Star Diamond Acquires 100% Interest in Buffalo Hills Diamond Project

SASKATOON (Saskatchewan), July 15, 2024 /CNW/ – Star Diamond Company (“Star Diamond” or the “Company”) is pleased to announce that, pursuant to a definitive agreement dated July 11, 2024The Company has acquired Canterra Minerals Corporation’s (“Canterra”) (TSXV: CTM) interest in the Buffalo Hills Diamond Project (the “Project”) in the North Central Alberta Canada. At the closing Diamond Star will own 100% of the Project.

In consideration for Canterra’s 50% interest in the Project, the Company will issue 17,500,000 common shares (the “Consideration Shares”) representing an implied purchase price of $1.1 millionHalf of the Consideration Shares are subject to a 12-month lock-up clause. In addition to the Consideration Shares, Canterra has been granted a 1% royalty in the Project. Completion of this acquisition is subject to certain customary closing conditions, including TSX approval. All Consideration Shares are subject to a customary four-month hold period.

Ewan MasonPresident and CEO of Star Diamond Corporation English: said: “We are excited to take control of the 50% of the Buffalo Hills Diamond Project that we did not own. In early 2023, we dusted off the file on this property and conducted a review of the existing diamond parcel that was taken from a bulk sample previously taken in 2010. Our diamond specialist thoroughly analyzed the diamonds and we were astonished to find not only anomalous levels of Type IIa diamonds in the sample, but also a presence of fancy yellow diamonds (K6 yellow diamonds) with high modeled diamond prices. It became clear to us that further work needed to be done and with a number of pipes on surface, we believe a larger bulk sample should be taken to determine how many of the 38 pipes on the property could be profitable. Our plan would be to eventually extract a bulk sample and ship it to Fort a la Corne and run the sample through our bulk sampling plant on site.”

Chris PennimpedePresident and CEO of Canterra Minerals Corporation said: “We are convinced that Diamond Star Canterra will be able to maximize the value of the Buffalo Hills Diamond Project as a dedicated diamond explorer with complementary assets in the region. Canterra is now focused on advanced copper and gold exploration in the Central Mining District of Newfoundland and looks forward to maintaining its exposure to the project as a Diamond Star shareholder. We will follow the development of the situation with great interest, because our participation in the capital Diamond Star “This gives our company visibility into future success.”

About the Buffalo Hills Diamond Project

Located approximately 400 kilometers northwest of Edmonton, Alberta, CanadaThe Buffalo Hills Diamond Project comprises 21 mining leases covering 4,800 hectares and is a significant and accessible field of diamond-bearing kimberlites with similarities to the Fort à la Corne kimberlites. Saskatchewan, CanadaThe project is located in the Buffalo Hills kimberlite district, which contains at least 38 individual kimberlite bodies, 26 of which contain diamonds and a number of which are exposed at surface. Exploration of these kimberlites began in 1996 and small patches of diamonds have been collected in various exploration programs on many of those considered to be the most prospective.

About Star Diamond Corporation

Diamond Star is a Canadian company engaged in the acquisition, exploration and development of mineral properties. Shares of Diamond Star traded on the Toronto Stock Exchange under the symbol “DIAM”. Diamond stars Its most important asset is its 100% stake in the Fort à la Corne project in central SaskatchewanThese kimberlites are located close to established infrastructure, including paved highways and the electrical grid, which offers significant advantages for future mine development.

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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 laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, the closing of the acquisition of Canterra’s interest in the Project, the issuance of the Consideration Shares, Diamond stars exploration of the Project, Diamond stars assessment of its costs and management structure for the future.

These forward-looking statements are based on Diamond stars current beliefs as well as the assumptions made and the information currently available for Diamond Star and involve inherent risks and uncertainties, both general and specific. There are risks that forward-looking statements will not be realized due to a number of factors, including, but not limited to, developments in global diamond markets, changes in diamond prices, risks related to fluctuations in the Canadian dollar and other currencies relative to the U.S. dollar, changes in exploration, development or mining plans as a result of exploration results and changes in the Company’s budget priorities. Diamond Starthe impact of changes in laws and regulations governing mineral exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in Diamond stars the most recently filed annual notice, as well as the annual and interim management report. Diamond Star does not confirm or adopt any statement attributed to Canterra in this release or made by Canterra outside of this release.