Stornoway Diamond Corporation (TSX-SWY)
is pleased to report that AMEC Americas Ltd. ("AMEC") and Agnico-Eagle Mines Limited (TSX: AEM, "Agnico-Eagle") have been engaged to prepare a comprehensive Pre-Feasibility Study on potential mining scenarios at the Renard Project in north-central Qu�bec. Stornoway and 50:50 joint venture partner SOQUEM INC. ("SOQUEM") are currently engaged in a program of bulk sampling at Renard designed to recover a minimum 6,000 carats of diamonds from three separate kimberlite pipes. On June 20, 2007 Stornoway announced the recovery of 2,681 carats of diamonds from the Renard 3 pipe from 1,929 tonnes of kimberlite processed, including a 10.15 carat stone. Diamond recovery results from Renard 2 and Renard 4 are expected before the end of the third quarter, with a diamond valuation to follow thereafter.
The Pre-Feasibility Study will comprise two phases. Phase one will include preliminary geological, geotechnical, environmental and hydro-geological assessment. Phase two will comprise an independent NI 43-101 compliant resource calculation, a mining model, mine design, diamond plant design, capital and operating cost estimation, and financial modeling. Phase 1 work has already commenced, with the commencement of Phase 2 dependent upon joint venture approval following the receipt of final bulk sample diamond recovery and valuation results. AMEC is an international project management and services company with broad experience in the Canadian diamond mining sector. Agnico-Eagle is a leading mine developer in the province of Qu�bec and Stornoway's largest shareholder.
Eira Thomas stated, "We are very pleased to be taking the Renard project through to this next phase of its development. Since Stornoway acquired the project earlier this year we have been on a fast track to bring Renard into the position of Qu�bec's first diamond mine and results continue to support our belief that the deposit will be an important producer of gem quality stones."
Stornoway Diamond Corporation
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.
SOQUEM INC.
SOQUEM is a wholly-owned subsidiary of Soci�t� g�n�rale de financement du Qu�bec ("SGF"). The SGF, the Qu�bec industrial and financial holding company, has as its mission to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Qu�bec.
AMEC
AMEC is an international project management and services company that designs, delivers and supports client assets for customers across the public and private sectors. In its core businesses, AMEC employs more than 16,000 people working from a network of offices throughout the UK, US and Canada, as well as regional offices and projects worldwide. AMEC has approximately 4,500 employees operating from 74 offices across Canada.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas, CEO