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Market Release 11th September 2017 FIVE STAR DIAMONDS LIMITED Av. Jornalista Ricardo Marinho, 360 Ed. Cosmopolitan - Sala 113, CEP 22631-350 Barra da Tijuca - Rio de Janeiro Brazil

Corporate Updates

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TSX-V STAR

Market Release

11th September 2017

FIVE STAR DIAMONDS

LIMITED

Av. Jornalista Ricardo Marinho, 360

Ed. Cosmopolitan - Sala 113,

CEP 22631-350

Barra da Tijuca - Rio de Janeiro

Brazil

Tel: +55 8 9200 6264

Contact:

Joe Burke, GM Marketing

[email protected]

Rajan “Raj” Rai

[email protected]

+1 778 835 9200

Directors / Officers:

Matthew Wood

Luis Azevedo

Aneel Waraich

Brian McMaster

Gizman Abbas

Nicholas Pike

TSXV: STAR

FIVE STAR DIAMONDS AND

I.HENNIG SIGN CO-OPERATION

AGREEMENT

Toronto, ON - Five Star Diamonds Limited (TSXV: STAR)

(“Five Star Diamonds” or “Five Star”), Brazil’s leading

development and diamond exploration company and I.

Hennig & Co. Ltd., (“Hennig”) the world’s leading

international diamond broking and consulting group are

pleased to announce the signing of a co-operation agreement

to add value and advance Five Stars diamond projects in

Brazil.

Five Star has signed an agreement with Hennig to support its

development and growth efforts. Hennig has been aiding

clients procure Rough diamonds for over 125 years and has

worked with the major players at all levels of the value chain.

The scope of the agreement covers Five Star’s induction into

the diamond industry and development of its brand.

This strategic cooperation will afford Five Star Diamonds the

ability to enhance its customer relationships and marketing in

the broader diamond sector. Five Star will continue to focus

on its bulk sampling and pre-development studies where

early results have been highly encouraging.

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Five Star Diamonds Chairman and CEO Matthew Wood said, “We are extremely excited

about this co-operation with Hennig. Hennig brings world class diamond expertise to

Five Star. They will assist Five Star in navigating the diamond value chain whilst

building our brand in global markets. Brazil represents an exceptional opportunity in

the diamond space which has limited opportunity for growth and a dearth of new

projects coming on stream. Five Star believes that the combination of our in house

mining and exploration expertise with Hennig’s exceptional knowledge, expertise and

relationships in the diamond sector is truly a unique and compelling opportunity.”

Hennig CEO Arik Sela said: “it is always exciting to work with a new and emerging

diamond company, especially with the mining expertise which the Five Star team

boasts. Hennig is pleased to provide diamond industry knowhow to Five Star and to

usher its inauguration and prospective growth in our market. Throughout an

impressive history in the diamond business Hennig has always seen itself as a

torchbearer for innovation and transformation. We are happy to continue this tradition

with our newly announced cooperation with Five Star. “

ABOUT HENNIG

I. Hennig & Co. Ltd (www.ihennig.com) was founded in 1890 and is the world’s leading

international diamond broking and consulting group, with offices in all major diamond

trading hubs across four continents and relationships with the world’s largest diamond

miners, traders, manufacturers, and jewellery retailers.

ABOUT FIVE STAR DIAMONDS

The Company 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 24 diamond kimberlite projects comprising an aggregate of 80

exploration licences and applications across 185,980 hectares.

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. The Company works closely with local,

state and federal authorities in Brazil to foster an open, transparent and legal diamond

industry in Brazil.

The Company is running active programmes across its 100% owned Jaibaras, Catalao,

Riachao, Verissimo and Caiapo diamond projects. It is expected that the company will

be able to provide further updates over the coming months and we look forward to

keeping shareholders informed of our progress as we move towards building a truly

unique Brazilian diamond company.

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