Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

December 05, 2006 08:31 ET

Stornoway and Shear Report Significant Diamond Counts From Kahuna Kimberlite at Churchill

15 Macrodiamonds and 327 Microdiamonds Recovered from 57.6 kg Sample

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Stornoway Diamond Corporation (TSX:SWY) and Shear Minerals Ltd. (TSX VENTURE:SRM) today announced significant diamond recoveries from the Kahuna kimberlite at the Churchill project, Nunavut, with a total of 15 macrodiamonds and 327 microdiamonds recovered from a 57.6 kg drill core sample. The Kahuna kimberlite was intercepted in two drill holes, 2.5km apart and has an estimated width of 3.5 to 4.0m, making it the widest kimberlite dyke discovered from the property to date. In addition, a further 569 microdiamonds and 14 macrodiamonds, including the largest diamond recovered from the property to date (measuring 3.0mm x 2.48mm x 1.60mm), were recovered from the balance of material collected from the drilling of the Notch kimberlite also at Churchill.

"These impressive microdiamond results point to the potential for the Kahuna and Notch kimberlites to host significant populations of macrodiamonds," says Shear President and CEO Pamela Strand. Ms. Strand said a 20-tonne mini bulk sample has been collected from four kimberlites on the property - Kahuna, Notch, Jigsaw and PST003 - and is presently being crushed and concentrated with results due in early 2007. "The mini bulk samples will provide a preliminary indication of macrodiamond grade and diamond quality for each of the four sampled kimberlite dyke areas."

Based on these results, the joint venture partners are considering further work in 2007 that would initiate an assessment of tonnage, grade and overall economic potential of the Notch and Kahuna kimberlite bodies. Details about next year's program will be released in the first quarter of 2007.

Detailed Results

Samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion. The diamonds are currently being described and all results reviewed by Mineral Services Canada. Preliminary observation describes the majority of the diamonds as clear and colorless, and dominated by octahedron shapes.

Kahuna Kimberlite

A total of 342 diamonds, including 15 macrodiamonds were recovered from a composite 57.6 kg sample of kimberlite collected from drilling at two sites 2.5km apart along the Kahuna kimberlite trend. The Kahuna central diamond results are derived from drill holes 06KD-26 and 06KD-26a and the Kahuna North results from drill holes 06KD-32 and 06KD-32a. The Kahuna kimberlite is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5km based on geophysical interpretation (click http://www.stornowaydiamonds.com/Churchill_diamond_Kahuna.pdf for map).



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Sample 0.106 0.15 0.212 0.3 0.425 0.6 0.85 1.180 1.70
Sample Weight mm mm mm mm mm mm mm mm mm
Number (kg) Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve Total
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Kahuna
Central
(1) 35.55 101 66 38 31 11 4 1 0 0 252
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Kahuna
North(2) 2.05 42 19 16 8 3 2 0 0 0 90
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(1) The three largest diamonds measured 1.38mm x 1.12mm x 0.64mm;
1.02mm x 0.76 x 0.58mm; 1.0mm x 0.72mm x 0.62mm

(2) The three largest diamonds measured 1.04mm x 0.92mm x 0.61mm;
0.82mm x 0.80mm x 0.48mm; 0.84mm x 0.6mm x 0.52mm


Notch Kimberlite

In addition, a total of 583 diamonds, including 14 macro diamonds were recovered from a composite 77.05 kg sample of kimberlite collected from the balance of the drilling at two sites along the Notch kimberlite. Notch South results are derived from drill holes 06KD-9, 10, 11, 12, 18 and 19; and Notch North from drill holes 06KD-21 to 23. The Notch kimberlite is located 10km to the southwest of Kahuna and is a 1.5m to 1.75m wide vertical kimberlite dyke that trends for over 3.5km based on geophysical interpretation (click http://www.stornowaydiamonds.com/Churchill_diamond_Notch.pdf for map).



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Sample 0.106 0.15 0.212 0.3 0.425 0.6 0.85 1.180 1.70
Sample Weight mm mm mm mm mm mm mm mm mm
Number (kg) Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve Total
---------------------------------------------------------------------------
Notch
South
(1) 64.65 212 123 69 31 9 3 6 0 1 454
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Notch
North 15.4 61 38 21 5 4 0 0 0 0 129
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(1) The three largest diamonds measured 3.0mm x 2.48mm x 1.6mm;
1.80 x 1.40mm x 0.92mm; 1.96mm x 1.22mm x 0.9mm


For detailed drill intercepts for both Kahuna and Notch drilling please refer to the news release dated September 20, 2006. For photos of the diamonds please visit http://stornowaydiamonds.com/investor/galleries/diamond_photos/.

In 2006, a total of 850 till samples were collected on the Churchill Property in order to infill the sampling density in the core areas and to better define the indicator mineral trains. Since 2000, more than 8,500 surface samples have been collected and processed and more than 20,000 microprobe analyses have been completed. The increased detail from the refined till sample data set will enable the technical team to target subtle geophysical anomalies within the remaining 17 key areas of interest based on mineral chemistry for the 2007 drill program.

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 2006 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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