Five Star Diamonds Limited (Formerly Turquoise Capital Corp.) Completes Qualifying Transaction and Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 24, 2017) -

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Five Star Diamonds Limited (formerly Turquoise Capital Corp.) (TSX VENTURE:STAR) (the "Company") is pleased to announce that it has completed the previous announced acquisition (the "Transaction") of all of the issued and outstanding ordinary shares of Five Star Diamonds Limited (BVI) (the "Target"). The Transaction constitutes the Company's Qualifying Transaction under the TSX Venture Exchange (the "TSXV") Policy 2.4 - Capital Pool Companies.

The Transaction was effected by way of a three-cornered merger between a wholly-owned subsidiary of the Company and the Target pursuant to the laws of the British Virgin Islands. On the completion of the merger, all of the ordinary shares of the Target outstanding immediately prior to the merger were, pursuant to the terms of the merger, cancelled and in exchange therefor holders of the cancelled ordinary shares received one common share (a "Common Share") in the capital of the Company for each ordinary share previously held. An aggregate of 101,287,345 Common Shares were issued to the former shareholders of the Target.

In connection with the completion of the Transaction, the Company completed a private placement (the "Offering") of 17,815,480 Common Shares at a price of C$0.30 per share for aggregate gross proceeds of C$5,344,644. In connection with the Offering, the Company provided compensation to registered brokers, registered dealers and other finders comprised of an aggregate of C$403,185 in cash and an aggregate of 1,343,950 non-transferable common share purchase warrants, with each whole warrant entitling holder to acquire one Common Share at a price of $0.30 per share for a period of two years from the date of issuance. Following completion of the Transaction and the Offering, the Company has 128,727,096 Common Shares issued and outstanding and securities convertible into an aggregate of 1,543,950 additional Common Shares.