VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2011) - Stornoway Diamond Corporation (TSX:SWY) ("Stornoway") is pleased to announce the opening today of a new representative office for the Renard Diamond Project in the Cree Community of Mistissini, Quebec. Mistissini is located 250 km south of Renard, and is the closest community to the project within the James Bay region. The Renard Diamond Project is a 50:50 joint venture with DIAQUEM INC. ("DIAQUEM"), a wholly-owned subsidiary of SOQUEM INC. ("SOQUEM"), itself a wholly-owned subsidiary of Societe generale de financement du Quebec ("SGF"), the Quebec government's main industrial and financial holding company.

The new office will provide a forum for exchanging information and liasing with the Crees on a variety of social, environmental and economic aspects of the Renard Diamond Project, and on the potential for future training, employment and business opportunities. In addition, the office will provide information about diamond exploration and diamond mining in general. Stornoway's representative at the office will be Madame Helene Robitaille, Manager of Community Relations - Training and Development.

On July 26th, 2010, Stornoway announced the conclusion of a Pre-Development Agreement ("PDA") between the company, the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee) / Cree Regional Authority, and DIAQUEM. The PDA provides for business and employment opportunities for the Crees at the project during the period of pre-development activities leading up to a potential production decision, the completion of a comprehensive Business and Employment Capacity Study to assess the full potential for Cree business and employment opportunities from an eventual Renard Diamond Mine, and the creation of a joint communication strategy. The parties are currently working towards a more comprehensive Impacts and Benefits Agreement, scheduled for completion later in 2011.

About the Renard Diamond Project

The Renard Diamond Project is located approximately 250km north of the community of Mistissini and 350km north of Chibougamau in the James Bay region of North-Central Quebec, and falls within the environmental protection regime of the James Bay and Northern Quebec Agreement. In March 2010 Stornoway released the results of a Preliminary Assessment at Renard that showed the project to have the potential to produce approximately 30 million carats of diamonds over a 25 year mine life. Total capital investment is currently estimated to be $511 million, with an average operating expenditure of approximately $67 million per year and a workforce of 300 people. Pending the completion of all ongoing mine feasibility and environmental and social impact assessments, and the receipt of all regulatory approvals, Stornoway currently anticipates being able to make a potential production decision at Renard by the end of 2011.

On December 14th, 2010, Stornoway announced an agreement to acquire DIAQUEM'S 50% interest in the Renard Diamond Project in a transaction that would make DIAQUEM a significant shareholder of Stornoway. Upon the closure of the acquisition, which is subject to the approval of Stornoway's existing shareholders at an extraordinary meeting to be held in Toronto on February 10th, 2011, Stornoway will have acquired sole ownership of the project.

About 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 seven 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.

About SGF

Societe generale de financement du Quebec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Quebec government. As part of its new mandate, SGF is authorized by the Quebec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred or convertible shares.

SOQUEM, a wholly-owned subsidiary of Societe generale de financement du Quebec, is to undertake exploration, development and mining activities throughout the province of Quebec.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Matt Manson, President and Chief Executive Officer

This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of mineral resources and potential mineral deposits; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the proposed mining operation; (iv) capital costs and operating costs; (v) mine expansion potential and expected mine life; and (vi) expected time frames for completion of permitting and regulatory approvals, completion of a Feasibility Study and making a production decision. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on Stornoway's or its consultants' current beliefs as well as various assumptions made by and information currently available to them. Many of these assumptions are set forth in the news release and include: (i) estimates of net present value and internal rates of return; (ii) estimates of potential production and duration of mine life; (iii) estimated completion date for the Feasibility Study; (iv) required capital investment and estimated workforce requirements; (v) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (vi) the assumption that the partners will make a production decision, and that decision will be positive; (vii) anticipated timelines for the commencement of mine production. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rate of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.