An anonymous director reports

STAR DIAMOND CLARIFICATION FOR EXISTING SHAREHOLDERS ON NON-BROKERED PRIVATE PLACEMENT FINANCING OF UP TO C$2.0 MILLION

In response to a significant number of enquiries received from existing shareholders regarding their eligibility to participate in the financing announced Dec. 15, 2023, Star Diamond Corp. has provided the following clarification:

The company advises that if you are an existing shareholder interested in participating in the offering at a minimum subscription amount of $10,000, please contact Star Diamond by e-mail at stardiamondcorp@stardiamondcorp.com to discuss exemptions available for you under existing securities law.

The offering will consist of any combination of (i) units of the company at a price of nine cents per unit; and (ii) flow-through units of the company at a price of 11 cents per FT unit, subject to maximum aggregate gross proceeds of $2-million. Each unit shall consist of one common share of the company (which shall not be a flow-through share) and one common share purchase warrant. Each FT unit shall consist of one common share of the company and one warrant, each of which will qualify as a flow-through share for the purposes of the Income Tax Act (Canada). Each warrant will entitle the holder thereof to acquire one additional common share of the company (which shall not be a flow-through share) at an exercise price of 14 cents for a period of 36 months from the date of issuance.

The offering is expected to close in one or more tranches, the first of which will occur on or before Dec. 29, 2023, and involve the issuance of all FT units issuable pursuant to the offering. The company may close concurrent or subsequent tranches of units pursuant to the offering, on or prior to Jan. 26, 2024. The offering is subject to the approval of the Toronto Stock Exchange. All securities issued in connection with the offering will be subject to a statutory hold period of four months plus one day from the closing date of the offering.

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's most significant asset is its interest in the Fort a la Corne property in central Saskatchewan. These kimberlites are located in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

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