Stornoway And Shear Confirm High Commercial Diamond Content At Churchill’s Kahuna Kimberlite 93.54 Carats Extracted From Initial 107-tonne Sample


Stornoway Diamond Corporation (SWY:TSX) and Shear Minerals Ltd. (SRM:TSXV) today announced partial results from the first phase of processing of the 400-tonne bulk sample extracted earlier this year from the Kahuna kimberlite dyke on the Churchill Diamond Project, Nunavut. From an initial 106.6 dry tonnes, 3,239 diamonds greater than 0.85mm were recovered yielding 93.54 carats with the three largest diamonds weighing 1.39, 1.19 and 0.73 carats. Preliminary observation describes the majority of the diamonds as white and colorless with a good population of octahedrons.

"These initial results clearly demonstrate the potential for the Kahuna kimberlite dyke," says Shear President and CEO Pamela Strand. "While these numbers represent only a glimpse into partial results of the ongoing processing, we are encouraged by the diamond content and diamond quality."

The current bulk sampling at Kahuna is aimed at establishing a preliminary diamond content and providing a preliminary assessment of diamond value. It is anticipated that once all 400 tonnes of kimberlite material has been processed the complete parcel of recovered diamonds will proceed to an independent valuation exercise.

Today's diamond results are the first to be processed from the southernmost of three surface samples collected by trenching along the strike length of the Kahuna kimberlite dyke in March and April of 2007. The sample diamond content of 0.88 carats per tonne (cpt) is based on diamonds recovered on a 0.85 mm sieve size or larger (using a square mesh). The Kahuna kimberlite is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5km based on geophysical interpretation.

Sample results are based on the recovery of diamonds by dense media separation (DMS) at Kennecott Canada Exploration Inc.'s independent processing plant in Thunder Bay, ON, using a 1 mm square mesh bottom cut off. No crushing of Kahuna Sample 2 was required as the kimberlite was pervasively clay altered. A 950.7 kg heavy mineral concentrate was generated and then passed through an x-ray sorter and picked for diamonds. Diamonds were also recovered during an audit of the magnetic fractions and x-ray rejects resulting in the treatment of these fractions by caustic fusion analysis.

Preliminary observation describes the majority of the diamonds as clear, colorless to white with a good population of octahedrons. For photographs of the diamonds click here. Detailed descriptions and classification of the diamonds will be conducted by Mineral Services Canada in the coming weeks in order to fully categorize the diamond populations and to identify any potential diamond breakage. A full audit will be conducted on tailings from each of the three subsamples to assess plant performance and potential under-recovery of diamonds.

Crushing of the remaining 270 tonnes of kimberlite from this year's 400-tonne mini-bulk sample of Kahuna has been completed and heavy mineral separation is currently underway at Kennecott's DMS facility with results expected within the next month.

The Churchill Diamond Project is owned 41.86% by Stornoway and 58.14% by Shear Minerals, who is the operator. The property is comprised of the diamond rights to more than two million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of four significantly diamond-bearing, vertically-emplaced kimberlite dykes (up to 4m in width) that have returned sample grades of up to 2.18 carats per tonne. The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 150 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101.

On behalf of the Board
/s/ "Eira Thomas"
Eira Thomas
Chief Executive Officer