Stornoway Diamond Corporation (TSXV-SWY), BHP Billiton Diamonds Inc. and Hunter Exploration Group are pleased to announce that drilling on the Aviat Project has commenced and resulted in new kimberlite drill intercepts from two separate target areas. In addition, a new kimberlite float occurrence, AV5 consisting of multiple boulders up to 2.2 m in size spread over a distance of 500m, has been identified.

At the present time a total of five geographically distinct kimberlite occurrences have been inferred from outcrop, subcrop or heavy concentrations of boulders on the Aviat Property, three of which have subsequently been confirmed by drilling to date. More than 100 other float boulders have been identified from a variety of locations throughout the property. These boulders consist of either coarse grained macrocrystic kimberlite or micaceous kimberlite. No float boulders of kimberlite breccia have been found to date, with this phase only identified from drilling. Macrocrystic hypabyssal kimberlite and kimberlite breccia intercepted by earlier drilling at two of the occurrences (AV-1 and AV-2) are already known to be diamondiferous, as previously reported. Kimberlite breccia from AV1 is currently being run
through a DMS plant to recover diamonds greater than 0.85mm diameter. Material from surface exposures/boulders of hypabyssal kimberlite at AV3, AV4 and AV5 (new occurrences discovered during the summer of 2004) have been submitted for caustic fusion to establish diamond content. Results of this work will be reported when available.

The fall 2004 drill program is underway, with four holes completed to date. The first hole tested a geophysical response 475 m west of the diamondiferous AV-1 kimberlite outcrop and intersected a 2.9 m kimberlite dyke. Three holes have been completed at the AV-4 kimberlite, an occurrence of hypabyssal kimberlite boulders discovered by prospecting earlier in the summer. AV-4 is located approximately 600 m west of AV-1. Hole 04-AV4-01, drilled at an angle of -45° beneath the AV4 boulder showing, intersected a continuous 40m section of kimberlite including both hypabyssal kimberlite and kimberlite breccia at a vertical depth of about 80m below surface. Smaller intersections of
kimberlite were cut elsewhere in the hole. Hole 04-AV4-02 (-45°) was drilled on the same section as 04-AV4-01 but 35m closer to the AV4 boulder occurrence. It intersected kimberlite mixed with country rock xenoliths over a 44m interval, centred at a vertical depth of 25m. Country rock represents about 27% by volume. A 100 meter step out hole, 04-AV4-03, also at -45°, intersected both hypabyssal kimberlite and kimberlite breccia over a downhole length of 15m, at a depth of about 90m below surface.. Drill hole 04-AV4-04, situated midway between 04-AV4-01 and 04- AV4-03 is currently being drilled, and has intersected kimberlite. Drill core has not yet been logged in detail by a
qualified geologist. The nature, shape and size of AV4 is not known at the present time, but it appears to be a complex body similar in nature to AV1.

Drilling during 2004 is also planned to test the AV2, AV3 and AV5 kimberlite occurrences. AV2 was drilled in 2003, and yielded 64 diamonds from caustic fusion of 88 kg, including two stones greater than 0.85 mm which measured 1.78 X 1.32 X 0.86 and 1.44 X 1.08 X 1.04 mm, respectively. Further work in 2004 will attempt to better understand the diamondiferous breccia phase of AV-2. AV5 is a recent discovery consisting of numerous large (up to 2.2m) boulders of macrocrystic kimberlite extending over a distance of 500m. A detailed ground geophysical survey is underway at AV5. Additional geophysical targets will be tested if logistical considerations permit. Drilling is anticipated to continue as long as weather permits, most likely until the end of September or early October. Drill core intercepts will be submitted for caustic fusion once descriptions and geotechnical information have been collected. Results will be reported when available.

During 2004 a total of 4,175 till samples have been collected throughout the property, including 2,700 samples within an area of 1,700km 2, representing the Tremblay Corridor. Pyrope garnets recovered to date from within the Tremblay Corridor consist of 30% G9A or G10A garnets, implying derivation from within the diamond stability window. The distribution of all indicator minerals suggests the presence of as yet undiscovered kimberlite source bodies both within and outside of the main Tremblay Corridor.

Airborne and ground geophysical survey activities, as well as prospecting, continue on the 5.5 million acre property, and are anticipated to be completed in late October, 2004. Results of the 2004 till sampling and geophysical surveying will be used to guide the 2005 exploration program.

Coronation (North Slave) Update
Stornoway has completed till sampling, prospecting, ground geophysical surveys and drilling on close to 817,000 acres of prospective landholdings in the Coronation Diamond district, Nunavut. Stornoway's property interests range from 35 to 100%.

Ground geophysical surveys (estimated at 50 line kilometers in 5-7 grids) were completed on the Sceptre (180,803 acre) and Tiara (38,849 acre) properties to define potential targets up-ice of prominent indicator mineral distribution trains prior to drilling. Three targets were drilled on the Sceptre Property which did not intercept kimberlite. The first anomaly tested a prominent EM conductor confirmed by ground geophysics in an area of generally elevated pyrope counts. Drilling encountered significant graphite concentrations. The second target represented a break in a linear magnetic unit with favourable topography. No kimberlite was encountered; the break appears to be structural in origin. The final target was a strong magnetic low adjacent to a diabase dyke in an area of potential recharge within
the indicator mineral train derived from the Knife pipe. No kimberlite was encountered and the low was attributed to non-magnetic carbonates. Four targets were drilled on Tiara. All tested geophysical responses identified from a ground survey and were situated in close proximity to strongly anomalous (ilmenite) till sample results from 2002/3 that could not be explained by prospecting. Narrow non-kimberlitic dykes and magnetic sedimentary units were intersected. Stornoway holds a 40% interest in these properties with International Samuel Exploration Corp. ("International Samuel") (36%) and New Cantech Ventures Inc. (24%) having the remainder. In addition to ground geophysics and diamond drilling, 500 new till samples were collected from Sceptre and Tiara in 2004 under a $900,000 budget.

Stornoway (50%), International Samuel (25%) and Nordic Diamonds (25%) approved an $800,000 exploration budget on the 137,250 acre Jubilee Property. Work focused on the collection of some 600 till samples to help resolve internal variation within strong and laterally extensive regional mineral trains. The goal of the 2004 program is to identify and differentiate locally sourced mineral indicator trains signifying as yet unrecognized kimberlitic bodies on the property. Sample processing is ongoing.

Summer sampling and prospecting on the Diva Property (92,059 acres) focused on promising pyrope mineral chemistry initially detected in a single regional 2002 sample (21 grains) and confirmed by more detailed 2003 sampling. An airborne geophysical survey has now been completed and final results are pending.

Diamond Exploration programs operated by Stornoway are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a qualified person under NI 43-101.

On behalf of the Board

/s/ "Eira Thomas"

Eira Thomas, President

For further information, please contact the Company at 604-331-2259 or (888) 338-2200
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