Five Star Diamonds Limited: Drilling Commences at Jaibaras Diamond Project

TORONTO, ONTARIO--(Marketwired - June 8, 2017) - Five Star Diamonds Limited (TSX VENTURE:STAR) (the "Company" or "Five Star Diamonds") is very pleased to announce that the previously announced drilling programme at the Company's 100% owned Jaibaras Diamond Project (the "Jaibaras Project" or "the Project") in Para State, in northern Brazil, has commenced.

Jaibaras Diamond Drilling Programme

To date eight kimberlite targets, J1 to J8, have been identified at the Jaibaras Project and the drilling programme will focus on kimberlite targets J1 and J2.

Diamond core drilling commenced on J1 kimberlite and hole JAI-DDH-001-17 is currently in progress.

The programme will use shallow vertical drill holes located on a 50 x 50m drill grid defined by the ground magnetic results. The key objective of the programme is to cross cut the oxide weathered zone and penetrate approximately 5 metres within the fresh rock, which will allow the Company to delineate the lateral boundaries of the pipe and the vertical depth of the oxide weathered zone. This will then provide the necessary data to conduct a tonnage estimation of the J1 oxide zone. A total of 30 diamond drill holes are planned at the J1 kimberlite.

A nearly identical programme is planned on the J2 kimberlite and this will commence immediately after the drilling is completed on the J1 kimberlite.

The complete programme for both J1 and J2 kimberlites is planned to comprise of 61 drill holes with a total of 2,500 linear metres. It is estimated that this programme with be completed in the next 45 days.

The drilling programme is being conducted by Geosol - Geologia e Sondagens S/A ("Geosol"), a drilling company based in Belo Horizonte, Brazil. Geosol has one drilling rig MAC-320 operating on the Project. A second MAC-320 drilling rig is currently being mobilised and will arrive at the Project in the coming days.

Logging, recovery control and drill hole location are being conducted by the Five Star Diamonds exploration crew.

About the Jaibaras Diamond Project

The Jaibaras Diamond Project is located in Para State in Brazil and comprises one mineral property with 522.26 hectares. De Beers discovered the Jaibaras kimberlite cluster in 1990 during intensive Brazilian exploration. Their work included sampling for Kimberlite Indicator Minerals ("KIMs") and chemistry, aeromagnetic and ground magnetic surveys, drilling, trenching, microdiamond sampling and geochronology. The kimberlites were demonstrated to be diamond positive.

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An auger drilling evaluation programme has recently been completed at J5. The programme comprised seven auger holes for a total of 86.80 linear metres with five of the seven holes intersecting a kimberlitic pipe. Auger samples are being washed and concentrated for a KIM study.

Auger drilling has now been completed on targets J3 to J5 and an auger drilling programme is currently been undertaken on target J6.

The auger drilling evaluation programme will then continue with testing of the J7 and J8 targets.

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About Five Star Diamonds

The Company recently listed on the TSX Venture Exchange under the ticker symbol STAR.

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 with its associated environmental issues. The Company works closely with local, state and federal authorities in Brazil to foster an open, transparent and legal diamond industry in Brazil.

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Qualified Person

Mr Paulo Il?-dio de Brito

BSc Geology

Mr. Paulo de Brito is a geologist based in Brazil, has over 30 years of experience in the mining industry, dealing primarily with gold, copper, nickel, iron, industrial minerals and more recently diamonds. Mr. Brito is a Principal of consulting group Brasgeo and was until recently Exploration Manager of Paringa Resources Limited. Previously, he worked as a senior geologist with WMC Resources Ltd for 18 years until the closure of their activities in Brazil in 2002.

The exploration activities and their related results included in this announcement were directly supervised and managed by Mr. Brito. According to Mr. Brito, all exploration work carried out to date on the Riachao Project follow clear mining industry standards.

Mr. Brito, a member of AIG (Australian Institute of Geoscientists) and a member of AusIMM (The Minerals Institute) and a Qualified Person as defined in National Instrument 43-101. Mr. Brito reviewed and approved the scientific and technical information contained in this press release.

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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