Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

November 14, 2006 16:55 ET

Stornoway Flow-Through Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) -

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

Stornoway Diamond Corporation (TSX:SWY) has today entered into an agreement with Canaccord Capital Corporation and BMO Capital Markets (the "Underwriters") under which the Underwriters have agreed to buy 3,200,000 flow-through common shares from Stornoway on a private placement basis and sell to the public at a price of $1.25 per flow-through common share, representing an aggregate amount of $4,000,000. Closing is expected on or about November 30, 2006.

These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons.

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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