Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

March 04, 2008 08:31 ET

Stornoway Diamond Corporation: Additional Diamond Results From Renard 65 and North Anomaly Dyke

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2008) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide diamond recovery results on two additional trench samples recently recovered from the Renard 65 kimberlite pipe and the North Anomaly kimberlite dyke both located at the Foxtrot Property in North Central Quebec. The Foxtrot Property, which includes the Renard kimberlite pipes and the Lynx-Hibou system of kimberlite dykes, is a 50:50 joint venture with SOQUEM INC. ("SOQUEM").

The Renard 65 sample represents a single, large tonnage batch of kimberlite extracted from a trench excavated at the northern margin of the kimberlite during 2007. In total, 51.77 carats of diamonds were recovered from 266.0 tonnes (dry weight) of kimberlite, representing an overall diamond recovery of 19 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen. The largest intact diamond recovered was a 2.06 carat top light brown "makeable" stone with an elongate tetrahexahedroid crystal shape, followed with a 1.54 carat top light brown "sawable" stone with an equant tetrahexahedroid crystal shape. An image of these stones is available at www.stornowaydiamonds.com/investor_relations/index.php?&content_id=428. Despite its low, overall observed diamond content, R65 is the largest kimberlite discovered on the property to date, and the new sample has returned amongst the coarsest diamond populations yet observed at the project.

The new North Anomaly sample represents the second of two in-situ kimberlite batches collected during 2006 from a single trench. Diamond recovery from the first batch of kimberlite were previously reported (Ashton Mining of Canada Inc. press release of September 22, 2006, www.stornowaydiamonds.com/investor_relations/news_releases/ashton_archives/). In the new batch, 26.26 carats of diamonds were recovered from 28.0 tonnes (dry weight) of kimberlite, representing an overall diamond recovery of 94 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen. The largest intact diamond recovered was a 0.22 carat light off-colour "clivage" stone with a flat tetrahexadroid crystal shape. An image of this stone is available at www.stornowaydiamonds.com/investor_relations/index.php?&content_id=427.

Complete diamond recovery data, following Dense Media Separation (DMS) processing and utilizing both x-ray sorter and grease table recovery circuits, are as follows:



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Stones Carats
Dry (retained (retained Diamond Largest
Weight on +1 on +1 Content(1) Diamonds
Sample (tonnes) DTC screen) DTC screen) (cpht)(2) (carats)
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Renard 65
Trench 6001 266.0 471 51.77 19 2.06, 1.54
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North Anomaly
Trench T222-01 28.0 401 26.26 94 0.22
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(1)The estimated diamond content, expressed as carats per hundred tonnes,
may not be representative of the overall diamond content of the body due
to a number of factors, including location/size of the samples and
processing parameters
(2)Carats per hundred tonnes


Renard 65

Renard 65 is the largest kimberlite pipe within the Renard cluster with a surface area of approximately 1.5 hectares. It is unknown at this time whether Renard 65 comprises two separate kimberlite diatremes coalescing at surface, namely "Renard 6" and "Renard 5", or a single body. The current trench sample, comprising brown coloured kimberlite breccia, was collected on an opportunistic basis during 2007 by trenching at the northern margin of the body where kimberlite sub-crops beneath thin overburden. Renard 65 has previously been sampled with both diamond and reverse circulation (RC) drilling. In 2003 a large, gem quality diamond, estimated to be greater than 4 carats in weight, was recovered within drill core, an exceptionally rare occurrence in diamond exploration. In 2004, 122.5 tonnes (wet weight) of kimberlite was extracted by RC drilling and returned 26.69 carats of diamonds for a diamond recovery of 22 cpht. In 2005, a further 24.7 tonnes (wet weight) of kimberlite extracted by RC drilling returned 5.80 carats of diamonds for a diamond recovery of 23 cpht.

The most recent trenching was undertaken to test for the presence of a low grade but coarse population of large diamonds at Renard 65, previously implied by the presence of the 4 carat stone in drill core. The results are consistent with previous sampling at Renard 65 in terms of diamond recovery, being lower than other Renard kimberlites, but the new sample has confirmed the potential for a coarse diamond population, with a high average stone size. Further work is required to determine the internal geologic composition of Renard 65, and the opportunity for individual phases of high value kimberlite to contribute additional mineable resource to a potential Renard diamond mine.

Complete DMS diamond recovery results now from the Renard 65 Kimberlite pipe are as follows:



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Diamond Largest
Disclosure Sample Weight Content(1) Diamonds
Date Type (tonnes) Carats (cpht)(2) (carats)
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March 4, 2008 Trench 266.0(8) 51.77(4) 19 2.06, 1.54
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February 21, 2005(3) RC Chips 24.7(9) 5.80(5) 23 0.53, 0.49
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September 2, 2004(3) RC Chips 122.5(9) 26.69(5) 22 0.83, 0.82
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August 11, 2004(3) Drill Core 17.8(9) 4.05(5) 23 0.88, 0.67
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August 28, 2003(3) Drill Core 18.4(9) 10.06(6) 54 4.04(7), 0.92
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(1)The estimated diamond content, expressed as carats per hundred tonnes,
may not be representative of the overall diamond content of the body due
to a number of factors, including location and size of the samples or
drill holes
(2)Carats per hundred tonnes
(3)Reported by Ashton Mining of Canada Inc.
(4)Represents only stones retained on a +1 or greater DTC screen, as
discussed below
(5)Represents only stones retained on a +1.18 mm square mesh screen
(6)Represents only stones retained on a +0.85 mm square mesh screen
(7)Represents an estimated weight of a diamond still embedded in drill
core
(8)Dry weight
(9)Wet weight


