STORNOWAY REPORTS 1,642 CARATS RECOVERED FROM RENARD 2 INCLUDING A 15.46 CARAT STONE

Stornoway Diamond Corporation (TSX-SWY) is pleased to provide complete diamond recovery results from the Renard 2 kimberlite, the second individual kimberlite bulk sample to be completed as part of the Renard bulk sample program in north-central Qu�bec.  Stornoway, and 50:50 joint venture partner SOQUEM INC. ("SOQUEM"), are currently engaged in a program of sampling at Renard designed to recover a minimum 6,000 carats of diamonds from three separate kimberlite pipes.  Renard 2 has now returned a total of 1,602 carats of diamonds from 15 separate sub-samples with a combined dry sample weight of 2,449 tonnes. Diamond recovery from individual sub-samples varied between 26 carats per hundred tonnes (cpht) and 144 cpht for stones retained on a +1 DTC screen, with the largest diamond weighing 15.46 carats. Complete Renard 2 diamond data, after utilizing both x-ray sorter and grease table recovery circuits, are as follows:  

¹ The estimated diamond content, expressed as carats per hundred tonnes, may not be representative of the overall diamond content of the body due to a number of factors, including location/size of the underground samples and processing parameters
² Carats per hundred tonnes
³ Based on predominant kimberlite lithology sampled

CEO Eira Thomas stated, "We continue to be encouraged by the results of the Renard bulk sample program. The latest diamond recovery data from Renard 2, when related to pipe geology, are consistent with previous sampling. We are also particularly impressed by the incidence of large stones in these latest results. The unusually strong distribution of large diamond sizes in Renard 2 promises to be an important driver of overall rock value .

We remain very optimistic about the potential of the Renard Project to become Quebec's first diamond mine."

The five largest diamonds recovered from Renard 2 are a 15.46 carat light off-colour gem octahedron, an 8.80 carat brown clivage, an 8.42 carat brown clivage, a 6.91 carat top light brown gem makeable, and a 6.10 carat colourless gem rounded octahedron. These five diamonds were recovered from samples of, predominantly, "kimb2b" kimberlite, as defined below. The five largest diamonds recovered from samples of, predominantly, "kimb2a" kimberlite are a 4.90 carat top light brown gem octahedron, a 4.47 carat brown octahedron, a 4.27 light off-colour gem octahedron, a 3.89 carat light off-colour gem octahedron and a 3.58 carat light off-colour gem octahedron. Photographs of these diamonds can be found on the Stornoway website at http://stornowaydiamonds.com/news/2007/july/ . 

As of the end of June, a total of 6036 dry tonnes of kimberlite has been processed at the 10 tonne per hour Dense Media Separation (DMS) plant located at the Renard Project site. This comprises 1,929 dry tonnes of Renard 3, 2,449 dry tonnes of Renard 2 and 1,659 dry tonnes of Renard 4.  On-site processing at the DMS plant is now complete. Final diamond recovery of the Renard 3 sample produced 2,681 carats of diamonds for an estimated diamond content of 139 cpht as reported by Stornoway on June 20, 2007. The result of a full market valuation exercise on the complete bulk sample parcel of approximately 6,000 carats is expected early in the fourth quarter.

Comparative Historical Data

Between 2004 and 2005, Stornoway's wholly owned subsidiary Ashton Mining of Canada Inc. ("Ashton") and its JV partner SOQUEM collected a 162 tonne mini-bulk sample from Renard 2 by reverse circulation drilling that yielded a recovered diamond content of 90 cpht (Ashton press release of February 8, 2005).  The largest diamond recovered during that program was a 2.27 carat pale grey composite crystal.

Historical diamond recovery results now reported from Renard 2 are as follows:

Renard 2 Geology

The fifteen individual samples from Renard 2 reported above were collected by underground decline 55m below surface at the 455m level.  Underground mapping has outlined several coherent geological units, including two distinct fragmental kimberlite breccias units, hypabyssal kimberlite in the form of dykes,  a  hypabyssal kimberlite breccia, and country-rock dominated contact breccias marginal to the pipe. Distinct diamond contents are apparent within the two fragmental breccia units (typical tuffisitic kimberlite breccia to tuffisitic transitional kimberlite breccia), referred to as kimb2a ("Blue") and kimb2b ("Brown") kimberlite. Sub-samples 2004 to 2103 sampled predominantly kimb2a and returned a weighted average diamond content of 48 cpht.  Sub-samples 2104 to 2109 sampled predominantly kimb2b and returned a weighted average diamond content of 111 cpht.

Recovered diamond content from individual sub-samples, and the complete Renard 2 underground sample, does not conform to the definition of a "mineral resource" grade established by National Instrument ("NI") 43-101.  The Renard 2 samples processed to date have been selected from each of the geological units encountered in the underground drifts.  The number of sub-samples acquired from each specific rock type is not indicative of the relative abundance of those rock types within the Renard 2 body.  Stornoway is in the process of establishing detailed geological models for each of the Renard kimberlites to be utilized in a subsequent NI 43-101 compliant resource calculation.  As a component of this work, individual geologic units observable within the pipes will be reconciled with diamond recovery information. 

Scientific and Technical Data

Diamond results reported in this release are based on sample processing by a 10 tph DMS plant owned by Stornoway (through Ashton) and SOQUEM in joint venture, and operated by Stornoway, and on the recovery of diamonds from concentrate at Stornoway's wholly owned and operated mineralogical laboratory in North Vancouver, British Columbia.  Quality assurance protocols and actual operating procedures for the processing, transport and recovery of diamonds under the Renard bulk sample program, including arms-length security provisions, conform to industry standard Chain of Custody provisions and are subject to the review of AMEC Americas Ltd. who have been contracted to provide third party accreditation for program data. 

For the Renard bulk sample program, individual kimberlite samples are prepared through a primary jaw crusher prior to introduction to the 10 tph DMS. To facilitate production of a heavy mineral concentrate, -20mm material is fed directly into the DMS and +20mm material is reduced through a secondary cone crusher set at 10mm. DMS coarse reject "floats" are re-crushed to -6mm and re-circulated through the DMS.  Samples were processed utilizing a 1.0mm by 12.0mm slotted screen.  Following delivery to North Vancouver, the resultant DMS concentrate was then processed twice through x-ray sorter equipment to generate a final concentrate which was hand sorted to extract diamonds. A grease table finish was used to recover diamonds from all x-ray sorter rejects.  Diamonds were recovered from (a) two x-ray sorter passes and (b) the grease table recovery circuit.  Diamond recovery reported above pertains only to stones retained on a +1 DTC screen, approximately equivalent to a 0.85mm square mesh screen. However, the bottom cut-off screen sizes used on the DMS will result in under-recovery of smaller diamonds and will not allow a direct comparison with previously reported diamond contents.  As part of Stornoway's ongoing QA/QC program, DMS tails, concentrate residues and other materials are also subject to audit.  Any significant changes to the recovered diamond grades provided above will be reported when available.  The Renard bulk sample program is managed by Dave Skelton, P.Geol., Senior Project Manager. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol, Vice President, Exploration, a Qualified Person under NI 43-101.

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 Quebec 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 Quebec.

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.