Diamonds from New Kimberlites at Aviat


Stornoway Diamond Corporation (TSX:SWY), BHP Billiton Diamonds Inc. (BHP Billiton) and Hunter Exploration Group are pleased to report that kimberlites AV6, 7 and 8, discovered during the summer 2005 field program, have proven significantly diamondiferous. Caustic fusion analysis of small surface grab samples from kimberlite AV6 returned a total of 41 diamonds from 35.3 kg, AV7 returned a total of 49 diamonds from 35.1 kg and AV8 returned a total of 41 diamonds from 31.0 kg. Detailed sieve data is reported below.

Eira Thomas, President and CEO commented: "Every kimberlite discovered at Aviat so far has proven diamondiferous from initial microdiamond testing. We are now nine for nine. Even from small samples, diamond recoveries were high with promising size distributions. These results, in conjunction with the excellent mineral chemistry (including high proportions of unsourced G10's) recovered from the Tremblay Corridor continue to support the possibility of an economic discovery from the property".

Diamond results from caustic fusion analyses are anticipated in the near term for (i) an additional 35-45kgs of kimberlite from each of AV6, 7 and 8, (ii) approximately 100kgs from the AV5 kimberlite (previously reported as diamondiferous), and (iii) 50-60kg of kimberlite from each of two boulder occurrences thought to be derived from unrelated and as yet undiscovered source bodies within the 70km long Tremblay indicator mineral corridor. Larger kimberlite samples (approximately two tonnes) collected from surface exposures of AV6, 7 and 8 will be processed through a dense media separation facility, with macrodiamond results expected in Q1 2006. Similar sized (several tonnes) samples of kimberlite collected at surface from each of AV2, AV3, AV4 and AV5 will also be processed by dense media separation in the new year. Results from caustic analysis of drill core samples collected from the Aviat Project in 2005 are anticipated later this year or early next year.

The occurrences are all hypabyssal kimberlite visually similar to previously reported kimberlites from the Aviat Property, more specifically AV1 to AV5, inclusive, all of which proved significantly diamondiferous from initial test work. Drilling suggests the bodies are sheet-like in nature, although actual dimensions and orientations have not yet been determined.

Stornoway holds varying interests, both directly and through 18 joint ventures, in 33 Canadian mineral properties representing 22.6 million acres of ground. Stornoway has been involved in the discovery of 61 kimberlites since 2002. To date; 51 of 61 have been analyzed and more than one third have proven diamondiferous. During 2005 SWY operated exploration programs on 24 properties (12 million acres) and our joint venture partners explored 9 properties (10.6 million acres). In addition to work on our landholdings, Stornoway also undertook generative programs covering over 250 million acres in northern Canada. Generative work included the collection of some 95,000 line km of airborne geophysics, in excess of 2400 surficial sediment samples to be processed for indicator minerals and a series of rock samples for both microdiamond and macrodiamond analysis. Partial results available to date from this 2005 generative exploration program have already been used to identify and acquire targeted landholdings thought to have the potential to host diamondiferous kimberlites. Additional results are pending and Stornoway anticipates continued property acquisition.

Caustic fusion analysis was carried out at Microlithics Laboratories in Thunder Bay, Ontario, an independent mineral process laboratory currently providing services exclusively to Stornoway and its affiliates. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.

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