Stornoway Diamond Corporation (SWY:TSX), Shear Minerals Ltd. (SRM:TSXV), and BHP Billiton Diamonds Inc. today announced micro diamond results from kimberlites discovered on the Churchill Diamond Project this year.

In Fall 2004, the joint venture drilled-tested a total of 11 targets and discovered six kimberlites, bringing the total to 22 kimberlites discovered at Churchill and two at Churchill West.

Samples from the kimberlites drilled during 2004 were submitted to the Saskatchewan Research Council (SRC), an independent laboratory based in Saskatoon, SK, for micro diamond analysis using caustic fusion. Results are as follows:

No micro diamonds were recovered from the other five kimberlites submitted for analysis. Further analysis is underway to asses the diamond potential of these discoveries and how they fit into to the regional indicator mineral patterns.

"In 2004 we learned from every drill-hole and every surface sample," said Pamela Strand, President and CEO of Shear. "More importantly, we laid the foundation for a systematic and stepped-up drill program in 2005. We remain confident that we will be able track the G10 chemistry back to diamondiferous kimberlites in the upcoming year. We will not stop drilling until we have located the source of the high diamond potential chemistry."

The 2005 program will be well funded. It will test lake-bound targets and new types of targets with a focus on a far wider range of more subtle geophysical signatures. The Spring drilling program is planned to commence in the first quarter of 2005 and together with the targets drilled this summer, will test up to 40 targets.

"The source of the high interest mineral chemistry at Churchill remains elusive but we have made great progress in advancing our knowledge of this prospective area and remain optimistic that results from the 2004 till sampling campaign will help us to narrow our search and increase our chances of success in 2005. The partners remain committed to the project and recognize that a thorough assessment of this large, prospective, new kimberlite field will take time," said Eira Thomas, President and CEO of Stornoway. 

Churchill is host to high-interest G10 mineral chemistry and the partners continue to narrow down the source to these high-interest grains. Results from the 4,213 till samples collected on the property this year will be received over the next several months. These results are integral to ongoing target definition and to narrowing down the indicator mineral corridors in order to locate and refine the source area of the property's high-interest indicator mineral chemistry. In addition, full data from the high resolution helicopter-borne airborne EM-magnetic survey has been received and it is anticipated that more than 1,500 targets will be chosen as a result.

The 8.5 million acre Churchill Diamond project, located near the community of Rankin Inlet in the Kivalliq region of Nunavut is a new and expanding kimberlite district which Shear and its partners discovered in 2003. Success at Churchill has contributed to a major staking rush in the Eastern Arctic where diamond exploration investment is expected to exceed $100 million in 2004. Shear has a 51% interest in the project and is operator. Stornoway Diamond Corp. and BHP Billiton Diamonds Inc. have 35% and 14% interests respectively. The 2004 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
/s/ "Eira Thomas"
Eira Thomas
President

For further information, please contact the
Company at 604-331-2259 or 1-888-338-2200
www.stornowaydiamonds.com

On behalf of the Board
SHEAR MINERALS LTD.
/s/ "Pamela Strand"
Pamela Strand, P. Geol.
President

For further information, please contact the
Company at 780-435-0045 or 1-866-298-9695
www.shearminerals.com

For further information, please contact the Company at 604-331-2259 or (888) 338-2200
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **

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.