Prospecting Identifies Two New Kimberlite Outcrops at Churchill; Summer Drilling has Commenced on the Project


Stornoway Diamond Corporation (SWY:TSX) and Shear Minerals Ltd. (SRM:TSXV) are pleased to report that two new bedrock sources, referred to as the Notch and Jigsaw kimberlites have been discovered at the Churchill Project in the vicinity of un-sourced, high interest indicator mineral anomalies identified from previous work. In addition, the second phase of drilling is now underway.

The Notch Kimberlite outcrop was discovered by prospecting along the northern extension of the MSC-19 area and occurs in an overburden covered grassy area within a prominent outcrop of iron formation. A 100 kg sample was collected for diamond analysis, petrography and age dating. The rock is a coarse macrocrystic kimberlite hosting visible pyropes similar to that in the drill hole at MSC-19 located 500m to the south (see news release dated July 13, 2006). The kimberlite appears to be dyke-like, trending north-south, with an approximate width of between 0.7 and 1.0m.

The Jigsaw kimberlite outcrop was discovered from prospecting in the MSC-17 area, located 20 km to the NW of the Sedna trend and occurs under a thin layer of till along a prominent east-west trending grassy linear. The body appears to be dyke-like, approximately 1m in width where exposed at surface and contains visible blue-green phlogopite and pyropes. A 45 kg sample was collected for diamond analysis, petrography and age dating. A ground magnetic survey over this areas has identified a 1.2km magnetic high linear and a drill target has been selected at one site where the geophysical signature expands in width to 25m.

Shear plans on collecting larger mini bulk samples from both the Notch and Jigsaw kimberlites for diamond analysis.

"The discovery of these two surface kimberlite outcrops gives us the ability to collect larger mini bulk samples possibly up to 5 tonnes per site at a low cost for macrodiamond analysis," says Shear President and CEO Pamela Strand. "This should enable us to model the diamond grade for these two sites."

A drilling program to test additional pipe like and dyke like targets within the Sedna and Josephine River Corridors has now commenced. Up to 20 holes will be drilled during this phase testing 10 target areas at the heads of high interest G10 indicator mineral dispersion trains, including some pipe like targets based on the geophysics.

The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). To date Shear and its partners have drilled 41 kimberlites over a wide area on the Churchill and Churchill West projects. The 2006 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

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

For further information, please contact Nick Thomas at 604-331-2259 or (888) 338-2200
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