CMKM Diamonds Inc. (fka CMKX)

[Uncle Melvin]

NEWS RELEASE
SASKATCHEWAN DIAMOND EXPLORATION
December 12, 2018

Gem Oil Inc. is pleased to announce Pioneer Aerial Surveys Ltd. of Flin Flon Manitoba has completed a drone geophysical survey over four kimberlites located in the FalCon Mining Camp of Saskatchewan near the villages of Weirdale and Smeaton all road accessible.

The fourteen mining-claims totaling 2240 acres were acquired by staking in June 2017, are owned 100% by GEM.

Saskatchewan Mineral Deposit Index

502 Kimberlite - http://www.economy.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2848
501 Kimberlite - http://www.economy.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2849
503 Kimberlite - http://www.economy.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2850
Carolyn Kimberlite - http://www.economy.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2863

The FalCon kimberlite field is the world’s largest cluster of kimberlites and has become a focus of world diamond interest due to the exploration-activities of Rio Tinto Exploration Canada, Inc.

The Weirdale Kimberlites, 42 km northeast of Prince Albert, were discovered in 1989 by follow-up to an airborne magnetic survey by the FalCon Joint Venture of Uranerz Exploration and Mining Ltd. and Cameco Corp. The property contains two drill-indicated kimberlites and three other weak magnetic anomalies that may be indicative of smaller intrusive bodies. The margin of Kimberlite 501 was intersected by a ‘rotary air blast’ drill hole which cut 45 metres of kimberlite at a depth of 157 metres. Two drill holes were targeted on Kimberlite 502 – the first was a rotary drill hole which intersected kimberlite at a depth of 122.5 metres and was terminated at 140.2 metres because of drilling difficulty. The second drill test, in 1996, was a small diameter reverse-circulation hole which was terminated in kimberlite at a depth of 206 metres, again because of drilling difficulties.

Based on a geophysical modeling of Kimberlite 501, a calculated area of 8.9 hectares of greater than 100 metre thickness at a depth of 125 metres (with a thinner “apron-type” crater facies kimberlite of 40-50 m thickness extending to the south, east and west covering an additional 26.1 ha). Kimberlite 502 has an estimated area of 7.1 hectares of greater than 100 m thickness at a depth of 120 m, with a 25 hectare ‘apron’ of kimberlite which is 40 to 60 m thick.

Full vertical extent and the possibility of locating feeder pipes to Kimberlites 501 and 502 remain untested by drilling. Both kimberlites, with a total estimated volume 200 million tonnes, remain significantly under-tested in terms of sampling and diamond recovery. Only a small portion of the intercepts in the first two holes were tested for macrodiamonds (with negative results), and only 3 small selected samples (totaling 113 kg) from the last drill hole were tested for microdiamonds (1 stone recovered).

Conclusions and Recommendations

Insufficient and inefficient testing of the kimberlites makes it impossible to make any determination of the economic viability of the Weirdale and Smeaton kimberlites.

Additional work to proceed in 2019.

De Beers Canada, Inc. previously stated that modelled stone content of Kimberlite 141, based on their 2000 sampling, at 18 carats per hundred tons with a value of $153 US per carat, more than double the result of a previous bulk sample. Of note, De Beer’s comment the majority of the value is likely to occur as a consequence of a very coarse diamond size distribution – suggesting a potential stone population in the one to ten-carat range.

On behalf of GEM OIL INC.

Shaun Spelliscy, Managing Director

GEMOIL actively exploring and developing mineral interests in Western Canada since 1957

www.gemoil.ca