Stornoway Diamond Corporation (TSX:SWY), BHP Billiton and Hunter Exploration Group are pleased to report a diamond sample grade of 0.77 carats per tonne for the AV7 kimberlite body on the Aviat Project, based on the processing of 2.32 tonnes of material for diamonds greater than 0.85mm using a square mesh sieve.

Eira Thomas, President and CEO commented: "Macrodiamond results from the processing of small minibulk samples collected from each of AV1, 6 and most recently 7, have returned consistently comparable results and continue to support the likelihood that the Aviat bodies discovered thus far are all related, part of a single intrusive event which exploited a northwest-southeast trending structural feature over strike length of more than ten kilometers".  

The Aviat Project is a joint venture between Stornoway Diamond Corporation (70%), BHP Billiton (20%) and Hunter Exploration Group and occupies close to 4 million acres in eastern Nunavut on the Melville Peninsula, north of Hudson Bay.

Dense Media Separation (DMS) processing of 2320 kilograms of kimberlite collected from surface exposures of the AV7 kimberlite in the fall of 2005 yielded 1.783 carats of diamonds recovered on a 0.85mm square mesh screen, for a grade of 0.768 carats per dry tonne. The diamonds represent a mix of tetrahexahedroid, octahedral and combination forms. The majority of the diamonds are white with lesser amounts of brown and grey stones. The largest stone recovered from the 2.36mm sieve is an intact white resorbed octahedroid weighing 0.194 carats. Stone counts for standard sieve categories are provided below:

The six largest stones collectively weighed 0.6205 carats. To see pictures of the AV7 diamonds go to:

http://stornowaydiamonds.com/exploration/melville_district/gallery/index.php?mod=cnt&act=cnt&dst=hide&id=213

As previously reported (see press release dated Sept 21, 2005), AV7 was initially a 0.5mx0.7m outcrop situated some 320m southeast of AV6. Subsequent test pits dug by hand suggested an exposure of 6mx7.5m, although the boundaries were not well defined. The exposure lies 10m from a lakeshore. Kimberlite boulders were also found along the lakeshore on either side of AV7 over a total distance of 76m. This lake is situated along the same prominent west-northwest trending structure that hosts the AV1 kimberlite.

During the 2006 spring field season two holes tested the AV7 kimberlite. Results indicate a north-northeast trending, gently east-dipping body over a strike length of 150 metres and a dip extent of 100 metres. Lake based drilling located approximately 100 metres to the southeast of the AV7 outcrop collared in macrocrystic hypabyssal kimberlite at the lake bottom. A land-based hole drilled 60 metres to the northeast of the AV7 kimberlite intersected a continuous 1.3 metre intersection of hypabyssal macrocrystic and a further continuous intersection of 4.3 metres of hypabyssal macrocrystic and hypabyssal breccia material 10 metres below the upper intersection.

Diamond results reported above are based on recovery of diamonds by a Dense Media Separation (DMS) plant owned by Stornoway, and operated by Microlithics Laboratories, Thunder Bay, Ontario, an independent mineral process laboratory currently providing services exclusively to Stornoway and its affiliates. The plant is being used by Stornoway to assess and evaluate diamond exploration properties in our extensive portfolio.

Stornoway is one of Canada's premier diamond exploration companies with extensive landholdings (approximately 16 million acres) focused in key project areas in northern Canada and Botswana. Stornoway has been involved in the discovery of 63 kimberlites since 2002, 30 of which have proven diamondiferous.

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