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TSXV: SRM        

September 24, 2008

Shear discovers nine new kimberlites at the Churchill Diamond Project

Notch Kimberlite Mini-Bulk Sample Completed

Shear Minerals Ltd. (SRM:TSXV) and Stornoway Diamond Corporation (SWY:TSX) today announced that a total of nine new kimberlites were discovered from prospecting and drilling in 2008 at the Churchill Diamond Project, Nunavut. Based on visual interpretation, two of these new kimberlites, referred to as the Killiq and Kahuna Breccia respectively, are interpreted to be similar in type to kimberlites on the property that have returned high Diamond grades.

In 2008 the joint venture has:

• Successfully collected an aggregate of 26.1 wet tonnes of kimberlite from the Notch kimberlite which will be processed using dense media separation (DMS) to provide a preliminary assessment of commercial Diamond content (stones >0.85 mm) and stone quality.

• Tested 40 targets with a reverse circulation (RC) drill resulting in the discovery of two kimberlites, including one (Killiq kimberlite) visually similar to kimberlites on the property that have returned high Diamond grades.  
• Completed 14 core drillholes, testing 10 targets that resulted in the discovery of one new high-interest kimberlite system within a brecciated zone adjacent to the Kahuna kimberlite referred to as the Kahuna Breccia.
• Performed extensive prospecting and structural interpretation over high priority geochemical areas that resulted in the discovery of 24 new kimberlite float occurrences plus seven new outcrop/subcrop occurrences including one that was also confirmed by RC drilling.
• Completed 455 till samples to infill known priority areas to help identify additional high interest sources.
• Completed ground gravity and ground penetrating radar test surveys over the Kahuna and Notch kimberlite trends.
• Completed geological and structural mapping at the Kahuna and Notch kimberlites.
• Completed high resolution ground magnetic surveys over priority areas.

?The Churchill Project continues to yield new kimberlite discoveries with a total of 88 known kimberlite occurrences on the property to date, several of which have now reached the minibulk sampling stage? says Shear President and CEO Pamela Strand. ?Also, we have found our first evidence of explosive activity in close association with the highly diamondiferous Kahuna kimberlite dyke, which may represent a new pipe or blow along the Kahuna structure.?

Prospecting Discoveries

Prospecting on the property resulted in the discovery of 24 new kimberlite float occurrences plus seven new outcrop/subcrop kimberlite exposures.  Of the new in situ discoveries, one is located in the Sedna Corridor, two within the Josephine Corridor, and one in between the two corridors.  The remaining three are located in the northern claim block.

A total of 220 kg of kimberlite was collected in 15 to 25kg grab samples from each new outcrop/subcrop occurrence for Diamond analysis.  All samples will be examined using petrography and mineral chemistry to determine Diamond potential.

Of particular note within the Sedna Corridor, is the discovery of the KEM Kimberlite located adjacent to the Killiq Kimberlite (see news release Sept 15, 2008). The KEM Kimberlite was discovered by prospecting and ground crews were able to trace the float and outcrop for 70 metres, up-ice of high interest mineral chemistry. KEM trends north-south and appears to be highly clay-altered at the location where it would be expected to intersect the Killiq Kimberlite.

Kahuna Area Update

Ground gravity surveys designed to identify zones of increased width or possible blows along the Kahuna Kimberlite dyke, together with detailed geological and structural mapping completed by Stubley Geoscience Ltd., led to the drill testing of three gravity low targets during the summer program.  Interpretation of the results suggests that at least portions of the Kahuna kimberlite dyke are associated with wider zones of brecciation and alteration not currently recognized elsewhere on the property.  Drill hole 08KD-10, drilled at -60 degrees, tested a gravity low immediately west of Kahuna and intersected intensely altered and brecciated granite over 52 metres downhole.  A series of Type B kimberlite stringers (ranging from 1 cm to 15 cm wide) encountered within the breccia zone could indicate a more explosive emplacement for Kahuna than has been typically observed in association with the other kimberlite dykes discovered on the property. It is not yet clear if this Kahuna Breccia zone represents a separate blow or diatreme along the Kahuna structure. Two other RC holes testing gravity lows in this general vicinity had to be abandoned due to poor ground conditions. 

One new kimberlite was discovered 3.7km southwest of the Kahuna kimberlite by RC drilling. Target RC58 is a magnetic high dyke like signature that trends north-south for more than 1 km. Follow up of this trend in the field resulted in an outcrop exposure 135m south of the drill intersection that is interpreted to be the same kimberlite body. 

Ground Geophysics

Ground Penetrating radar surveys were completed over the Kahuna and Notch trend and were successful at mapping overburden depths that will be useful for potential future bulk sampling programs.

Ground magnetic surveys were completed over selected high interest areas such as the Killiq discovery.  At Killiq the surveys outlined possible extensions of the kimberlite dyke over more than 1.1km and identified a large circular feature to the north that could represent a possible blow where the Killiq dyke intersects a structural feature referred to as the ?Star? structure. In 2007, drillhole 07KD-16 partially tested this feature and intersected a high grade kimberlite dyke (see news release Jan 31, 2008).

The Churchill Diamond Project is owned 58.14% by Shear and 41.86% by Stornoway and is comprised of the Diamond rights to more than one million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly Diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tonne. Stornoway has chosen not to participate for its share of the 2008 exploration budget and its ownership could potentially dilute from 41.86% to 37.7%. 

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 either of the Companies? expectations are in Company documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com.  The Companies disclaim any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.