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Aviat Diamond Joint Venture - BHP Billiton Offer Triggers Right of First Refusal

Northern Empire Minerals Ltd. (NEM) and Stornoway Ventures Ltd. (SWV) announce that they have been advised by their minority partner, Hunter Exploration Group ("Hunter") that BHP Diamonds Inc. ("BHP") has agreed to acquire and Hunter has agreed to sell for $7,125,000 Cdn in cash:

(a) a 20% fully participating interest in the Aviat North, Aviat South, Foxe, Tukto and Lyon properties (the "Aviat Properties"); and
(b) marketing rights to the 10% carried interest retained by Hunter in the Aviat Properties.

In addition, as a condition of the purchase Hunter has agreed to an amendment to the joint venture agreement that will govern the Aviat North and Aviat South properties under which Hunter foregoes 90% of the proceeds attributable to its retained 10% interest in the Aviat North and Aviat South properties until all other parties have been reimbursed for their exploration, development and mine construction costs.
 
NEM and SWV hold options to acquire a 70% fully participating interest in the Aviat Properties, one option in respect of the Aviat North and Aviat South properties and one in respect of the Foxe, Tukto and Lyon properties. 

NEM and SWV have rights of first refusal in respect of the sale by Hunter of any of its interests in the Aviat Properties on the same terms and conditions offered by a third party.  NEM and SWV have 30 days after receipt of valid notice from Hunter of the terms and conditions of an offer and confirmation that Hunter intends to accept such offer to exercise their rights of first refusal.
 
At this time NEM and SWV have not determined whether they will exercise their rights of first refusal and are considering their options.

Aviat represents one of Canada's largest diamond exploration projects and was established as a joint venture between Northern Empire Minerals Ltd., Stornoway Ventures Ltd. and Hunter Exploration Group in 2002 to explore the Melville Peninsula region of Nunavut for diamonds. The partners have secured interests in over 7 million acres of prospective diamond exploration lands on the Melville Peninsula and are optimistic that exploration may result in the discovery of an entirely new kimberlite field.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release