Maravilha M3 Kimberlite Discovery Update

TORONTO, Feb. 13, 2018 (GLOBE NEWSWIRE) — Five Star Diamonds Limited (TSXV:STAR) (the “Company” or “Five Star Diamonds”) is extremely pleased to provide the following update on preliminary results from its 100% owned Maravilha Diamond Project (the “Maravilha Project”) in Brazil.

Highlights

Preliminary results from the caustic fusion and diamond analysis on the 1t bulk sample (CF-MAR-1) from the M3 kimberlite has recovered over 400 diamonds in sorting to date.

A number of macro diamonds have been recovered in the process and are currently being weighed and described along with the large volume of microdiamonds.

Additional bulk sampling and drilling programmes are currently being planned to fast track this project and the M3 kimberlite discovery.

A further six possible kimberlite targets have been identified across the Maravilha Project.

The Company hopes to have final results from CF-MAR-1 in the coming weeks at which time a more detailed report will be available.

MARAVILHA DIAMOND PROJECT

The Company recently announced the beginning of a bulk sampling program to test the M3 kimberlite discovery. The M3 kimberlite lies within the Sao Francisco Craton and is hosted by Archean meta granites and meta volcanic basalts. A ground magnetic survey indicated that the M3 pipe has a strong magnetic response suggesting an ovoid shape measuring approximately 130 by 65 meters with the major axis aligned along a northeast-southwest direction.

The bulk sampling over the M3 kimberlite was recently concluded and the sample (CF-MAR-1) was subsequently submitted for caustic fusion and diamond analysis at SGS-Geosol Laboratory, based in Belo Horizonte, Brazil.

The bulk sample CF-MAR-1 weighing approximately 1.04t was caustic fused and refused several times to produce a final residue weight of 12.87 grams. Diamond sorting is currently underway with more than 400 macro and microdiamonds recovered to date.

Sorting continues and the Company expects to receive final results from the caustic fusion and diamond analysis of CF-MAR-1 in the coming weeks.

To date, the largest macro diamond recovered measures approximately 3.58 mm by 2.87 mm. Additional macro diamonds have been recovered with the final number of the stones unknown at this time.

The Company is completing a detailed ground magnetic survey on the Maravilha Project and to date approximately 20% of the project area has been surveyed totalling 118 linear kilometres. Interpretation undertaken by Five Star Diamonds technical staff has now delineated seven (7) magnetic targets which have been labelled M3 to M9.

Given these highly successful early results the Company is now fast tracking the M3 kimberlite and the Maravilha Project.

Next Steps

The Company is encouraged by these exceptional early results at the Maravilha Diamond Project and additional assessment will be undertaken, including potential trenching and drilling to delineate the M4 to M9 targets.

ABOUT FIVE STAR DIAMONDS

Five Star Diamonds 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 23 diamond projects comprising an aggregate of 67 exploration licences and applications across 165,019 hectares.

To date, the Company has conducted exploration programs on seven projects with the Catalao, Verissimo, Riachao, Jaibaras and Maravilha Projects proven to contain diamond bearing kimberlites.

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 with its associated environmental issues. The Company works closely with local, state and federal authorities in Brazil to foster an open, transparent and legal diamond industry in Brazil.

This release is an update by the Company on its 100% owned Maravilha Diamond Project. It is expected that the company will be able to provide further updates on this and its other Projects 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.

Qualified Person

Mr Paulo Ilídio de Brito
BSc Geology

Mr. Paulo de Brito is a geologist based in Brazil, has over 30 years of experience in the mining industry, dealing primarily with gold, copper, nickel, iron, industrial minerals and more recently diamonds. Mr. Brito is a Principal of consulting group Brasgeo and was until recently Exploration Manager of Paringa Resources Limited. Previously, he worked as a senior geologist with WMC Resources Ltd for 18 years until the closure of their activities in Brazil in 2002.

The exploration activities and their related results included in this announcement were directly supervised and managed by Mr. Brito. According to Mr. Brito, all exploration work carried out to date on the Projects mentioned in this release follow clear mining industry standards.

Mr. Brito, is a member of AIG (Australian Institute of Geoscientists), a professional geologist of CREA-RJ (Conselho Regional de Engenharia e Arquitetura) and a Qualified Person as defined in National Instrument 43-101. Mr. Brito reviewed and approved the scientific and technical information contained in this press release.

On behalf of the Board

Five Star Diamonds Limited

Matthew Wood
Chairman of the Board, President and CEO

For further information, please contact:

Five Star Diamonds Limited
Joe Burke, GM Marketing
jburke@fivestardiamonds.net

Rajan “Raj” Rai
rrai@fivestardiamonds.net
+1 778 835 9200

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.

Two photos accompanying this announcement are available at

http://www.globenewswire.com/NewsRoom/AttachmentNg/55610edb-774a-4446-9f4e-6cbf479cce6a

http://www.globenewswire.com/NewsRoom/AttachmentNg/7782e3e5-4b27-48a3-9298-b6bcf8ccce28

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