Stornoway Diamond Corporation – $25 Million Bought Equity Financing


Stornoway Diamond Corporation ("Stornoway") has today entered into an agreement with a group of underwriters co-led by BMO Capital Markets and Canaccord Adams under which the underwriters have agreed to buy 12,500,000 Units from Stornoway and sell to the public at a price of $1.20 per Unit, representing an aggregate issue amount of $15,000,000. Each Unit consists of one Common Share and one-half of one Common Share Purchase Warrant (the "Warrant"). Each whole Warrant entitles the holder to purchase one Common Share at a price of $1.50 on or before 24 months from closing. Stornoway has granted to the underwriters an over-allotment option to purchase an additional 1,875,000 Units at the same price, exercisable by the underwriters for a period of 30 days from closing.

In addition, Stornoway has agreed to sell through the Underwriters 6,670,000 Flow-Through Common Shares at a price of $1.50 per Flow-Through Common Share, representing an aggregate issue amount of $10,005,000.

Closing for the equity offerings is expected on or about April 11, 2007. Closing is subject to receipt of all required regulatory and third party approvals and consents, including the approval of the TSX.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Not for distribution to U.S. news wire services or dissemination in the United States.

Stornoway Diamond Corporation

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.

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