Mountain Province Diamonds Announces Full Year and Fourth Quarter 2020 Results

TSX and OTCQX: MPVD

Mountain Province Diamonds Inc. ("Mountain Province", or the "Company") (TSX: MPVD) (OTCQX: MPVD) today announces its financial and operating results for the fourth quarter ("the Quarter" or "Q4 2020") and the full year ended December 31, 2020 ("FY 2020"). All figures are expressed in Canadian dollars unless otherwise noted and are unaudited.

Operational Highlights for Q4 and FY 2020
( all figures reported on a 100% basis unless otherwise stated )

9,796,823 total tonnes mined during the quarter, a 12% decrease on the comparable period (Q4 2019: 11,089,408). 35,870,474 total tonnes mined during FY 2020, a 17% decrease from the comparable period (FY 2019: 43,224,827).
840,261 ore tonnes mined during the quarter, a 6% decrease on the comparable period (Q4 2019: 890,886). 3,286,843 ore tonnes mined during FY 2020, a 1% increase from the comparable period (FY 2019: 3,247,324).
736,138 ore tonnes treated during the quarter, a 21% decrease on the comparable period (Q4 2019: 936,903). 3,245,941 ore tonnes treated during FY 2020, a 9% decrease from the comparable period (FY 2019: 3,580,551).
1,521,617 carats recovered during the quarter at an average grade of 2.07 carats per tonne, 23% lower than the comparable quarter (Q4 2019: 1,977,438 carats at 2.11 carats per tonne). 6,518,261 carats recovered during FY 2020 at an average grade of 2.01 carats per tonne, 4% lower than the comparable period (FY 2019: 6,820,631 at 1.90 carats per tonne).

Q4 and FY 2020 Production Statistics

	2020 Q4	2019 Q4	YoY Variance	FY 2020	FY 2019	YoY Variance

Total tonnes mined (ore and waste)	9,796,823	11,089,408	-12%	35,870,474	43,224,827	-17%
Ore tonnes mined	840,261	890,886	-6%	3,286,843	3,247,324	1%
Ore tonnes treated	736,138	936,903	-21%	3,245,941	3,580,551	-9%
Carats recovered	1,521,617	1,977,438	-23%	6,518,261	6,820,631	-4%
Carats recovered (49% share)	745,592	968,945	-23%	3,193,948	3,342.109	-4%

Financial Highlights for Q4 2020

957,000 carats sold (Q4 2019: 772,000), with total proceeds of $80.2 million ( US$61.7 million ) compared to $65.0 million in Q4 2019, ( US$49.2 million ) at an average realised value of $84 per carat (US$65) , Q4 2019: $84 per carat, (US$64) .
Adjusted EBITDA ¹ of $37.0 million .
Earnings from mine operations of $22.8 million .
736,138 ore tonnes treated and 1,521,617 carats recovered on a 100% basis for an average recovered grade of approximately 2.07 carat per tonne.Cash costs of $116 per tonne treated and $56 per carat recovered, include capitalized stripping costs ¹ .
Impairment charge of $217.4 million to the carrying value of the Gahcho Kué Mine's property, plant and equipment, attributable to a downward revision of pricing assumptions with respect to the diamonds within the Tuzo kimberlite pipe, a stronger Canadian dollar relative to the US dollar, and an increase in discount rate assumptions due to market related factors.

Two Tuzo kimberlite large bulk samples amounting to a total of 121,860 carats yielded a finer size frequency distribution (SFD) in comparison to the smaller historical sample of 2,321 carats.
The valuation work on the bulk samples has now been completed. The Company conducted an internal valuation at prevailing market prices as well as engaging WWW International Diamond Consultants (WWW) to provide an independent valuation of the bulk samples. Based on diamond price modeling of the large bulk samples by WWW the value estimates for Tuzo range between a low value of US$45 per carat and higher value of US$53 per carat with a base case of US$48 per carat. This is an adjustment from the previous modelled value base case of US$62 per carat.

