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Star Diamond Corp.

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Corporate

Corporate
Presentation

Overview

Star Diamond Corporation currently holds a 100% in certain Fort à la Corne mineral dispositions, including the Star-Orion South Diamond Project, the largest undeveloped diamond deposit in the world. These Fort à la Corne mineral dispositions are located in the Fort à la Corne provincial forest of central Saskatchewan, situated some 60 kilometres east of the city of Prince Albert, Saskatchewan, Canada. The Fort à la Corne provincial forest is an island forest, surrounded by agricultural land and urban development. Access to the Fort à la Corne area is provided by paved highways, a grid gravel road system and an extensive network of forestry roads, passable by four-wheel drive and high clearance two-wheel drive vehicles all year round. The vast extent of, and massive kimberlite volume contained in, the Fort à la Corne Field has been noted since the original discovery of these kimberlites in the late nineteen eighties.

Star Diamond Corporation also has 100% interest in the Buffalo Hills Diamond Project, located ~400km northwest of Edmonton, Alberta, Canada.

Star-Orion South Diamond Project

The Star-Orion South Diamond Project (the "Project") is located in the Fort à la Corne diamond district of central Saskatchewan, Canada and is in the Fort à la Corne diamond district of central Saskatchewan, Canada. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

During 2018, the Saskatchewan Ministry of Environment (“Ministry”) approved the Project under The Environmental Assessment Act, indicating the “The Star-Orion South Diamond Mine is a major development with the potential to bring jobs to the area and diversify Saskatchewan’s economy” (see News Release dated October 25, 2018). The Ministry indicated that they have conducted a thorough environmental assessment for the Project, including a detailed environmental impact statement, and carried out in-depth consultation prior to the decision to approve the Project. This included fulfilling the Province’s duty to consult with local First Nations and Métis communities. The Canadian Environment Assessment Agency previously announced a positive federal Environmental Assessment Decision for the Project (see News Release dated December 3, 2014).

During 2018, Star Diamond Corporation announced the positive results of the independent Preliminary Economic Assessment (“PEA”) on the Star and Orion South Kimberlites, on mineral dispositions held 100% by Star Diamond (see Star Diamond Corporation News Release dated April 16, 2018). The PEA estimates that 66 million carats of diamonds could be recovered in a surface mine over a 38-year Project life, with a Net Present Value (“NPV”) (7%) of $2.0 billion after tax, an Internal Rate of Return (“IRR”) of 19% and an after-tax payback period of 3.4 years after the commencement of diamond production.

The PEA Highlights Include 1.:

The PEA is based on the Revised Mineral Resource Estimate as documented in the NI 43-101 Technical Report: Technical Report and Revised Resource Estimate for the Star – Orion South Diamond Project Fort a La Corne area, Saskatchewan, Canada December 21, 2015 3.

This PEA remains a valid NI43-101 Project metric however, the future PFS (2025) will update these values using the stronger 2024 MRE.

1.  Cautionary note: The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Readers are cautioned that the PEA is preliminary in nature and includes the use of Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the results of the PEA will be realized.

2.  Diamond-bearing kimberlite is produced from the mine and diamonds are recovered in the processing plant for 34 years. The overall project life is 38 years, which includes just over four years of pre-stripping activities.

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

Revised Mineral Resources Estimate 2024

On July 24,2024 – Star Diamond Corporation announced a significant increase in the estimated Mineral Resources for the Star - Orion South Diamond Project (the “Project”).

