VANCOUVER, B.C. - TheNewswire - October 5th 2021 - Margaret Lake Diamonds Inc. ("MLD" or the "Company") (TSXV:DIA) (FKT:M85) (OTC:DDIAF) is pleased to provide an update on its Letain property located approximately 70km ESE of Dease Lake in northern B.C. within the Cassiar Mountains.

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The Letain mineral claims feature-disseminated awaruite, a naturally occurring Ni-Fe alloy that is hosted in peridotite and minor dunite. Several peridotite-hosted zones contain fine and coarse Ni-Fe alloy grains. Surface sampling of rock chips average approximately 0.25% nickel, exposed along a ridge ranging from 1,700-2,050 meters. The Letain property covers part of the Cache Creek Terrain separated from the volcanic and sedimentary rocks of the Quesnellia Terrain by the Thibert fault to the north and the Kutcho Fault to the west. The King Salmon Fault displaces the transition between the Cache Creek Terrain and the sediments and volcanics of Stikinia Terrain. Geochemical analysis of rock chips returned values ranging from 1700-3800 ppm Ni (Source: historic rock sampling of 144 rock samples collected in 2011, assay method 1E/8FPX 4 acid digestion method, analysis by ICP-ES). SGS ran 10 samples for concentrate (I.e., heavy mineral separation) and arrived at the percentage of magnetic fraction:

Figure 1 – LET-1 (with low magnetic content) was a black dyke and not representative of the overall lithology

Awaruite mineralization occurs in 2 different habits: fine Ni-Fe alloys or larger composite grains. Fine awaruite grains (10-100 µm) are disseminated in the serpentine matrix. Ni-Fe alloys have a highly reflective white/silver colour. Larger composite grains (100-300 µm) are a mixture of Ni-Fe alloys and lesser Ni-Fe sulphides the area is underlain by a highly differentiated peridotite with numerous porphyritic, sheared and vein-veinlet-breccia textures. In the south portion of the property, the peridotite is characterized by disseminated magnetite and chromite abundant disseminated and vein-fracture filling apple green-dark green coloured minerals such as picrolite and lizardite. In the north portion of the property the peridotite is massive, black in colour with fewer vein-fracture textures, however the change in texture of the peridotite appears to have little or no effect on the Ni-Cr-Co content which range of 1,700-3,800 ppm Ni, 1,000-3,000 ppm Cr and 100-150 ppm Co. Several peridotite-hosted zones contain fine and coarse Ni-Fe alloy grains (awaruite) that are exposed as bedrock ridges in the east-central portion of the claim group at 1,700-2,050 m elevation. Disseminated fine to coarser grain awaruite was found in serpentinized ultramafic rocks. In the north portion of the property the peridotite is massive, black in colour with fewer vein-fracture textures. Samples from the central ridge of the property delineated a 1,100 metre long discontinuous zone of coarse-grained (>100µm) awaruite. The Letain mineral property has geological similarities to the Decar nickel deposit (located 70 km northwest of Ft. St James, B.C.), which contains awaruite mineralization that is characterized as 'magnetically recoverable nickel’ and pyro-metallurgical smelting is not required to produce nickel.

Management plans to advance the Letain Project by carrying out a program of core drilling in order to identify nickel-cobalt-chromium bearing mineralization and mineralogy and metallurgical testing (Davis tube magnetic recovery tests) for awaruite nickel characterization. SGS Canada has currently received 10 rock samples from Letain Project for Chemical Head Characterization: Fe, Ni, S, Cr, Co, WRA, ICP-Scan Davis Tube Testing, Percent Magnetics, Fe, Ni, S, Cr, Co assays on magnetic concentrate and non-magnetic tailings and Composite creation from the 10 received samples for Rapid Mineralogical Scan on a Composite Sample. Results of this geochemical and metallurgical work will be announced as the results become available.

Qualified Person

Andris Kikauka (P.Geo) is a non-independent Qualified Person within the meaning of 43-101, and has prepared, reviewed and approved technical information in this press release.

Contact Information

Neil Foran
Chief Executive Officer

(604) 681-7735
neil@margaretlakediamonds.com

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects, which may be accessed through the Company's profile on SEDAR at www.sedar.com.