TWO KIMBERLITES DISCOVERED ON WALES ISLAND PROPERTY, NUNAVUT

09/16/2004

Stornoway Diamond Corporation (TSXV-SWY) , Strongbow Exploration Inc. and BHP Billiton Diamonds Inc. are pleased to announce that drill testing of two magnetic targets on their jointly held (33.3% each) 284,547 acre (1,151.6km2) Wales Island Project has resulted in the discovery of two kimberlites. These discoveries represent the first kimberlites identified in the Project area and interpretation of airborne magnetic surveys completed at Wales Island suggests the presence of additional bodies comprising a new kimberlite field. Wales Island lies in Committee Bay, 200 km southwest of Stornoway's Aviat project on the Melville Peninsula and 100 km north of BHP's Qilalugaq Project at Repulse Bay.

Prospecting permits covering Wales Island were granted in February of 2004, and an airborne magnetic survey identified a series of potential kimberlite targets. In August of 2004, Stornoway, acting as project operator, undertook a brief reconnaissance exploration program within a nine day logistical/operational window. During that time, ground magnetic surveys were completed on six targets selected from the aeromagnetic data, and each replicated the airborne responses.

Three of the geophysical targets were drill tested with a lightweight, small diameter, highly portable drill rig. Two of the three targets, located approximately 7 km apart, were explained by the intersection of kimberlitic intrusive rock. A vertical drill hole at target W1 collared in heavily altered kimberlite at 18 feet, and remained in kimberlite until the end of the hole at 63 feet. The W1 kimberlite is described as a dark grey to black, variably micaceous, sparsely macrocrystic hypabyssal fine grained intrusive. Target W3, also tested by a single vertical drill hole, collared in altered kimberlite at 68 feet and remained in kimberlite to the end of the hole at 122 feet. The W3 kimberlite appears distinctly different from W1 and is described as a weathered ultramafic hypabyssal breccia with of abundant country rock xenoliths. Descriptions above are based on macroscopic observations of drill core only. Due to the small core size, less than 20 kgs and 30 kgs of kimberlite was recovered from W1 and W3 respectively. Petrographic and indicator mineral analyses will be undertaken on this material in the coming weeks to better characterize these bodies.

Time constraints prevented the proper testing of the third target W2, and remains unexplained at this point in time. Numerous additional magnetic targets have been identified from the property, however, the available logistical/operational window did not permit testing of any other targets. A total of 35 surficial sediment samples were collected for indicator mineral processing - results of this work are not currently available.

The primary goal of the 2004 reconnaissance program was to establish the presence of kimberlitic intrusives on Wales Island. A larger, more comprehensive exploration program will be planned for 2005.

The Wales Island exploration program is being conducted under the direction of Robin Hopkins , P. Geol., a qualified person under NI 43-101

On behalf of the Board
STORNOWAY DIAMOND CORPORATION

/s/ "Eira Thomas"
Eira Thomas, President


For further information, please contact the Company at 604-687-7545 or (888) 338-2200
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **


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