Mr. R. Nick Horsley reports

MARGARET LAKE DIAMONDS PROVIDES UPDATE ON LETAIN NICKEL TRANSACTION

Margaret Lake Diamonds Inc., further to its news release dated Feb. 12, 2025, has received TSX Venture Exchange acceptance, has made the initial payment of $5,000 to the vendor and has issued an aggregate of 125,000 common shares of the company to the vendor in connection with the option to reacquire the Letain nickel project, located approximately 70 kilometres (km) east-southeast of Dease Lake in Northern British Columbia, Canada. Upon satisfaction of the remaining conditions pursuant to the agreement with the vendor, the company will acquire a 100-per-cent right, title and interest in and to the Letain project. The shares issued to the vendor are subject to a hold period expiring on Aug. 29, 2025, as required under applicable securities legislation.

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

R. Nick Horsley, chief executive officer, Margaret Lake Diamonds, stated, "We are happy to have closed the Letain nickel project and will now look to plan an exploration program."

About the Letain nickel project

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

The Letain project mineral claims feature disseminated awaruite, a naturally occurring Ni-Fe (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 metres in 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 Stikinia terrain. Geochemical analysis of rock chips returned values ranging from 1,700 to 3,800 parts per million (ppm) nickel (Ni) (source: historical rock sampling of 144 rock samples collected in 2011, assay method 1E/8FPX 4 acid digestion method, analysis by ICP-ES (inductively coupled plasma emission spectroscopy)).

Qualified person

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

Terms of the transaction

The company has entered into an option with the joint owners of the Letain project, 1240089 BC Ltd. (50 per cent) and 1258713 BC Ltd. (50 per cent), which have granted to Margaret Lake Diamonds 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:

1. Payment of $5,000 on TSX Venture Exchange approval and resumption of trading;
2. Completing a qualified work program of no less than $10,000 to be completed or a payment in lieu of exploration before October, 2025;
3. The issuance of an aggregate of 125,000 common shares of the company to the vendor;
4. $50,000 payment to the vendor on the second anniversary of the agreement (payable in cash or shares at the election of the vendor);
5. $115,000 payment to the vendor on the third anniversary of the agreement (payable in cash or stock at the election of the vendor);
6. 2-per-cent net smelter royalty, with one-half (1-per-cent royalty) being able to be purchased for $1.0-million.

We seek Safe Harbor.