Stornoway Diamond Corporation

Stornoway Diamond Corporation

October 04, 2005 09:15 ET

Stornoway and Motapa to Commence Work in Botswana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 4, 2005) - Stornoway Diamond Corp. (TSX:SWY) and Motapa Diamonds Inc. (TSX VENTURE:MTP) are pleased to announce that the companies are commencing exploration on the Sua Pan property in Botswana. Under the terms of an option agreement entered into late April, 2005, Stornoway may earn a 50% interest in Motapa's 5.4 million acre diamond property portfolio in Botswana by incurring a total of US$3 million in combined exploration expenditures and share issuance.

The 573,000 acre Sua Pan property, located approximately 50 km northeast of the Orapa diamond mine, is dominated by a large dry lake bed which creates an environment that is not conducive to conventional heavy mineral prospecting techniques. Numerous kimberlite indicator minerals, as well as diamonds from five sample locations, have been recovered on the periphery of the Sua Pan which suggests the possibility of local kimberlite sources.

The partners are planning to initiate a 1536 km2 airborne gravity survey over the pan using the BHP Billiton proprietary Falcon™ airborne gravity system, towards the end of this month. It is anticipated that the survey will take approximately four to five weeks to complete under a Stornoway-funded budget of approximately US$700,000. Final results from the survey are anticipated before year-end and will be used to generate potential drill targets for 2006.

Botswana is the world's leading diamond producer by value and its mines, Jwaneng, Lethlakhane and Orapa are amongst the most profitable. The country is democratically ruled, boasting a growing economy and a stable political environment.

Stornoway is one of Canada's premier diamond exploration companies with extensive landholdings (approximately 29 million acres) focused in key project areas in northern Canada and Botswana. Stornoway has been involved in the discovery of 61 kimberlites since 2002. Stornoway will directly spend more than $15 million (Cdn) to explore its properties and, together with its partners, will be exposed to more than $22 million (Cdn) in exploration expenditures in 2005.

Motapa is among the leading diamond explorers in Africa and controls over 13 million hectares (approximately 32 million acres) of diamond prospective properties located in Namibia, Zambia, Botswana, Gabon and Mozambique. Motapa's Chairman, Dr. John Gurney, is one of the world's leading authorities in the field of geochemical exploration for diamondiferous kimberlites and has been associated with successful diamond exploration programs around the world, including the discovery of the kimberlites that comprise the Ekati™ diamond mine.

The Botswana exploration program is conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.

On behalf of the Board


Eira Thomas, President

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at The Company disclaims any intention or obligation to revise or update such statements.

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