Shear Minerals Ltd. (SRM:TSXV), Stornoway Diamond Corporation. (SWY:TSXV) and BHP Billiton announced today that the first phase of drilling on the Churchill Diamond Project is now complete.

The six week, 1275 m program tested 15 targets within a 600 km2 area and resulted in the discovery of eleven kimberlite pipes. Unreported results include a 71 m intercept of kimberlite at Tuktu-1 which ended in kimberlite, and the discovery of two new kimberlite pipes: Tuktu-2 where 20 m of kimberlite was intersected and Tuktu-3 which ended in kimberlite after a 66 m intersection.

Each of the eleven bodies is associated with a prominent circular magnetic high or low signature ranging from 100 to 400 m in diameter and was tested with one or two vertical drill holes. Two anomalies were tested with a second drill hole in order to obtain the optimum sample size for diamond analysis. Kimberlite intercepts ranged from 4 to 94 m and a total of about 1000 kg of material has been collected for diamond analysis. Two of the targets proved non-kimberlitic and two others could not be explained due to difficult drilling conditions.

"It is encouraging to have discovered pipes over such a wide area and so early in the Churchill exploration program," says Pamela Strand, President and CEO of Shear. "The spatial distribution of kimberlites coupled with the excellent regional kimberlite indicator mineral chemistry has increased our confidence in the merit of the Churchill Diamond Project."

The Churchill project encompasses more than 1.5 million acres located near the community of Rankin Inlet in the Kivalliq region of Nunavut. So far, 217 magnetic targets have been identified, 29 of which are high priority, from a 16,307 line-km magnetic survey conducted in 2002 over about one third of the property. Indicator minerals commonly associated with diamond-bearing kimberlites have also been identified from regional till sampling surveys within this region. Much of the property remains under explored and in January 2003, the partners approved a budget of $2.5

million for additional land acquisition, airborne and ground geophysical surveys, kimberlitic indicator mineral sampling, prospecting and drilling.

A property-wide kimberlitic indicator mineral sampling program was initiated in early July and 526 samples have been collected to date. In addition, regional airborne magnetic surveys have commenced over previously untested portions of the property. The success of the first phase drilling campaign combined with a growing list of priority drill ready ground magnetic targets may result in an expansion of the 2003 program to include a second phase of drilling later this summer.

"Going into the Rankin Inlet area, we knew there were previously discovered kimberlites that were barren. The reasons we chose to explore where we did was because the mineral chemistry was exceptional and suggestive of diamond bearing kimberlites in our locality. We have not changed our view," says Ms Strand.

The 2003 field program is under the supervision of Dean Besserer, P. Geol. of APEX Geoscience Ltd., a Qualified Person under NI 43-101. Mr. Besserer is responsible for all aspects of the projects supervision including Quality Assurance, Quality Control, and sample Chain of Custody.

Shear has a 51% interest and is operator on the Churchill Diamond Project. Stornoway Diamond Corporation and BHP Billiton have 35% and 14% interests respectively.

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