Sanatana Diamonds Inc.

Sanatana Diamonds Inc.

July 16, 2008 08:45 ET

Sanatana Receives Sample Results From Dharma Uttar

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2008) -

Editors Note: A photo for this release is available on the Marketwire website:

Sanatana Diamonds Inc., ("Sanatana" or the "Company") (TSX VENTURE:STA) (AIM:SAN) is pleased to announce that it has received the complete sample of caustic fusion diamond results from the Company's newly discovered Dharma Uttar kimberlite pipe. These samples were processed at the Thunder Bay Laboratory(1) of Kennecott Canada Exploration Inc.

In total, 227 diamonds greater than 0.106mm have been recovered. Table 1 below shows the stone size distribution for this group of samples.

TABLE 1: Diamond distribution in CIM sieves (mm)
Combined 0.106 0.15 0.212 0.3 0.425 0.6 0.85 1.18
Weight (kg) (2) Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve
448.47 96 68 30 14 8 3 5 3

(1) The Thunder Bay Laboratory of Kennecott Canada Exploration Inc. is
assessed and registered by Intertek Testing Services NA Ltd. as
conforming to the requirements of ISO 9001-2000.
(2) A number of dolomite country rock fragment samples with clay in the
joint fractures were sent for assay and returned zero diamonds - these
have been excluded. These were tested to determine if the clay fracture
fill was diamondiferous kimberlite. The test was negative.

There are eight stones that sit above the 0.85mm sieve and these weigh, in aggregate, 0.14 carats. Their presence suggests a coarse distribution that parallels the diamond population recovered from Dharma (see news release dated December 20, 2007). The two kimberlites have similar diamond size distributions, however the diamonds from Dharma Uttar are described as being 41% white in colour and 19% having octahedral crystal habits. The colour, crystal shape and diamond count numbers from Dharma Uttar are different enough from those of the Dharma discovery (54% white and 32% octahedral) to suggest different diamond populations.

The Dharma Uttar kimberlite was intersected by six drill holes. These are shown in Figure 1 which illustrates the magnetic anomaly at Dharma along with the drill collar and traces.

To see an image of the total magnetic field from a ground magnetometer survey over Dharma and Dharma Uttar, please follow this link:

Dharma Uttar occurs 50 metres north of the Dharma discovery and together they appear to form a kimberlite complex of dykes, sills and pipes intruding into Proterozoic platform carbonates of the Hornby Bay Group. Interestingly coral and bi-value shell fragments have been observed in the volcanic breccias in this complex. These fragments cannot be derived from the surrounding country rock and must have been sourced from a younger rock higher in the sequence when the kimberlite erupted: the eruption event erosion has erased any trace of the younger rocks, and they are now only preserved in the kimberlite. This indicates that the kimberlite complex is Devonian or younger.

The discovery of the Dharma kimberlite complex is significant as it represents the first kimberlites in a newly discovered Archean craton on the North American Continent. This craton does not outcrop and until the Dharma discoveries was inferred purely from regional potential field geophysics and the occurrence of diamond indicator minerals in the glacial till. The Company has recently received further collaborating evidence that an Archean craton lies beneath the platform sediments that cover our properties from a report recently received from Dr. William Griffin of Macquarie University in Sydney Australia. Dr. Griffin and his faculty assay the trace elements within diamond indicator minerals using laser ablation techniques. The results are then interpreted based on a large database from other kimberlites around the world. He reports that the indicators from the Dharma kimberite plot at temperatures and pressures within the diamond stability field, and derive a 38mW/m2 geotherm. (For comparison, the Slave Craton, which hosts the Ekati and Diavik mines exhibited a 36mW/m2 geotherm using the same technique. The cratons hosting the diamond mines in Siberia and Southern Africa have 40mW/m2 and 42mW/m2 geotherms respectively). The base of the lithosphere at Dharma plots at 180km depth, implying a 30km thick diamond window in the lithosphere beneath Dharma. Thermodynamic arguments indicate that to be stable over time, a deep lithospheric keel must be at least 400km in diameter. It is the Company's interpretation that Dharma occurs on the edge of this newly discovered "Mackenzie" Craton with the centre being 300km to the west in the vicinity of Colville Lake.

The Company has recently tested 13 additional magnetic anomalies at Greenhorn utilizing a recently purchased, helicopter portable RC drill rig. Although no additional kimberlites have been discovered, the RC rig has significantly enhanced, in a cost effective and timely manner, the Company's ability to test drill targets. In order to better define future drill targets in the Greenhorn area the Company is currently undertaking closer spaced till sampling to further develop geochemical indicator anomalies distal to the Dharma kimberlite complex discovery.

The Company is also pleased to announce that ground magnetic surveys are underway at Colville Lake and a drill rig has been secured to test approximately 15 priority targets. At least 6 of these targets have indicator chemistry coinciding with prominent magnetic geophysical anomalies. The indicators include the full spectrum of minerals you would expect from a diamond bearing kimberlite; pyrope, eclogitic garnet, ilmenite, chromite, chrome diopside and olivine. In addition, the indicator chemistry in the till at Colville Lake is superior to that of the till in the Greenhorn area in that it contains more numerous high sodium eclogitic garnets and high chrome G10 pyropes. Drilling is scheduled to start near the end of July.

Qualified Person

The Company's exploration programs are carried out under the supervision of Sanatana's Director and VP of Exploration, Mr. Buddy Doyle. Mr. Doyle meets the qualified person requirements (as defined by National Instrument 43-101) with 26 years of exploration experience, 16 years of which are in diamond exploration. Mr. Doyle has compiled, approved and reviewed the scientific and technical information in this press release.

Forward Looking Statements

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control, and may include statements regarding resource estimates, potential mineralization, exploration results, completion or continuation of work programs and studies, and future plans and objectives. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources, but from finding mineral deposits that though present, are insufficient in quantity and quality to be economic or to return a profit from production. There can be no assurance that such statements and information will prove to be accurate and actual results could differ materially from those suggested by any forward-looking statements and information. Sanatana disclaims any obligation to update or revise such forward looking statements and information except as required by law.

About the Company

Sanatana Diamonds Inc. is focused on the exploration of its Mackenzie Diamond Project, comprised of approximately 5.9 million acres of ground under claims and permits, located north of Great Bear Lake and approximately 700 kilometres northwest of Yellowknife in the Northwest Territories of Canada. The Sanatana Mackenzie project is a joint venture between Kennecott Canada Exploration Inc. and Sanatana Diamonds Inc., which Sanatana operates and Kennecott has a contributing 15% interest. As part of the joint venture arrangement, Kennecott has made available one of their project geologists and a geophysicist from their pool of experienced staff. Sanatana Diamonds, headquartered in Vancouver, is dual listed on the AIM Market of the London Stock Exchange plc and Toronto Venture Exchange (TSX VENTURE:STA) (AIM:SAN).

Neither the AIM Market of the London Stock Exchange plc nor the TSX Venture Exchange has reviewed, nor accepts responsibility for, the adequacy or accuracy of this release.

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