VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2011) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the closing of the previously announced agreement to acquire the remaining 50% interest of DIAQUEM Inc. ("DIAQUEM") in the Renard Diamond Project ("Renard"), Stornoway's feasibility-stage diamond project in north-central Quebec (the "Acquisition"). As provided under the terms of the Acquisition, Stornoway has now issued to DIAQUEM common voting shares equal to 25% of Stornoway's issued and outstanding common shares, and newly-created non-voting convertible shares such that DIAQUEM's total interest in Stornoway, if such convertible shares were fully converted for common shares, would be equal to 37% of the issued and outstanding common shares. DIAQUEM is a wholly-owned subsidiary of SOQUEM INC., itself a wholly-owned subsidiary of Investissement Quebec (formerly Societe generale de financement du Quebec).

The Renard Diamond Project is now owned 100% by Stornoway. A Bankable Feasibility Study and an Environmental and Social Impact Assessment are on schedule for completion in the 3rd quarter of 2011. In addition, it is expected that construction of the Route 167 Extension, the road development project that will provide year-round highway access to Renard by way of the communities of Mistissini and Chibougamau, will commence this year under the auspices of the Quebec Ministry of Transportation. In an era of tightening global supply for rough diamonds, Renard has the potential to become Quebec's first diamond mine with road and power infrastructure, a strong production profile, and a substantial mine life.

In accordance with the terms of the Acquisition and the approval of Stornoway shareholders at the special meeting held on February 10, 2011, the board of directors of Stornoway has been increased from 8 to 9 members and Mr. Jean-Jacques Carrier, Senior Vice-President and Chief Financial and Risk Officer of Investissement Quebec, has been appointed a director. The board of directors so formed with the addition of Mr. Carrier will appoint 2 additional directors as nominees of Investissement Quebec, as provided under the terms of the Acquisition and permitted under the Articles of Stornoway. Concurrently, Stornoway further announces the appointment of Mr. Ebe Scherkus, President and COO of Agnico-Eagle Mines Limited ("AEM") to the board of directors in the place of Mr. David Garofalo, President and CEO of Hudbay Minerals Inc. and formerly Chief Financial Officer of AEM. Ms. Eira Thomas will assume the role of non-Executive Chairman of the newly constituted board.

The common shares referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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 Investissement Quebec

Investissement Quebec's mission is to foster the growth of investment in Quebec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.

SOQUEM, a wholly-owned subsidiary of Investissement Quebec, is to undertake exploration, development and mining activities throughout the province of Quebec.