North Anomaly Dyke

The North Anomaly dyke was discovered in 2005 and is located approximately 5 kilometers north of the Renard kimberlite cluster. Where discovered initially, it has an average thickness of approximately one meter and a strike extent of at least 490 meters. Similar kimberlite intersected by drilling in 2006 approximately 1.5 kilometers to the south may represent the along strike extension of the North Anomaly dyke. During 2006, Stornoway's wholly owned subsidiary Ashton Mining of Canada Inc. ("Ashton") and its JV partner SOQUEM collected a 50 tonne sample from a single trench developed within the North Anomaly dyke. The first 18.6 tonnes of this material were processed in 2006, and the balance stockpiled at site. Today's release represents the processing results of the second batch of material. The combined diamond recovery of 93 cpht from the two batches compares favourably with diamond recovery results from other nearby Foxtrot property dykes which, from similarly sized samples, have returned diamond recoveries of 126 cpht in the case of the Hibou dyke, and between 107 and 141 cpht in the case of the Lynx dyke.

Complete DMS diamond recovery results now from the North Anomaly dyke are as follows:



--------------------------------------------------------------------------
Diamond Largest
Disclosure Sample Weight Content(1) Diamonds
Date Type (tonnes) Carats (cpht)(2) (carats)
--------------------------------------------------------------------------
March 4, 2008 Trench 28.0(6) 26.26(4) 94 0.22
--------------------------------------------------------------------------
September 22, 2006(3) Trench 18.4(7) 16.7(5) 91 0.85, 0.57
--------------------------------------------------------------------------
Total Sample T222-01 46.4 42.96 93
--------------------------------------------------------------------------
(1)The estimated diamond content, expressed as carats per hundred tonnes,
may not be representative of the overall diamond content of the body due
to a number of factors, including location and size of the samples or
drill holes
(2)Carats per hundred tonnes
(3)Reported by Ashton Mining of Canada Inc.
(4)Represents only stones retained on a +1 or greater DTC screen, as
discussed below
(5)Represents only stones retained on a +1.18 mm square mesh screen
(6)Dry weight
(7)Wet weight


Renard 43-101 Compatible Resource

Stornoway is currently engaged in a program of geological modeling and National Instrument ("NI") 43-101 compatible resource work that is being conducted by Stornoway and AMEC Americas Ltd. within the context of the Renard pre-feasibility study, the principal author of which is Agnico-Eagle Mines Ltd. Neither the Renard 65 kimberlite pipe nor the North Anomaly dyke fall within the scope of this work at this time. Stornoway considers both bodies, however, to have the potential to contribute additional future resources at Renard given further delineation with respect to size, diamond recovery characteristics and diamond valuation.

Scientific and Technical Data

Diamond results reported in this release are based on sample processing between November 2007 and January 2008. Both samples were processed by a 10 tph DMS plant owned by Stornoway (through Ashton) and SOQUEM in joint venture, and operated by Stornoway, at the Renard project site in Quebec. Recovery of diamonds from concentrate was carried out in North Vancouver. Quality assurance protocols and actual operating procedures for the processing, transport and recovery of diamonds under the Renard Project sampling programs, including arms-length security provisions, conform to industry standard Chain of Custody provisions.

Individual samples processed at Stornoway and SOQUEM's 10 tph DMS plant in Quebec, such as those collected during the 2007 Renard bulk sample program and the associated large tonnage sampling programs at Lynx and Hibou, were first prepared through a primary jaw crusher. To facilitate production of a heavy mineral concentrate, -20 mm material was fed directly into the DMS and +20 mm material was reduced through a secondary cone crusher set at 10 mm. Within the DMS, +6mm coarse reject "floats" were re-crushed and re-circulated. During the processing of the current samples a 1.0mm by 12.0 mm slotted screen was employed within the DMS. The use of this screen can be expected to produce a minimum stone size greater than that retained on a +1 DTC screen which is approximately equivalent to a 0.85 mm square mesh screen. However, the bottom cut-off screen sizes used on the DMS will result in under-recovery of smaller diamonds and will not allow a direct comparison with previously reported diamond contents.

Resultant DMS concentrates from the 10 tph plant were processed twice through x-ray sorter equipment to generate a final concentrate which was hand sorted to extract diamonds. A grease table finish was used to recover diamonds from all x-ray sorter rejects. As part of Stornoway's ongoing QA/QC program, DMS tails, concentrate residues and other materials are also subject to audit. Any significant changes to the recovered diamond grades provided above will be reported when available. The Renard bulk sample program is managed by Dave Skelton, P.Geol., Senior Project Manager. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol, Vice President, Exploration, a Qualified Person under NI 43-101.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 155 kimberlites in six 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.

SOQUEM INC.

SOQUEM is a wholly-owned subsidiary of Societe generale de financement du Quebec ("SGF"). The SGF, the Quebec industrial and financial holding company, has as its mission to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Quebec.

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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