Net loss of $189.2 million or $0.90 loss per share. Included in the determination of net loss for the three months ended December 31, 2020 is an impairment loss on property, plant and equipment of $217.4 million and unrealized foreign exchange gains of $18 .6 million, on the translation of the Company's USD-denominated long-term debt and Dunebridge revolving credit facility. The unrealized foreign exchange gains are a result of the relative strengthening of the Canadian dollar versus the US dollar.

¹ Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company's December 31, 2020 MD&A for explanation and reconciliation.

Financial Highlights for Full Year 2020

Total sales revenue at $227 million ( US$171 million ) compared to $276 million in 2019 ( US$208 million ) at an average realized value of $68 per carat (US$51) 2019: $84 per carat, (US$63) .
Adjusted EBITDA ² of $51.2 million down 41% (2019: $87.1 million ).
Loss from mine operations down 106% to $1.5 million (2019: earnings from mine operations $24.8 million ).
No repurchases of outstanding secured notes payable (2019: $13.2 million ( US$10.0 million )).
Cash costs of production, including capitalized stripping costs ^2,3 of $103 per tonne treated (2019: $103 per tonne) and $51 per carat recovered (2019: $54 per carat).
Net loss of $263.4 million or $1.25 loss per share (2019: net loss $128.8 million or $0.61 loss per share). Included in the determination of net loss is an impairment loss on property, plant and equipment of $217.4 million (2019: $115.8 million ) offset by an unrealized foreign exchange gain of $12.3 million (2019: $20.8 million ) on the translation of the Company's USD-denominated long-term debt and Dunebridge revolving credit facility. The unrealized foreign exchange gain is a result of the strengthening of the Canadian dollar versus US dollar.
Capital expenditures were $38.8 million , $25.7 million of which were deferred stripping costs, with the remaining $13.1 million accounting for sustaining capital expenditures related to mine operations.

² Cash costs of production, including capitalized stripping costs, and Adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS. See the Non-IFRS Measures section of the Company's December 31, 2020 MD&A for explanation and reconciliation.

³ In FY 2020 a total of 35.9 million tonnes mined, compared to a total of 43.2 million tonnes mined in 2019; a 17% decrease year over year.

Market Highlights for Q4 and Full Year 2020

In Q4 2020, 957,120 carats were sold at an average value of $84 per carat ( US$65 per carat) for total proceeds of $80.2 million ( US$61.7 million ) in comparison to 771,799 carats sold at an average value of $84 per carat ( US$64 per carat) for total proceeds of $65.0 million ( US$49.2 million ) in Q4 2019.

During FY 2020, 3,329,289 carats were sold at an average value of $68 per carat ( US$51 per carat) for total proceeds of $227 million ( US$171 million ) in comparison to 3,284,520 carats sold at an average value of $84 per carat ( US$63 per carat) for total proceeds of $276 million ( US$208 million ) in FY 2019.

The Company remains optimistic that as the world emerges from the effects of the coronavirus pandemic ("COVID-19"), the recovery of both rough diamond and polished diamond prices will continue, as seen during the last quarter of 2020 and the first quarter of 2021. Retail sales have recovered well and should continue to benefit from the pent-up savings that will be spent when economies reopen.

Mountain Province President and CEO Stuart Brown commented :

"2020 was a challenging year for the Company and Gahcho Kué Mine, with pandemic-related personnel shortages and an inability to trade in the rough markets due to global lock-downs driving our underperformance. While rough markets opened up at the end of the third quarter, challenges with production continued into early 2021, compounded by a COVID-19 outbreak that forced a 3-week operational stand-down in February, further impacting our ability to mine and recover diamonds. The uncertainty and fluid nature of the COVID-19 pandemic and the ongoing impacts to production as we restart the mine are hampering our plans to address the resultant production shortfalls, however, we are working with De Beers Canada to ensure that we can recover the lost carats with increased plant throughput throughout the remainder of the year. This revised plan for 2021 will be available in the second quarter and we will update the market as soon as it is available.

With regards to the Tuzo bulk samples, The Company will obtain more confidence of the market value when it has sold its share of the samples later in the second quarter, which will enable us to be more certain with respect to the diamond values. Thereafter, together with De Beers Group, a new mine plan will be developed, with the maximization of profitability, reductions in costs and mine life as guiding parameters.

