AVIAT'S EASTERN SHEET COMPLEX POINTS TO SIGNIFICANT TONNAGE
Stornoway Completes 74 Tonne Mini-bulk Sample

Stornoway Diamond Corporation (TSX-SWY) is pleased to provide an update on the 2007 diamond exploration program at the Aviat Project, situated on the Melville Peninsula in Nunavut.  This summer's exploration program has helped to further delineate and extend a series of stacked, flat lying kimberlite sheets up to approximately 7 m thick, significantly enhancing the tonnage potential at Aviat.  Discovery of the AV9 kimberlite pipe was previously announced (SWY press release dated August 23, 2007) and as of this date approximately 422 kg of split core from AV9 has been submitted for caustic fusion analysis to establish preliminary diamond content. Results will be reported when available. AV9 lies four kilometers east-southeast of the diamondiferous AV1 kimberlite pipe, which has previously returned a diamond content of 0.83 carats per tonne (SWY press release dated October 21, 2004).  A map of the area showing the distribution of the kimberlites will be posted at http://www.stornowaydiamonds.com/exploration/melville_district/.

The field component of the 2007 Aviat exploration program has been completed. In addition to discovery of the AV9 pipe, Stornoway also successfully:

• completed 45 diamond drill holes for a total of 4,828 m of core
• intersected kimberlite in 36 of the 45 holes
• obtained consistent kimberlite intersections within a 1.5 km² area of the Eastern Sheet Complex
• submitted 419 kg of drill core from the Eastern Sheet Complex for caustic fusion
• collected over 70 tonnes of kimberlite from three Aviat kimberlites for macrodiamond recovery through a Dense Media Separation (DMS) plant:
  • 44.6 tonnes from the AV1 kimberlite
  • 27.4 tonnes from the AV2 kimberlite
  • 2.05 tonnes from the AV8 kimberlite 
• collected 1,177 till samples for indicator mineral processing
• acquired more than 600 other surface samples for future work

Eira Thomas, CEO, noted that "the continuity of the eastern stacked kimberlite sheets, coupled with the discovery of the AV9 pipe and the presence of other unsourced indicator mineral anomalies within the Tremblay Corridor, demonstrates the potential for both significant tonnage and continued exploration success at the Aviat Project. Diamond results from this year's caustic fusion and mini-bulk sampling work will help to further evaluate the project's economic potential." 

Drilling activities in 2007 focused on the Eastern Sheet Complex, previously thought to comprise eight kimberlite sheets (see SWY press release dated October 11, 2006).  Current interpretation suggests that the AV2 Lower, AV6, AV7, AV7E and certain other intersections belong to a single, sheet-like kimberlite body (AV267). This sheet presently extends over approximately 2km strike length with a true thickness of about 3m (ranging from 2.5 to 4.0m) in most areas. The sheet appears to thicken from northeast to southwest, achieving widths of up to 7m. Assuming the interpretation above is correct, and with reference to previously reported mini-bulk sample results from individual surface occurrences (see AV67 results in press release dated October 11, 2006), this sheet has a preliminary diamond content of approximately 0.86 carats per tonne (based on >0.85 mm square sieve).  The other stacked kimberlites of the Eastern Sheet Complex (AV2 Upper, AV3, AV5, AV8 Upper, AV8 Middle and AV8 Lower) were not tested by the 2007 drill program.

Three roughly rectangular and contiguous 'blocks' of kimberlite within the AV267 sheet have been tested with an irregular drill pattern. The first block (9 holes in kimberlite), tested over a strike length of about 900m and down dip for about 350m, represents a body striking at about 100 degrees and dipping about 8 degrees to the southwest. The second block (tested by some 12 holes that intersected kimberlite), has a strike of 800m and a down dip extension of about 500m. This block strikes at 065 degrees and dips 8-10 degrees to the southeast. Both of these 'blocks' are open down dip. To the east, a third block of kimberlite (contiguous with the other two, and with a 065 degree strike and 8-10 degree southeast dip) has been intersected over an area of about 800x400m - drilling here suggests the sheet pinches out both along strike and down dip. Changes in strike/dip of the blocks are currently attributed to flexures or 'roll-overs' of the kimberlite sheet following reasonably predictable zones of pre-existing weakness within the gneissic host rocks.  A 3m thick sheet-like kimberlite body was also intersected on the west side of the regional fault that hosts the AV1 and AV9 kimberlites, and which is believed to have influenced emplacement of the other Aviat kimberlite pipes and sheets. This 3m intersection occurs some 50m deeper than the sheet on the east side of the fault (possibly as a function of 'stepping' up/down across the fault during emplacement) and requires additional drilling to determine the lateral extent.

The 2.2 million acre Aviat Project is located in eastern Nunavut on the Melville Peninsula and is a joint venture between Stornoway (74.1%), BHP Billiton (15.9%) and Hunter Exploration Group (10%). 

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. 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.