STAR DIAMOND CORPORATION ANNOUNCES THIRD QUARTER 2023 RESULTS

TSX: DIAM

Star Diamond Corporation ("Star Diamond" or the "Company") reports that the unaudited financial results for the quarter ended September 30, 2023 will be filed today on SEDAR+ and may be viewed at www.sedarplus.ca once posted.

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. ("Rio Tinto Canada"), a wholly-owned subsidiary of Rio Tinto plc, a 25% interest in certain mineral properties (which includes 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.

On June 28, 2022 , Rio Tinto Canada exercised its voting power at a meeting of the Fort à la Corne joint venture management committee to place the Project on care and maintenance through December 31, 2022 . Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it did not intend to commit additional capital to the Fort à la Corne properties during 2022 beyond what was necessary for care and maintenance. Rio Tinto Canada also advised Star Diamond that it intended to conduct a near-term review of its alternatives regarding the Fort à la Corne properties, which included its potential exit.  On October 21, 2022 , Star Diamond announced that Rio Tinto Canada had stated that it intended to fully de-mobilize the leased on-site camp. During the second quarter of 2023, the personnel camp was fully de-mobilized and the Project was placed on care and maintenance.

Recent activities relating to the Star - Orion South Diamond Project and Fort à la Corne mineral properties
During the quarter ended September 30, 2023 , the Company continued negotiations with Rio Tinto Canada to assess alternatives regarding the Project.

Quarterly Results
For the three months ended September 30, 2023 , the Company recorded a net loss of $0.6 million , or $0.00 per share (basic and fully diluted), compared to a net loss of $0.5 million , or $0.00 per share, for the comparative period in 2022.

Year to Date Results
For the nine months ended September 30, 2023 , the Company recorded a net loss of $1.8 million , or $0.00 per share, compared to a net loss of $2.1 million , or $0.00 per share, for the same period in 2022. This 14% decrease, period over period, was due to lower administrative expenditures incurred, offset by higher consulting and professional fees, corporate development costs and exploration and evaluation expenditures.

At September 30, 2023 , the Company had $0.5 million ( December 31, 2022 – $2.6 million ) in cash and cash equivalents and working capital of $0.1 million ( December 31, 2022 - $2.0 million ).  The decrease in working capital was the result of general and administrative, and exploration and evaluation expenditures incurred during the quarter. The Company believes it has sufficient liquidity to fund general and administrative costs and certain exploration expenditures through to the end of 2023.

Selected financial highlights include:

Fort à la Corne mineral properties
Star Diamond continues to work with Rio Tinto Canada in assessing alternatives regarding the Project. These discussions remain ongoing and there is no certainty that any agreement will be reached between Star Diamond and Rio Tinto Canada regarding any such potential arrangements.  Management believes that the negotiated return of the Project on reasonable terms is critical to its long-term success.

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 holds, through a joint venture arrangement with Rio Tinto Canada, a 25% interest in certain Fort à la Corne kimberlites (including the Star – Orion South Diamond Project). These properties are 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 Minerals Corporation ("Canterra") holds the remaining 50% interest. Canterra 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.

Website www.stardiamondcorp.com

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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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