Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

April 28, 2008 11:15 ET

Stornoway Diamond Corporation: New Renard Diamond Valuation Results and Pre-Feasibility Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 28, 2008) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide new diamond valuation results from the Renard 2, 3 and 4 kimberlite pipes, and Lynx and Hibou kimberlite dykes, located at the Foxtrot Property in North Central Quebec. The Foxtrot Property is a 50:50 joint venture with SOQUEM INC. ("SOQUEM"). The new valuations have been obtained to provide current diamond price data in support of the ongoing Renard Pre-Feasibility study, the results of which are expected shortly. Three new diamond valuation parcels from Renard 4, Lynx and Hibou were presented for valuation in Antwerp, Belgium under the supervision of WWW International Diamond Consultants Ltd. ("WWW"), an internationally recognized diamond valuation and consulting company. In addition, WWW updated valuations previously obtained on bulk sample diamond parcels from Renard 2, 3 and 4.

Highlights

- Revised "base case" diamond price model for both Renard 2 and 3 of US$121 per carat, an increase of 11%

- Revised "base case" diamond price model for Renard 4 (Northern Complex Zone) of US$79 per carat, an increase of 14%

- Newly determined "base case" diamond price model for the Lynx kimberlite dyke of US$66 per carat

- Renard Pre-Feasibility study nearing completion

CEO Eira Thomas stated, "The increases in the modeled diamond prices for Renard 2, 3 and 4 reflect the strengthening of the diamond market since the original valuation exercise in September 2007, particularly in the type of large, high value gems that are well represented at Renard. The diamond price estimate obtained for Lynx, while lower than that of the Renard kimberlite pipes, confirms the potential of the Lynx-Hibou system of kimberlite dykes to form economically viable ore given their high diamond content and accessibility for surface trenching."

Diamond Valuation Results

Renard 2 and 3

WWW have recommended a revised modeled "Base Case" diamond price estimate for both the Renard 2 and Renard 3 kimberlite pipes of US$121 per carat, with a "High" modeled price estimate of US$136 per carat and a "Low" modeled price estimate of US$108 per carat. This is an 11% increase compared to the previous diamond price model of $109 per carat obtained in September 2007 in an open market valuation exercise (Stornoway press release dated October 22nd, 2007: http://www.stornowaydiamonds.com/investor_relations/news_releases/2007/index.php?&content_id=247). The revised model was generated by WWW restating their own September 2007 valuation result on each diamond parcel on the basis of their March 2008 price book, and applying an adjustment factor to the diamond price model accordingly.

The revised Renard 2 and 3 diamond price models are summarized as follows:



Table 1: Renard 2 & 3 Revised Valuation Model
---------------------------------------------------------------------------
Weight of September 2007 March 2008
Valuation "Base Case" "Base Case" Percentage
Kimberlite Sample Diamond Price Diamond Price Increase in
Sampled (Carats)(i) Model (US$/carat) Model (US$/carat) Model Price
---------------------------------------------------------------------------
Renard 2 1,589.57 $109 $121 11%
(with sensitivities (with sensitivities
of $105 to $122) of $108 to $136)
---------------------
Renard 3 2,651.17
---------------------------------------------------------------------------
(i) Sample weights represent the total carat weight of diamonds presented
for valuation following the combination of individual sub-samples and
after acid cleaning.


Renard 4

WWW have recommended a revised modeled "Base Case" diamond price estimate for the Renard 4 kimberlite pipe of US$79 per carat, with a "High" modeled price estimate of US$87 per carat and a "Low" modeled price estimate of US$71 per carat. This is a 14% increase compared to the September 2007 diamond price model of US$69 per carat. The revised model was generated in a similar fashion to that of Renard 2 and 3 above, but also incorporated the results of a valuation by WWW of 504 carats from the additional Renard 4 sample "4003". Sample 4003 was collected in 2006 as part of the Renard 4 bulk sample program, which comprised surface trenching within the Renard 4 "Northern Complex Zone" (NCZ). 4003 was processed subsequent to the September 2007 valuation exercise so as to increase the size of the Renard 4 valuation parcel and to assist in determining the exact nature of the NCZ diamond size distribution (Stornoway press release dated December 13th, 2007: http://www.stornowaydiamonds.com/investor_relations/news_releases/2007/index.php?&content_id=307).

The revised Renard 4 diamond price model is summarized as follows:



Table 2: Renard 4 Revised Valuation Model
---------------------------------------------------------------------------
September 2007
Weight of "Base Case" March 2008
Valuation Diamond Price "Base Case" Percentage
Kimberlite Sample Model (US$/carat) Diamond Price Increase in
Sampled (Carats)(i) (ii) Model (US$/carat) Model Price
---------------------------------------------------------------------------
Renard 2,695.63 $69 $79 14%
4 - N. (with sensitivities (with sensitivities
Complex of $63 to $73) of $71 to $87)
Zone
---------------------------------------------------------------------------
(i) Sample weights represent the total carat weight of diamonds presented
for valuation following the combination of individual sub-samples and
after acid cleaning, and including 504 carats of diamonds from sample
4003 not available at the time of the September 2007 valuation.

(ii) Model based on an original valuation sample of 2,192 carats.


