Stornoway Diamond Corporation ("Stornoway") is pleased to announce it has closed the $20 millionfinancing underwritten by Raymond James Ltd., with a syndicate of underwriters, including Canaccord Capital Corporation, TD Securities Inc. and BMO Nesbitt Burns Inc. originally announced on April 22,
2004.

Stornoway issued 8,000,000 Units each comprised of one common share and one half of one share purchase warrant. Each whole warrant is exercisable for one common share at a price of $3.00 per share until May 13, 2005. The underwriters completed the offering of Units at a price of $2.50 per unit for gross proceeds of $20 million. The underwriters received a 6% cash commission. All securities issued at closing are subject to a four month hold period, expiring September 13, 2004. The TSX Venture Exchange has issued conditional acceptance of this financing and final approval is pending.

After this financing, Stornoway has approximately $43 million in working capital. Proceeds of this financing will be used to fund the Company's diamond exploration projects in Nunavut, Northwest Territories and Quebec, and for general working capital.

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.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

/s/ "Eira Thomas"
Eira Thomas
President

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 www.sedar.com.