Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.
Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

August 29, 2005 11:50 ET

Shear Reports Diamond Results for Churchill Project; First Macrodiamond Recovered, Additional Drilling Underway

EDMONTON, ALBERTA AND VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 29, 2005) - Shear Minerals Ltd. (TSX VENTURE:SRM), Stornoway Diamond Corporation. (TSX:SWY) and BHP Billiton Diamonds Inc. (BHP Billiton) today announced diamond results from 11 kimberlites, four float occurrences and one kimberlite outcrop that have been discovered in 2005 on the Churchill Diamond Project.

To date in 2005, the joint venture has drilled a total of 38 holes into 33 targets and discovered 13 kimberlites. Today's results exclude the results from two kimberlites which are pending. A further 15 targets remain to be tested in this years drill program.

Samples from half the core of the thirteen kimberlites were submitted to the Saskatchewan Research Council (SRC), an independent laboratory based in Saskatoon SK, for diamond analysis using caustic fusion. Diamonds were recovered from three of the 11 kimberlites and are described below:



------------------------------------------------------------------------
Drill Hole Sample 0.106mm 0.15mm 0.212mm 0.3mm 0.425mm 0.6mm
Number Weight (kg) sieve sieve sieve sieve sieve sieve
------------------------------------------------------------------------
05KD428-02(1) 178.6 1 0 0 0 0 0
05KD900-01(2) 128.3 1 4 4 2 0 1
05KD573-01(3) 68.8 2 0 0 0 0 0
------------------------------------------------------------------------

(1) The largest stone measured 0.18x0.14x0.10mm (clear colourless
octahedron)
(2) The largest stones measured 0.84x0.74x0.64mm (clear colourless
aggregate); 0.50x0.36x0.32mm (clear colourless aggregate),
0.42x0.36x0.30mm (clear, colourless octahedron)
(3) The largest stones measured 0.22x0.16x0.10mm (colourless
octahedron), 0.3x0.2x0.12mm (colourless octaghedron)


Kimberlite KD900 is of particular interest. It hosts the first macrodiamond recovered from the Churchill property and is situated within the Josephine River corridor, an area that hosts favorable G10 mineral chemistry, and is a focus of this year's drilling. KD900 is 12km from tidewater, under 6m of overburden and is up ice from several pyrope beach sands also hosting favorable G10 mineral chemistry. Samples from these beaches have been collected for both indicator minerals and diamonds. The geophysical signature at KD900 indicates an 80m by 200m target characterized by a subtle 100nT magnetic low. Similiar untested targets exist within 500m of KD900. Through visual observation of the drill core different phases are evident including an altered kimberlite breccia hosting limestone fragments and hypabyssal kimberlite. Close examination shows visible olivine macrocrysts (upto 2cm), picroilmenite, pyrope and eclogitic garnet plus possible mantle nodules. A total of 87.2m of kimberlite was drilled in a vertical hole. The current program will drill additional holes into KD900 to test the dimensions of the kimberlite as well as collect a larger sample for macrodiamond recovery. At the present time an additional 120kg of the remaining core for KD900 has been collected for immediate diamond processing at SRC and results are pending.

Through prospecting, kimberlite float was found at four different locations on the Churchill Diamond Project. Also, a kimberlite outcrop was identified and samples were taken at two separate sites from the outcrop. All samples were submitted to the SRC. Diamonds were recovered from the kimberlite outcrop samples and are as follows:



------------------------------------------------------------------------
Float Target Sample 0.106mm 0.15mm 0.212mm 0.3mm 0.425mm
Number Weight (kg) sieve sieve sieve sieve sieve
------------------------------------------------------------------------
KD5845-1 (outcrop)(1) 121 5 1 0 0 0
KD5845-2 (outcrop)(2) 26.6 1 1 0 1 0
------------------------------------------------------------------------

(1) The largest diamond measured 0.26x0.20x0.20 (octahedron fragment)
(2) The largest diamond measured 0.7x0.5x0.10mm (colourless fragment);
0.34x0.26x0.06mm (clear fragment)


The outcrop kimberlite KD5845 recovered one of the largest diamonds to date at Churchill. Additional material will be collected from this location for macrodiamond processing.

Of interest is the kimberlite float found at Target KD5797 where a more macrocryst-rich and coarse grained hosting abundant olivine, ilmenite, phlogopite and pyropes with kelphytic rims was observed. Although a small 8kg sample returned no diamonds, the kimberlite and area remains a priority area. Geophysical target KD5797 is located 250m down ice of the float. Detailed geophysics outlined KD5797 as well as one to two additional targets that will be drill-tested in the current program.

The Churchill Diamond Project is comprised of mineral rights to more than 9 million acres located near the community of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). In 2003 and 2004, Shear and its partners discovered 34 kimberlites over a wide area on the Churchill and Churchill West projects. The 2005 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.



On behalf of the Board
SHEAR MINERALS LTD.
/s/ "Pamela Strand"
Pamela Strand, P. Geol.
President

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
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 either of the Companies' expectations are in Company documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Companies disclaim any intention or obligation to revise or update such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Shear Minerals Ltd.
    Pamela Strand, P. Geol.
    President
    (780) 435-0045 or 1-866-298-9695
    (780) 989-0322 (FAX)
    Website: www.shearminerals.com
    or
    Stornoway Diamond Corporation
    Eira Thomas
    President
    (604) 331-2271 or 1-888-338-2200
    (604) 689-5041 (FAX)
    Website: www.stornowaydiamonds.com