Mr. R. Nick Horsley reports

MARGARET LAKE DIAMONDS ENTERS IN TO AGREEMENT TO RE ACQUIRE LETAIN NICKEL PROJECT

Margaret Lake Diamonds Inc. has entered into an agreement to reacquire the Letain nickel project located approximately 70 kilometres east-southeast of Dease Lake in Northern British Columbia, Canada.

The company previously held the property and had a National Instrument 43-101 technical report prepared by J.T. Shearer, MSc, PGeo (British Columbia and Ontario), FSEG geologist titled "Letain nickel project, tenures 1058958, 1058959, 1058961, Letain Lake Dease Lake area, B.C.," and dated March 15, 2021.

R. Nick Horsley, chief executive officer Margaret Lake, stated: "We are pleased to have the Letain nickel project back in the company's control. The domestic supply of nickel and other critical minerals has become an ever more relevant topic, and we are excited to make the most of the 2025 exploration season at Letain."

About the Letain nickel project

The company provided an update on the project on Oct. 21, 2021.

The Letain project mineral claims feature disseminated awaruite, a naturally occurring nickel-iron alloy that is hosted in peridotite and minor dunite. Several peridotite-hosted zones contain fine and coarse Ni-Fe alloy grains. Surface sampling of rock chips average approximately 0.25 per cent nickel, exposed along a ridge ranging from 1,700- to 2,050-metre elevation. The Letain property covers part of the Cache Creek terrain separated from the volcanic and sedimentary rocks of the Quesnellia terrain by the Thibert fault to the north and the Kutcho fault to the west. The King Salmon fault displaces the transition between the Cache Creek terrain and the sediments and volcanics of the Stikinia terrain. Geochemical analysis of rock chips returned values ranging from 1,700 to 3,800 parts per million nickel (source: historic rock sampling of 144 rock samples collected in 2011, assay method 1E/8FPX four-acid digestion method, analysis by ICP-ES). SGS ran 10 samples for concentrate (that is, heavy mineral separation) and arrived at the percentage of magnetic fraction.

Awaruite mineralization occurs in two different habits: fine Ni-Fe alloys or larger composite grains. Fine awaruite grains (10 to 100 micrometres) are disseminated in the serpentine matrix. Ni-Fe alloys have a highly reflective white/silver colour. Larger composite grains (100 to 300 micrometres) are a mixture of Ni-Fe alloys and lesser Ni-Fe sulphides. The area is underlain by a highly differentiated peridotite with numerous porphyritic, sheared and vein-veinlet-breccia textures. In the south portion of the property, the peridotite is characterized by disseminated magnetite- and chromite-abundant vein fracture, filling apple-green-dark-green-coloured minerals such as picrolite and lizardite. In the north portion of the property, the peridotite is massive, black in colour with fewer vein-fracture textures; however, the change in texture of the peridotite appears to have little or no effect on the nickel-chromium-cobalt content, whose ranges are 1,700 to 3,800 ppm Ni, 1,000 to 3,000 ppm Cr and 100 to 150 ppm Co. Several peridotite-hosted zones contain fine and coarse Ni-Fe alloy grains (awaruite) that are exposed as bedrock ridges in the east-central portion of the claim group at 1,700- to 2,050-metre elevation. Disseminated fine to coarser grain awaruite was found in serpentinized ultramafic rocks. In the north portion of the property, the peridotite is massive, black in colour with fewer vein-fracture textures. Samples from the central ridge of the property delineated a 1,100-metre-long discontinuous zone of coarse-grained (greater than 100 micrometres) awaruite. The Letain mineral property has geological similarities to the Decar nickel deposit (located 70 kilometres northwest of Fort St. James, B.C.), which contains awaruite mineralization that is characterized as magnetically recoverable nickel, and pyro-metallurgical smelting is not required to produce nickel.

Management plans to advance the Letain project by carrying out a program of core drilling to identify nickel-cobalt-chromium-bearing mineralization and mineralogy and metallurgical testing (Davis tube magnetic recovery tests) for awaruite nickel characterization.

Qualified person

Andris Kikauka (PGeo) is a non-independent qualified person within the meaning of National Instrument 43-101, and has prepared, reviewed and approved technical information in this press release.

Terms of the transaction

The company has entered in to an option with the joint owners of the Letain project, 1240089 B.C. Ltd. (50 per cent) and 1258713 B.C. Ltd. (50 per cent), which have granted to Margaret Lake the sole and exclusive right and option to acquire up to 100 per cent of the right, title and interest in and to the Letain project, free and clear of all encumbrances.

The right of the company to exercise its option to acquire a 100-per-cent right, title and interest in and to the Letain project, free and clear of all encumbrances, is conditional upon the company satisfying the following obligations:

• Payment of $5,000 on TSV Venture Exchange approval and resumption of trading;
• Completing a qualified work program of no less than $10,000 to be completed or a payment in lieu of exploration before October, 2025;
• The issuance of an aggregate of 125,000 common shares of the company to the vendor;
• $50,000 payment to the vendor on the second anniversary of the agreement (payable in cash or shares at the election of the vendor);
• $115,000 payment to the vendor on the third anniversary of the agreement (payable in cash or stock at the election of the vendor);
• 2-per-cent net smelter royalty with one-half (1 per cent) being able to be purchased for $1.0-million.

We seek Safe Harbor.