$20 Million Bought Deal Financing


Stornoway Diamond Corporation ("Stornoway" or the "Company") has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and including Canaccord Capital Corporation, BMO Nesbitt Burns Inc., and TD Securities Inc. under which the Underwriters have agreed to buy on a private placement basis 8,000,000 units from Stornoway and sell to qualified investors at a price of $2.50 per unit, for gross proceeds of $20,000,000. Each unit shall consist of one common share and one half of one common share purchase warrant. Each whole warrant will be exercisable for one common share for a period of twelve months from closing at an exercise price of $3.00. Closing is expected on or about May 12, 2004.

Stornoway has been involved in 20 kimberlite discoveries in Nunavut since 2002 and currently maintains interests in more than 20 million acres of prospective landholdings throughout northern Canada. A preliminary budget of $18 million has been approved for diamond exploration on these landholdings in 2004. Stornoway's contribution to the budget is expected to exceed $11 million.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

On behalf of the Board
/s/ "Eira Thomas"

Eira Thomas

For further information, please contact the Company at 604-687-7545
or (888) 338-2200
** Website: www.stornowaydiamonds.com
Email: info@stornowaydiamonds.com **

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release. 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 TSX Venture Exchange and provincial securities regulators, most of which are available at