Star-Orion South Mineral Resource Estimate

During the fourth quarter of 2015, the Company announced Revised Mineral Resource estimates for the Star and Orion South Kimberlites (see Star Diamond Corp. News Release dated November 9, 2015 and Technical Report filed December 21, 2015). The 2015 Revised Mineral Resource estimate supersedes all previous estimates. Accordingly, the mineral resources and economic assessment previously disclosed by Star Diamond Corp. for the Project should no longer be relied upon.

Highlighted below is the revised independent NI 43-101 Mineral Resource Estimate for the Star and Orion South diamond deposits.

2015 Revised Mineral Resource Estimates tor the Star and Orion South Deposits

Reported Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. There is no guarantee that all, or any part, of a Mineral Resource will be converted into a Mineral Reserve.

The updated mineral resource estimate for the Star Deposit is based on:

Star Kimberlite 3-D Geological Model (Looking North East)

Star Kimberlite 3-D Geological Model (Looking North East)

The updated mineral resource estimate for the Orion South Deposit is based on:

3D View of the Orion South Kimberlite Geological Model Looking North West

3D View of the Orion South Kimberlite Geological Model Looking North West

Star Mineral Resources

Non-diluted Indicated Mineral Resources considered amenable to open pit mining, within a preliminary pit shell at a C$5.49/tonne internal cut off and within the Late Joli Fou Pyroclastic Kimberlite (LJF), Early Joli Fou Pyroclastic Kimberlite (EJF), Middle Joli Fou Pyroclastic Kimberlite (MJF), Pense pyroclastic kimberlite (PPK) and Cantuar Pyroclastic Kimberlite (CPK) domains total 193.010 million tonnes with an average diamond grade of 15 cpht for 28.249 million carats.

Non-diluted Inferred Mineral Resources considered amenable to open pit mining, within a preliminary pit shell at a C$5.49/tonne internal cut off and within the LJF, EJF, MJF, PPK and CPK domains total 56.949 million tonnes with an average diamond grade of 11 cpht for 6.385 million carats.

Star Mineral Resources

Orion South Mineral Resources

Non-diluted Indicated Mineral Resources considered amenable to open pit mining, within a preliminary pit shell at a C$5.49/tonne internal cut off and within the Early Joli Fou Pyroclastic Kimberlite (EJF) and Pense Volcaniclastic Kimberlite (Pense) domains total 200.160 million tonnes with an average diamond grade of 14 cpht for 27.153 million carats.

Non-diluted Inferred Mineral Resources considered amenable to open pit mining, within a preliminary pit shell at a C$5.49/tonne internal cut off and within the EJF, LJF, Pense and Pense Volcaniclastic Kimberlite 3 (P3) domains total 72.080 million tonnes with an average diamond grade of 7 cpht for 5.180 million carats.

Orion South Mineral Resources

Since the completion of the 2015 Mineral Resource Estimate, significant aspects of test work required for an updated feasibility study on the Star – Orion South Diamond Project has been performed. An updated feasibility study would contain a revised statement of Mineral Reserves for the Project, if warranted, and an economic assessment based thereon.