Margaret Lake Diamonds Inc. announced that it has received caustic fusion diamond results from the Sequoia Kimberlite Complex (Sequoia) from the Diagras Project (Diagras). The Diagras project is located at prolific diamond production district of Lac de Gras in the Northwest Territories and is a Joint Venture (the "JV") between MLD (18.5%) and Arctic Star Exploration Corp. (81.5%) (Artic Star).

The results are from the 6 holes completed into Sequoia in spring 2022, 5 of which encountered kimberlite. The holes are part of a delineation drilling program designed to define the size, shape, geology, and tonnage of the Sequoia Kimberlite complex. In this program, three holes are drilled from one collar, with the collars being spread approximately 200m apart, with scope to infill up to 100m centers.

At each collar a vertical hole is drilled to the assumed center of the kimberlite, this will continue to 250m depth or when it exits the kimberlite. The rig is then tilted and spun, to drill an inclined hole to the east and then a hole to the west. These holes are designed to capture the edge of the kimberlite.

Further drilling planned for 2023 is required to complete this first past delineation program. The geophysical signature of the complex is at least 800m long and the holes reported here are from the southern 200m. If this trend continues into the larger commercial stones, it bodes well for a higher-than-average prices for the Sequoia diamonds.

Average prices of commercial diamonds in the Lac De Gras field are highly variable (From USD 30/ct to USD 450/ct), from kimberlite and kimberlite. Sequoia will need to have goods at the higher end of this spectrum to be economic, the coarse distribution, predominance of white clear stones, the high population of type 2 stones and the concurring indicator mineral chemistry are layers of evidence that this is achievable. A larger sample with >1000ct of commercial size diamonds will be required to confirm this.

This sample is planned for the 2024 Winter Road. The geological observations from each hole report three main rock types, a Coherent Kimberlite, a Volcaniclastic kimberlite, and a transitional kimberlite between these two types, a review of the diamond tenure of each rock type and their distribution is underway and will be reported when completed.