

TSXV: CEI

NEWS RELEASE

CRYSTAL EXPLORATION - NEW TARGET DRILLING PROGRAM

Vancouver – Wednesday, March 1, 2017 – CRYSTAL EXPLORATION INC. (the

“Company” or “Crystal”) (TSX V: “ CEI”) is pleased to report exploration plans for Crystal’s

100% owned diamond bearing Muskox, Contwoyto and Hood Project s located in Nunavut,

Canada.

A three -phase exploration plan is in progress that includes drilling of 6 ‘bulls eye’ ground

magnetic targets and completing geophysics over 12 high priority lake and/or Electromagnetic

based targets to generate additional new high priority targets. Diamond drilling and exploration

work permits are granted across all Crystal project areas.

During 2016, 146 till samples were processed of which 117 samples contain possible ‘picked’

kimberlite indicator minerals (KIM’s) across Crystal’s project areas. The samples cumulatively

contain 7,386 possible KIM’s that await microprobe analysis.

Crystals projects and newly developed targets are located in the northcentral portion of the Slave

craton of the northwestern Canadian shield which hosts world class diamond mines and deposits,

yet remains vastly under-explored. Testament to this is Canada’s and/or the Slave Cratons

newest producer , the Gahcho Kue Diamond Mine which recently reported a 67.87 carat

gemstone from production.

New Target Drilling Program

Crystal’s 2017 drill program will focus on discovering new kimberlite(s) (see Figure 1). The

anomalies include 5 magnetic high and 1 magnetic low and range from 125 to 225 meters in size

(see example in Figure 2).

The targets are primarily based on high resolution ground magnetic s and elevated KIM’s from

pick results. The geophysics show similar geophysical signatures (magnetic highs and lows) that

enabled the discovery of other diamond bearing kimberlite pipes includin g the Contwoyto 1,

Muskox, Jericho, Jericho South, Rush, Unicorn, Voyageur and Peregrine kimberlites.

Exploration Program

The 2017 work program consists of three phases of exploration.

Phase 1 – Spring program will involve a ground geophysics program to isolate additional

high priority targets for drilling. The program may involve additional work over

potential new acquisition properties.

Phase 2 – Summer program focused on drill ready priority targets. Additional targets

may be added pending the results of the Phase 1 program. The program will include till

sampling and ground geophysics.

Phase 3 – Fall drill program focused on expansion from the summer program.

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TSXV: CEI

125m

100m

m

2016 Ground Grid

Total Magnetic Intensity

2005 Resolve

Conductivity Anomaly

Figure 1: New Target Locations

Figure 1 illustrates target locations and proximity of other diamond mines in the region.

Figure 2: Muskox Geophysical Anomaly

Figure 2 represents 1 of 3 Muskox Project targets that illustrates a compelling example high priority targets

developed from KIMs, diamond indicator pick results, magnetic anomalies and conductivity anomalies.

Dean Besserer, P.Geol ., and Technical Advisor of Crystal Exploration Inc., commented “The

presence of diamond bearing kimberlites in this region and the quality of our targets are

compelling reasons to drill Crystal’s targets that were develope d from the 2016 exploration

program and tens of millions of dollars in historical data from the likes of De Beers Canada,

Ashton Mining and Tahera Diamonds during the 1990’s and 2000’s.”

Ekati Diamond Mine

Diavik Diamond Mine

Gahcho Kue

Diamond Mine

Lupin Gold Mine

Jericho Diamond Mine

Hood Property

1 x Target

Muskox Property

3 x Targets

Contwoyto Property

2 x Targets

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TSXV: CEI

About Crystal Exploration Inc.

Crystal is a Canadian diamond exploration company with Common shares listed for trading

on the TSX Venture Exchange. Crystal is backed by proven and seasoned resource sector

professionals who have a track record of advancing exploration projects from grassroots through

to production scenarios. The technical content of this news release have been reviewed and

approved by Dean Besserer, P.Geol. , the Technical Advisor of the Company and a Qualified

Person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

s/ “Jim Greig”

Jim Greig,

President and Chief Executive Officer

Cautionary Statement on Forward-Looking Statements

This press release contains “forward -looking information”, as such term is defined in applicable Canadian

securities legislation. Generally, forward-looking information can be identified by the use of forward -looking

terminology such as “expects”, “believe s”, “anticipates”, “budget”, “scheduled”, “estimates”, “forecasts”,

“intends”, “plans” and variations of such words and phrases, or by statements that certain actions, events or

results “may”, “will”, “could”, “would” or “might”, “be taken”, “occur” or “be achieved”. Forward -

looking information is based on a number of assumptions and estimates that, while considered reasonable by

management based on the business and markets in which Crystal operates, are inherently subject to significant

operational, economic and competitive uncertainties and contingencies. Crystal cautions that forward-looking

information involves known and unknown risks, uncertainties and other factors that may cause Crystal’s

actual results, performance or achievements to be materially different from those expressed or implied by such

information, including, but not limited to, factors discussed in each management discussion and analysis of the

Company, available on SEDAR at www.sedar.com.

Although Crystal has attempted to identify impor tant factors that could cause actual results, performance or

achievements to differ materially from those contained in forward -looking information, there can be other

factors that cause results, performance or achievements not to be as anticipated, estimat ed or intended. There

can be no assurance that such information will prove to be accurate or that management’s expectations or

estimates of future developments, circumstances or results will materialize. As a result of these risks and

uncertainties, the re sults or events predicted in these forward looking statements may differ materially from

actual results or events. Accordingly, readers should not place undue reliance on forward -looking

information. The forward-looking information in this press release is made as of the date of this press release,

and Crystal disclaims any intention or obligation to update or revise such information, except as required by

applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is d efined in the policies of

the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.