Margaret Lake Still Working On $2.2-Million Placement

- May 16th, 2018

Margaret Lake Diamonds Inc. is continuing its non-brokered private placement of flow-through units at a price of 13 cents per FT unit and non-flow-through units at a price of 12 cents per NFT unit as previously announced.

Margaret Lake Diamonds Inc. is continuing its non-brokered private placement of flow-through units at a price of 13 cents per FT unit and non-flow-through units at a price of 12 cents per NFT unit as previously announced. A first tranche of the FT Offering and NFT Offering closed for gross proceeds of $495,500 in April as announced on April 17, 2018. The maximum gross proceeds under the FT Offering and NFT Offering is $2,201,000 (including the first tranche).

Each FT Unit consists of one flow-through common share and one share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire one additional common share of the Company for a period of three years at a price of $0.20 per common share, subject to acceleration. Each NFT Unit consists of one common share and one Warrant (on the same terms as described above). The If the Common Shares have a closing price on the TSX Venture Exchange (the “Exchange”) of greater than $0.30 per Common Share for a period of 10 consecutive trading days (on a VWAP basis), the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and, in such case, the Warrants will expire on the 30th day after the date on which such notice is given to the Warrant holder by the Company.

The Company may pay finders’ fees under the FT and NFT Offering in accordance with applicable securities laws and the policies of the Exchange. The gross proceeds from the FT Offering will be used to fund the drill program on the Company’s 100% owned Margaret Lake property and to conduct additional ground geophysics and exploration on the Diagras property owned 60% by the Company and 40% by Arctic Star Exploration Corp.(TSXV :ADD) under a joint venture agreement. The proceeds from the NFT Offering will be used for exploration, to pay offering expenses and finders’ fees and for general working capital. Closing is subject to receipt of applicable regulatory approvals including the approval of the Exchange. The securities issued will be subject to a standard four month and one day hold period.

About Margaret Lake Diamonds Inc.

Margaret Lake Diamonds Inc. (TSX.V: DIA) is a diamond exploration company focused on the Northwest Territories, Canada with two exploration properties. The Margaret Lake project is adjacent to the Kennady North project of Mountain Province Diamonds and in close proximity to Gahcho Kue, the newest Canadian diamond mine owned by De Beers and Mountain Province Diamonds. The Company also has a 60/40 joint venture with Arctic Star Exploration Corp. (TSX.V: ADD) to explore the Diagras property, which is comprised of 23 claims totaling 18,699 hectares located in the prolific Lac de Gras diamond field

We seek Safe Harbor.

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