In a positive development relative to the production setbacks, rough diamond prices have continued to improve in the opening months of 2021 as demand for rough diamonds remains robust. Overall, our current average diamond values, like for like, are now above pre-Covid levels.

Despite these improving market conditions, we continue to be cognizant of the potential impacts of the ongoing pandemic on Gahcho Kué. Together with De Beers Canada and our stakeholders, we have enhanced safety measures at site to combat this virus, safeguarding the health and safety of all our employees, contractors, and the communities with which we interact. To this end it is very positive in our ongoing efforts to minimize our operational risks that with the support of the Government of the Northwest Territories , it has been decided to implement the immediate vaccination of all employees and contractors who work at the Gahcho Kué site.

2020 was certainly a very challenging year and 2021, although positive from a diamond price recovery perspective, has been equally challenging from a planning and production perspective. We remain focused on production and meeting our cash flow objectives in an ever-changing environment."

Gahcho Kué Mine Operations

The following table summarizes the key operating statistics for Q4 2020 and FY 2020, and the previous year, at the Gahcho Kué Mine.


		Three months ended		Three months ended		Year ended		Year ended
		December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019

GK operating data
Mining
*Ore tonnes mined	kilo tonnes		840		891		3,287		3,247
*Waste tonnes mined	kilo tonnes		8,956		10,199		32,583		39,978
*Total tonnes mined	kilo tonnes		9,796		11,090		35,870		43,225
*Ore in stockpile	kilo tonnes		269		228		269		228

Processing
*Ore tonnes processed	kilo tonnes		736		937		3,246		3,581
*Average plant throughput	tonnes per day		8,270		10,297		8,869		9,811
*Average diamond recovery	carats per tonne		2.07		2.11		2.01		1.90
*Diamonds recovered	000's carats		1,521		1,978		6,518		6,821
Approximate diamonds recovered - Mountain Province	000's carats		745		969		3,194		3,342
Cash costs of production per tonne of ore, net of capitalized stripping **	$		89		99		86		91
Cash costs of production per tonne of ore, including capitalized stripping**	$		116		103		103		103
Cash costs of production per carat recovered, net of capitalized stripping**	$		43		47		43		48
Cash costs of production per carat recovered, including capitalized stripping**	$		56		49		51		54

Sales
Approximate diamonds sold - Mountain Province***	000's carats		957		772		3,329		3,284
Average diamond sales price per carat	US	$	65	$	64	$	51	$	63

* at 100% interest in the Gahcho Kué Mine

**See Non-IFRS Measures section of the Company's December 31, 2020 MD&A for explanation and reconciliation

***Includes the sales directly to De Beers for fancies and specials acquired by De Beers through the production split bidding process

Financial Performance


		Three months ended	Three months ended	Year ended	Year ended
(in thousands of Canadian dollars, except where otherwise noted)		December 31, 2020	December 31, 2019	December 31, 2020	December 31, 2019

Sales	$	80,206	65,032	226,993	276,334
Carats sold	000's carats	957	772	3,329	3,284
Average price per carat sold	$/carat	84	84	68	84
Cost of sales per carat*	$/carat	60	80	69	76
Earnings from mine operations per carat	$	24	4	(1)	8
Earnings from mine operations	%	28%	5%	-1%	10%
Selling, general and administrative expenses	$	3,255	4,236	12,934	13,058
Impairment loss on property, plant and equipment	$	217,366	115,753	217,366	115,753
Operating loss	$	(198,643)	(118,104)	(235,811)	(112,852)
Net loss for the period	$	(189,166)	(115,725)	(263,429)	(128,758)
Basic and diluted loss per share	$	(0.90)	(0.55)	(1.25)	(0.61)

Conference Call

The Company will host its quarterly conference call on Thursday, March 25 ^th , 2021 at 11:00am ET .

Title: Mountain Province Diamonds Inc Q4 Earnings Conference Call
Conference ID: 97229503
Date of call: 03/25/2021
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes

Webcast Link: https://produceredition.webcasts.com/starthere.jsp?ei=1444279&tp_key=433d45f977

Participant Toll-Free Dial-In Number: (+1) 888 390 0546
Participant International Dial-In Number: (+1) 416 764 8688

A replay of the webcast and audio call will be available on the Company's website.

