Stornoway Announces A Pre-Development Agreement At Renard With The Grand Council Of The Crees (EI) And The Cree Nation Of Mistissini


Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the conclusion of a Pre-Development Agreement ("PDA") for the Renard Diamond Project with the Grand Council of the Crees (Eeyou Istchee) / Cree Regional Authority, the Cree Nation of Mistissini and DIAQUEM INC ("DIAQUEM"). The Renard Diamond Project is a 50:50 joint venture with DIAQUEM a wholly-owned subsidiary of SOQUEM INC. ("SOQUEM"), itself a wholly-owned subsidiary of Société générale de financement du Québec ("SGF"), the Québec government's main industrial and financial holding company.

The PDA has been developed on the principle of mutual respect between the parties, and the interests of all in seeing the establishment of a successful diamond mining venture at Renard. It provides for business and employment opportunities for the Crees during the period of pre-development activities leading up to a potential production decision at the project, the completion of a comprehensive Business and Employment Capacity Study to assess the full potential for Cree business and employment opportunities from an eventual Renard Diamond Mine, and the creation of a joint communication strategy. In addition, the PDA provides for Cree assistance in the preparation of an Environmental and Social Impact Assessment for Renard, and any other relevant environmental and social assessment studies. The PDA builds upon a record of good faith dialogue between the parties, and contemplates the completion of a subsequent Impacts and Benefits Agreement.

Matt Manson, Stornoway's President and CEO, stated: "This agreement is the result of a dialogue that was initiated in the early stages of our mining exploration activities in the region. We are proud of what we have accomplished up to now in collaboration with the Crees of Eeyou Istchee and in particular with the Cree Nation of Mistissini. We see this agreement as an important stepping stone towards a successful mining project at Renard that provides meaningful benefits to all stakeholders within the context of social and environmental respect."

Chief John Longchap from the Cree Nation of Mistissini stated: "The signing of the PDA is an important step for all parties. The Cree Nation of Mistissini felt it important to clearly identify the relationship between the mining parties and our local community and to ensure that as the development project evolved that there would be meaningful participation by our local members and the impacted families in particular."

Dr. Matthew Coon-Come, Grand Chief of the Grand Council of the Crees (Eeyou Istchee) and Chairman of the Cree Regional Authority stated: "This PDA is another example where, with the participation of the Crees, mining exploration can occur in Eeyou Istchee. This agreement addresses Cree social, environmental and economic concerns during the period of pre-development activities on the Renard Diamond Project and ensures that mining exploration is in keeping with our traditional approach to sustainability."

About the Renard Diamond Project

The Renard Diamond Project is located approximately 250km north of the community of Mistissini in the James Bay region of North-Central Québec, and falls within the environmental protection regime of the James Bay and Northern Québec Agreement. In March 2010 Stornoway released the results of a Preliminary Assessment at Renard that showed the project to have the potential to produce approximately 30 million carats of diamonds over a 25 year mine life. Total capital investment is estimated to be $511 million, with an average operating expenditure of approximately $67 million per year and a workforce of 300 people. Pending the completion of all applicable mine feasibility and environmental and social impact assessments, the receipt of all regulatory approvals, and a positive production decision by the project partners, Stornoway currently anticipates mine production to commence by the end of 2013.

About Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in seven 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.

About SGF

Société générale de financement du Québec (, an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred shares.

SOQUEM, a wholly-owned subsidiary of Société générale de financement du Québec, is to undertake exploration, development and mining activities throughout the province of Québec.

On behalf of the Board
/s/ "Matt Manson"
Matt Manson
President and Chief Executive Officer

For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754, toll free at 1-877-331-2232
Pour plus d' information, veillez contactez M. Ghislain Poirier (Vice-président Affaires Publiques) au 418-780-3938 ou
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This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of mineral resources and potential mineral deposits; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the proposed mining operation; (iv) capital costs, including plant costs, and operating costs; (v) diamond values and increases in diamond values; (vi) strip ratios, rates of extraction of kimberlite and mining rates; (vii) mine expansion potential and expected mine life; (viii) exploration potential at the Project; (ix) road construction, power generation and operation costs; and (x) expected time frames for completion of permitting and regulatory approvals, completion of a Feasibility Study and making a production decision. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements

All forward-looking statements are based on Stornoway's or its consultants' current beliefs as well as various assumptions made by and information currently available to them. Many of these assumptions are set forth in the news release and include: (i) the presence of and continuity of diamonds in its host rocks at the Project at modeled grades; (ii) diamond values and diamond price escalation factors; (iii) discount rates; (iv) financing structure and costs; (v) reasonable contingency requirements; (vi) anticipated financial performance, (vii) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (viii) the settlement of an Impact and Benefits Agreement on acceptable terms within a reasonable time frame; (ix) the construction of an access road on a timely basis. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rate of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation, risks relating to variations in the grade, kimberlite lithologies and country rock content within the material identified as mineral resources from that predicted, variations in rates of recovery and breakage; the greater uncertainty of potential mineral deposits, developments in world diamond markets, slower increases in diamond valuations than assumed, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, increases in the costs of proposed capital and operating expenditures, increases in financing costs or adverse changes to the terms of available financing, if any, tax rates or royalties being greater than assumed, results of exploration in areas of potential expansion of resources, changes in development or mining plans due to changes in other factors or exploration results of Stornoway or its joint venture partners, changes in project parameters as plans continue to be refined, risks relating to receipt of regulatory approvals or settlement of an Impact and Benefits Agreement, the effects of competition in the markets in which Stornoway operates, operational and infrastructure risks and the additional risks described in Stornoway's most recently filed Annual Information Form, annual and interim MD&As, and Stornoway's anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Stornoway, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Stornoway or on our behalf, except as required by law.