15 Macrodiamonds and 327 Microdiamonds Recovered from 57.6 kg Sample

Stornoway Diamond Corporation (SWY:TSX) and Shear Minerals Ltd. (SRM:TSXV) today announced significant diamond recoveries from the Kahuna kimberlite at the Churchill project, Nunavut, with a total of 15 macrodiamonds and 327 microdiamonds recovered from a 57.6 kg drill core sample. The Kahuna kimberlite was intercepted in two drill holes, 2.5 km apart and has an estimated width of 3.5 to 4.0m, making it the widest kimberlite dyke discovered from the property to date. In addition, a further 569 microdiamonds and 14 macrodiamonds, including the largest diamond recovered from the property to date (measuring 3.0mm x 2.48mm x 1.60mm), were recovered from the balance of material collected from the drilling of the Notch kimberlite also at Churchill.

"These impressive microdiamond results point to the potential for the Kahuna and Notch kimberlites to host significant populations of macrodiamonds," says Shear President and CEO Pamela Strand. Ms. Strand said a 20-tonne mini bulk sample has been collected from four kimberlites on the property ‑ Kahuna, Notch, Jigsaw and PST003 ‑ and is presently being crushed and concentrated with results due in early 2007. "The mini bulk samples will provide a preliminary indication of macrodiamond grade and diamond quality for each of the four sampled kimberlite dyke areas."

Based on these results, the joint venture partners are considering further work in 2007 that would initiate an assessment of tonnage, grade and overall economic potential of the Notch and Kahuna kimberlite bodies. Details about next year's program will be released in the first quarter of 2007.

Detailed Results

Samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion. The diamonds are currently being described and all results reviewed by Mineral Services Canada. Preliminary observation describes the majority of the diamonds as clear and colorless, and dominated by octahedron shapes.

Kahuna Kimberlite

A total of 342 diamonds, including 15 macrodiamonds were recovered from a composite 57.6 kg sample of kimberlite collected from drilling at two sites 2.5km apart along the Kahuna kimberlite trend. The Kahuna central diamond results are derived from drill holes 06KD-26 and 06KD-26a and the Kahuna North results from drill holes 06KD-32 and 06KD-32a. The Kahuna kimberlite is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5 km based on geophysical interpretation (click here for map).

¹ The three largest diamonds measured 1.38mm x 1.12mm x 0.64mm; 1.02mm x 0.76 x 0.58mm; 1.0mm x 0.72mm x 0.62mm
² The three largest diamonds measured 1.04mm x 0.92mm x 0.61mm; 0.82mm x 0.80mm x 0.48mm; 0.84mm x 0.6mm x 0.52mm

Notch Kimberlite

In addition, a total of 583 diamonds, including 14 macro diamonds were recovered from a composite 77.05 kg sample of kimberlite collected from the balance of the drilling at two sites along the Notch kimberlite. Notch South results are derived from drill holes 06KD-9, 10, 11, 12, 18 and 19; and Notch North from drill holes 06KD-21 to 23. The Notch kimberlite is located 10km to the southwest of Kahuna and is a 1.5m to 1.75m wide vertical kimberlite dyke that trends for over 3.5km based on geophysical interpretation (click here for map).

¹ The three largest diamonds measured 3.0mm x 2.48mm x1.6mm; 1.80 x 1.40mm x 0.92mm; 1.96mm x 1.22mm x 0.9mm

For photos of the diamonds please visit http://stornowaydiamonds.com/investor/galleries/diamond_photos

For detailed drill intercepts for both Kahuna and Notch drilling please refer to the news release dated September 20, 2006. For photos of the diamonds and maps please visit www.stornowaydiamonds.com.

In 2006, a total of 850 till samples were collected on the Churchill Property in order to infill the sampling density in the core areas and to better define the indicator mineral trains. Since 2000, more than 8,500 surface samples have been collected and processed and more than 20,000 microprobe analyses have been completed. The increased detail from the refined till sample data set will enable the technical team to target subtle geophysical anomalies within the remaining 17 key areas of interest based on mineral chemistry for the 2007 drill program.  

The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). To date Shear and its partners have discovered 48 kimberlites including 6 outcrops over a wide area on the Churchill and Churchill West projects. The 2006 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

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