Mr. George Read reports

STAR DIAMOND CORPORATION ANNOUNCES SECOND QUARTER 2023 RESULTS

Star Diamond Corp.'s unaudited financial results for the quarter ended June 30, 2023, will be filed today on SEDAR+ and may be viewed on SEDAR+ once posted.

Overview

Star Diamond is a Canadian natural resource company focused on exploring and developing Saskatchewan's diamond resources. Star Diamond currently holds, through a joint venture arrangement with Rio Tinto Exploration Canada Inc. (Rio Tinto Canada), a wholly owned subsidiary of Rio Tinto PLC, a 25-per-cent interest in certain mineral properties (which includes the Star-Orion South diamond project) within the Fort a la Corne diamond district of central Saskatchewan, Canada. These properties are in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

The company also holds a 50-per-cent interest in the exploration and evaluation properties and assets of the Buffalo Hills joint venture (JV), located in north-central Alberta, Canada. Canterra Minerals Corp. holds the remaining 50-per-cent interest. Canterra is the operator of the Buffalo Hills JV.

Fort a la Corne mineral properties

On June 28, 2022, Rio Tinto Canada exercised its voting power at a meeting of the Fort a la Corne joint venture management committee to place the project on care and maintenance through Dec. 31, 2022. Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it did not intend to commit additional capital to the Fort a la Corne properties during 2022 beyond what was necessary for care and maintenance. Rio Tinto Canada also advised Star Diamond that it intended to conduct a near-term review of its alternatives regarding the Fort a la Corne properties, which included its potential exit. On Oct. 21, 2022, Star Diamond announced that Rio Tinto Canada had stated that it intended to fully demobilize the leased on-site camp. During the first quarter, the personnel camp was fully demobilized and the project was placed on care and maintenance.

Recent activities relating to the Star-Orion South diamond project and Fort a la Corne mineral properties

During the quarter ended June 30, 2023, the company continued negotiations with Rio Tinto Canada to assess alternatives regarding the project.

Quarterly results

For the three months ended June 30, 2023, the company recorded a net loss of $900,000 or nil per share (basic and fully diluted), compared with a net loss of $700,000 or nil per share for the comparative period in 2022. This greater net loss was due to a $300,000 non-cash loss on the fair value remeasurement of the company's investment in Wescan Goldfields Inc., offset by a 20-per-cent reduction in expenditures.

Year-to-date results

For the six months ended June 30, 2023, the company recorded a net loss of $1.2-million or nil per share, compared with a net loss of $1.5-million or nil per share for the same period in 2022. This 20-per-cent decrease, period over period, was due to lower administrative and exploration and evaluation expenditures incurred, offset by higher consulting and professional fees, and corporate development costs.

At June 30, 2023, the company had $1.0-million (Dec. 31, 2022 -- $2.6-million) in cash and cash equivalents, and working capital of $700,000 (Dec. 31, 2022 -- $2.0-million). The decrease in working capital was the result of general and administrative, and exploration and evaluation expenditures incurred during the quarter. The company believes it has sufficient liquidity to finance general and administrative costs and certain exploration expenditures through to the end of 2023.

Selected financial highlights are provided in the attached tables.

Outlook

Fort a la Corne mineral properties

Star Diamond continues to work with Rio Tinto Canada in assessing alternatives regarding the project. These discussions remain continuing and there is no certainty that any agreement will be reached between Star Diamond and Rio Tinto Canada regarding any such potential arrangements. Management believes that the negotiated return of the project on reasonable terms is critical to its long-term success.

Buffalo Hills mineral properties

Management continues to review the recent results from the diamond valuation and typing analysis. Discussions are continuing with Canterra to determine possible future work programs and a potential strategic path forward for the property. A more detailed update on activities at the Buffalo Hills JV will be provided as it becomes available.

About Star Diamond Corp.

Star Diamond is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading symbol DIAM. Star Diamond holds, through a joint venture arrangement with Rio Tinto Canada, a 25-per-cent interest in certain Fort a la Corne kimberlites (including the Star-Orion South diamond project). These properties are located in central Saskatchewan, in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The company also holds a 50-per-cent interest in the exploration and evaluation properties and assets of the Buffalo Hills JV, located in north-central Alberta, Canada. Canterra holds the remaining 50-per-cent interest. Canterra is the operator of the Buffalo Hills JV.

Technical information

All technical information in this news release has been prepared under the supervision of George Read, senior vice-president, corporate development, professional geoscientist in the provinces of Saskatchewan and British Columbia, and Mark Shimell, vice-president, exploration, professional geoscientist in the provinces of Saskatchewan and Alberta, who are the company's qualified persons under the definition of National Instrument 43-101.

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