Margaret Lake Diamonds Closes Second Tranche of Flow-Through and Non-Flow Through Private Placements for Gross Proceeds of $555,960

Vancouver, BC / June 5, 2018 / Margaret Lake Diamonds Inc. (TSX.V:DIA / FSE:M85) (“MLD” or the “Company”) announces that it has closed the second tranche of its non-brokered flow-through private placement (the “FT Offering”) issuing 4,244,308 units (each a “FT Unit”) at a price of $0.13 per FT Unit, for gross proceeds of $551,760 and a concurrent non flow-through private placement (the “NFT Offering”) issuing 35,000 units (each a “NFT Unit”) at a price of $0.12 per NFT Unit for gross proceeds of an additional $4,200. The aggregate gross proceeds raised by the Company upon completion of the second tranche of this financing is $555,960.

Each FT Unit consists of one flow-through common share of the Company and one transferable non flow-through common share purchase warrant (each “Warrant”), with each Warrant entitling the holder thereof to acquire one additional Common Share at a price of $0.20 for a period of 36 months following closing of the FT Offering. Each NFT Unit consists of one non flow-through common share of the Company and Warrant. The Warrants contain an acceleration provision under which the Company can accelerate the term of the Warrants to 30 days following notice by the Company to the Warrant holders, which notice may be given if the closing price of the Company’s common shares is greater than $0.30 per share for 10 trading days on a VWAP basis.

The Company has paid cash finders’ fees to three registered dealers and for this second tranche issued 288,930 finder’s warrants to these dealers in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The finder’s warrants have the same terms as the Warrants but are non-transferable.

All of the securities issued are subject to a hold period expiring October 1, 2018.

The proceeds from the FT Offering will be used for the Company’s drill program on the Margaret Lake Property and for geophysical and geotechnical work on the Diagras Property owned 60% by the Company and 40% by Artic Star Exploration Corp. (TSXV: ADD) under a joint venture agreement. The proceeds of the NFT Offering will be used for exploration, offering expenses, finder’s fees and general working capital.