Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

June 15, 2010 09:39 ET

Stornoway Diamond Corporation Announces Terms of Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2010) -

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

Stornoway Diamond Corporation (TSX:SWY) ("Stornoway" or the "Company") announced today that, in connection with its previously announced private placement, it has finalized the terms of its offering which was conducted through a syndicate of underwriters led by Desjardins Securities Inc. and including Canaccord Genuity Corp. (collectively, the "Agents") 8,775,000 "Flow-Through" common shares at a price of $0.57 per flow-through share to raise gross proceeds of $5,001,750 (the "Offering"). The Offering is being made pursuant to exemptions from prospectus requirements and is subject to the usual conditions and the receipt of all required regulatory approvals, including approval of the Toronto Stock Exchange. Closing of the offering is anticipated to occur on or before June 29th, 2010.

The proceeds from the offering will be used to fund Stornoway's exploration programs within Canada, including exploration at the Renard Diamond Project in Quebec. Stornoway has agreed that expenditures incurred with the proceeds will constitute Canadian exploration expense ("CEE") (as defined in the Income Tax Act) and will be renounced to the subscribers.

Insiders of the Company are anticipated to acquire approximately $80,000 of the Offering.

The Flow-Through shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

About Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 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

Matt Manson, President and Chief Executive Officer

This news release includes certain forward-looking statements or information relating to the pricing and completion of a proposed private placement. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that that all of the conditions of the private placement will be satisfied and that it will complete by June 29, 2010 or at all. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes and timeliness of government or regulatory approvals. The Company disclaims any intention or obligation to revise or update such statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

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