Stornoway Diamond Corporation

Published : June 08th, 2009

Renard Summer Drill Program Commences

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June 8, 2009

RENARD SUMMER DRILL PROGRAM COMMENCES

Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the commencement of the next phase of an ongoing resource expansion and optimization program at the Renard Diamond Project in North Central Qu�bec.  The Renard Diamond Project, which includes the Renard kimberlite pipes and the Lynx-Hibou system of kimberlite dykes, is a 50:50 joint venture with SOQUEM INC. ("SOQUEM").

Core drilling of some 9,500m on the Renard 2 kimberlite pipe will commence on June 10, and continue until late August. The objective of this program will be conversion of the 10.5 to 12.3 million tonnes of potential mineral deposit material identified at Renard 2 to a formal resource classification. The winter drill program at Renard exceeded expectations in the amount of new kimberlite discovered (see Stornoway Press Release dated March 31, 2009). It now appears that the Renard 2 kimberlite is approximately twice as large as previously thought when modeled to a depth of 570 meters below surface, and approximately three times larger when modeled to a depth of 712 meters below surface. The summer program will focus on detailed delineation drilling and sampling of the newly discovered material within Renard 2, and is expected to allow a restatement of the National Instrument (�NI�) 43-101 mineral resource by year end, followed by a revision of the project�s economic assessment.

President and CEO Matt Manson stated, "In the existing Renard Preliminary Assessment, Renard 2 contributed the bulk of the high grade resource contained within the conceptual mine plan. The discovery of such a large amount of new kimberlite in this pipe, much of it within the scope of the existing underground mine design, is expected to have a very positive impact on project economics, and has the potential to add approximately 8 to 10 years of mine life to the 7 year mine plan already established. The growing scale of the Renard Diamond Project, taken together with the Quebec government�s recent announcement of major capital funding for the regional Route 167 Extension project, confirms it as one of Canada�s premium Diamond development projects�.

The 2009 summer work at Renard conforms with Stornoway�s stated objective of conducting modest, value-driven, exploration programs focused on our key, advanced projects during the currently challenging resource equity environment. It compliments ongoing desktop work at Stornoway�s 90% owned Aviat Project designed to provide a qualified estimate of contained value and potential mining methods for Aviat�s large Eastern Sheet Complex (�ESC�; Stornoway Press Release dated May 05, 2009), and continuing readiness to exploit, on an opportunistic and inexpensive basis, new discovery prospects identified within Stornoway�s grassroots exploration portfolio.

About The Renard Diamond Project

In December 2008, Stornoway reported a positive Preliminary Assessment for the Renard Diamond Project (Stornoway press release of December 15, 2008), with an initial NI 43-101 compliant mineral resource comprising 7.0 million carats of Indicated Mineral Resources (11.6 million tonnes at an average grade of 60 carats per hundred tonnes, or "cpht") and 4.5 million carats of Inferred Mineral Resources (7.2 million tonnes at an average grade of 63 cpht). At this time, extensive exploration upside was identified in the form of an additional 9 to 21 million carats classified as �potential mineral deposit� (14 to 32 million tonnes ranging from 31 to 164 cpht).

Within the conceptual mine plan contained within the Preliminary Assessment, the most important kimberlite in terms of mineable carats, mine life and revenue was Renard 2, which was estimated to contain 3.36 million tonnes of Indicated Mineral Resource (at an average grade of 81 cpht) and 1.80 million tonnes of Inferred Mineral Resource (at an average grade of 86 cpht), as calculated to a depth of 570m. The Diamond valuation for Renard 2, dated March 2008, was estimated at US$123/ct (with sensitivities of US$110 to US$139/ct). At that time, potential mineral deposit at Renard 2 was an additional 2.5 to 7.1 million tonnes with grades estimated between 73 and 164 cpht, calculated to a depth of 700m. 

The recent winter drilling at Renard 2 (see Stornoway Press Releases March 09 and March 31) supports a better constrained geological model that is consistent with a revised potential mineral deposit estimated at between 10.5 and 12.3 million tonnes to 712 meters below surface, a substantial increase over the previous estimate. In this new model, Renard 2 has a dimension of 195 meters by 45-60 meters at a depth of 570 meters below surface as opposed to 48 meters by 10 meters previously, and remains open below 712 meters. Geological logging of the kimberlite intersected in the winter suggests that the kimberlitic breccia lithologies present in the deeper portions of Renard 2 are the same as those seen in the upper portions of the pipe. In these upper portions, extensive reverse circulation drilling and underground bulk sampling has established mineral resource level grades and a Diamond valuation. To establish resource grades throughout the pipe, detailed micro-Diamond and petrographic analysis will be used to correlate the newly drilled material with the portions of the pipe for which detailed geological and Diamond data already exists. This comparative technique of grade extrapolation is an accepted and well established methodology for Diamond resource estimation.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.  In addition, the potential quantity and grade of any potential mineral deposit is conceptual in nature, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading Diamond exploration and development companies, involved in the discovery of over 200 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. The Renard Diamond Project is managed by Dave Skelton, P. Geol. (AB/QC), Vice President, Project Development. Mr. Skelton is a Qualified Person under NI 43-101 and has reviewed the contents of this press release.

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.

On behalf of the Board
STORNOWAY Diamond CORPORATION
/s/ �Matt Manson�
Matt Manson
President and Chief Executive Officer


For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754 or toll free at 1-877-331-2232
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **
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Stornoway Diamond Corporation

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CODE : SWY.TO
ISIN : CA86222Q8065
CUSIP : 86222Q806
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Stornoway Diamond is an exploration gold and copper company based in Canada.

Stornoway Diamond develops gold, copper, diamonds and nickel in Canada, and holds various exploration projects in Botswana and in Canada.

Its main asset in development is RENARD (FOXTROT) in Canada and its main exploration properties are RAVEN, CHURCHILL, KINGORA, LDG, DARING LAKE, JEWEL, STARFISH, WALES ISLAND, SCEPTRE AND TIARA, HAMMER, QILALUGAQ, PORTAGE MINE, MELVILLE PENIN. and MELVILLE PENINSULA (AVIAT PROJECT) in Canada.

Stornoway Diamond is listed in Canada. Its market capitalisation is CA$ 16.6 millions as of today (US$ 12.6 millions, € 11.4 millions).

Its stock quote reached its highest recent level on May 14, 2004 at CA$ 9.80, and its lowest recent point on September 06, 2019 at CA$ 0.01.

Stornoway Diamond has 828 659 968 shares outstanding.

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