Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

November 29, 2006 15:44 ET

Stornoway Closes Flow-Through Share Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Stornoway Diamond Corporation (TSX:SWY) has today announced that it has closed two offerings to raise an aggregate of $4,175,000 from the issuance of 3,340,000 flow-through shares.

In one offering, first announced on November 14th, Canaccord Adams and BMO Capital Markets (the "Underwriters") agreed to buy or to find purchasers of 3,200,000 flow-through common shares of Stornoway on a private placement basis at a price of $1.25 per flow-through common share for gross proceeds of $4,000,000. The Underwriters were paid a cash fee in the amount of 6% of gross proceeds and were issued 192,000 broker warrants, each broker warrant entitling the holder to acquire one common share of Stornoway (a "Warrant Share") at a price of $1.25 per share up to November 29, 2008.

In the second offering, five investors have agreed to purchase, on a non-brokered private placement basis, 140,000 flow-through shares at a purchase price of $1.25 per share for gross proceeds of $175,000.

All flow-through shares issued in the offerings, the broker warrants and the Warrant Shares are subject to hold periods expiring on March 30, 2007.

The flow through funds will be used for exploration expenditures which constitute Canadian Exploration Expenses as defined in the Income Tax Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

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 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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