Stornoway Diamond Corporation

Stornoway Diamond Corporation

March 18, 2005 09:41 ET

Stornoway Announces 2005 Budget for Aviat Property


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STORNOWAY DIAMOND CORPORATION

TSX SYMBOL: SWY

MARCH 18, 2005 - 09:41 ET

Stornoway Announces 2005 Budget for Aviat Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 18, 2005) - Stornoway
Diamond Corporation (TSX:SWY) BHP Billiton Diamonds Inc. (BHP Billiton)
and Hunter Exploration Group today announced the approval of a $7.25
million exploration program for the Aviat Project on the Melville
Peninsula in the Territory of Nunavut. Exploration work in 2005 will
focus on the discovery of new kimberlite bodies within the Tremblay
Corridor and will include a large component of drilling, testing a
minimum of 25 targets. Mobilization has commenced on the property and
drilling should be underway in the first week of April. Other work will
include ground geophysics, till sampling and extensive prospecting.

To date, six diamondiferous kimberlites have been discovered on the
property, including the AV-1 kimberlite which has produced an initial
sample grade of 0.83 carats/tonne from the processing of 10.4 tonnes of
kimberlite. Kimberlite AV5, which represents a surface concentration of
hypabyssal kimberlite boulders in close proximity to the AV-1 area, will
be drill tested for the first time in 2005. AV-5 returned 93 diamonds
from the processing of a 48 kg of kimberlite sample collected last
summer.

Approximately 30 to 50 holes are expected to be drilled between the
months of April and October on the Aviat property. The initial targets
are high priority geophysical anomalies situated under lakes within the
Tremblay Corridor, a 75km by 3-8 km northwest trending zone that has
shown outstanding kimberlite indicator mineral counts and chemistry from
till samples collected between 2002 and 2004.

The Aviat Project is a joint venture between Stornoway Diamond
Corporation (70%), BHP Billiton (20%) and Hunter Exploration Group and
occupies 4.5 million acres on the Melville Peninsula, north of Hudson
Bay.

Stornoway is a diamond exploration company with extensive landholdings
(approximately 20 million acres) located in ten key project areas in
northern Canada. Stornoway will directly spend more than $15 million to
explore our properties and, together with its partners, will be exposed
to more than $22 million in exploration expenditures in 2005.

Stornoway's diamond exploration programs are conducted under the
direction of Robin Hopkins, P.Geol. (NT/NU), a qualified person under NI
43-101.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Eira Thomas

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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