Marc Lustig and Rajiv Bhatia Early Warning Press Release

Toronto, Ontario--(Newsfile Corp. - December 4, 2020) - Marc Lustig ("Mr. Lustig") of Toronto, Ontario and Rajiv Bhatia ("Mr. Bhatia") of Ottawa, Ontario entered into a share purchase agreement, whereby Mr. Lustig transferred 2,972,514 common shares (the "Common Shares") in the capital of Debut Diamonds Inc. (the "Company") and 900,000 warrants (each, a "Warrant"), each exercisable for one Common Share at a price of $0.05, to Mr. Bhatia for aggregate consideration of $80,000 in a private transaction (the "Private Transaction").

Prior to the Private Transaction, Mr. Lustig held 5,954,028 Common Shares and 1,800,000 Warrants, representing 22.85% of the issued and outstanding Common Shares on a non-diluted basis and 27.84% on a partially diluted basis (assuming full exercise of Mr. Lustig's Warrants). Pursuant to the Private Transaction, Mr. Lustig sold 2,972,514 Common Shares and 900,000 Warrants, and now holds an aggregate of 2,981,514 Common Shares and 900,000 Warrants, representing 11.44% of the issued and outstanding Common Shares on a non-diluted basis, and 14.40% of the issued and outstanding Common Shares on a partially diluted basis (assuming full exercise of Mr. Lustig's Warrants).

Mr. Bhatia held nil Common Shares or convertible securities prior to the Private Transaction. Pursuant to the Private Transaction, Mr. Bhatia acquired 2,972,514 Common Shares and 900,000 Warrants, representing 11.41% of the issued and outstanding Common Shares on a non-diluted basis, and 14.37% of the issued and outstanding Common Shares on a partially diluted basis (assuming full exercise of Mr. Bhatia's Warrants). Mr. Bhatia acquired the Common Shares and Warrants for investment purposes and may, from time to time, acquire additional securities of the Company or dispose of such securities as Mr. Bhatia may deem appropriate.

Copies of the respective early warning reports that will be filed by Mr. Lustig and Mr. Bhatia may be obtained on the Company's SEDAR profile or by contacting the Company at 416-710-4906.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69537