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STORNOWAY ANNOUNCES CLOSING OFAGREEMENT TO ACQUIRE REMAINING 50% OF RENARD DIAMOND PROJECT AND BOARDAPPOINTMENTS

Stornoway Diamond Corp. has closed the previously announced agreementto acquire the remaining 50-per-cent interest of Diaquem Inc. in theRenard diamond project, Stornoway's feasibility-stage diamond project innorth-central Quebec. As provided under the terms of the Acquisition,Stornoway has now issued to DIAQUEM common voting shares equal to 25% ofStornoway's issued and outstanding common shares, and newly-creatednon-voting convertible shares such that DIAQUEM's total interest inStornoway, if such convertible shares were fully converted for commonshares, would be equal to 37% of the issued and outstanding commonshares. DIAQUEM is a wholly-owned subsidiary of SOQUEM INC., itself awholly-owned subsidiary of Investissement Quebec (formerly Societegenerale de financement du Quebec).

The Renard Diamond Project is now owned 100% by Stornoway. A BankableFeasibility Study and an Environmental and Social Impact Assessment areon schedule for completion in the 3rd quarter of 2011. In addition, itis expected that construction of the Route 167 Extension, the roaddevelopment project that will provide year-round highway access toRenard by way of the communities of Mistissini and Chibougamau, willcommence this year under the auspices of the Quebec Ministry ofTransportation. In an era of tightening global supply for roughdiamonds, Renard has the potential to become Quebec's first diamond minewith road and power infrastructure, a strong production profile, and asubstantial mine life.