Lithoquest Diamonds Inc. Recovers Micro-Diamonds from Outcrop Sample

The outcrop rock from which the diamonds were recovered.

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Geologists Michael Dufresne and Thomas Reddicliffe examine an outcrop of suspected (weathered) kimberlite at target NKDP-0702 (April 2017)

Lithoquest Diamonds Inc. (TSX-V: LDI) today announced that micro-diamonds have been recovered from a sample of highly-weathered outcrop at target 0702 on its 100% owned North Kimberley Diamond Project located in the northern region of Western Australia.

Three micro-diamonds were recovered from a 10.06 kg rock sample submitted for kimberlite indicator mineral analysis. The diamonds, two yellow and one grey, were recovered from the +0.1 mm to -0.3 mm size fraction and compositions were confirmed with a scanning electron microscope (“SEM”).

“The recovery of micro-diamonds is extraordinary given that the primary objective of the laboratory process was to extract kimberlite indicator minerals, not diamonds,” stated Bruce Counts, President and CEO of Lithoquest. “This confirms that rocks present at target 0702 are diamond bearing and reinforces the prospective nature of the North Kimberley Diamond Project. We look forward to the commencement of the 2018 field program that will include drilling to collect samples specifically for micro-diamond testing.”

The sample that yielded the diamonds was collected in December 2017 from a highly-weathered outcrop of suspected kimberlite at target 0702. It was included in a group of six samples (two from anomaly 1605 and four from anomaly 0702) submitted for indicator mineral testing. No kimberlite indicator minerals or micro-diamonds were recovered from the other five samples submitted.

The outcrop rock from which the diamonds were recovered.

The sample results reported in this release were obtained from Diamond Recovery Services Pty Ltd., an independent laboratory located in Perth, Western Australia. The samples were transported from the field to the laboratory with security seals applied under dual custody and all seals were reported intact upon receipt at the laboratory. The laboratory employs a traditional recovery process involving heavy liquid separation and caustic fusion to liberate and recover kimberlite indicator minerals. Samples were initially crushed to -1.5 mm and a heavy mineral concentrate was produced from the -1.0 mm size fraction through heavy liquid separation. The -1.0 mm concentrate was sized using a 0.3 mm square mesh screen and the -0.3 mm size fraction was fused.  The fusion residue from the fine fraction and the +0.3 mm to -1.0mm size fraction from the concentrate were then observed for indicator minerals and diamonds. Grains that could not be positively identified during observation were submitted to the SEM at CSIRO’s Advanced Characterisation Facility based at the Australian Resources and Research Centre in Perth, Australia.

Qualified Person

The technical contents of this news release have been reviewed and approved by Bruce Counts, P. Geo., President, CEO and a Director of Lithoquest Diamonds Inc. and Qualified Person under National Instrument 43-101.

About Lithoquest Diamonds Inc.

Lithoquest is a Canadian diamond exploration company focused on the discovery and development of economic diamond deposits on its 100%-owned North Kimberley Diamond Project located in Western Australia, approximately 65km east of the community of Kalumburu.

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