Star Diamond Corporation announced that, subsequent to the recently announced transaction with Rio Tinto Exploration Canada Inc. ("RTEC") whereby Star Diamond has agreed to acquire all of RTEC's interest in the Fort à la Corne Joint Venture, Star Diamond's technical team is once again now focussed on the technical investigation and evaluation of the Star - Orion South Diamond Project, with the aim of a future development decision. The initial work aims to prepare a revised Mineral Resource estimate for the Star - Orion South Diamond Project, which will form the foundation of an updated Pre- Feasibility ("PFS") study. The PFS study will enable a Feasibility Study, on which a production decision can be based.

The revised Mineral Resource estimate for the Star and Orion South kimberlites will integrate Star trench cutter diamond data, adding improvement to the diamond size frequency curves for both kimberlites. The mitigation of risk in the Orion South diamond price estimate: the 2018 Preliminary Economic Assessment ("PEA") demonstrated that it is economically efficient to mine the Orion South kimberlite first. However, Orion South has a significantly smaller evaluation diamond parcel than Star, adding some risk to the diamond price estimate for Orion South.

The company believe there is opportunity to mitigate the risk in the Orion South diamond price estimate, without the necessity of additional bulk sampling to obtain a larger diamond evaluation parcel. The scoping of an updated PFS is scheduled to commence early in First Quarter 2024. These developments will likely give rise to the ability to complete the updated PFS within a two- year time frame and the Feasibility Study shortly thereafter.

The company anticipates these major studies will be completed at a substantially lower expenditure level than was previously contemplated. Revised Mineral Resource Estimate: The aim of the revised mineral resource estimate is to integrate all of the drilling and diamond results recently generated by the Fort à la Corne Joint Venture, with archival data used to build the geological model, which forms the basis of the mineral resource estimate. Importantly, the diamond parcels recovered from the ten Trench Cutter ("TC") holes drilled on the Star kimberlite were recovered in an efficient, modern Bulk Sampling Plant ("BSP") that ensures excellent diamond liberation and recovery.

The BSP includes High Pressure Grinding Rolls that ensure liberation of the small diamonds (1-6 millimetre) locked in kimberlite, that are subsequently recovered by an efficient Dense Media Separator that operates in the same narrow 1 to 6 millimetre size range. The small diamonds (+1, +3 and +5 DTC) from the Early Joli Fou ("EJF") kimberlite unit of both Star and Orion South include significant proportions of D coloured octahedral diamonds, which have significant value (US$30 -US$50 per carat), which is unusually high for these small diamonds. The integration of the TC diamond data in the evaluation parcel aims to strengthen the diamond grade and price used in the Mineral Resource estimate.

The aim of this work is to prepare a rigorously constrained Mineral Resource estimate by the end of Second Quarter 2024. This revised Mineral Resource estimate will provide an improved foundation for the revised PFS. Orion South Diamond Price: Orion South has shallower overburden (Orion South 100 metres, Star 140 metres) and higher diamond grade (Orion South 17 cpht, Star 10 cpht) kimberlite in direct contact with overburden, both of which ensure more rapid access to cash flow after overburden removal in a future mine.

Consequently, the PEA demonstrated that it is economically efficient to mine Orion South first. However, there is a significant difference in the size of the evaluation diamond parcels recovered from the EJF, the principal economic unit in both Star and Orion South. The Orion South evaluation parcel includes only 1,399 carats, as opposed to the Star EJF parcel of 7,122 carats.

In order to commence mining on Orion South, the risk associated with the estimation of diamond price on a smaller evaluation parcel needs to be mitigated. The company believe that the close similarities of the kimberlite geology and diamond parcel characteristics for Star and Orion South can enable better estimation of the Orion South diamond price. The company have developed a plan to conduct an in-depth investigation of the extent of similarities between the Star and Orion South EJF diamond populations, with the aim of mitigating the risk in the estimation of the diamond price for the Orion South EJF diamond parcel.

The goal of this investigation is to accurately estimate the Orion South diamond price without the requirement of additional bulk sampling, which is both expensive and time consuming. The confidence generated in the Orion South diamond price will add to the precision of the mineral resource estimate. Updated PFS: The scoping of an updated PFS is scheduled to commence early in 2024 with the initial work focussed on updating the hydrogeology and geotechnical models, in addition to the management of fines in plant process water.

Changes in environmental legislation, since the PEA, require that deep groundwater pumped from the Mannville sediments to stabilize the open pits of a future mine will require a revised method of disposal. Geotechnical work will focus on the engineering of pit slopes, particularly in parts of the overburden, to ensure steeper pit slopes and, consequently, a significant reduction in overburden removal. The processing of some Orion South kimberlite results in plant process water from which the fines do not settle quickly or easily.

Investigations will be made into the mechanical separation of the fines and the future of a fines management area, as this will minimize the use of "tailings ponds". Significant parts of the work completed for the 2018 PEA, including the mining method, process plant design, site layout and infrastructure, can be updated and incorporated into the updated PFS.