Stornoway announces 56% increase in Renard diamond price estimate

Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the results of a recent diamond valuation exercise undertaken in support of the ongoing feasibility study at the Renard Diamond Project, Stornoway’s 100% owned flagship project located in north central Québec. The diamond valuation was performed under the supervision of WWW International Diamond Consultants Ltd. (“WWW”) in Antwerp, Belgium between May 9^th-13^th, 2011. Highlights are as follows:

• A base case modeled diamond price estimate of US$182 per carat for the diamond samples from the Renard 2 and 3 kimberlite pipes, an increase of 56% over the previous estimate determined in September 2009.
• A base case modeled diamond price estimate of US$112 per carat for the diamond sample from the Renard 4 kimberlite pipe, an increase of 49% over the previous estimate.
• “High” diamond price models of US$236, US$205 and US$185 per carat for the Renard 2, 3 and 4 kimberlite pipes respectively, based on an analysis of diamond price and size distribution upside on the individual valuation samples.

Matt Manson, President and CEO, commented: “This comprehensive new valuation of the Renard bulk sample diamonds has confirmed the substantial increases in rough diamond prices of the last 18 months, brought about by sustained demand growth and tightening mine supply. The new price data are expected to have a very positive impact on the project’s revenue profile and mining margin. Our feasibility study, which is on track for delivery in the third quarter, will outline a project with a high production rate, high diamond price, long mine life potential, and available road and power infrastructure in a leading, pro-mining jurisdiction. This combination of factors makes Renard one of the most compelling undeveloped diamond assets in the world.”