Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

July 17, 2007 16:30 ET

Shear and Stornoway Announce the Acquisition of Additional Interest in the Churchill Diamond Project

CALGARY, ALBERTA--(Marketwire - July 17, 2007) - Shear Minerals Ltd. (TSX VENTURE:SRM) and Stornoway Diamond Corporation (TSX:SWY) today announced that they have acquired all of BHP Billiton Diamond Inc.'s ("BHPB") interest in the Churchill Diamond Project pursuant to an agreement dated April 18, 2007. Shear and Stornoway each acquired 50% of the BHPB's 12.5% interest for the sum of $4 million each, by paying $1.25 million cash and issuing common shares valued at $2.75 million. Shear issued an aggregate of 3,928,571 common shares at a deemed price of $0.70 per share and Stornoway issued an aggregate of 2,200,000 common shares at a deemed price of $1.25 per share. Shear and Stornoway presently own a 58.14% and 41.86% interest, respectively in the Churchill Diamond Project.

The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of four significantly diamond bearing, vertically emplaced kimberlite dykes up to 4 m in width that have returned sampling grades up to 2.04 carats per tonne. A 400 tonne minibulk sample collected from a series of surface pits at the Kahuna dyke this past spring is now being processed for commercial sized diamonds (greater than 0.85 mm on a square mesh sieve). The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

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.


On behalf of the Board

SHEAR MINERALS LTD.

Pamela Strand, P. Geol., President


On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Eira Thomas, President

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 Toll Free: 1-866-298-9695
    Website: www.shearminerals.com
    or
    Stornoway Diamond Corporation
    Eira Thomas
    President
    (604) 331-2271 or Toll Free: 1-888-338-2200
    Website: www.stornowaydiamonds.com