$2.5 Million Coronation Exploration Program Commences Western Arctic Exploration Update


Stornoway Diamond Corporation (TSXV: SWY) is pleased to provide the following update on its exploration activities in the Western Arctic of northern Canada. Stornoway holds varying interests in over one million acres in the Slave Craton, which hosts Canada's two diamond mines and where at least two other diamond deposits are slated for production in the next three years. Stornoway acquired interests in over 1 million acres of prospective diamond properties in the Coronation diamond district beginning in late 2001 and recently acquired rights to explore 185,000 acres of prime ground located in the heart of the Lac de Gras diamond districts in the Northwest Territories. Till sampling work throughout Stornoway's western Arctic landholdings has identified several regions of anomalous indicator minerals and airborne geophysical surveys have contributed additional priority anomalies for follow-up. Limited drilling work has been completed to date and Stornoway remains optimistic that new kimberlites remain to be found. Stornoway will spend close to $2.5 million exploring these landholdings with sampling, geophysics and drilling in 2004.

Coronation (North Slave) Diamond District, Nunavut

Stornoway has initiated till sampling, prospecting, ground geophysical surveys and drilling on close to 817,000 acres of prospective landholdings in the Coronation Diamond district, Nunavut. Stornoway's property interests range from 35 to 100%. Landholdings, exploration plans and results to date are discussed in greater detail below. In addition to the properties operated by Stornoway, Ashton Mining of Canada Inc. will continue exploration of the 38,737 acre Kikerk Property, host to the Potentilla and Stellaria kimberlites as well as unsourced indicator mineral anomalies. Elsewhere, Diamondex will continue till sampling work on the Peregrine Property to help isolate indicator mineral anomalies identified in 2003.

Historical exploration by other parties has identified at least 21 kimberlitic bodies, several with promising early stage diamond results, in the Coronation (North Slave) Diamond District, extending from the north end of Contwoyto Lake to the Arctic Ocean. During 2002 and 2003 Stornoway collected and processed approximately 5,000 till samples throughout its Coronation (North Slave) landholdings. Indicator mineral results derived from this work, as well as promising anomalies identified from some 46,000 kilometers of proprietary airborne geophysical surveys, suggest the presence of as yet unrecognized kimberlitic bodies that have the potential to be diamondiferous. Field crews are currently working in specific areas of the property, and detailed till samples have already been received by the lab processing facility.

On the 56,049 acre Bear Property (Stornoway 65%; Strongbow Exploration Inc. 35%) a total of 400 till samples have been collected to date and a single geophysical target was tested which did not intercept kimberlite. Prospecting and till sampling will be undertaken on the 20,579 acre Jewel Property (also shared with Strongbow under a similar arrangement) within a newly identified mineral distribution train thought to originate within the claim group. Ground geophysical surveys (estimated at 50 line kilometers in 5-7 grids) are underway on the Sceptre (180,803 acre) and Tiara (38,849 acre) properties to define potential targets up-ice of prominent indicator mineral distribution trains prior to drilling in July. Stornoway holds a 40% interest in these properties with International Samuel (36%) and Dasher Energy (24%) having the remainder. In addition to ground geophysics and diamond drilling, 500 till samples will be collected from Sceptre and Tiara under a 2004 budget of $900,000. Stornoway (50%), International Samuel (25%) and Nordic Diamonds (25%) have approved an $800,000 exploration budget on the 137,250 acre Jubilee Property. This work will focus on the collection of some 600 till samples to help resolve internal variation within strong and laterally extensive regional mineral trains. The goal of the 2004 program is to identify and differentiate locally sourced mineral indicator trains signifying as yet unrecognized kimberlitic bodies on the property. Sampling and prospecting on Stornoway's 100% owned Diva Property (92,059 acres) is focused on promising pyrope mineral chemistry initially detected in a single regional 2002 sample (21 grains) and confirmed by more detailed 2003 sampling. An airborne geophysical survey is scheduled for late June/early July and anomalous responses will be investigated later in the season, once preliminary survey results are available.

Lac de Gras Diamond Properties, Northwest Territories

Elsewhere in the western Arctic, Stornoway continues an $850,000 exploration program on the LDG, Starfish and Daring Lake Properties (collectively some 185,000 acres in which Stornoway can earn a 60% interest from Strongbow Exploration Inc.) situated south and west of the Diavik and Ekati diamond mines. The first phase of 2004 drilling focused on the Starfish claims but did not intersect kimberlite. Sulphide mineralization encountered during the drilling has been submitted for analyses, and any significant results will be reported when available. Ground geophysical surveys were completed over 40 grids (43 targets) on the LDG property and 6 grids on the Daring Lake property. A number of the targets have proven to be of significant interest and require drill testing. Till sampling on the LDG and Daring Lake properties is planned for August and September, 2004. Diamond drilling of high interest targets on the LDG property is scheduled to continue in 2004 as logistical considerations permit. Exploration plans have not yet been finalized for 106,000 acres of prospecting permits situated in the Mackenzie Delta, immediately west of ground being explored by Diamondex Resources Ltd., De Beers Canada Exploration Inc. and others.

On behalf of the Board


/s/ "Eira Thomas"

Eira Thomas