Margaret Lake Diamonds Inc. Announces Non Brokered Private Placement for Gross Proceeds of up to $700,000

Vancouver, British Columbia (FSCwire) - Margaret Lake Diamonds Inc. (TSXV:DIA, FSE:M85) (“MLD” or the “Company”) announces a non-brokered private placement (the "Offering") of up to 7,000,000 units (each a "Unit") at a price of $0.10 per Unit, for aggregate gross proceeds of up to $700,000.

Each Unit shall consist of one common share of the Company (a "Common Share") and one-half of one transferable common share purchase warrant (each whole such warrant a "Warrant"), with each Warrant entitling the holder thereof to acquire one additional Common Share at a price of $0.30 for a period of twenty-four (24) months following closing of the Offering (the "Expiry Date"), subject to acceleration. In the event the closing price of the Common Shares on the TSX Venture Exchange (the “Exchange”) is greater than $0.40 per Common Share during any twenty (20) consecutive trading-day period, the Company may accelerate the Expiry Date by giving notice to the holders thereof via news release, and in such case the Warrants will expire on the twenty-first (21st) business day after the date on which such notice was given to the holders by the Company.

The Company may pay finder's fees of 6% cash and 10% Units under the Offering in accordance with applicable securities laws and the policies of the Exchange. The net proceeds from the Offering will be used for the Company’s planned upcoming drill program on the Margaret Lake Property during the first quarter of 2017, and for ongoing general and administrative expenses.

In addition, the Company announces the granting of 1,075,000 incentive stock options to certain directors, officers and consultants to purchase up to common shares under the Company’s incentive stock option plan. The options will be granted for a period of five (5) years commencing on October 1, 2016, and are each exercisable at a price of $0.15 per Common Share.

Closing of the Offering is subject to receipt of applicable regulatory approvals including the approval of the Exchange. The securities issued will be subject to a standard four month and one day hold period.

About Margaret Lake Diamonds Inc.

Margaret Lake Diamonds Inc. is a diamond exploration company focused on the Northwest Territories in proximity to Gahcho Kué, the newest Canadian diamond mine owned by De Beers and Mountain Province Diamonds, and adjacent to the ongoing advanced exploration by Kennady Diamonds. The Board of MLD is comprised of persons with combined involvement of over 50 years in the Canadian diamond sector.

ON BEHALF OF THE BOARD OF DIRECTORS

“Paul Brockington”

Paul Brockington, President and Chief Executive Officer

For further information, please contact:

Margaret Lake Diamonds Inc.

Paul Brockington
President and CEO

Phone: 604-630-2810

Website: www.margaretlake.com

Forward-looking Information

This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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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