About the Company

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories . The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls 106,202 hectares of highly prospective mineral claims and leases that surround the Gahcho Kué Joint Venture property that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.

For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com .

Qualified Person

The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Matthew MacPhail , P.Eng., MBA, and Tom E. McCandless , Ph.D., P.Geo., both employees of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Caution Regarding Forward Looking Information

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the project of Mountain Province ; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province , certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.

Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province's Board of Directors, subject to the limitations under the Company's debt facilities, and will depend on Mountain Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

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SOURCE Mountain Province Diamonds Inc.

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Mountain Province Diamonds MPVD:CA MPVDF Diamond Investing

STAR DIAMOND CORPORATION COMPLETES ACQUISITION OF RIO TINTO'S 75% INTEREST IN FORT À LA CORNE JOINT VENTURE

TSX: DIAM

Star Diamond Corporation (" Star Diamond ") today announced the completion of its previously announced transaction (the " Transaction ") with Rio Tinto Exploration Canada Inc. (" RTEC ") whereby RTEC has transferred to Star Diamond all of RTEC's 75% interest in the Fort à la Corne diamond project located in central Saskatchewan (the " Project "). Star Diamond now owns 100% of the Project.

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STAR DIAMOND CORPORATION ANNOUNCES 2023 YEAR END RESULTS

TSX: DIAM

Star Diamond Corporation ("Star Diamond" or the "Company") reports that the audited financial results for the year ended December 31, 2023 will be filed today on SEDAR+ and may be viewed at www.sedarplus.ca once posted.

Overview
Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing Saskatchewan's diamond resources. Star Diamond currently holds, through a joint venture arrangement with Rio Tinto Exploration Canada Inc. ("RTEC"), a wholly-owned subsidiary of Rio Tinto plc, a 25% interest in certain mineral properties (which include the Star – Orion South Diamond Project, or the "Project") within the Fort à la Corne diamond district of central Saskatchewan, Canada . These properties are in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

The Company also holds a 50% interest in the exploration and evaluation properties and assets of the Buffalo Hills JV located in north-central Alberta, Canada . Canterra Minerals Corporation ("Canterra") holds the remaining 50% interest. Canterra is the operator of the Buffalo Hills JV.

Fort à la Corne mineral properties
On November 28, 2023 , the Company entered into a binding agreement (the "Agreement") with RTEC, providing for the transfer by RTEC to Star Diamond all of RTEC's 75% interest in the Project.

The Agreement provides that, upon closing:

RTEC will transfer to Star Diamond all of RTEC's 75% interest in the Project, such that the Project will be 100% owned by Star Diamond ;
RTEC will transfer to Star Diamond ownership of the trench cutter drill rig used by RTEC to complete its prior bulk sampling program at the Project;
RTEC will transfer to Star Diamond the Bulk Sample Plant located at the Project, including the TOMRA XRT diamond sorting machine that is on-site;
Star Diamond will issue to RTEC and/or an affiliate that number of common shares of Star Diamond that results in RTEC and its affiliates owning 19.9% of the then outstanding common shares of Star Diamond (RTEC and its affiliates currently own approximately 2.3% of Star Diamond's outstanding common shares); and
RTEC and Star Diamond will enter into an Investor Rights Agreement whereby, among other things, RTEC will be granted certain pre-emptive rights to maintain its 19.9% ownership interest in Star Diamond in connection with future financings undertaken by Star Diamond , and RTEC will agree to certain standstill protections provided that RTEC will have the right to increase its 19.9% ownership position in the event that Star Diamond receives an acquisition proposal.

Upon completion of the transactions that are the subject of the Agreement, Star Diamond will have full control and responsibility for the Project, the existing joint venture agreement between RTEC and Star Diamond will terminate, and Star Diamond will release and indemnify RTEC for liabilities arising from or relating to the Project, all in exchange for a $4 million payment from RTEC to Star Diamond . RTEC has agreed that it will provide on Star Diamond's behalf, for up to five years following closing, letters of credit in the aggregate amount of no more than $9.9 million to secure certain environmental remediation and reclamation obligations related to the Project. Star Diamond will be obliged to repay any amounts drawn on these letters of credit and such repayment obligations will be secured against the Project and its assets.

