Drilling Commenced at Maravilha Diamond Project TO

TORONTO, May 23, 2018 (GLOBE NEWSWIRE) -- Five Star Diamonds Limited (TSX-V: STAR ) (the “Company” or “Five Star Diamonds”) is very pleased to announce that the Company has commenced drilling at its Maravilha Diamond Project (“the Project”), located in Brazil.

The focus of the drilling programme is on the companies 100% owned M3 kimberlite pipe where bulk sampling has returned exceptional early sampling results.

The drilling program will utilize two drill rigs working on a single daily shift. Approximately 3,200 meters of diamond core drilling, distributed across approximately 30 drill holes, is planned in the programme. All drill holes will be drilled using a HQ (63.5mm) diameter to provide ample material for further diamond sampling and analysis.

Core logging and recovery rates are being conducted by Five Star field crew. The core is also being submitted to magnetic susceptibility readings and chemical assays.  All the core is being photographed and a drilling database is being constructed to enhance additional geological modelling.

Previous interpretation of a ground magnetic survey undertaken by the Company shows that the M3 kimberlite pipe has a strong magnetic response suggesting an ovoid shape measuring approximately 130 by 65 meters with the major axis aligned along a northeast to southwest direction.

The Company also previously announced exceptional early results from an initial bulk sampling program to test the M3 kimberlite pipe. A total of 658 macro and microdiamonds were recovered in the program.

Next Steps

The Maravilha Diamond Project comprises three mineral properties covering a total of 1,233.17 hectares and the Company is conducting a systematic exploration program, including detailed ground magnetic survey and auger drilling, with the aim of identifying additional kimberlites bodies in the Project.

As soon as the drilling program is completed on the Maravilha Diamond Project, the drill rigs will be mobilized to commence a new drilling program on the Company’s Catalao Diamond Project, located in Goias State, Brazil.

ABOUT FIVE STAR DIAMONDS

Five Star Diamonds 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 23 diamond projects comprising an aggregate of 50 exploration licences and applications across 130,355 hectares.

To date, the Company has conducted exploration programs on seven projects with the Catalao, Maravilha, Riachao, Jaibaras and Verissimo Projects proven to contain diamond-bearing kimberlites.

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.

This release is an update by the Company on its 100% owned Maravilha Diamond Project.  It is expected that the company will be able to provide further update on this and other Projects 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.

Qualified Person

Mr. Paulo Ilídio 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 Projects mentioned in this release follow clear mining industry standards.

Mr. Brito, is a member of AIG (Australian Institute of Geoscientists), a professional geologist of CREA-RJ (Conselho Regional de Engenharia e Agronomia do Estado do Rio de Janeiro) 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

For further information, please contact:

Five Star Diamonds Limited Joe Burke, GM Marketing jburke@fivestardiamonds.net

Rajan “Raj” Rai rrai@fivestardiamonds.net +1 778 835 9200

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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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