Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

January 08, 2007 10:49 ET

Stornoway Reports an Additional 250 Macrodiamonds and 3,477 Microdiamonds from Surface Pits at Churchill

Mini-bulk sample results expected in February 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Stornoway Diamond Corporation (TSX:SWY) and Shear Minerals Ltd. (TSX VENTURE:SRM) today announced additional macrodiamond and microdiamond recoveries from the Kahuna, Notch, Jigsaw and PST003 kimberlites at the Churchill project in Nunavut. The new results further point to the potential for significant diamond recoveries at Churchill. In mini-bulk sampling work now underway, a total of 19.5 tonnes has been collected from these bodies to test for the presence of macrodiamonds (using a 0.5mm square sieve) with results expected in February.

"We have identified multiple, vertically emplaced kimberlite dykes up to 4 metres in width that have consistently returned high microdiamond counts from caustic fusion analysis," says Shear President and CEO Pamela Strand. "The partners remain encouraged about the potential for recovering commercial sized diamonds from these bodies and the economic prospects of the project which is well located close to tidewater in a mining-friendly jurisidiction."

Today's microdiamond results are from samples collected from the same surface sites as four mini-bulk samples currently being processed for their macrodiamond content. The new results, taken in conjunction with the upcoming mini-bulk sample macrodiamond results, will facilitate an initial interpretation of diamond size distribution and overall diamond grade for each body.



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Sample Sample 0.15 0.212 0.3 0.425 0.6 0.85 1.180 1.70 2.36 Total
Number Weight mm mm mm mm mm mm mm mm mm
(kg) Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve
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Kahuna
(1) 146.2 284 195 132 61 27 7 3 0 1 710
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Notch
(2) 210.1 510 234 114 51 25 6 1 0 0 941
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Jigsaw
(3) 282.65 401 227 145 64 23 6 2 0 0 868
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PST003
(4) 153.9 584 313 188 70 31 18 3 1 0 1,208
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(1) The three largest diamonds measured 3.55mm x 2.95mm x 2.90mm; 2.14mm x
1.80mm x 1.40mm; 2.64mm x 1.40mm x 1.36mm
(2) The three largest diamonds measured 1.70mm x 1.10mm x 0.70mm; 1.12mm x
1.40mm x 1.26mm; 1.30mm x 1.10mm x 0.90mm
(3) The three largest diamonds measured 1.74mm x 1.32mm x 1.20mm; 1.58mm x
1.44mm x 1.04mm; 1.86mm x 1.52mm x 0.90mm
(4) The three largest diamonds measured 2.90mm x 2.58mm x 0.96mm; 3.04mm x
2.02mm x 0.66mm; 1.88mm x 1.34mm x 1.32mm


A description of each kimberlite and a summary of their total respective microdiamond recoveries (for all diamonds on the 0.15mm sieve and larger) is included below:

Kahuna

The Kahuna kimberlite is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5 km based on geophysical interpretation. Today's results of 60 macrodiamonds and 650 microdiamonds recovered from the 146.2 kg surface sample make for a total of 75 macrodiamonds and 834 microdiamonds recovered from 203.8 kg of material at the Kahuna kimberlite to date (using a 0.15mm lower cutoff sieve size). The largest diamond recovered from the property to date was also recovered from the sample reported today and measures 3.55mm x 2.95mm x 2.90mm.

Notch

The Notch kimberlite is a 1.5m wide vertical kimberlite dyke that trends for more than 3 km based on geophysical interpretation. Today's results of 57 macrodiamonds and 884 microdiamonds recovered from the 210.1 kg surface sample make for a total of 89 macrodiamonds and 1,544 microdiamonds recovered from a single 397.6 kg composite sample collected to date from drilling and surface pits (using a 0.15mm lower cutoff sieve size).

Jigsaw

The Jigsaw kimberlite is a 1.3m wide vertical dyke estimated to be 1 km in length based on geophysical interpretation. Today's results recovered 52 macrodiamonds and 816 microdiamonds from the 282.65 kg surface sample at Jigsaw. A total of 59 macrodiamonds and 903 microdiamonds have been recovered from a 327 kg sample collected at Jigsaw to date from surface (using a 0.15mm lower cutoff sieve size).

PST003

The PST003 kimberlite is a 0.8m wide vertical dyke estimated to trend for 500m based on geophysical interpretation. Today's results recovered 81 macrodiamonds and 1,127 microdiamonds from the 153.9 kg surface sample at PST003. A total of 83 macrodiamonds and 1,293 microdiamonds have been recovered from a composite 195.86 kg sample taken from drilling and surface pits (using a 0.15mm lower cutoffsieve size).

All samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion.

Mini Bulk Sample Update

Concentration of 19.5 tonnes of kimberlite from mini-bulk samples of four kimberlites (3.6 tonnes from Kahuna; 5.7 tonnes from Jigsaw; 6.1 tonnes from Notch; and, 4.1 tonnes from PST003) has been completed. A total net weight of 454.95 kg of concentrate will be treated by the SRC using caustic fusion to recover all diamonds larger than 0.5mm. Results are expected in February 2007.

The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). To date the partners have discovered 48 kimberlites including 6 outcrops over a wide area on the Churchill and Churchill West projects. The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., 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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