As of the date of this News Release, the Agreement is expected to close in the near future.

Recent activities relating to the Star - Orion South Diamond Project and Fort à la Corne mineral properties
During the first quarter of 2024, Star Diamond continued to work with RTEC and Saskatchewan Ministry of Environment representatives to ensure an orderly close to the Agreement between Star Diamond and RTEC.

Year End Results
For the year ended December 31, 2023 , the Company recorded a net loss of $2.8 million or $0.01 per share (basic and fully diluted) compared to a net loss of $68.8 million or $0.15 per share in 2022. The decrease in net loss year over year was due primarily to the prior year's impairment charge of $66.3 million combined with the mark-to-market loss on the Wescan investment offset by the elimination of the $0.9 million contingent consideration.

At December 31, 2023 , the Company had $0.6 million (2022 – $2.6 million ) in cash and cash equivalents and a working capital deficit of $(0.3) million (2022 - $2.0 million ). The decrease in working capital was a result of administrative and exploration and evaluation expenditures offset by proceeds received from the December 2023 private placement. Subsequent to December 31, 2023 , the Company closed the second and final tranche of a non-brokered private placement. However, the ability of the Company to continue as a going concern and fund its expenses in an orderly manner will require additional forms of financings.

Selected financial highlights include:

Condensed Consolidated Statements of Financial Position	As at December 31, 2023	As at December 31, 2022
Current assets	$ 0.6 M	$ 2.7 M
Exploration and evaluation, investments and other assets	0.6 M	0.4 M
Current liabilities	0.9 M	0.7 M
Non-current liabilities	0.1 M	0.0 M
Shareholders' equity	0.2 M	2.4 M


Consolidated Statements of Loss	Year Ended December 31, 2023	Year Ended December 31, 2022
Expenses	$ 3.0 M	$ 3.0 M
Loss before undernoted items	(3.0)M	(3.0)M
Investment in Wescan Goldfields Inc.	(0.0)M	(0.4)M
Contingent consideration	0.0 M	0.9 M
Impairment charge	0.0 M	(66.3)M
Net loss for the year	(3.0)M	(68.8)M
Net loss per share for the year (basic and diluted)	(0.01)	(0.15)


Condensed Consolidated Statements of Cash Flows	Year Ended December 31, 2023	Year Ended December 31, 2022
Cash flows used in operating activities	$ (2.3)M	$ (4.9)M
Cash flows from investing activities	0.0 M	0.6 M
Cash flows from financing activities	0.2 M	5.7 M
Net increase (decrease) in cash	(2.1)M	1.3 M
Cash – beginning of year	2.6 M	1.3 M
Cash – end of year	0.6 M	2.6 M

Outlook
Fort à la Corne mineral properties
Subsequent to the successful close of the Agreement with RTEC, Star Diamond's technical team will focus on the technical investigation and evaluation of the Star – Orion South Diamond Project, with the goal 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 Prefeasibility study(" PFS"). The PFS will enable a Feasibility Study, on which a production decision can be based.

Buffalo Hills mineral properties
Management continues to review the recent results from the diamond valuation and typing analysis. A more detailed update on activities at the Buffalo Hills JV will be provided as it becomes available.

About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading symbol "DIAM". Star Diamond currently holds, through a joint venture arrangement with RTEC, a 25% interest in the Project. The Project is located in central Saskatchewan , in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The Company also holds a 50% interest in the exploration and evaluation properties and assets of the Buffalo Hills JV located in north-central Alberta, Canada . Canterra holds the remaining 50% interest and is the operator of the Buffalo Hills JV.

Technical Information
All technical information in this press release has been prepared under the supervision of George Read , Senior Vice President Corporate Development, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimell , Vice President Exploration, Professional Geoscientist in the Provinces of Saskatchewan and Alberta , who are the Company's "Qualified Persons" under the definition of NI 43-101.

