Burgundy Diamond Mines Limited reported initial diamond recoveries from the first 70% (1,316 tonnes) of a bulk sample collected in 2021 from the Q1-4 diamond deposit at the Naujaat Diamond Project, Nunavut, Canada, completed by partner North Arrow Minerals Ltd. (TSX: NAR, "North Arrow"). The remaining 30% of the sample will be processed in the coming weeks, with the extended timing due to earlier success in collecting a larger bulk sample than had originally been planned. 268 diamonds greater than +9 DTC (Diamond Trading Company) sieve weighing 117.98 carats were recovered from 1,316 dry tonnes of kimberlite from the A28 unit - the average size of diamonds retained on the +9 DTC sieve is ~0.21 carats The three largest recovered diamonds are 3.31, 3.07 and 2.76 carats respectively 48 of the 268 diamonds (17.9%) classify as Fancy Colour (20.9% by carat weight) - indicative of a desirable and potentially high value diamond population 58% of the Fancy Colour diamonds classify as either Fancy Intense or Fancy Vivid - the two highest colour saturation classes and an important indicator of potential value in Fancy Colour diamonds.

91% of the Fancy Colour diamonds classify with orange as the primary colour - orange is considered amongst the rarest colours for natural diamonds +9 DTC sample grade of 9.0 cpht (carats per hundred tonnes) compares favourably with a similar sized sampled collected from the same geological unit in 2014. Processing of the remainder of the 2021 bulk sample, collected from the A88 unit, is ongoing. The purpose of the 2021 sample is to acquire further information on the coarser sizes of the Q1-4 diamond population, with particular emphasis on potential high value Fancy Colour diamonds.

The results from this first 70% of the sample provide additional information that extends the results obtained from previous bulk sampling in 2014 and 2017. Further analysis of these results is required to understand the potential implications, and this will be announced once complete. The 2021 bulk sample consists of 2,500 sample bags collected from three sample pits (Pits B, D, & E) at the multiphase Q1-4 kimberlite, located just seven kilometres from the project laydown near the Hamlet of Naujaat (Figure 1).

The sample was divided into five subsamples for processing purposes, including four subsamples reported today: Pit B weathered kimberlite (296 bags), Pit D weathered kimberlite (445 bags), Pit B rock (325 bags) and Pit D rock (733 bags). All four subsamples are from the A28 unit of Q1-4. Processing of the fifth and final subsample, collected from the A88 unit (Pit E, 701 bags, approximately 280m southwest of Pit D), is ongoing and will be announced when received.