Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

January 29, 2008 08:31 ET

Stornoway Reports Diamond Content Of 162 CPHT From 20.6 Tonne Aviat Sample

Potentially Large Diamond Resource Identified at AV267

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - Stornoway Diamond Corporation (TSX:SWY) and Hunter Exploration Group are pleased to report a diamond content of 162 carats per hundred tonnes (cpht) from Dense Media Separation (DMS) processing of 20.6 dry tonnes from the AV2 kimberlite (interpreted as an outcrop exposure of the larger AV267 sheet) at the Aviat Project, located on the Melville Peninsula in eastern Nunavut, Canada. AV267 is one of eleven significantly diamondiferous kimberlites identified at the 2.2 million acre project. The recovery of a 3.64 carat gem quality stone from initial processing of this sample was previously reported on January 21, 2008.

Stornoway's CEO Eira Thomas stated: "AV267 has returned the highest diamond recoveries and coarsest diamond distribution from Aviat to date. This result, combined with initial tonnage estimates from previous work, points to a large potential diamond resource. The recovery of a 3.64 carat gem (see picture at http://www.stornowaydiamonds.com/av2_outcrop_3_003.jpg) further supports the possibility of commercial diamond values. We are very encouraged by these new developments and are now in position to move forward with a conceptual resource study and a larger bulk sample."

Dense Media Separation (DMS) processing of 20.6 tonnes (dry) of kimberlite collected in three subsamples from surface expressions of the AV267 kimberlite returned a total of 33.36 carats of diamonds, indicating a diamond content of 162 cpht for stones retained on a 0.85mm square mesh screen. The 3.64 ct gem quality white dodecahedron recovered from this work is the largest stone from the Aviat Project to date.



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Dry No. Stones Diamond Largest
Weight greater than Content(2) Diamonds
Sample (tonnes) 0.85mm Carats (1) (cpht)(3) (carats)
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2007 AV267 20.6 978 33.359 162 3.64, 0.551, 0.525
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(1) Represents stones retained on a +0.85mm square mesh screen
(2) The estimated diamond content, expressed as carats per hundred tonnes,
may not be representative of the overall diamond content of the body
due to a number of factors, including location and size of the samples
(3) Carats per hundred tonnes


As currently identified, the AV267 sheet outcrops at surface in at least three locations, which in the past were referred to as the AV2 Lower, AV6 and AV7 exposures. The 20.6 tonne sample of AV267 reported above was collected in close proximity to the original AV2 Lower site. Historical DMS processing of small tonnage samples collected from each of those three separate outcrop sites returned a composite 5.44 carats of diamonds from 6.66 dry tonnes, for an average diamond content of 82 cpht, as shown individually by disclosure date below:



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Dry Diamond Largest
Disclosure Sample Weight Content(2) Diamond
Date Type (tonnes) Carats(1) (cpht)(3) (carats)
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AV2
11-Jan-07 Lower 2.19 1.58 72 0.19
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11-Jul-06 AV7 2.32 1.78 77 0.19
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21-Jun-06 AV6 2.15 2.08 97 0.1
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(1) Represents stones retained on a +0.85mm square mesh screen
(2) The estimated diamond content, expressed as carats per hundred tonnes,
may not be representative of the overall diamond content of the body
due to a number of factors, including location and size of the samples
(3) Carats per hundred tonnes


AV267 is one of seven separate kimberlite sheets intersected over an area measuring about 1.5 by 3.5 km within the Eastern Sheet Complex, part of the Tremblay Corridor. These shallowly dipping (8 to 20 degrees), macrocrystic, hypabyssal kimberlite sheets with associated zones of kimberlite breccia are thought to be part of a sequence of layered, horizontally stacked sheets separated by vertical distances of 10 to 30m. The Company is investigating the hypothesis that the eastern kimberlites represent occurrences of a single system of stacked kimberlite sheets underlying the entire 1.5 by 3.5 kilometer area. One such sheet alone would represent a substantial potential tonnage of diamondiferous material. Additional drilling is required to properly test this conceptual model.

Drilling to date has intersected AV267 over approximately 2km of strike length and up to 500m down dip. True thickness averages about 3m, with most intersections ranging from 2.5 to 4.0m. At the present time the sheet is thought to thicken from northeast to southwest, achieving widths of up to 7m. Three roughly rectangular and contiguous 'blocks' of kimberlite within the AV267 sheet have been tested with an irregular drill pattern. The first block (9 holes in kimberlite) tested a strike length of about 900m and a down dip extension of about 350m, and represents a body striking at 100 degrees and dipping about 8 degrees to the southwest. The second block (12 holes in kimberlite) has a strike of 800m and a down dip extension of about 500m. This block strikes at 065 degrees and dips 8-10 degrees to the southeast. Both of these 'blocks' are open down dip. To the east, a third block of kimberlite (contiguous with the other two, and with a 065 degree strike and 8-10 degree southeast dip) has been intersected over a strike length 800m and a down dip extension of 400m. Drilling in this area suggests the sheet pinches out both along strike and down dip.

Individual core intersections from the 2007 drill program on the AV267 kimberlite totalling 358.7 kg were submitted for caustic dissolution and returned coarse diamond counts that match well with the 20.6 tonne sample reported above. Caustic dissolution results are reported below:



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NUMBER OF DIAMONDS PER SIEVE SIZE (MM SQUARE MESH SIEVE)
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0.106 0.150 0.212 0.300 0.425 0.600 0.850 1.18 1.70 2.36
Dry Wt to to to to to to to to to to Total
(kg) 0.150 0.212 0.300 0.425 0.600 0.850 1.18 1.70 2.36 3.35 Stones
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358.7 143 127 98 70 42 18 8 10 0 2 518
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The 2.2 million acre Aviat Project is located in eastern Nunavut on the Melville Peninsula and is a joint venture between Stornoway (74.8%), BHP Billiton (15.2%) and Hunter Exploration Group (10%).

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 150 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. Diamond results reported above are based on work completed by Microlithics Laboratories, Thunder Bay, Ontario, an independent mineral process laboratory currently providing services exclusively to Stornoway and its affiliates. The 20.6 tonne sample was processed through a 1.5 tph DMS plant designed to recover stones retained on a 0.85mm square mesh sieve. Kimberlite was prepared through a primary jaw crusher, with -10mm material fed directly into the DMS. All +10mm material was subsequently reduced through secondary cone crushing. DMS concentrates were submitted for caustic fusion and the residues hand sorted to extract diamonds. As part of Stornoway's ongoing QA/QC programs, DMS tails, concentrate residues and other materials are subject to audit. Any significant changes to recovered diamond grades will be reported when available. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101.

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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