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Crystal Exploration Sample Results

Sampling & Geoscience Results

WEB: WWW.CRYSTALEXPLORATION.COM

EMAIL: [email protected]

TELEPHONE: 604 260 6977

TSXV: CEI

NEWS RELEASE

CRYSTAL EXPLORATION SAMPLE RESULTS

Vancouver – Wednesday, February 22, 2017 – CRYSTAL EXPLORATION INC. (the

“Company” or “Crystal”) (TSXV: “CEI”) is pleased to report a series of results from Crystal’s

100% owned Muskox and Hood Project areas.

All the existing archived drill core has now been logged and sampled in a series of 7 composite

samples from the Muskox Kimberlite. The results are summarized below in Table 1. The samples

were processed using the Saskatchewan Research Councils (“SRC’s”) Dense Media Separation

(“DMS”) plant to recover commercial sized (approximately +0.85 mm), macro-diamonds.

The combined grade from the DMS processing for the magmatic kimberlite samples is 0.45 carats

per tonne (“cpt”) and the combined grade from the DMS processing for the pyroclastic kimberlite

samples is 0.19 cpt. The largest diamonds recovered include 0. 49 carats, 0.40 carats and 0.30

carats (see diamond pictures below) . Th e diamonds are described as off -white, transparent to

translucent with minor inclusions.

TABLE 1 – MUSKOX KIMBERLITE MACRODIAMOND RESULTS

*Reported March 29, 2016 (see www.crystalexploration.com)

Caustic fusion was completed on two rock samples collected from the Muskox Kimberlite. The

samples were mantle xenoliths and contained 7 diamonds and 45 diamonds respectively. The

results are shown in Table 2.

Caustic fusion was completed on two composite rock samples collected from the James River

Kimberlite Dyke at surface, located at the Hood Project confirming it is diamondiferous and

warrants further exploration. In total, 4 microdiamonds were recovered from sample 16DBP500.

The James River Dyke is only 15km from the diamondiferous Tenacity Kimberlite. A high priority

drill target developed by Crystal during 2016 exists along the structure that hosts the James River

Kimberlite Dyke. The results are shown in Table 2.

Sample Weight

(Kilograms)

Number of

Macrodiamonds

(+0.85mm)

Total Carats Carats per

tonne (“cpt“)

16DBP700 (magmatic) 15,909 144 6.4 0.40

*MOX-004 (magmatic) 2,200.40 14 0.669 0.30

*MOX-025 (magmatic) 2,158.80 17 0.675 0.31

*MOX-020 (magmatic) 2,083.50 47 2.376 1.14

TOTAL MAGMATIC

KIMBERLITE

22,351.7 222 10.12 0.45

MOX-011 (pyroclastic) 2,209 14 0.69 0.31

MOX-027 (pyroclastic) 2,027 6 0.20 0.1

16DBP701 (pyroclastic) 10,039.50 45 1.87 0.19

TOTAL

PYROCLASTIC

KIMBERLITE

14,275.50 65 2.76 0.19

- 2 -

TSXV: CEI

TABLE 2 - CAUSTIC FUSION RESULTS

Sample Weight

(kg)

Sieve Size (mm)

+0.106 +0.150 +0.212 +0.600 TOTAL

DIAMONDS

17DBP001 (Muskox –

Eclogite Xenoliths)

1.6 6 0 1 0 7

17DBP002 (Muskox –

Peridotite Xenoliths)

3.3 35 8 1 1 45

16DBP500

(James River Dyke)

41.9 2 2 0 0 4

16KRP203

(James River Dyke)

9.4 0 0 0 0 0

MUSKOX DIAMONDS

Jim Greig, President and CEO of Crystal Exploration Inc., commented, “The samples are similar

to some of the historical results at the Muskox Kimberlite. T he material processed was archived

drill core from previous operators drill campaigns that enabled a cost-effective method to further

examine the large kimberlite pipe which measures nearly 4 hectares at surface and extends to over

300m depth. The size and grade potential at Muskox has yet to be fully understood and is

illustrated through various sampling programs that generated high to marginal grades throughout

the years. The recent results reflect a very small sample size and it is the diamond valuation of

good quality gemstones that needs further examination . Future exploration will be required to

understand the entire diamond opportunity within the Muskox Kimberlite Pipe. Crystal’s projects

that neighbor the Jericho Diamond Mine may represent an opportunity for near -term production

at an existing diamond mining facility.”

In addition, Mr. Anthony Jackson has been appointed Chief Financial Officer (“CFO”) of Crystal,

effective February 1, 2017. Mr. Jackson replaces Mr. Justin Bourassa, who has resigned as CFO

of the Company. Mr. Bourassa was an integral part of the Crystal team and the Company wishes

him well on all future endeavors.

Muskox Kimberlite

0.36 carat diamond

Muskox Kimberlite

0.4875 carat diamond

Muskox Kimberlite

0.4005 carat diamond

- 3 -

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 has 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”, “believes”, “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 achi evements 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 important 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 t o be as anticipated, estimated 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 ris ks and

uncertainties, the results 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 defined in the policies of

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