Crystal Exploration Adds Diamonds to Sample Results

CRYSTAL EXPLORATION INC. (the “Company” and “Crystal”) (TSX-V: “CEI”) is pleased to announce additional diamonds recovered from the sample results dated March 6, 2016. Three additional diamonds greater than 0.85mm were recovered which results in an increase to the overall grade. The diamonds were recovered through an audit of sample results that tested the combined x-ray tails and sort rejects, first by magnetic separation and finally by caustic fusion. The audit provides encouraging proof that a portion of the Muskox Kimberlite diamond population requires more processing optimization (a modified process flow sheet) to fully recover diamonds.

Jim Greig, President and CEO of Crystal Exploration Inc., commented “We are very excited to build upon the initial batch of diamond results that now includes 1.14 carats per tonne at the Muskox Kimberlite Pipe. With nearly fourty (40) tonnes of unsampled material remaining, this represents an opportunity to show diamonds exist in economic quantities without the expense of immediate drilling.” In addition, “We look forward to improving Crystal’s diamond potential by discovering new diamond bearing kimberlite pipes with an inventory of over fifty (50) targets based on our review and re-interpretation of millions of dollars of technical data performed by De Beers Canada and Tahera Corp. from 1996 to 2007.”

Updated Diamond Results
In total, three (3) samples were submitted for diamond processing (samples DDH-MOX-004; DDH-MOX-025 and DDH-MOX-020) and weighed 2200.40 kg, 2158.80 kg, and 2083.50 kg respectively (dry weight; see Figure 1). Diamond recoveries from the samples include 16, 17 and 48 diamonds greater than 0.85 mm weighing 0.669, 0.675 and 2.376 carats, respectively. The samples graded 0.30, 0.31 and 1.14 cpt (“carats per tonne”) respectively for each diamond drill hole. The largest diamonds recovered include 0.245 (MOX-004), and 0.365 and 0.253 (MOX-020) carats. The diamonds are described as off white, transparent with no to minor inclusions. The samples were processed at the Saskatchewan Research Council (“SRC”) laboratory in Saskatoon, Canada.\

The results provide support that a portion of the diamonds recovered come from eclogitic nodules within the Muskox Kimberlite. Due to the physical properties of the eclogitic nodules/xenoliths, a modified process flow sheet is required to fully liberate the diamonds. Historical work at Muskox overlooked the importance and likely quantity of diamonds within xenoliths. The photos from MOX-025 and MOX-020 illustrate diamonds not fully liberated from eclogite even after secondary crushing and grinding during processing.

At depths of nearly 300m, the recent samples are from some of the deepest holes drilled at Muskox with each holes MOX-020 and MOX-025 ending in kimberlite. More drilling is required to better define the pipe shape, grade and phases at depth at the Muskox Kimberlite and to discover new kimberlites within the Crystal land package/diamond projects.

The North Slave Craton is home to all three of Crystals’ 100% owned diamond projects. The Muskox Kimberlite lies 14 km southwest of the formerly producing Jericho Diamond Mine and represents an opportunity to consolidate the Muskox – Jericho diamond camps into a brownfield project. The Jericho Diamond Mine last operated in 2012 and was a 225 person camp with all infrastructure and plant remaining in place.

Figure 1: Muskox Kimberlite Drill Section

Correction to March 6, 2016 News Release
The press release dated March 6, 2016 reported sample weights in tonnes, however each sample weight should be stated in kilograms (“kg”). The reported carats per tonne were correctly inferred. Three (3) samples were submitted for diamond processing (samples DDH-MOX-004; DDH-MOX-025 and DDH-MOX-020) and weighed 2200.40 kg, 2158.80 kg, and 2083.50 kg respectively (dry weight). A summary of corrected weights, grades and recovered diamonds can be found in Table 1. Table 1 also reflects the recently recovered diamonds from the sample audit.

Table 1
Sample Number Dry Weight
Total Carats
(+0.85mm cutoff)
Carats per Tonne
Largest Diamonds
Drill Hole Length
DDH-MOX-004 2200.40 0.669 0.30 0.245 318.5m
(275m kimberlite)
DDH-MOX-025 2158.80 0.675 0.31 0.0135 304.8m
(270m kimberlite)
DDH-MOX-020 2083.5 2.376 1.14 0.365
(260m kimberlite)

NI43-101 Technical Report
A Technical Report is in progress with expected completion during Q2-2016. The Report will comment on all three Crystal projects – Muskox, Contwoyto and Hood River.

About Crystal Exploration Inc.
Crystal is a Canadian diamond exploration company with Common shares listed for trading on the TSX Venture Exchange. Crystal is backed by proven and seasoned resource sector professionals who have a track record of advancing exploration projects from grassroots through to production scenarios. The technical content of this news release have been reviewed and approved by Dean Besserer, P.Geol., the Technical Advisor of the Company and a Qualified Person as defined by National Instrument 43-101.


s/ “Jim Greig”

Jim Greig,

President and Chief Executive Officer

Cautionary Statement on Forward-Looking Statements
This press release contains “forward-looking information”, as such term is defined in applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “anticipates”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “plans” and variations of such words and phrases, or by statements that certain actions, events or results “may”, “will”, “could”, “would” or “might”, “be taken”, “occur” or “be achieved”. Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Crystal operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Crystal cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Crystal’s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, factors discussed in each management discussion and analysis of the Company, available on SEDAR at

Although Crystal has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward looking statements may differ materially from actual results or events. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Crystal disclaims any intention or obligation to update or revise such information, except as required by applicable law.


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

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