Stornoway Announces Generative Project Joint Venture with Contact Diamond


Toronto, Canada (May 10, 2005) - Stornoway Diamond Corporation (TSX:SWY) and Contact Diamond Corporation (TSX:CO) are pleased to announce that they have entered into a joint venture designed to pursue a generative diamond exploration project within Canada. The project will be funded 50/50 by the joint venture partners and will comprise initial desktop generative study, field exploration and land acquisition ahead of target testing. The joint venture has allocated approximately $1,000,000 to the joint venture in fiscal 2005.

Commenting on the joint venture, Contact's President and COO Matt Manson said "I am very pleased to announce this important relationship with one of Canada's premier technical diamond exploration teams. It represents an important component of Contact's strategy of focused diamond exploration and development within the most prospective regions of Canada."

Eira Thomas, President and CEO of Stornoway commented "Stornoway and Contact share a common vision to aggressively explore the extensive, un-tapped potential of Canada for diamonds. We are pleased to be leveraging our combined technical strengths and expertise on this important new exploration initiative".

About Stornoway Diamond Corporation

Stornoway is one of Canada's premier diamond exploration companies with extensive landholdings of approximately 24 million acres focused in eleven key project areas in northern Canada. Stornoway has been involved in the discovery of 33 kimberlites since 2002, half of which have proven diamondiferous (one kimberlite for which results are pending).

About Contact Diamond Corporation

Contact Diamond is an exploration and development company with diamond properties in Ontario, Quebec, Northwest Territories and Nunavut. Its leading project is in Timiskaming on the Ontario-Quebec border where it is currently pursuing an aggressive kimberlite exploration and assessment program. Agnico-Eagle Mines Limited (NYSE: AEM, TSX: AGE) is currently the largest shareholder of the corporation.

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