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Five Star Diamonds Begins Drilling at Jaibaras Project

Five Star Diamonds Limited is very pleased to announce that the previously announced drilling programme at the Company's 100% owned Jaibaras Diamond Project (the "Jaibaras Project" or "the Project") in Para State, in northern Brazil, has commenced.

Jaibaras Diamond Drilling Programme

To date eight kimberlite targets, J1 to J8, have been identified at the Jaibaras Project and the drilling programme will focus on kimberlite targets J1 and J2.

Diamond core drilling commenced on J1 kimberlite and hole JAI-DDH-001-17 is currently in progress.

The programme will use shallow vertical drill holes located on a 50 x 50m drill grid defined by the ground magnetic results. The key objective of the programme is to cross cut the oxide weathered zone and penetrate approximately 5 metres within the fresh rock, which will allow the Company to delineate the lateral boundaries of the pipe and the vertical depth of the oxide weathered zone. This will then provide the necessary data to conduct a tonnage estimation of the J1 oxide zone. A total of 30 diamond drill holes are planned at the J1 kimberlite.

A nearly identical programme is planned on the J2 kimberlite and this will commence immediately after the drilling is completed on the J1 kimberlite.

The complete programme for both J1 and J2 kimberlites is planned to comprise of 61 drill holes with a total of 2,500 linear metres. It is estimated that this programme with be completed in the next 45 days.

The drilling programme is being conducted by Geosol - Geologia e Sondagens S/A ("Geosol"), a drilling company based in Belo Horizonte, Brazil. Geosol has one drilling rig MAC-320 operating on the Project. A second MAC-320 drilling rig is currently being mobilised and will arrive at the Project in the coming days.

Logging, recovery control and drill hole location are being conducted by the Five Star Diamonds exploration crew.

About the Jaibaras Diamond Project

The Jaibaras Diamond Project is located in Para State in Brazil and comprises one mineral property with 522.26 hectares. De Beers discovered the Jaibaras kimberlite cluster in 1990 during intensive Brazilian exploration. Their work included sampling for Kimberlite Indicator Minerals ("KIMs") and chemistry, aeromagnetic and ground magnetic surveys, drilling, trenching, microdiamond sampling and geochronology. The kimberlites were demonstrated to be diamond positive.

To view figure 1, please visit the following link: http://media3.marketwire.com/docs/1096829_Figure1.pdf

An auger drilling evaluation programme has recently been completed at J5. The programme comprised seven auger holes for a total of 86.80 linear metres with five of the seven holes intersecting a kimberlitic pipe. Auger samples are being washed and concentrated for a KIM study.

Auger drilling has now been completed on targets J3 to J5 and an auger drilling programme is currently been undertaken on target J6.

The auger drilling evaluation programme will then continue with testing of the J7 and J8 targets.

To view figure 2, please visit the following link: http://media3.marketwire.com/docs/1096829_Figure2.pdf

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