Stornoway is pleased to provide the following update on our eastern Arctic diamond exploration activities.

 

Aviat Project

Additional microdiamond results have been received from the Aviat Project situated on the Melville Peninsula, Nunavut. Caustic fusion of drill core from six separate kimberlite bodies (AV1 West, AV2, AV3, AV4, AV5 and AV8) continues to confirm the diamondiferous nature of these bodies (See Press Release 05-22, September 21, 2005 for more details of the AV bodies). Diamond results are reported in the table below. The largest single intact stone from the current batch of results was from AV2 and measured 2.481 x 2.208 x 1.849mm.

 

Sample material from AV3 contained 82 diamonds, as shown in the table above. A large number of these diamonds were fragments, and the process facility has assembled seven of the larger fragments to partially reconstruct a single stone. Although this reconstructed stone is only about 50% complete, the minimum measured dimensions are 4 x 4 x 4 mm. Collectively, the seven fragments identified as belonging to this diamond weigh 0.14 carat. It is likely that a significant proportion of the 82 stones reported from this sample actually belong to the partially reconstructed diamond and therefore any diamond distribution curve constructed for this particular sample may be misleading.

Eira Thomas, President and CEO commented: "The recovery of a large stone of this nature from a very small sample is highly encouraging and bodes well for the recovery of additional macrodiamonds from the dense media processing of the remaining 15 tonnes of kimberlite material collected from the Aviat bodies in 2005."

During 2005, the Aviat joint venture collected between 1.5 and 2.5 tonnes of kimberlite from each of seven Aviat kimberlites (AV2 to AV8, inclusive). A total of some 15 tonnes of kimberlite is awaiting processing through Stornoway's new dense media separation (DMS) plant. The DMS plant is designed to process kimberlite rock and to recover commercial sized diamonds. Approximately 10.4 tonnes of kimberlite from the AV1 body were previously run through a third party DMS and resulted in a grade determination of 0.83 carats per tonne. Archived AV1 material is currently being tested in Stornoway's DMS. Once comparative data demonstrates the efficiency of the new DMS plant in a real life scenario, it will be used to process material from AV2 through AV8. At this time, work is expected to begin within the next two weeks.

The 2006 exploration program at Aviat will commence in mid-May with a spring ground geophysical and drill program targeting the as yet un-drilled AV7 body, as well as other lake based targets within the Tremblay indicator mineral corridor. Prospecting activities will commence once snow cover has receded and will immediately focus on nine priority till anomalies identified from the 2004 regional till sampling and the 2005 detailed follow-up till sampling. These priority areas

contain chrome rich, high interest G10 pyrope garnet chemistry suggesting derivation from the diamond stability field and are not associated with any of the known kimberlite bodies. Processing of the 2005 till samples is not yet complete, and new areas of interest may well be identified for ground follow-up.

During the summer of 2005, approximately 100,717 acres of mineral claims were staked on the eastern side of the Melville Peninsula some 180 km south of the Aviat kimberlites and 200 km northeast of BHP's Qilalugaq Project at Repulse Bay. These claims cover interesting indicator mineral chemistry derived from till samples that are clearly unrelated to the known Aviat kimberlites.

Wales Island

During the 2004 and 2005 field seasons, Stornoway discovered ten kimberlite bodies on Wales Island, Nunavut, representing a new kimberlite field (See press release SWY 05-21 from Sept. 15, 2005). Samples of fresh uncontaminated kimberlite material from nine of the ten bodies were submitted for microdiamond extraction by caustic fusion. Composite weights of kimberlite from the nine bodies ranged in size from 8.17 to 353.9kg and the total mass of material submitted for caustic fusion was 724.0kg (dry weight).

The Wales Island kimberlites have a high carbonate content, resulting in significantly more processing time in order to conform with Stornoway's QA/QC standards. Microdiamond results are now available. A total of seven microdiamonds have been recovered from the entire 724.0kg of kimberlite. Four of the nine sampled bodies (W1, W2, W1 North Dyke, and W1 Central Dyke) are confirmed as diamondiferous, as shown individually in the summary table below.

 

Exploration of the Wales Island project is governed by a joint venture agreement equally split between Stornoway, Strongbow Exploration Inc. and BHP Billiton. The joint venture partners are reviewing exploration results received for the project to date, however at the present time no further work is proposed.

Caustic fusion analysis was carried out at Microlithics Laboratories in Thunder Bay, Ontario, an independent mineral process laboratory currently providing services exclusively to Stornoway and its affiliates. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas
President

 

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.