Lynx and Hibou

WWW have further recommended a modeled "Base Case" diamond price estimate for the Lynx kimberlite dyke of US$66 per carat, with a "High" modeled price estimate of US$97 per carat and a "Low" modeled price estimate of US$56 per carat. In addition to performing their own valuation on the 520 carat Lynx diamond parcel, WWW showed the parcel to two other Antwerp based experienced rough diamond valuators in order to obtain additional market based valuations. The average "observed" (un-modeled) price of the three valuations was US$53 per carat. The Lynx diamond valuation parcel was recently recovered from 494 tonnes of kimberlite extracted from two trench locations along the surface trace of the dyke during 2007 (Stornoway press release dated December 13th, 2007: http://www.stornowaydiamonds.com/investor_relations/news_releases/2007/index.php?&content_id=307). The parcel includes a 21 carat stone which was broken during sample processing and recovered in principally three fragments, the largest of which weighs 11.73 carats.

WWW also performed a valuation on a 40 carat parcel of diamonds recovered from recent trenching on the Hibou kimberlite dyke (Stornoway press release dated January 28th, 2008: http://www.stornowaydiamonds.com/investor_relations/news_releases/2008/index.php?&content_id=409). This small parcel of diamonds was valued by WWW alone, who determined an "observed" (un-modeled) price of US$43 per carat. Owing to the size of the parcel, no diamond price modeling exercise was possible. However, WWW have recommended that, for planning purposes, a diamond price of US$66 per carat be adopted for the Hibou kimberlite dyke, conditional upon the collection of a bulk sample that demonstrates an incidence of large diamonds similar to that seen at Lynx.

The complete Lynx and Hibou diamond price models are summarized as follows:



Table 3: Lynx and Hibou Valuations
--------------------------------------------------------------------------
Observed
Weight of (Un-Modeled) "Base Case"
Valuation Largest Average Diamond
Kimberlite Sample Diamonds Diamond Price Price Model
Sampled (Carats)(i) (Carats) (US$/carat) (US$/carat)
--------------------------------------------------------------------------
Lynx 519.62 11.73, 5.87 $53 $66 (with sensitivities
of $56 to $97)
--------------------------------------------------------------------------
Hibou 38.98 1.01, 0.67 $42 none determined(ii)
--------------------------------------------------------------------------
(i) Sample weights represent the total carat weight of diamonds presented
for valuation following the combination of individual sub-samples and
after acid cleaning.

(ii) WWW have recommended that, for planning purposes, a diamond price of
US$66/carat be adopted for the Hibou kimberlite dyke, conditional
upon the collection of a bulk sample that demonstrates an incidence
of large diamonds similar to that seen at Lynx.


Renard Pre-Feasibility Study Update

The Renard Pre-Feasibility Study is nearing completion. Preliminary mine design, diamond plant design and capital and operating cost estimation have been completed in draft form and are awaiting the finalization of a National Instrument ("NI") 43-101 compatible resource estimation by AMEC Americas Ltd. ("AMEC"). Completion of the resource estimate is required before a fully optimized, conceptual mine plan can be determined, operating and capital parameters fixed, and a financial model established. Delays in the completion of this work are attributable to congestion within the broader diamond mining sector, with multiple, concurrent development projects competing for a limited number of specialized resource estimation professionals. However, Stornoway expects to receive a finalized resource model shortly, allowing disclosure of the results of the Pre-Feasibility work to commence on a timely basis.

AMEC is an international project management and services company with broad experience in the Canadian diamond mining sector. The principal author of the Renard Pre-Feasibility Study is Agnico-Eagle Mines Limited (TSX:AEM), a leading mine developer in the Province of Quebec and Stornoway's largest shareholder.

Scientific and Technical Data

The diamond valuation results reported in this release were obtained during a valuation exercise undertaken in Antwerp, Belgium, between the 26th and 28th of March 2008, and by applying updated diamond price information to a valuation exercise undertaken in Antwerp between the 24th and 28th of September 2007. During the September 2007 valuation exercise, WWW and an additional three independent diamond valuators were employed, under the supervision of WWW, to determine diamond price estimates on the Renard 2, 3 and 4 diamond parcels. During the March 2008 valuation exercise, WWW and an additional two independent diamond valuators were employed to determine a diamond price estimate for the Lynx dyke diamond parcel, and WWW alone was employed to determine a diamond price estimate for the Renard 4 sample "4003" and the Hibou diamond parcel. Adjustment factors to diamond price models for Renard 2, 3 and 4 are based on an estimate of diamond price change between September 2007 and March 2008 by WWW, and assumes a similar price escalation would have been applied by the other three independent diamond valuators over the same period. All diamond valuations are based on a +1 DTC sieve size cut-off.

The diamond parcels valued were recovered after the processing of kimberlite bulk samples with a 10 tph dense media separation plant owned by Stornoway (through its wholly owned subsidiary Ashton Mining of Canada Inc.) and SOQUEM in joint venture, and operated by Stornoway. Diamonds were recovered from concentrate at Stornoway's wholly owned and operated mineralogical laboratory in North Vancouver, British Columbia. Quality assurance protocols and actual operating procedures for the processing, transport and recovery of diamonds under the Renard bulk sample program, including arms-length security provisions, conform to industry standard Chain of Custody provisions and were subject to the review of AMEC, who were contracted to provide third party accreditation for program data. The Renard 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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