Stornoway Commences Compulsory Acquisition of Remaining Contact Common Shares


Vancouver, B.C.: Stornoway Diamond Corporation ("Stornoway") (SWY:TSX) is pleased to announce that it has mailed a notice of compulsory acquisition to all remaining holders of Contact Diamond Corporation common shares (the "Common Shares").

Following Stornoway's offer to acquire all of the Common Shares not already owned by it, Stornoway beneficially owns approximately 93.1% of the issued and outstanding Common Shares.

Since the Stornoway offer was accepted by holders of more than 90% of the Common Shares, Stornoway is now exercising its right under the compulsory acquisition provisions of the Business Corporations Act (Ontario) to acquire all outstanding Common Shares not already owned by Stornoway on the basis of 0.36 common shares of Stornoway per Common Share. Further details are provided in the notice of compulsory acquisition.

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

This news release is not an offer of Stornoway shares or any other securities for sale in the United States. The Stornoway shares to be issued pursuant to the compulsory acquisition described herein have not been, and will not be, registered under the United States Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.