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MARGARET LAKE DIAMONDS INC. TSX:V – DIA

Drill Targets Surrounding Kennady Diamonds Exploration Success and in proximity to Canada's new diamond mine owned

by De Beers and Mountain Province Diamonds

SEPT 2016

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MANAGEMENT

Mining engineer, executive, and

former mining analyst with over

50 years experience in resource

exploration, development,

finance, and operation.

President & CEO

PAUL BROCKINGTON

Geologist with 31 years

experience in mineral exploration.

Led the team that discovered the

Diavik diamond deposits in 1994-

95. Former Exploration Manager

for Kennecott/Rio Tinto.

Director & VP Exploration

BUDDY DOYLE

Mining executive with over 17

years experience in capital markets.

principal of Varshney Capital Corp.

and Director of Mountain Province

Diamonds, Canada' s new diamond

mine now in production.

Director

PEEYUSH VARSHNEY, L.L.B.

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Located in the southern slave

craton, host to Mountain

Province / De Beers Mine which

had its official opening on Sept

20, 2016.

Margaret Lake property is

10km north of De Beers /

Mountain Province Diamonds’

Gahcho Kué project

Winter road to Gahcho

Kué crosses the Margaret

Lake property

MARGARET LAKE PROPERTY INFO

Kennady Diamonds is

evaluating the Kelvin and

Faraday and will have a

resource estimate for

Kelvin later this year

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Margaret Lake Property 100% Ownership

MLD initially earned a 60%

interest by spending in excess

of $1mm

MLD has subsequently negotiated

the remaining 40% interest in

the property from the original

vendor through the issuance of

6mm shares

There are no royalty

payments on the property

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Contracted CGG Canadato fly HeliFALCON® system

which incorporates gravity

and magneticsOver 2,800 line

kilometerson 75 meter line-spacings

at a nominal 45 meters

above terrain

Completed detailed property-wide bathymetry

using Worldview2 high-

resolution satellite imagery

160 till sampleswere collectedin the interpretation of

gravity data and target

definition a year earlier

than conventional

bathymetry

Bathymetry aided

Margaret Lake Property ProgramTarget identified

12 targets to be

drill tested for

kimberlite

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Gahcho Kue

Diamond Mine

LEGEND

Gahcho

Kue

Diamond

Mine

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Airborne Gravity Gradiometry (AGG) data

over 23 targets was inverted

The recovered models showed a variety of body

shapes and density contrasts

The inversion results helped with prioritizing drill

targets.

Exploration to Date Defining Drill Targets

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Inversion Modelling Ranking

Prioritized A targets (high to low):• ML006 • ML049• ML009

Prioritized B targets (high to low):• ML024• ML047• ML051• ML026• ML041• ML014• ML022• ML021

Non-modelled (to date) magnetic target:• ML025: semi-isolated mag-high flanking

dyke, no AGG response (on land)

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12 Drill Priority Targets

Selected

The targets selected for

drilling based on gravity

gradiometryinversions

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The anomaly is well defined in GDD and GND. The GED response not clear, but this is not surprising

since the anomaly is an EW oriented body. There is a hint of a GED anomaly at the west end.

Inversion Modelling on the Number 1 Priority Target

Location Map

ML006 – Inversion Results (2/2)

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Recovered

density modelPredicted

GDD response

ML006 – Inversion Results (1/2)

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Recovered density model

Vertical slice along

axis of the density

anomaly (105

degrees)

Recovered density model

horizontal slice ~200 m

depth

ML006 – Inversion Results (2/2)ML006 – Inversion Results (2/2)

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K E N N A D Y G R O U N D

GRAVITY SURVEY

I M P R O V E

TRAVELING IS LIFE NEWSFROM THE WORLD

M A R K E T I N G

TRAVELING IS LIFE NEWSFROM THE WORLD

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PRELIMINARYDRILL

TARGETS

LEGEND

Priority A Target

Priority B Target

Priority C Target

16SHARE STRUCTURE

83%

1% 16%Issued - 32,360,280

Options - 550,000 @$0.10

Warrants - 6,050,135@ $0.25

An additional 1,500,000 shares to be issued (December2016) for acquiring 100% of the property.

Management controls 16.2 million shares or 50% of currently issued

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Project Status

11 of the proposed

drill targets are under

water in lakes and the

optimum time to drill

is, from the ice, in

March/April 2017

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MLD has a five year Type A land

use permit issued by the

Mackenzie Valley Land and

Water Board

- The permit authorises

drilling and an exploration camp

03The budget to proceed

to drilling is estimated

at $2mm.

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© 2016 Margaret Lake Diamonds Inc. All Rights Reserved.

pbrockington@margaretlakediamonds.ca(604) 630-2810 www.margaretlake.ca

MARGARET LAKE DIAMONDS INC.TSX-V : DIA

#2050 - 1055 West Georgia St.

Vancouver, BC

For more Information

ContactPaul Brockington, President & CEO