Highlights

Table 1. Revised Mineral Resources Estimates for the Star and Orion South Kimberlites

Table Notes Apply to Table 1

  1. Canadian Institute of Mining and Metallurgy (“CIM”) definitions were followed for classification of mineral resources.
  2. Star Kimberlite Units: Cantuar, Pense, Early Joli Fou (“EJF”), & Mid Joli Fou (“MJF”).
  3. Orion South Kimberlite Units: P3, Pense & Early Joli Fou (EJF). 
  4. Mineral Resources are constrained within a Whittle optimized pit shell.
  5. Mineral Resources, which are not Mineral Reserves do not have demonstrated economic viability. The estimation of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
  6. There is no guarantee that all or any part of the Mineral Resources will be converted into a Mineral Reserves.
  7. Grade values are rounded to the first decimal.
  8. The effective date of the Revised Mineral Resources estimate is July 24, 2024.
  9. The EJF Inner and Outer kimberlite units for both deposits are based on detailed kimberlite geology recorded from   the core logging of the pattern drilling program. The EJF Inner represents coarser grained EJF kimberlite that occurs within the volcanic crater and the EJF Outer includes finer grained EJF kimberlite that lies on and outside the crater rim. This Revised Mineral Resources estimate acknowledges that the transition from Inner to Outer is geologically gradational.

Revised diamond grade estimates are assigned to the Company’s established geological models for the Star and Orion South diamond deposits using robust parameters consistent with previous studies. Rio Tinto Exploration Canada’s (“RTEC”) successful development and execution of the Trench Cutter (“TC”) sampling program and diamond recovery in the modern Consulmet Bulk Sample Plant, generated a diamond parcel that can be integrated with diamond parcels from previous underground bulk sampling and LDD programs. The TC diamond parcel has improved the overall diamond grade and Size Frequency Distribution (“SFD”) used by Star Diamond to estimate the revised Mineral Resources of both Star and Orion South. The consequent reduction in the average diamond price due to the addition of smaller stones from enhanced recovery, is significantly offset by the larger grade increase. We are also pleased to have diamond expert Mr. Peter Ravenscroft supervise this Mineral Resources update after the completion of RTEC’s ten hole TC Program at the Star Kimberlite in 2019, as he not only brings over 40 years of diamond resource estimation expertise with some of the major diamond companies in the world, but also clearly aligns our Star - Orion South Diamond Project Mineral Resources estimate with established diamond industry standards. Estimation of these Revised Mineral Resources has taken a more pragmatic approach with careful consideration of the geological controls on diamond distribution. Particular attention has been given to variations in diamond SFD, in addition to diamond grade. This approach has resulted in a substantial increase in the Indicated Resources for both Star and Orion South. The Star – Orion South Diamond Project now has one of the largest undeveloped Indicated Resources found in any diamond project in the world. The diamond populations of the EJF and Cantuar kimberlite units at Star and the EJF kimberlite unit at Orion South have significantly coarse diamond SFD, from which we can anticipate the recovery of large, high quality (Type IIa) diamonds in future production.

Other Project highlights:

Fort à la Corne Diamond District properties

Star Diamond and other companies have completed extensive exploration on many Fort à la Corne kimberlites, including geophysical surveys, pattern core drilling, large diameter drilling and microdiamond and macrodiamond analyses, which resulted in the documentation of geological models for a number of bodies outside of Star and Orion South. Geological models have been prepared for five partially evaluated Fort à la Corne kimberlites as well as the Star and Orion South Kimberlites (see Star Diamond Corporation News Release dated March 6, 2014). In addition diamond parcels from Orion North have had detailed valuations completed (see Star Diamond Corporation News Release dated May 16, 2024).

Geological models have been prepared for five partially evaluated Fort à la Corne kimberlites as well as the Star and Orion South Kimberlites (see Star Diamond Corporation News Release dated March 6, 2014).

Buffalo Hills

The Company holds a 100% interest in the exploration and evaluation properties and assets of the BH Project. Located approximately 400 kilometres northwest of Edmonton, Alberta, Canada, the BH Project includes 21 mineral leases covering 4,800 hectares and is a significant and accessible field of diamond bearing kimberlites, with similarities to the Company’s Fort á la Corne kimberlites. The BH Project is located in the Buffalo Hills Kimberlite District, which contains at least 38 individual kimberlite bodies, of which 26 kimberlites are diamond-bearing and a number of which outcrop at surface (see Figure 2). Exploration on these kimberlites started in 1996, and small parcels of diamonds have been collected from various exploration programs on many of those considered most prospective.