Mr. Nick Horsley reports

MARGARET LAKE ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Margaret Lake Diamonds Inc. has arranged a non-brokered private placement of up to 4,461,538 units at a price of 6.5 cents per unit for gross proceeds of up to $290,000.

Each unit will consist of one common share and one transferrable common share purchase warrant. Each warrant entitles the holder to purchase one additional share of the company at a price of 8.5 cents per share for a period of 36 months from the date of issuance, subject to final TSX Venture Exchange approval.

The net proceeds from the private placement will be allocated toward exploration activities and for general corporate purposes. In accordance with the policies of the TSX-V, the company may pay finders' fees in connection with the private placement. All securities issued pursuant to the private placement will be subject to a hold period of four months and one day as required under applicable securities legislation.

Any participation by insiders of the company in the private placement will constitute a related party transaction as defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company intends to rely on exemptions from the formal valuation and minority approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the securities to be issued under the private placement nor the consideration to be paid by insiders of the company will exceed 25 per cent of the company's market capitalization.

We seek Safe Harbor.