Stornoway Diamond Corporation (TSX:SWY) has filed its interim consolidated financial statements and its Management Discussion and Analysis (Form 51-102F1) for the nine months ended January 31, 2005 with the regulatory authorities through SEDAR (www.sedar.com) and has mailed them to shareholders whose names appear on its Supplemental List. The interim financial statements were prepared by management in accordance with Canadian generally accepted accounting principles and were not reviewed by Stornoway's auditors. This news release is being issued pursuant to National Instrument 54-102.

Highlights of Stornoway's diamond exploration activities during its third quarter for fiscal 2005 are:

• Kimberlite drilling intercepts from AV1A, AV2, AV3 and AV4 all return diamonds from caustic fusion analysis.
• Surface kimberlite samples from AV5 return diamonds from caustic fusion analysis.
• Continued to receive laboratory results from the 2004 till sampling program and expect final results during the spring of 2005.
• Received final results from airborne geophysical surveying completed in 2004 and interpretation is now ongoing.
• Four new 100% owned projects totaling 800,000 acres defined and acquired in Nunavut and northern Manitoba based on generative work from 2003 and 2004.

The Company's loss from operations for the nine months ended January 31, 2005 totaled $3.2 million, a loss of $0.04 per share, as compared to a loss of $0.95 million for the nine months ended December 31, 2003, a loss of $0.02 per share. Assets increased from $39.8 million as at April 30, 2004 to $61.1 million as at January 31, 2005. Capitalized resource property costs also increased, from $15.5 million as at April 30, 2004 to $26.9 million as at January 31, 2005. During the nine months ended January 31, 2005, the Company expended $13.2 million to acquire and explore its resource properties (December 31, 2003 - $4.8 million). General and administrative expenses increased as compared to the prior period, from $0.79 million in the nine months ended December 31, 2003 to $2.1 million in the nine months ended January 31, 2005.

During the nine months ended January 31, 2005, cash and equivalents increased by $8.5 million, from $23.2 million as at April 30, 2004 to $31.8 million as at January 31, 2005. The increase in the Company's cash position is attributable to net proceeds of $18.7 million from a private placement in May 2004 and warrant and option exercises during the current period totaling $5.3 million. The Company's working capital as at January 31, 2005 was $31.8 million as compared to working capital of $21.8 million as at April 30, 2004.

As at January 31, 2005, the Company's share capital was $73.7 million representing 72,634,195 common shares without par value (April 30, 2004 - $48.7 million - 61,499,412 common shares). Included in share capital are stock-based compensation amounts totaling $2.6 million (April 30, 2004 - $1.6 million). The deficit was $14.0 million (April 30, 2004 - $10.8 million) as at January 31, 2005. Shareholders' equity was $59.7 million as at January 31, 2005, as compared to shareholders' equity of $37.9 million at April 30, 2004.

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
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.