Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

July 02, 2008 12:50 ET

Stornoway and Shear Announce 2008 Program Underway at the Churchill Diamond Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 2, 2008) - Stornoway Diamond Corporation (TSX:SWY) and Shear Minerals Ltd. (TSX VENTURE:SRM) today announce that the joint venture has approved up to a $3.8 million exploration program for 2008 and mobilization of a 30-person field camp located at Josephine Lake is now complete.

"The goal for 2008 is to prove up the existing kimberlites as well as to explore for new kimberlites with large tonnage potential that may occur as either pipes, blows along dykes or where the dykes widen substantially," said Pamela Strand, President and CEO of Shear Minerals Ltd. "We are incorporating a lightweight drill to screen targets in advance of the core rig. This drilling method will quickly confirm whether a target is of high diamond potential to warrant further drilling."

As a result of the work completed over the past five years, especially in 2007, the partners have an unparalleled dataset that includes coverage over all the high diamond potential areas with closely spaced ground magnetic surveys, detailed grid till samples, high resolution satellite imaging and glacial mapping. A comprehensive structural interpretation is nearing completion that will integrate all aspects of the Churchill dataset to assist in 2008 targeting.

Experienced crews will follow up targeted anomalies on the ground, followed by drilling using a lightweight reverse circulation percussion drill (tests one target per day). The ability to test a high number of targets using this method is an attractive feature due to the high number of untested targets (greater than 1,000) on the property.

Details of the 2008 program include:

- Minibulk sampling of the Notch kimberlite

- 400 infill till samples

- Test ground gravity and ground penetrating radar surveys over known diamondiferous kimberlite dyke structures to look for potential kimberlite blows.

- Intensive prospecting and structural interpretation over high priority geochemical areas.

- Lightweight drill testing of 25-50 targets

- Late summer core program to test up to 20 targets suggestive of large tonnage kimberlites.

- Selected ground magnetic surveys over new areas.

- Ongoing environmental baseline data collection and reclamation.

The Churchill Diamond Project is owned 58.14% by Shear and 41.86% by Stornoway and is comprised of the diamond rights to more than two 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 a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tone. Stornoway has chosen not to participate for its share of the 2008 exploration budget and its ownership could potentially dilute from 41.86% to 37.7%.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 150 kimberlites in seven Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Eira Thomas, Chief Executive Officer

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 www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.

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