Stornoway Diamond Corporation (TSX-SWY), BHP Billiton Diamonds Inc. and Hunter Exploration Group are pleased to announce that final diamond results have now been received for the 2004 regional drilling and prospecting program completed on the 5.5 million acre Aviat Project, located on the Melville Peninsula in eastern Nunavut. In addition to the previously reported AV1 and AV2 kimberlites, discovered in 2002 and 2003, a total of four additional kimberlite occurrences were identified in 2004, three of which underwent preliminary drill testing and all of which returned diamonds from caustic fusion analysis. The six diamondiferous kimberlites identified to date are all situated within a six kilometer portion of the 70-km long Tremblay Corridor. Float boulders, thought to represent additional, as yet undiscovered kimberlites, have been found within the Tremblay Corridor, over a distance of approximately 20 km.

HIGHLIGHTS

• All six kimberlites discovered at Aviat to date have proven diamondiferous.
• AV4 returned a total of 565 diamonds from 540 kgs collected from boulders and drill-core. The largest stone measured 2.2 mm by 2.1 mm by 1.8 mm. AV4 is situated approximately 450 m west of AV1.
• AV5 returned 93 diamonds from 48 kgs processed from surface float samples. AV5 is situated approximately 5 km southeast of AV1 and has not yet been tested by drilling. The largest stone measured 1.8mm by 1.2mm by 0.6mm.
• Small samples from AV1A, AV2, and AV3 returned 6 diamonds (9.5 kgs), 4 diamonds (17.6 kgs) and 3 diamonds (6.3 kgs) respectively.
• Evidence suggests the presence of additional kimberlite bodies in and around the six kimberlites identified to date as well as elsewhere along the 70 km long Tremblay Corridor.

Eira Thomas, President and CEO commented: "We are encouraged that each kimberlite discovered at Aviat to date has proven diamondiferous. We are particularly pleased to see high micro-diamond counts from small samples. Size distributions from AV4 and AV-5 compare favourably with early results from AV1 where a sample grade of 0.83 carats per tonne has been established from mini-bulk sampling. Regional geochemical and geophysical data collected in 2003 and 2004 continue to support the likelihood of further diamondiferous discoveries in the vicinity of AV1 and elsewhere along the Tremblay corridor in 2005."

A total of eight holes comprising 1,142 metres were completed on the Aviat property between August 27 and October 12, 2004, testing four targets. Kimberlite was intersected in each hole with intersections ranging from 0.10m to 61.0m. Details of the drill intercepts were previously reported on October 21, 2004. The nature, shape and size of these bodies are not fully understood at the present time, but they appear to be complex bodies similar in nature to AV1. Kimberlite AV5, which represents another surface concentration of hypabyssal kimberlite boulders in close proximity to the other four kimberlite occurrences, remains to be drilled tested. Each of the kimberlite intercepts encountered from drilling to date, with the exception of those associated with the HK phases at AV1, display poorly defined magnetic signatures. Drilling, for the most part, has been guided by the presence of surficial concentrations of kimberlitic boulders and/or sub-crop.

Samples from the kimberlite drill intercepts and boulder occurrences were sent to the Saskatchewan Research Council (SRC), an independent laboratory based in Saskatoon, SK, and SGS Lakefield Research, an independent laboratory based in Lakefield Ontario, for micrco-diamond analysis using caustic fusion. A summary table of new caustic fusion results from surface and/or drill-core samples collected at bodies AV1A, AV2, AV3, AV4 and AV5 in 2004 are included below:

* From drillcore
** From surface samples

To date, over 100 occurrences of kimberlite boulders have been mapped within the Tremblay Corridor in proximity to anomalous till samples taken in 2002 and 2003 suggesting multiple additional kimberlite source bodies remain to be found. The Tremblay corridor extends for more than 75 km, varies between 3 and 8 km in width and contains numerous kimberlitic indicator mineral anomalies identified from the 2003 till sampling program. Pyrope garnets recovered to date from within the Tremblay Corridor consist of 40% G9A or G10A garnets, implying derivation from within the diamond stability window. During 2004 a total of 4175 till samples have been collected throughout the property, including 2,700 samples within an area of 1,700km2, representing the Tremblay Corridor.

Outside of the AV1 through AV5 kimberlite area, priority geophysical targets remain to be drill tested as soon as weather conditions permit. Mobilization for the 2005 drilling program will begin in March with drilling anticipated to commence in April. The results of approximately 35,000 line km of recently completed heliborne magnetic and electromagnetic surveys, 19,000 line km of fixed wing magnetic surveys and 6,200 line km of airborne gravity surveys completed using BHP Billiton's proprietary FalconTM gravity gradiometer system will be interpreted over the course of the winter to identify further priority targets for the new Year.

Stornoway's diamond exploration programs on the Melville Peninsula are conducted under the direction of Dean Besserer, P.Geol. (NT/NU), 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 (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.