Stornoway and Diamonds North Enter Into Agreement to Explore Manitoba Highlands Project


Stornoway Diamond Corporation (SWY:TSX) and Diamonds North Resources Ltd. (DDN:TSXV) announce that the companies have entered into an agreement to explore the Manitoba Highlands project under a 50:50 joint venture. The project is located in the Hudson Bay Lowlands of northeastern Manitoba and was originally acquired by Diamonds North in 2004. 

Under the terms of a joint venture finalized on April 18 2005, Stornoway and Diamond's North have agreed to fund the original acquisition and exploration costs and all future exploration work on the project equally. Diamonds North will act as the Operator.

The Highlands property lies within a favourable geological setting similar to that which hosts the Attawaspikat kimberlites where DeBeers Canada Inc. has recently completed feasibility and environmental assessment studies on the Victor Pipe. 

During the 2004 exploration program, the companies recovered kimberlite indicator minerals from several samples collected on the property. In addition a 14,950 line kilometer magnetic airborne survey completed over the entire property has revealed approximately 50 magnetic anomalies, of which, 15 are rated as high priority and require immediate follow-up work. 

Plans for the 2005 exploration program include ground geophysical surveying to assist in target selection for an anticipated diamond drilling program later this year. 

Robin Hopkins is the company's qualified person reviewing the project data for Stornoway Diamond Corporation. Also reviewing the data is the qualified person for Diamonds North, Graham Gill (P.Geo).

The Board of Directors of Stornoway has also granted, pursuant to the Corporation's Stock Option Plan and subject to regulatory approval, options to purchase an aggregate of 335,000 common shares of the Corporation to employees and consultants of the Corporation at an exercise price of $1.70 (Cdn) per share.

Stornoway is a diamond exploration company with extensive landholdings (approximately 22 million acres) located in eleven key project areas in northern Canada. Stornoway will directly spend more than $15 million (Cdn) to explore our properties and, together with its partners, will be exposed to more than $22 million (Cdn) in exploration expenditures in 2005.

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