Stornoway Diamond Corporation ("Stornoway") today announced that the syndicate of underwriters led by BMO Nesbitt Burns Inc. and Canaccord Capital Corporation has exercised all of its 1,875,000 unit over-allotment option for Stornoway's bought deal financing that closed on April 11, 2007 bringing the total proceeds from the financing to $27,250,000.

The option allowed the syndicate to purchase up to an additional 1,875,000 Units at a price of $1.20 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant, each whole such common share purchase warrant entitling the holder to purchase one additional common share at a price of $1.50 per share on or before April 11, 2009. The common share purchase warrants have been listed for trading on the Toronto Stock Exchange under the symbol "SWY.WT".

The offering was completed by a syndicate of underwriters co-led by BMO Nesbitt Burns Inc. and Canaccord Capital Corporation and including Raymond James Ltd., GMP Securities L.P., Haywood Securities Inc., Westwind Partners Inc., CIBC World Markets Inc. and Orion Securities Inc. The underwriters received a cash fee equal to 6% of the gross proceeds of the offering and common share purchase warrants entitling the underwriters to purchase common shares equal in number to 6% of the number of Units sold in the offering at a price of $1.20 per share on or before April 11, 2008.

The securities 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.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies. The Company and its affiliates have been responsible for discovering over 150 kimberlites and six new Canadian diamond districts. Stornoway's management and technical team has a proven track record in wealth creation for shareholders and direct operating experience in each segment of the diamond "pipeline" from exploration to marketing.

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

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas
Chief Executive Officer