Stornoway Diamond Corporation is pleased to announce that approximately 68.2% of the common shares of Ashton Mining of Canada Inc and approximately 67.5% of the common shares of Contact Diamond Corporation have been validly tendered and taken up under Stornoway's offers to acquire all of the common shares of each company.

"We are extremely pleased with the decision of Ashton and Contact shareholders to join us in creating Canada's premier growth-oriented diamond exploration and development company. The new Stornoway will benefit from a larger, more-diversified asset base, an enhanced capital market profile and world-class technical and management teams with unparalleled Canadian diamond experience. We would like to specifically acknowledge the important contributions of Ashton's employees and technical team as they advance the Renard bulk sample project, and look forward to a successful ongoing relationship with them as we move forward."

Ashton Offer

Prior to the initial expiry time of its offer (the "Ashton Offer") for all of the common shares of Ashton on September 18, 2006, approximately 64.9 million, or approximately 68.2% of the outstanding, common shares of Ashton had been validly deposited to the Ashton Offer. All of the conditions to the Ashton Offer have been satisfied. Accordingly, Stornoway has taken up and accepted for payment all such Ashton common shares and will pay for such shares on or before September 21, 2006.

Under the terms of the Ashton offer, Ashton shareholders could elect to receive (i) $1.25 in cash (the "Cash Alternative"); or (ii) one Stornoway share plus $0.01 in cash per Ashton common share, subject to pro ration of the cash available on each take-up date under the Cash Alternative. As a result of pro rationing, Ashton shareholders who tendered to the Cash Alternative will receive approximately $0.60 in cash and approximately 0.52 of a Stornoway common share for each Ashton common share tendered as at September 18, 2006, subject to adjustment in respect of fractional shares. The aggregate cash to be paid by Stornoway will be approximately $38.3 million and the aggregate number of Stornoway common shares to be issued will be approximately 34.5 million, in respect of the acquisition of the Ashton common shares taken-up to date.

As a result of taking up the Ashton common shares and the anticipated drawdown under the $32.5 million bridge loan, 17,629,084 subscription receipts of Stornoway issued to Agnico-Eagle Mines Limited on July 21, 2006 will be converted into 17,629,084 common shares of Stornoway and the $22.5 million proceeds of sale of such subscription receipts, plus accrued interest, will be released from escrow and paid to Stornoway.

As noted in the circular for the Ashton Offer, Stornoway intends to take such actions as are necessary, including if necessary calling a special meeting of Ashton shareholders, to effect a compulsory acquisition or subsequent acquisition transaction that will result in Stornoway owning 100% of the Ashton common shares. As Stornoway now owns approximately 68.2% of the issued and outstanding Ashton common shares, it intends to vote these shares in favour of any subsequent acquisition transaction.

In order to enable the remaining Ashton shareholders to receive prompt payment of the same consideration paid to those Ashton shareholders who have already tendered to the Ashton Offer (subject to the pro ration of the cash available on each take-up date under the Cash Alternative), Stornoway has extended the Ashton Offer until 8:00 p.m. (Toronto time) on October 2, 2006 to allow Ashton shareholders an additional opportunity to tender to the Ashton Offer. A notice of extension will be mailed to Ashton shareholders in the coming days.

Contact Offer                                               

Prior to the initial expiry time of its offer (the "Contact Offer") for all of the common shares of Contact on September 18, 2006, approximately 29.6 million, or approximately 67.5% of the outstanding, common shares of Contact had been validly deposited to the Contact Offer. All of the conditions to the Contact Offer have been satisfied. Accordingly, Stornoway has taken up and accepted for payment all such Contact common shares and will pay for such shares on or before September 21, 2006.

Under the terms of the Contact Offer, Contact shareholders were offered 0.36 of a Stornoway common share per Contact common share. The aggregate number of Stornoway common shares to be issued will be approximately 10,659,688 in respect of the acquisition of the Contact common shares taken-up to date.

As noted in the circular for the Contact Offer, Stornoway intends to take such actions as are necessary, including if necessary calling a special meeting of Contact shareholders, to effect a compulsory acquisition or subsequent acquisition transaction that will result in Stornoway owning 100% of the Contact common shares. As Stornoway now owns approximately 67.5% of the issued and outstanding Contact common shares, it intends to vote these shares in favour of any subsequent acquisition transaction.

In order to enable the remaining Contact shareholders to receive prompt payment of the same consideration paid to those Contact shareholders who have already tendered to the Contact Offer, Stornoway has extended the Contact Offer until 8:00 p.m. (Toronto time) on October 2, 2006 to allow Contact shareholders an additional opportunity to tender to the Contact Offer. A notice of extension will be mailed to Contact shareholders in the coming days.

About the Offers

Stornoway's take-over bid circular and related documents in respect of the Ashton Offer were filed with the securities regulatory authorities in Canada on August 10, 2006, a notice of variation and extension and notice of change of information of the Ashton Offer was filed with these same regulatory authorities on September 5, 2006 and a notice of extension of the Ashton Offer will be filed with these same regulatory authorities. Ashton shareholders are advised to read these documents as they contain important information including the terms and conditions of the Ashton Offer and the procedures for depositing shares. Additional information about the Ashton Offer or copies of these documents may be obtained from Georgeson Shareholder Communications Canada Inc. (Toll Free in North America 1-866-390-5139) who are acting as Stornoway's Information Agents.

Stornoway's take-over bid circular and related documents in respect of the Contact Offer were filed with the securities regulatory authorities in Canada on August 11, 2006 and a notice of extension of the Contact Offer will be filed with these same regulatory authorities. Contact shareholders are advised to read these documents as they contain important information including the terms and conditions of the Contact Offer and the procedures for depositing shares. Additional information about the offer or copies of these documents may be obtained from Georgeson Shareholder Communications Canada Inc. (Toll Free in North America 1-866-399-8737) who are acting as Stornoway's Information Agents.

Important Notice:

As a result of restrictions under United States securities laws, Ashton shareholders that (i) are U.S. Persons (as such term is defined in Regulation S under the United States Securities Act of 1933) or (ii) hold Ashton shares on behalf of a U.S. Person (collectively "U.S. Shareholders") shall not be entitled to receive Stornoway shares in connection with the Ashton offer. Instead, Stornoway shares that would have otherwise been distributed to U.S. Shareholders will be deposited in trust and sold in the market through an orderly sale and the net cash proceeds remitted to U.S. Shareholders.

This press release is not an offer of Stornoway shares or any other securities for sale in the United States. The Stornoway shares will not be registered under the United States Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas
President