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Five STAR Diamonds News Release Five STAR Diamonds Grants Stock Options

Share Capital & Compensation

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FIVE STAR DIAMONDS NEWS RELEASE

FIVE STAR DIAMONDS GRANTS STOCK OPTIONS

Toronto, ON - Five Star Diamonds Limited (TSXV: STAR) (the “Company” or “Five Star

Diamonds”) announces that it has granted 7,870,000 incentive stock options to certain

directors, officers, consultants and employees of the Company pursuant to the Company's

incentive stock option plan. Each option is exercisable into one common share of Five

Star Diamonds at a price of $0.30 per share for a period of 5 years from the date of grant

NEW CORPORATE SECRETARY

The Company is also pleased to announce that Ms. Jo-Anne Archibald has joined Five Star

Diamonds as the Company’s new Corporate Secretary. Ms. Archibald has been President

of DSA Corporate Services Inc. since 2011. Previously, she served as Senior Vice

President, at TMX Equicom.

ABOUT FIVE STAR DIAMONDS

Five Star Diamonds is listed on the TSX Venture Exchange under the ticker symbol

STAR. The Company controls a dominant and highly enviable position in the Brazilian

kimberlite diamond sector owning 23 diamond projects comprising an aggregate of 49

exploration licences.

To date, the Company has conducted exploration programs on seven projects with the

Catalao, Maravilha, Riachao, Jaibaras and Verissimo Projects proven to contain diamond

bearing kimberlites.

Five Star Diamonds is focused on acquiring and developing advanced staged diamond

projects in Brazil. Since it was established, it has pursued an accelerated growth strategy

and aims to be one of the first producers of diamonds from kimberlite deposits in Brazil.

The Company is focused on the development of sustainable kimberlite pipes and is not

involved in alluvial diamond mining with its associated environmental issues. The

Company works closely with local, state and federal authorities in Brazil to foster an open,

transparent and legal diamond industry in Brazil.

On behalf of the Board

Five Star Diamonds Limited

Matthew Wood

Chairman of the Board, President and CEO

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Cautionary Note Regarding Forward-looking statements

Information set forth in this news release contains forward-looking statements. Although the Company believes that

such statements are reasonable, it can give no assurance that such expectations will prove to be correct. The Company

cautions investors that any forward-looking statements by the Company are not guarantees of future results or

performance, and that actual results may differ materially from those in forward looking statements as a result of

various factors, many of which are beyond the Company’s control. Such factors include, among other things: variations

in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the

market price of any minerals produced, the Company’s inability to obtain any necessary permits, consents or

authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue

its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. Accordingly,

actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and

expectations expressed or implied in the forward-looking information. Except as required under applicable securities

legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

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.

For further information, please contact:

Five Star Diamonds Limited

Joe Burke, GM Marketing

[email protected]

Rajan “Raj” Rai

[email protected]

+1 778 835 9200

John Vincic, Principal

Vincic Advisors

[email protected]

+1 647 402 6375

www.vincicadvisors.com