Star Diamond Corporation announced the completion of its previously announced transaction with Rio Tinto Exploration Canada Inc. whereby RTEC has transferred to Star Diamond all of RTEC's 75% interest in the Fort a la Corne diamond project located in central Saskatchewan (the Project). Star Diamond now owns 100% of the Project. In connection with the completion of the Transaction, Star Diamond issued 108,204,112 common shares to RTEC, such that RTEC and its affiliates now own 19.9% of Star Diamond's issued and outstanding common shares.

RTEC and Star Diamond also entered into an investor rights agreement (the Investor Rights Agreement) whereby, among other things, RTEC has been granted certain pre-emptive rights to maintain its 19.9% ownership interest in Star Diamond in connection with future financings undertaken by Star Diamond, and RTEC has agreed to certain standstill protections provided that RTEC has the right to increase its 19.9% ownership position in the event that Star Diamond receives an acquisition proposal.