Stay Connected with Us:
Twitter: https://twitter.com/StarDiamondCorp
LinkedIn: https://www.linkedin.com/company/star-diamond-corp
Facebook: https://www.facebook.com/people/Star-Diamond-Corp/100058096376664/
Instagram: https://www.instagram.com/stardiamondcorp/

Caution Regarding Forward-looking Statements

This press release contains "forward-looking statements" and/or "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, "may", "could", "would", "will", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. All statements, other than statements of historical fact, are forward-looking statements.

These forward-looking statements are based on Star Diamond's current beliefs as well as assumptions made by and information currently available to Star Diamond and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, statements regarding Rio Tinto Canada, the Company's ability to obtain financing to further the exploration, evaluation and/or development of exploration and evaluation properties in which the Company holds interest, the economic feasibility of any future development projects, developments in world diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in Star Diamond's most recently filed Annual Information Form, and annual and interim MDA.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this news release are made as of the date hereof and Star Diamond assumes no obligation to update any forward-looking statements, except as required by applicable laws.

SOURCE Star Diamond Corporation

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STAR DIAMOND APPOINTS EWAN MASON AS ITS PRESIDENT AND CEO

Star Diamond Corp (TSX: DIAM) ("Star Diamond" or the "Company") is pleased to announce that its Board of Directors has appointed Ewan Mason to the position of President and Chief Executive Officer, effective immediately. Mr. Mason has served as Interim President and Chief Executive Officer since January 1, 2023. Mr. Mason will continue to serve as Chair of the Company's Board.

"We are pleased to name Ewan Mason as the President and CEO of Star Diamond," said Lisa Riley , Lead director of the Board. "Since he was appointed interim CEO in January 2023, Ewan's leadership has been integral in the successful negotiation process and the coming acquisition of Rio Tinto Exploration Canada Inc.'s 75% interest in the Fort à la Corne ("FALC") diamond district. He also continues to build strong relationships with our employees, shareholders and stakeholders, all while maintaining a focus on shareholder value."

"I am honored to accept the CEO position at Star Diamond," said Ewan Mason, President and CEO of Star Diamond. "I am excited about the prospect of an ongoing collaboration with an exceptional team and the future development of the world class diamond project that is FALC".

About Star Diamond Corporation
Star Diamond is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading symbol "DIAM". Star Diamond's most significant asset is its interest in the Fort à la Corne property in central Saskatchewan. These kimberlites are located in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

Caution Regarding Forward-looking Statements

This press release contains "forward-looking statements" and/or "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. The use of any of the words "anticipate", "plan", "aim", "target", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential", "possible", "capable" and similar expressions are intended to identify "forward-looking statements. Forward-looking statements in this press release include, but are not limited to, expectations regarding the timing for transfer of the Permit to Operate and completion of the transactions that are the subject of the Agreement.

These forward-looking statements are based on Star Diamond's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, the MoE's approval processes and the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings and the additional risks described in Star Diamond's most recently filed Annual Information Form, annual and interim MD&A.

Although management of Star Diamond considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to Star Diamond, those assumptions may prove to be incorrect. When making decisions with respect to Star Diamond, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events.

Star Diamond does not undertake any obligation to release publicly revisions to any forward-looking statement to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at investors' own risk.

SOURCE Star Diamond Corporation

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	Q4 2023	Q4 2022	YoY Variance
Total tonnes mined (ore and waste)	9,831,021	10,144,844	-3 %
Ore tonnes mined	1,895,492	705,924	169 %
Ore tonnes treated	855,319	828,644	3 %
Diamonds recovered	1,572,696	1,621,800	-3 %
Carats recovered (49% share)	770,621	794,682	-3 %
Recovered grade (carats per tonne)	1.84	1.96	-6 %

	FY 2023	FY 2022	YoY Variance
Total tonnes mined (ore and waste)	37,147,350	33,947,188	9 %
Ore tonnes mined	3,807,102	4,113,648	-7 %
Ore tonnes treated	3,249,963	3,102,219	5 %
Diamonds recovered	5,557,655	5,519,309	1 %
Carats recovered (49% share)	2,723,251	2,704,461	1 %
Recovered grade (carats per tonne)	1.71	1.78	-4 %

