Stornoway Completes Sale of Buffalo Head Hills Interest to Diamondex and Shore Gold


Stornoway Diamond Corporation (SWY: TSX) is pleased to announce the completion of the sale of its 45% interest in the Buffalo Hills Project, located in north-central Alberta to Diamondex Resources Ltd. (DSP-TSX.V) ("Diamondex") and Shore Gold Inc. (SGF:TSX) ("Shore") for a total consideration of $17.5 million. Under the agreement Shore paid $8.75 million in cash and Diamondex paid $6.25 million in cash and issued 6,031,363 of its common shares with a deemed value of $2.5 million to Ashton Diamonds (Canada) Inc., a wholly owned subsidiary of Stornoway Diamond Corporation.

The monetization of this non-core asset allows Stornoway to focus its efforts on key exploration and development opportunities within its extensive property holdings, in particular the development track Renard Project in north-central Quebec, which has the potential to become Quebec's first diamond mine.

Stornoway Diamond Corporation

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.

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