Five Star Diamonds and I.Hennig Sign Co-Operation Agreement

TORONTO, Sept.11, 2017(GLOBE NEWSWIRE) -- Five Star Diamonds Limited (TSXV:STAR) ("Five Star Diamonds" or "Five Star"), Brazil's leading development and diamond exploration company and I.Hennig & Co. Ltd., ("Hennig") the world's leading international diamond broking and consulting group are pleased to announce the signing of a co-operation agreement to add value and advance Five Stars diamond projects in Brazil.

Five Star has signed an agreement with Hennig to support its development and growth efforts. Hennig has been aiding clients procure Rough diamonds for over 125 years and has worked with the major players at all levels of the value chain.

The scope of the agreement covers Five Star's induction into the diamond industry and development of its brand.

This strategic cooperation will afford Five Star Diamonds the ability to enhance its customer relationships and marketing in the broader diamond sector. Five Star will continue to focus on its bulk sampling and pre-development studies where early results have been highly encouraging.

Five Star Diamonds Chairman and CEO Matthew Wood said, "We are extremely excited about this co-operation with Hennig. Hennig brings world class diamond expertise to Five Star. They will assist Five Star in navigating the diamond value chain whilst building our brand in global markets. Brazil represents an exceptional opportunity in the diamond space which has limited opportunity for growth and a dearth of new projects coming on stream. Five Star believes that the combination of our in house mining and exploration expertise with Hennig's exceptional knowledge, expertise and relationships in the diamond sector is truly a unique and compelling opportunity."

Hennig CEO Arik Sela said: "It is always exciting to work with a new and emerging diamond company, especially with the mining expertise which the Five Star team boasts. Hennig is pleased to provide diamond industry knowhow to Five Star and to usher its inauguration and prospective growth in our market. Throughout an impressive history in the diamond business Hennig has always seen itself as a torchbearer for innovation and transformation. We are happy to continue this tradition with our newly announced cooperation with Five Star."

ABOUT HENNIG

I.Hennig & Co. Ltd (www.ihennig.com) was founded in 1890 and is the world's leading international diamond broking and consulting group, with offices in all major diamond trading hubs across four continents and relationships with the world's largest diamond miners, traders, manufacturers, and jewellery retailers.

ABOUT FIVE STAR DIAMONDS

The Company is listed on the TSX Venture Exchange under the ticker symbol STAR. The Company controls a dominant and highly enviable position in the Brazilian kimberlite diamond sector owning 24 diamond kimberlite projects comprising an aggregate of 80 exploration licences and applications across 185,980 hectares.

Five Star Diamonds is focused on acquiring and developing advanced staged diamond projects in Brazil. Since it was established, it has pursued an accelerated growth strategy and aims to be one of the first producers of diamonds from kimberlite deposits in Brazil. The Company is focused on the development of sustainable kimberlite pipes and is not involved in alluvial diamond mining. The Company works closely with local, state and federal authorities in Brazil to foster an open, transparent and legal diamond industry in Brazil.

The Company is running active programmes across its 100% owned Jaibaras, Catalao, Riachao, Verissimo and Caiapo diamond projects. It is expected that the company will be able to provide further updates over the coming months and we look forward to keeping shareholders informed of our progress as we move towards building a truly unique Brazilian diamond company.

On behalf of the Board

Five Star Diamonds Limited

Matthew Wood
Chairman of the Board, President and CEO

Cautionary Note Regarding Forward-looking statements

Information set forth in this news release contains forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, many of which are beyond the Company's control. Such factors include, among other things: variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

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