Lithoquest Recovers a Microdiamond and Indicator Minerals at North Kimberley Diamond Project

VANCOUVER, December 6, 2018 - Lithoquest Diamonds Inc. (TSX-V: LDI) ("Lithoquest", or the "Company") today announced the recovery of an octahedral microdiamond and abundant kimberlite indicator minerals from stream sediment and loam samples collected during its recently completed 2018 field program at its 100%-owned North Kimberley Diamond Project in Western Australia.

Highlights

• Kimberlite indicator minerals ("KIM's") have been recovered from stream sediment and loam samples collected in four areas on the property in 2018. Results include more than 3,000 chromite grains in one stream sediment sample and one microdiamond in a sample taken in a separate area.

• 130 kilograms of kimberlite core from this year's drill program has been submitted for microdiamond analysis. Results are expected in January 2019.

• The detailed airborne magnetic and radiometric survey that commenced in November is now complete and will be used to identify targets in the upcoming drill program next year.

Stream Sediment and Loam Sample Results

Twenty-two samples were collected from several areas of interest during the 2018 field program with the goal of identifying targets for follow-up in 2019. The samples were submitted to Diamond Recovery Services, an independent Australian laboratory based in Perth, for the recovery of KIM's. Thirteen of the samples returned KIM's, including one microdiamond.

Abundant chromite grains were recovered from four target areas, including one sample that yielded more than 3,000 grains. The presence of this concentration of indicator minerals suggests that the samples were collected close to a kimberlite source. Picro-ilmenite grains were also observed in several samples and a single microdiamond was recovered from a stream sediment sample. The microdiamond is described as a whole, largely unresorbed, octahedral crystal with a pale brown colour.

Kimberlite Core

Approximately 130 kilograms of kimberlite core recovered from target 1804 has been submitted to the Saskatchewan Research Council for micro-diamond analysis. Selected intervals of the core will also be processed to recover kimberlite indicator minerals prior to being tested for micro-diamonds. Results are expected in January 2019.

Airborne Magnetic and Radiometric Survey

The detailed airborne survey that commenced in November (see November 14th, 2018 LDI news release) is now complete. A total of 7,550 line-kilometres of data were collected along 50 metre spaced survey lines with an instrument height of 25 metres. Data from the survey will be used to identify drill targets, focusing on areas of the property where high-interest kimberlite indicator minerals have been recovered.

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

SOURCE: Lithoquest Diamonds Inc.