January 21, 2008

3.64 CARAT DIAMOND RECOVERED FROM
AV2 KIMBERLITE AT AVIAT

Stornoway Diamond Corporation (TSX-SWY) and Hunter Exploration Group are pleased to report that a 3.64 carat stone has been recovered from the AV2 kimberlite, one of eleven significantly diamondiferous kimberlites identified at the 2.2 million acre Aviat Project, located on the Melville Peninsula in eastern Nunavut, Canada.

Stornoway's CEO Eira Thomas stated:� "The recovery of a large, gem quality stone from a relatively small sample from AV2 is an important and highly encouraging new development for the Aviat Project.� Previous work at Aviat has identified significant tonnage potential together with good grades. The recovery of this 3.6 carat gem has, for the first time, established Aviat's potential to yield large, high quality gemstones, an important value driver in any economic diamond deposit".

This diamond, described as a gem quality white dodecahedron, is the largest stone from the Aviat Project to date. It was recovered during Dense Media Separation (DMS) processing of an 11.4 tonne (wet weight) subsample, part of a larger, approximately 27 tonne sample collected in 2007 from surface exposures of the AV2 kimberlite (see September 6, 2007 press release). The diamond was damaged during DMS processing and the reported carat weight is thought to represent about 90% of the original weight. A mechanically induced fracture is evident in the photograph available at http://www.stornowaydiamonds.com/av2_outcrop_3_003.jpg.� DMS processing of the 27 tonne AV2 sample is ongoing, and final diamond results will be reported and discussed when available.

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 150 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing. Diamond results reported above are based on work completed by Microlithics Laboratories, 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), Vice President, Exploration, a Qualified Person under NI 43-101.

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

� 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.