VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2011) - Stornoway Diamond Corporation (TSX:SWY) welcomes the recent announcement made during the reading of the 2011 Quebec Budget that the Quebec Government will commit to the development of the Route 167 Extension under the auspices of the "Plan Nord", the strategic initiative to develop northern Quebec. The Route 167 Extension (also known as the "Route des Monts Otish") will provide year round highway access to Stornoway's Renard Diamond Project by way of the communities of Mistissini and Chibougamau. Construction is expected to commence this year.

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. On February 10, 2011, Stornoway announced that an agreement to acquire DIAQUEM'S 50% interest in the Renard Diamond Project had been approved by shareholders and is expected to close on April 01, 2011, on which date Stornoway will have acquired 100% ownership of the project. The transaction will make DIAQUEM a significant shareholder of Stornoway. A Bankable Feasibility Study and an Environmental and Social Impact Assessment at Renard are on schedule for completion in the 3rd quarter of 2011.

In introducing the 2011 Budget on the floor of the National Assembly on March 17th, 2011, Quebec's Minister of Finance, Raymond Bachand stated, "The Plan Nord will both facilitate and supervise private investments on the (northern Quebec) territory...by making the territory accessible, with the financial contribution of developers. Major land, marine and air transportation infrastructure projects will open up the territory to facilitate tourism development as well as mining or energy development. One such example is the extension of Route 167 north of Mistissini to the diamond deposits in the Otish Mountains, which will make a vast territory accessible to the development of mining and tourism. That work will begin this year".

Minister Bachand continued by saying: "I am announcing that, over the next five years, the Quebec government is prepared to invest up to $500 million in equity interests in private projects promising a developmental effect in the territory covered by the Plan Nord. Like the investments already made by the Societe generale de financement (du Quebec), for example its interest in Stornoway Diamond Corporation, these investments will be made with an eye to profitability".

It is expected that the Route 167 will be constructed as a 260 km-long, 70 km/hour two lane gravel-top highway under the supervision of the Quebec Ministry of Transport. The road will be designated as a multi-service provincial highway connecting Renard to the end of the current Route 167 at Lac Albanel (Temiscamie), and will provide access to a number of other prospective mining projects as well as the new Albanel-Temiscamie-Otish Park. It is expected that further details on the nature and schedule of road construction will be released shortly.

About the Renard Diamond Project

The Renard Diamond Project is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of North-Central Quebec. In May 2010, Stornoway filed a National Instrument 43-101 compliant technical report for the Preliminary Assessment at Renard that estimated the project to have the potential to produce approximately 30 million carats of diamonds over a 25 year mine life, with a pre-tax Net Present Value of C$885 million (at an 8% discount rate) and an Internal Rate of Return of 24.8%. National Instrument 43-101 compliant Indicated and Inferred Mineral Resources currently stand at 23.8 and 17.5 million carats respectively, with a further 23.5 to 48.5 million carats classified as a non-resource, "potential mineral deposit". All kimberlites remain open at depth. 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. Readers are referred to the technical report in respect of the Renard Diamond Project for further details and assumptions relating to 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 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.

Last September, the government announced the amalgamation of Societe generale de financement du Quebec and Investissement Quebec, effective April 1, 2011. The merger will enable the organizations to combine their extensive expertise, offer Quebec businesses a broader range of solutions and better support them throughout all stages of their operations, from start-up to export projects.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Matt Manson, President and Chief Executive Officer