Stornoway announces that it has taken up and accepted for payment an additional 1,576,774 shares

or approximately 3.6% of the outstanding, Contact common shares, under its takeover bid offer for all of the common shares of Contact Diamond Corporation. Stornoway now holds approximately 40.8 million, or approximately 93.0% of the outstanding, Contact common shares.

 

As Stornoway has acquired more than 90% of the outstanding Contact common shares, it intends to immediately exercise its statutory rights to acquire the remaining Contact common shares.

Under the terms of the Contact offer, Contact shareholders are 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 568,000 in respect of the acquisition of the Contact common shares taken-up on October 30, 2006.

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

For further information, please contact Nick Thomas at 604-331-2259 or (888) 338-2200
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **