Shear Minerals Ltd. (SRM:TSXV), Stornoway Diamond Corporation (SWY:TSXV) and BHP Billiton today announced micro diamond results from the remaining five kimberlites discovered on the Churchill diamond project and two kimberlites discovered on the Churchill West project.

In 2003, the joint venture drilled-tested a total of 28 targets and discovered 18 kimberlites, 16 at Churchill and two at Churchill West. Two thirds of the targets tested resulted in kimberlite discoveries, more than half of which contained diamonds.

Churchill Diamond Project

Samples from the five kimberlites drilled during the second phase of drilling on the Churchill Diamond Project were submitted to the Saskatchewan Research Council (SRC), an independent laboratory based in Saskatoon SK, for micro diamond analysis using caustic fusion. Diamonds were recovered from three of the five kimberlites tested. Results are as follows:

* The two largest stones measured 0.28 X 0.26 X 0.22mm, 0.30 x 0.26 x 0.22m

No micro diamonds were recovered from two of the five kimberlites submitted for analysis. The results from these five kimberlites represent the balance of the micro diamond results from the 16 kimberlites that were drilled on the project in 2003. This brings the number of diamond bearing kimberlites discovered on the project to nine.

"In 2003 we discovered a completely new diamond bearing kimberlite field," said Pamela Strand, President and CEO of Shear. "More importantly, we laid the foundation for an aggressive and exciting exploration program in 2004."

This year's drilling program was designed and driven to test high confidence geophysical targets with limited support from regional geochemical data. Next year's exploration program will have the benefit of target selection using a more extensive geochemical data set that was collected but not available during the 2003 drilling campaign. In addition to this, geophysical coverage on the property has also been expanded.

The 2004 program will be well funded and focused on discovering the source of the high confidence diamond indicator minerals found on the property.

A joint venture exploration budget of $6 million has been proposed for the Churchill Diamond Project in 2004, compared with $4 million in 2003. The program will include additional drilling and sampling.

"We remain confident in the high diamond potential of the property and this increased level of funding demonstrates the partners' commitment to advancing the project as quickly as possible," said Eira Thomas, President and CEO of Stornoway.

The Churchill Diamond Projects encompasses more than 1.5 million acres located near the community of Rankin Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). In 2003, more than 1,600 regional and follow-up till samples were collected and more than 7,500 line-km of aeromagnetic data were flown. To date, the partners have identified a significant number of high priority targets that will be investigated in 2004.

Churchill West Diamond Project

Two kimberlites were discovered on the Churchill West Diamond Project during the 2003 field program. Samples from each of the kimberlites were sent to SRC for micro diamond analysis using caustic fusion. Diamonds were recovered from one of the kimberlites tested. Results are as follows:

* The three largest stones measured 0.40 x 0.22 x 0.16mm, 0.38 x 0.2 x 0.14 mm, 0.36 x 0.26 x 0.1 mm

The Churchill West Diamond Project encompasses more than 500,000 acres immediately west of the Churchill Diamond Project. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway Diamond Corporation (35%) and BHP Billiton (14%). International Samuel Exploration Corporation (SAZ:TSXV) has an option to earn a 65% interest in the project.

In 2003, $550,000 was spent on exploration at Churchill West including the acquisition of more than 12,000 line-km of aeromagnetic data leading to the discovery of two kimberlite pipes and the collection of more than 250 regional and target specific till samples.

"We are very pleased with the progress that we have made on the Churchill West Diamond Project," said Shear's Pamela Strand. "We have demonstrated that diamond bearing kimberlites exist on the project and have made significant headway in collecting the data required to isolate areas of high-interest chemistry and identify targets there for the 2004 program."

The joint venture partners will be working closely with International Samuel early in the New Year to define a program and budget for 2004. "I am confident that the Churchill West Diamond Project will be advanced in 2004 in tandem with our efforts on the Churchill Diamond Project," said Ms. Strand.

The 2003 field programs on both projects have been 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.

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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