Early Warning Report Filed

Early Warning Report Filed

TORONTO, July 05, 2018 (GLOBE NEWSWIRE) -- Zolzaya Byambaa, of Apartment 29, Building 501, Khangai Complex, Sukhbaatar district, Ulaanbaatar, Mongolia, announces that she acquired 3,000,000 Common Shares of Five Star Diamonds Ltd. (“Five Star”)(TSX-V:STAR), of 90 Adelaide St. West, Suite 400, Toronto, Ontario, at a price of $0.20 per share for aggregate cash consideration of $600,000 pursuant to a Share Purchase Agreement dated June 25, 2018 with Gemstar Investments Limited. Ms. Byambaa has also agreed to acquire an additional 2,729,912 Common Shares at a price of $0.20 per share for aggregate cash consideration of $ 545,982.40 pursuant to a second Share Purchase Agreement dated June 25, 2018 with Gemstar Investments Limited. The completion of the acquisition of the additional 2,729,912 Common Shares is expected to occur on or about July 9, 2018

Immediately prior to the purchase, Ms. Byambaa owned or exercised control or direction over 11,140,000 Common Shares, or approximately 8.64% of the then issued and outstanding Common Shares on a non-diluted basis. Following the purchase of the 3,000,000 Common Shares, Ms. Byambaa owned or exercised control or direction over 14,140,000 Common Shares, representing approximately 10.97% of the issued and outstanding Common Shares on a non-diluted basis. On completion of the acquisition of the additional 2,729,912 Common Shares, Ms. Byambaa will own or exercise control or direction over 16,869,912 Common Shares, representing approximately 13.08% of the issued and outstanding Common Shares on a non-diluted basis

The shares were acquired by Ms. Byambaa for investment purposes, and depending on various factors including, without limitation, market and other conditions, increase or decrease her beneficial ownership, control or direction over Common Shares or other securities of Five Star, through market transactions, private agreements, treasury issuances, exercises of convertible securities or otherwise.

Ms. Byambaa has also prepared an early warning reporting in accordance with the requirements of National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues that will appear under Five Star’s profile on www.sedar.com  and a copy of which may be obtained by contacting Ms. Byambaa at +1 6478231906.