Stornoway Diamond Corporation ("Stornoway" or the "Company") has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and Canaccord Capital Corporation and including Haywood Securities Inc. (the "Underwriters"), under which the Underwriters have agreed to buy on a private placement basis 5,000,000 Flow Through Shares from Stornoway at a price of $1.20 per Flow Through Share. The Company will grant the underwriters an option, exercisable up until 48 hours prior to the closing date of the offering, to purchase up to an additional 2,000,000 Flow-Through Shares at the issue price. Closing is expected on or about October 20, 2005.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

/s/ "Eira Thomas"
Eira Thomas
President