		Three months ended	Three months ended	Year ended	Year ended
(in thousands of Canadian dollars, except where otherwise noted)		December 31, 2023	December 31, 2022	December 31, 2023	December 31, 2022

Sales	$	79,778	96,315	328,630	388,853
Carats sold	000's carats	918	758	2,718	2,657
Average price per carat sold	$/carat	87	127	121	146
Cost of sales per carat*	$/carat	59	85	83	82
Earnings from mine operations per carat	$	28	42	38	64
Earnings from mine operations	%	32 %	33 %	31 %	44 %
Selling, general and administrative expenses	$	3,837	5,476	14,317	17,171
Operating (loss) income	$	(83,356)	25,257	(23,039)	141,027
Net (loss) income for the period	$	(75,792)	9,421	(43,671)	49,195
Basic (loss) earnings per share	$	(0.36)	0.04	(0.21)	0.23
Diluted (loss) earnings per share	$	(0.36)	0.04	(0.21)	0.23

	Three months ended	Three months ended	Year ended	Year ended
	December 31, 2023	December 31, 2022	December 31, 2023	December 31, 2022

Net (loss) income for the year	$ (75,792)	$ 9,421	$ (43,671)	$ 49,195
Add/deduct:
Non-cash depreciation and depletion	19,019	17,805	70,803	57,159
Impariment loss on property, plant and equipment	104,593	-	104,593	-
Net realizable value adjustment included in production costs	-	-	9,706	-
Share-based payment expense	228	496	1,363	1,923
Fair value gain of warrants	(1,842)	(391)	(4,816)	(6,242)
Finance expenses	12,672	19,861	41,918	47,812
Derivative (gains) losses	(12,013)	(2,627)	(11,790)	2,513
Deferred income taxes	(610)	5,520	1,980	21,200
Current income taxes	150	-	1,200	-
Unrealized foreign exchange (gains) losses	(6,638)	(25,882)	(6,237)	5,049
Adjusted earnings before interest, taxes, depreciation and depletion (Adjusted EBITDA)	$ 39,767	$ 24,203	$ 165,049	$ 178,609
Sales	79,778	96,315	328,630	388,853
Adjusted EBITDA margin	50 %	25 %	50 %	46 %

		Three months ended	Three months ended	Year ended	Year ended
(in thousands of Canadian dollars, except where otherwise noted)		December 31, 2023	December 31, 2022	December 31, 2023	December 31, 2022

Cost of sales production costs	$	33,415	38,449	138,383	131,596
Timing differences due to inventory and other non-cash adjustments	$	(12,026)	2,507	(7,802)	4,105
Cash cost of production of ore processed, net of capitalized stripping	$	21,389	40,956	130,581	135,701
Cash costs of production of ore processed, including capitalized stripping	$	38,721	64,858	204,927	185,536

Tonnes processed	kilo tonnes	419	406	1,593	1,520
Carats recovered	000's carats	770	794	2,723	2,704

Cash costs of production per tonne of ore, net of capitalized stripping	$	51	101	82	89
Cash costs of production per tonne of ore, including capitalized stripping	$	93	160	129	122
Cash costs of production per carat recovered, net of capitalized stripping	$	28	52	48	50
Cash costs of production per carat recovered, including capitalized stripping	$	50	82	75	69

Sample #	Source ¹	Type ²	Lizardite %	Lizardite CO ₂ Mineralization Potential (kg CO ₂ /tonne)
1	FMA	PK	77.7	370
2	FMA	PK	65.8	314
3	FMA	PK	63.6	303
4	FMA	PK	62.5	298
5	FMA	PK	74.8	356
6	DMS Floats	PK	70.3	335
7	DMS Floats	PK	76.8	366
8	DMS Floats	PK	75.3	359
9	DMS Floats	PK	57.5	274
10	SPF-024	Shale	-	0
11	SPF-024	Shale	-	0
12	SPF-033	EJF-KB	83.5	398
13	SPF-033	EJF-KB	78.9	376
14	SPF-033	EJF-PK	73.1	348
15	SPF-034	EJF-PK	76.4	364

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