Stornoway Announces Conditions of Ashton and Contact Offers Have Been Met and Extends Both Offers


Stornoway Diamond Corporation is pleased to announce that all of the conditions of its offers to acquire all of the common shares of Ashton Mining of Canada Inc. and Contact Diamond Corporation have been met.

Stornoway has also announced that it has given notice to the depositary to take-up all shares tendered under the offers and to extend the expiry time of the offers until 8:00 p.m. (Toronto time) on October 2, 2006. Stornoway will announce the results of the tender for each offer and the pro rationing of the cash consideration in the Ashton offer forthwith.

Important Notice for Ashton Shareholders:

As a result of restrictions under United States securities laws, Ashton shareholders that (i) are U.S. Persons (as such term is defined in Regulation S under the United States Securities Act of 1933) or (ii) hold Ashton shares on behalf of a U.S. Person (collectively "U.S. Shareholders") shall not be entitled to receive Stornoway shares in connection with the Ashton offer. Instead, Stornoway shares that would have otherwise been distributed to U.S.Shareholders will be deposited in trust and sold in the market through an orderly sale and the net cash proceeds remitted to U.S. Shareholders.

This press release is not an offer of Stornoway shares or any other securities for sale in the United States. The Stornoway shares will not be registered under the United States Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

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