Star Diamond Corp T.DIAM

SGF News Release

[Boscoboy101]

Stock Symbol: SGF: TSX Venture Exchange January 12, 2004 SHORE GOLD INC. Saskatoon, Saskatchewan STAR DIAMOND PROJECT PROCESS PLANT COMMISSIONING UNDERWAY - KIMBERLITE RECOVERY CONTINUES George H. Read, Senior Vice President, Exploration, is pleased to report that the commissioning of the Star Diamond Project processing plant is well underway. The shaft into the Star Kimberlite is currently at 175 metres below surface and the development of the lateral drift at this level is proceeding on schedule. Commissioning of the on-site processing plant is supervised by a process engineer from Bateman Engineering, the plant manufacturers. The process engineer is supported by a local team of plant/machine operators, millwrights and electricians. The process plant includes a 30 tonne per hour front-end (crushers, scrubbers and vibrating screens), which feeds into a 10 tonne per hour Dense Media Separator (DMS). Final diamond concentrate recovery includes an x-ray Flowsort and a grease table on site, followed by hand sorting of diamonds at an off-site, independent secure facility. The plant has been winterised within an eighty by thirty metre Cover-All. Heating of the Cover-All has commenced using two Herman Nelson heaters and waste heat from the 680 kilowatt diesel generator, which supplies power to the plant. It is anticipated that most of the commissioning will be completed in two weeks and that diamond concentrate from the first 1000 tonnes of kimberlite will be recovered by early February 2004. Kimberlite recovery continues from the lateral drift on which development is underway. A 15 metre long shaft station has been established on the east side of the shaft at 175 metres below surface. The shaft station will be used as an underground workshop for the assembly and maintenance of the Load-Haul-Dump scooptram (LHD), an electrical sub-station, a turning area for the LHD and a sump for the collection and pumping of any mine water. As anticipated, minimal volumes of mine water have been encountered in the drift. Additionally, drifting to the northeast of the shaft station has commenced. The site geologist, from independent consultants A.C.A. Howe, is accurately mapping all kimberlite faces immediately after blasting. To date some 5,000 tonnes of kimberlite have been stockpiled on surface. Samples defined according to shaft depth and drift position will be batch processed through the plant as soon as plant commissioning has been completed. The Star Diamond Project is designed to recover a parcel of at least 3,000 carats of diamonds to enable an accurate valuation of the stones. Up to 25,000 tons of kimberlite will be recovered from the shaft and drifts and processed on-site to produce this diamond parcel. Shore is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Venture Exchange under the trading symbol "SGF". For further information please contact: Kenneth E. MacNeill, President & C.E.O.; George Sanders, Vice President Corporate Development; or George H. Read, P. Geo., Vice President Exploration at [phone] - END - "The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release"