Stornoway Diamond Corporation (SWY:TSX) and Shear Minerals Ltd. (SRM:TSXV) today announced the recovery of 585 diamonds greater than 0.85mm yielding 16.42 carats from a cumulative 17.26 dry tonne sample from four kimberlite dykes on the Churchill Project, Nunavut.

The PST003 kimberlite yielded 7.24 carats from a 3.55-tonne sample, resulting in a sample grade of 2.04 carats per tonne (cpt). A 3.13-tonne sample at the Kahuna kimberlite returned 3.4 carats, producing a sample grade of 1.09 cpt. At Notch, a 4.93-tonne sample returned 3.4 carats resulting in a sample grade of 0.69 cpt. and a smaller sample of 0.5 tonnes at Notch North yielded 0.4 carats producing a sample grade 0.8 cpt. At Jigsaw, a 5.15-tonne sample yielded 1.99 carats resulting in a sample grade of 0.39 cpt. All calculations are based on diamond weights from stones found on the 0.85mm sieve size or larger. 

The three largest diamonds from PST003 measured 5.1x4.4x2.8mm (0.55 carats-see picture below), 5.6x4.6x2.2mm (0.29 carats), and 3.7x2.84x2.6mm (0.16 carats). The three largest stones from Kahuna measured 4.78x3.94x2.66mm (0.27 carats), 4.08x3.58x2.56mm (0.18 carats), and 2.4x2.2x2.14mm (0.1 carats). To date, preliminary observation describes the majority of the diamonds as clear, colorless to white and dominated by octahedrons with some macles, dodecahedrons, and twins. 

Detailed descriptions and classification will be conducted on all diamonds by Mineral Services Canada in order to fully categorize the diamond populations. 

 "We are extremely encouraged by the diamond content and initial diamond size distribution from all four kimberlites," says Shear President and CEO Pamela Strand. "These initial high diamond grades provide justification for an aggressive program in 2007 that will include the collection of larger, more definitive mini-bulk samples and further exploration for additional kimberlites associated with this potentially extensive diamondiferous dyke system."

A full audit will be conducted on the tailings for each sample. Budgets are being finalized for the 2007 field program now that results are complete. The program is expected to include examination of tonnage and grade, commencing development of a resource model and a preliminary assessment of the project's overall economic potential. 

¹ Largest stone dimensions 5.1x4.4x2.8mm white octahedroid; 5.6x4.6x2.2mm white twinned octahedron; 3.7x2.84x2.6mm white broken octahedron.

² Largest stone dimensions: 4.78x3.94x2.66mm white; 4.08x3.58x2.56mm white broken aggregate, 2.4x2.2x2.14mm pink cubic.

³ Largest stone dimensions: 3.6x3.4x1.92mm white broken aggregate; 3.64x2.4x1.8mm colorless broken, 3.1x2.1x2mm white 2.9x2.3x2.1 colorless octahedron

⁴ Largest stone dimensions: 3.24x1.88x0.9mm white fragment; 2.04x1.48x1.28mm amber octahedroid; 1.7x1.58x1.2mm clear octahedroid.

⁵ Largest stone dimensions: 3.08x2.9x2.6mm black octahedroid, 2.2x1.82x1.44mm colorless broken, 3.72x2.32x2.3mm colorless broken aggregate.

The samples reported today were collected by Shear using surface trenching in August and September 2006. Sample results are reported for kimberlite dykes from Kahuna, Notch, Notch North, PST003 and Jigsaw and are based on the recovery of diamonds by Dense Media Separation (DMS) at De Beers Processing plant in Grande Prairie, AB after an initial 8.0mm primary crush. Samples were finished by a caustic fusion of the concentrate at the Saskatchewan Research Council Geoanalytical Laboratories accredited to the ISO/IEC 17025 standard by the Standards Council of Canada. Sample weights and diamond counts are reported for standard sieve classes greater than 0.85mm (using a square mesh).

PST003

The PST003 kimberlite is located 2 km to the south of Notch within the Sedna Corridor. It is a 0.8m wide vertical dyke estimated to trend for 500m based on geophysical interpretation. Six holes from three set ups have been drilled into PST003.The largest diamonds from today's results weighed 0.55, 0.29, 0.17, 0.163, and 0.16 carats. Recent geophysical interpretation has identified what could be the southern extension to PST003, trending for 4-5 km to the southwest.

Kahuna

The Kahuna kimberlite is located within the Josephine River Corridor and is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5 km based on geophysical interpretation. Five drillholes from three setups have intersected the Kahuna kimberlite as well as trenching at two sites. The largest diamonds from today's results are 0.27, 0.18 and 0.10 carats. The largest diamond recovered prior to this at Kahuna, as reported on January 8, 2007 measured 3.55x2.95x2.90mm and weighed 0.3 carats.

Notch

The Notch kimberlite is located 15 km southwest of Kahuna in the Sedna Corridor and is a 1.5m wide vertical kimberlite dyke that trends for more than 3 km based on geophysical interpretation. Notch North was collected 1.5km north of the main Notch outcrop. The largest diamonds from today's results are 0.129, 0.11, and 0.108 carats. A total of 11 drillholes from 7 setups have been drilled into the Notch kimberlite trend.

Jigsaw

The Jigsaw kimberlite is located 20km northwest of Notch to the northwest of the head of the Sedna Corridor. Jigsaw is a 1.3m wide vertical dyke estimated to be 1 km in length based on geophysical interpretation. No drilling has been conducted on the Jigsaw trend. The largest diamonds from today's results are 0.16, 0.14 and 0.12 carats.

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 the partners have discovered 48 kimberlites including 6 outcrops over a wide area on the Churchill and Churchill West projects. The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101. Ms. Burgess managed the chain of custody of all mini bulk samples from the field to all lab facilities.

About Stornoway

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies. The Company and its affiliates have been responsible for discovering over 150 kimberlites and six new Canadian diamond districts. Stornoway's management and technical team has a proven track record in wealth creation for shareholders and direct operating experience in each segment of the diamond "pipeline" from exploration to marketing.

In Quebec, Stornoway has a 50% interest in the Renard Diamond Project through its 100% owned subsidiary Ashton Mining of Canada Ltd. Renard is currently undergoing a 10,000 tonne bulk sample ahead on an expected pre-feasibility study in 2007-2008. Elsewhere, Stornoway has advanced stage diamond exploration projects in Nunavut, Alberta and Ontario and exposure to over 20 million acres of prospective diamond properties across Canada and in Botswana.

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

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.