Stornoway Diamond Corporation (TSX-SWY) has today entered into an agreement with Canaccord Capital Corporation and BMO Capital Markets (the "Underwriters") under which the Underwriters have agreed to buy 3,200,000 flow-through common shares from Stornoway on a private placement basis and sell to the public at a price of $1.25 per flow-through common share, representing an aggregate amount of $4,000,000. Closing is expected on or about November 30, 2006.

These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons.

Not for distribution to U.S. news wire services or for dissemination in the United States.

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