The following is a summary of Star Diamond Corporation’s unaudited interim results for the three months ended March 31, 2026. All monetary figures are presented in thousands of Canadian dollars. The Company’s interim financial statements and related management discussion and analysis are available on SEDAR+ at www.sedarplus.ca. This report highlights operational status, corporate moves, liquidity measures and the work underway to advance the Company’s principal mineral asset.
At the center of Star Diamond’s portfolio is the Star – Orion South Diamond Project. Detailed geological and resource information is captured in the technical report dated July 24, 2026, entitled “Technical Report and Revised Resource Estimate for the Star-Orion South Diamond Project, Fort A La Corne Area, Saskatchewan, Canada.” The report authors and the document itself are available through the Company’s SEDAR+ profile. The Project remains the Company’s primary focus as technical studies continue with the objective of informing a future development decision.
Table of Contents:
Project status and ongoing studies
The Project site is under care and maintenance while Star Diamond’s technical team advances studies intended to support development planning. On September 9, 2026, the Company retained Misty Clifton and SGS to undertake a PFS—the pre-feasibility study that will reassess mineral reserves and provide an economic evaluation. A budget of $3,000 has been prepared for PFS completion (amounts in thousands of Canadian dollars), but work is contingent on securing financing and contractor availability. As disclosed on March 25, 2026, activities to drive the PFS forward are ongoing, subject to those dependencies.
Regional project reviews
Beyond Orion South, the Company continues to review other holdings in Saskatchewan and Alberta. The Fort à la Corne Project—including the Orion North, Orion Centre and Taurus kimberlite clusters—saw no material changes during the most recently completed fiscal year and remains under technical, economic, permitting and environmental review. Similarly, the Buffalo Hills Diamond Project in north-central Alberta experienced no material developments and is being assessed for future work requirements in a comparable manner.
Corporate developments and governance
During 2026, management executed several compensation and governance actions. On February 4, 2026, the Company granted a total of 41,000,000 stock options to directors, officers and employees at an exercise price of $0.05 per share; vesting is structured as one-third immediately and one-third on each of the first and second anniversaries, with expiry on the fifth anniversary. On March 25, 2026, Brendan F. Moore was appointed to the board and received 5,000,000 stock options under identical vesting and expiry terms. In addition, the Company filed an amended and restated information circular to clarify disclosures for the annual general and special meeting scheduled for May 14, 2026, replacing the circular dated March 30, 2026.
Financial results, liquidity and outlook
For the three months ended March 31, 2026, Star Diamond reported a net loss of $1,167 compared with a net loss of $966 in the same period of 2026. Administrative expenses rose to $633 (2026 – $301), largely driven by higher expensed fair value of share-based payments related to option, RSU and DSU vesting. Consulting and professional fees fell to $51 (2026 – $99) primarily due to lower legal costs. At quarter-end the Company held $195 in cash and cash equivalents (December 31, 2026 – $724) and reported working capital of $19 (December 31, 2026 – $458), reflecting cash used in operations.
Funding needs and risks
Completion of the PFS and advancement toward a feasibility study will require additional funding. Management has noted that the Company’s ability to continue as a going concern and to execute planned activities depends on securing new financing. There is no assurance that financing will be available on acceptable terms, and failure to raise capital could force a suspension of operations. Readers should consider the risk factors described in the Company’s most recently filed annual information form and MD&A when evaluating forward-looking statements.
Technical oversight and regulatory notes
All technical content in this update has been prepared under the supervision of Mark Shimell, Chief Operating Officer, a Professional Geoscientist in the Province of Saskatchewan, who is the Company’s Qualified Person under NI 43-101. The news release contains forward-looking statements about timing, costs, financing and operational plans; actual outcomes may differ due to a range of factors including market conditions, contractor availability and regulatory changes. Forward-looking information is current as of the date of the release and will be updated only as required by applicable securities laws.
