Lithoquest Discovers Kimberlite on the North Kimberley Diamond Project

VANCOUVER, B.C., September 10, 2018 – Lithoquest Diamonds Inc. (TSX-V: LDI) (“Lithoquest”, or the “Company”) has intersected kimberlite in the first drill hole at target 1804 on its 100% owned North Kimberley Diamond Project in Western Australia.

“The discovery of kimberlite during the Company’s first drill program is a significant success given that no discoveries have been made in the area for 20 years,” said Bruce Counts, CEO of Lithoquest. “Results confirm the prospective nature of the North Kimberley Diamond Project and highlight the potential for additional discoveries in the area.”

Two holes were drilled into 1804. The first drill hole targeted coincident ground magnetic and gravity anomalies where indicator minerals, including diamonds, were recovered in historical loam samples. The drill hole was oriented at an azimuth of 114° degrees and inclined at -75°. Extensively clay-altered basalt was intersected from the top of the hole at 5.7 metres to 100.5 metres, followed by kimberlite breccia to 124.3 metres. Immediately following the kimberlite intersection was a carbonatized basalt which grades to a fresh basalt at 138.4 metres. Fresh basalt was present to the end of the hole at 156.6 metres.

A second hole at 1804, drilled at an inclination of -50 degrees, was collared 10 metres from the first drill hole along the same 114° azimuth. The second hole encountered sandstone from 6.9 metres to 11.1 metres followed by clay-altered basalt to 61.7 metres and fresh basalt to the end of the hole at 69.1 metres.

The kimberlite breccia is characterised by xenoliths of the local volcanic and sedimentary sequence (Figure 1). The core will be shipped to Canada for detailed observation, laboratory analysis and diamond testing. Diamond results are expected during Q4 of 2018.

2018 Kimberlite core, Target 1804

Results from ground geophysical surveys over target 1804 (Figures 2 and 3) and the textures observed in the kimberlite suggest the occurrence is a pipe; however, additional drilling and petrographic work will be required to definitively determine the geometry and nature of the body.

Target 1805 was also tested with one drill hole during the second phase of drilling. No kimberlite was intersected. This marks the completion of the current field program and field crews have been demobilized from the property.

In addition to drilling, the 2018 field program included rock, loam and stream sediment sampling as well as ground geophysical surveys and mapping. Field samples will be submitted for laboratory analysis with results expected in Q4. The next phase of work will be determined once laboratory results are received and the Company has analyzed the 2018 field data.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION

This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company’s strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

For further information, please contact:

Lithoquest Diamonds Inc.

+1 (778) 373-1485

info@lithoquest.com