Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

January 23, 2006 09:23 ET

Stornoway Diamond Corporation: Two Unsourced Boulder Trains Prove Diamondiferous; Results Expand Aviat Diamond Strike Zone by Nine Kilometres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) - Stornoway Diamond Corporation (TSX:SWY), BHP Billiton Diamonds Inc. (BHP Billiton) and Hunter Exploration Group are pleased to report microdiamond results of grab samples taken from unsourced boulder trains on their Aviat property located on the Melville Peninsula, Nunavut. Caustic fusion analysis of samples totaling 40.86 kg from the 16901 sample site has yielded 60 diamonds and 64.5 kg from the 18211 sample location returned 116 diamonds.

The largest stones from locations 16901 and 18211 measured 2.40x1.81x1.11 mm and 1.62x0.94x0.37 mm respectively.



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TOTAL TOTAL
SAMPLE DRY DIA- NUMBER OF DIAMOND PER SEIVE SIZE
NUMBER WEIGHT MONDS (MM SQUARE MESH SIEVE)
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0.106 0.150 0.212 0.300 0.425 0.600 0.850 1.180
to to to to to to to to
(kg) 0.150 0.212 0.300 0.425 0.600 0.850 1.180 1.70
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18211 64.52 116 32 39 19 13 7 4 2 0
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16901 40.86 60 16 16 4 7 8 3 4 2
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Eira Thomas, President and CEO commented: "Excitingly, these boulder occurrences are sourcing from two new and distinct diamondiferous kimberlite bodies located within the Tremblay Corridor and have expanded our diamond strike zone a further 9 km west of the Aviat main cluster of kimberlites. As with all of the other kimberlites discovered within the Tremblay corridor to date, initial diamond counts from these two occurrences are highly encouraging. Locating the sources of these new occurrences will be a priority for 2006".

Results reported above represent composite grab samples collected from surface occurrences of kimberlite boulder trains situated in two geographically distinct areas of the Aviat Project. These boulder showings were discovered during prospecting activities that targeted anomalous indicator mineral results recovered from individual till samples within main Tremblay Corridor.

Site 18211 comprises a series of kimberlite boulders (up to 0.5m diameter) distributed over an area of approximately 6 hectares. The sample submitted for caustic fusion was collected along a transect that cut across the boulder train at right angles to the ice direction. The site is situated some 9 km west-northwest of AV1, and north of the AV1 indicator mineral train.

Samples from site 16901 were collected in a similar manner and represent a sequence of kimberlite boulders (up to 0.65m diameter) contained within a thin till veneer. The boulders are exposed where the till veneer is cut by a creek, approximately 3 km west of kimberlite AV1 (2.2 km west of AV4) and is offset to the south of AV1's indicator mineral train.

Sample locations 16901 and 18211 are themselves approximately 6 km apart. The macrocyrst mineral suite of both kimberlite boulder trains is dominated by coarse olivine, with purple and orange garnets and ilmenites present in lesser amounts. Kimberlite boulders found in each train are consistent within that train, and are thought to have been derived from two separate source bodies. To date no bedrock source has been identified for either of these two diamondiferous float trains.

In excess of 450 kimberlite boulder occurrences have been discovered on the Aviat Property to date, but only samples from sites 16901 and 18211 were submitted for microdiamond extraction. These two sites were preferentially selected for caustic fusion due to the abundance of kimberlite boulders and their concentration within a relatively restricted area. Results of the caustic fusion will be used to prioritize these areas for follow-up.

Larger kimberlite samples (approximately two tonnes) collected from surface exposures of AV6, 7 and 8 will be processed through a dense media separation facility, with macrodiamond results expected in Q1 2006. Similar sized (several tonnes) samples of kimberlite collected at surface from each of AV2, 3, 4 and 5 will also be processed by dense media separation.

Stornoway holds varying interests, both directly and through 18 joint ventures, in 33 Canadian mineral properties representing 22.6 million acres of ground. Stornoway has been involved in the discovery of 61 kimberlites since 2002. To date; 51 of 61 have been analyzed and more than one third have proven diamondiferous. During 2005 SWY operated exploration programs on 24 properties (12 million acres) and our joint venture partners explored nine properties (10.6 million acres). In addition to work on our landholdings, Stornoway also undertook generative programs covering over 250 million acres in northern Canada. Partial results available to date from this 2005 generative exploration program have already been used to identify and acquire targeted landholdings thought to have the potential to host diamondiferous kimberlites. Additional results are pending and Stornoway anticipates continued property acquisition.

Caustic fusion analysis was carried out at Microlithics Laboratories in Thunder Bay, Ontario, an independent mineral process laboratory currently providing services exclusively to Stornoway and its affiliates. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.

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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