Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

January 28, 2008 08:30 ET

Stornoway Diamond Corporation: High Diamond Content Confirmed at Hibou Dyke

126 cpht from 31 Tonne Trench Sample

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2008) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide diamond recovery results on a 31 tonne trench sample extracted from the Hibou dyke, 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 new Hibou sample represents in-situ kimberlite collected in two batches during 2006 from a single trench excavated at the southern margin of the dyke. The samples were collected to resolve an apparent contradiction in diamond content observed at Hibou between surficial boulder samples and trenched material analyzed in 2005 and 2006. The new result represents the highest diamond content yet observed at Hibou. In total, 39.54 carats of diamonds were recovered from 31.4 tonnes (dry weight) of kimberlite, representing an overall diamond recovery of 126 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen. The largest intact diamond recovered was a 1.01 carat light off-colour octahedron, a photograph of which can be found on the Stornoway website at http://www.stornowaydiamonds.com/hibou-23245.jpg. Complete diamond recovery data, following Dense Media Separation (DMS) processing and utilizing both x-ray sorter and grease table recovery circuits, are as follows:



-------------------------------------------------------------------------
Stones Carats Diamond Largest
Dry Weight (retained on (retained on Content(1) Diamonds
Sample (tonnes) +1 DTC screen) +1 DTC screen) (cpht)(2) (carats)
-------------------------------------------------------------------------
Trench 21.1 299(3) 26.35(3) 125 0.70(5),
T-271A-10 0.68
sample 1
-------------------------------------------------------------------------
Trench 10.3 223(4) 13.19(4) 128 1.01,
T-271A-10 0.58
sample 2
-------------------------------------------------------------------------
Total Trench
T-271A-10 31.4 522 39.54 126
-------------------------------------------------------------------------
(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
(3) Represents only stones retained on a +1.00 mm slotted DMS screen, as
discussed below
(4) Represents only stones retained on a +0.85 mm slotted DMS screen, as
discussed below
(5) Interpreted to be one of two broken diamond pieces totalling 1.11
carats in weight


CEO Eira Thomas stated, "This new trench sample confirms high diamond grades at Hibou similar to those seen at the nearby Lynx dyke system, and its shallow dip and surface outcrop make it amenable to surface stripping. As with Lynx, Hibou has the potential to provide a substantial amount of easily accessible, high grade ore to supplement the early-years production profile of a future diamond mine based primarily on the Renard kimberlite pipes."

The Hibou dyke was discovered in 2005 and lies approximately 1.3 kilometres northwest of Renard kimberlite pipes 2, 3, 4 and 9, and 900m east of the Lynx dyke system (to see location map please click on: http://www.stornowaydiamonds.com/Lynx__Hibou_Dike_Systems_and_Renard_Cluster.pdf). Previous delineation drilling suggests the dyke has a strike extent of at least 850m with a shallow dip of approximately 10 degrees. It is open down dip and along strike to the northwest. Drill intersections suggest kimberlite thicknesses of up to 3.5m, with an average thickness of approximately 2m.

During 2005, Stornoway's wholly owned subsidiary Ashton Mining of Canada Inc. ("Ashton") and its JV partner SOQUEM collected a series of samples of varying sizes from surface boulders, trenches and drill core, and performed diamond recovery by both caustic dissolution and DMS. The caustic dissolution analysis of 353 kilograms of boulder samples and 31.5 kilograms of drill core suggested a high diamond content of commercial size diamonds. Two DMS samples, a 4.57 tonne sample of surface boulders recovered close to the projected surface expression of the dyke, and a 9.93 tonne sample of in-situ kimberlite extracted from a trench located approximately 150m east of the boulder locality, exhibited contradictory diamond contents of 63 cpht and 8.7 cpht respectively (Ashton Mining of Canada Inc. press release of January 16, 2006 - to see this release please click on: http://www.stornowaydiamonds.com/investor_relations/news_releases/ashton_archives/). An additional 4.52 tonne DMS sample from the same trench processed by Ashton in May 2006, and previously un-reported, yielded a diamond content of 13.3 cpht. The two 2005 trench samples were comprised, predominantly, of a fine grained macrocrystic kimberlite occurring at the basal contact of the dyke. The 2005 boulder samples, and subsequent drill core, exhibited a coarser macrocrystic texture similar in nature to the Lynx dyke system. The two new trench samples reported in this press release were collected from a locality approximately 70m southwest of the original sampling site. These were both comprised of coarse grained material and have returned a higher diamond content. Further work is required to determine the representative geology of the Hibou dyke and the nature of its diamond mineralization.

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



--------------------------------------------------------------------------
Dry Diamond Largest
Weight Content(1) Diamonds
Disclosure Date Sample Type (tonnes) Carats (cpht)(2) (carats)
--------------------------------------------------------------------------
January 28, 2008 Trench T-271A-10 31.40 39.54(4) 126 1.01,
0.70(6)
--------------------------------------------------------------------------
Unreported Trench T-271A-01 4.52 0.60(5) 13 0.06,
(Ashton May 2006) 0.04
--------------------------------------------------------------------------
January 16, 2006(3) Boulders 4.57 2.87(5) 63 0.44,
0.28
--------------------------------------------------------------------------
January 16, 2006(3) Trench T-271A-01 9.93 0.86(5) 9 0.12,
0.11
--------------------------------------------------------------------------
(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) Interpreted to be one of two broken diamond pieces totalling 1.11
carats in weight


The new Hibou sample has been processed in support of 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.

Scientific and Technical Data

Diamond results reported in this release are based on sample processing in two batches between November 2007 and January 2008. The first 21 tonnes 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. The second 10 tonnes were processed by a 5 tph DMS plant located at Stornoway's wholly owned and operated mineralogical laboratory in North Vancouver, British Columbia. Recovery of diamonds from concentrate generated by both plants 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, +6 mm coarse reject "floats" were re-crushed and re-circulated. During the processing of the current sample a 1.0 mm 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.

The sample processed at Stornoway's 5 tph DMS plant in North Vancouver was prepared through a primary jaw crusher, with -14 mm material fed directly into the 5 tph DMS. The +14 mm material was reduced through secondary roll crushing set at 10 mm and within the DMS, +4.0 mm floats are re-crushed and re-circulated. During the processing, a 0.85 mm by 14 mm slotted screen was employed within the DMS, and as a consequence there will be a better recovery of smaller diamonds than from the 10 tph DMS plant.

Resultant DMS concentrates from both the 10 tph and 5 tph DMS plants were then 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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