Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

March 09, 2009 08:30 ET

Stornoway Provides Renard Drilling Update: Renard 2 Kimberlite Greatly Expanded

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2009) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the completion of three deep delineation drill holes on the Renard 2 kimberlite pipe, 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 holes were drilled as part of an ongoing resource expansion and optimization program at Renard aimed at testing for the presence of additional mineral resources within the deeper and more poorly delineated portions of the Renard 2 and Renard 3 kimberlite pipes.

All three holes drilled to date have successfully extended the dimensions of the Renard 2 kimberlite pipe at depth, in comparison to the geological model used in the recent NI 43-101 compliant mineral resource statement (Stornoway Press Release dated December 15, 2008, available at: http://www.stornowaydiamonds.com/investor_relations/news_releases/2008/index.php?&content_id=457). One hole in particular, R2-55, has returned an intersection of kimberlite 176 meters longer than expected from previous geological modeling. The implied true horizontal width of this newly discovered zone of kimberlite almost triples the north-south dimension of the Renard 2 pipe to 150 meters at a depth of 500 meters below surface. Drill hole results from the three completed holes are as follows:



--------------------------------------------------------------------------
Azimuth Dip Length Kimberlite Contact (meters down hole)
Hole ID (degree) (degree) (meters) Upper Lower
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Expected 164 425
R2-54 175 -69 453 Actual 176 433
Difference(1) -12 +8
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Expected 120 395
R2-55 354 -63.5 650 Actual 120 571
Difference(1) 0 +176
--------------------------------------------------------------------------
Expected 152 312
R2-56 156 -66 411 Actual 109 392
Difference(1)(2)(3) +43 +80
--------------------------------------------------------------------------

(1) A negative ("-") difference indicates a decrease in geological model
size. A positive ("+") indicates an increase in model size. Differences
between expected and actual contacts have a smaller influence on the shape
of the geological model at the top of the pipe than at the bottom owing to
the amount of geological control already existing.

(2) Includes a 17 meter intersection of Country Rock Breccia with
Kimberlite ("CRB+K") between 117 and 134 meters.

(3) Includes a 29 meter intersection of Country Rock Breccia with
Kimberlite ("CRB+K") between 331 and 360 meters.


Matt Manson, President and CEO commented: "The thick new intersection of kimberlite returned by the R2-55 drill hole is an impressive result. It implies a substantial amount of new kimberlite in the lower section of the Renard 2 pipe, all within the scope of the existing underground mine design contained within the Renard Preliminary Assessment. We anticipate that the impact of this new discovery on the economics of the project will be positive and significant."

R2-55 was designed to test the nature of the northern contact of the Renard 2 kimberlite within a 300 meter vertical section of the geological model (270 to 570 meters below surface) that was unconstrained by previous drilling (see illustration, available at: http://media3.marketwire.com/docs/swy39il.pdf). The discovery of some additional kimberlite was anticipated. However, the very long intersection, and the existing drill hole pattern in this area, are consistent with a greatly enlarged northern limb of the pipe that may extend from 570 meters up to 200 meters below surface, where kimberlite intersections not currently incorporated into the present geological model and mineral resource statement have been observed (the Renard 2 "Bulge"). The new intersection also raises the possibility of substantial quantities of kimberlite below 570 meters depth.

Preliminary field logging indicates that the kimberlite intersected in this new area is comprised of Brown Transitional Kimberlite Breccia ("Kimb2b"), Hypabyssal Kimberlite Breccia ("HKB") and Blue Tuffisitic Kimberlite Breccia ("Kimb2a"). The first two of these units are dominant and, as summarized in the recent NI 43-101 Report, are also the two most highly diamondiferous units within the Renard 2 kimberlite.

Given the potential size of the new discovery zone at Renard 2, additional delineation drilling in this area will be undertaken prior to the completion of the current winter program. Drilling of three deep delineation drill holes is also underway at the Renard 3 kimberlite pipe. It is expected that the results of the current winter drill program, together with drilling scheduled for the summer, will be incorporated into a revised NI 43-101 mineral resource statement for the project to be completed prior to the end of the year.

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 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. The Renard Diamond Project is managed by Dave Skelton, P. Geol. (AB/QC), Vice President, Project Development. Mr Skelton is a Qualified Person under NI 43-101 and has reviewed the contents of this press release.

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

Matt Manson, President and 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. Any statements made regarding a NI 43-101 Preliminary Assessment of a project includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Assessment will be realized. References to NI 43-101 Resource Calculations are Mineral Resources and are not Mineral Reserves and therefore do not have demonstrated economic viability. 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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