VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 28, 2011) - Stornoway Diamond Corporation (TSX:SWY.TO - News) is pleased to announce the completion and filing of an Environmental and Social Impact Assessment (ESIA) for the Renard Diamond Project located in North Central Quebec. The submission of the ESIA, which was authored by Roche Ltd., is an important milestone in the permitting of the project. It follows upon the completion of a positive Feasibility Study for Renard in mid-November, and the release of a Certificate of Authorization for the Route 167 Extension highway development project by the Ministere du Developpement durable, de l'Environnement et des Parcs of Quebec (the "MDDEP") in early December.

Matt Manson, Stornoway's President and CEO, commented: "The Renard ESIA is a comprehensive document that incorporates many years of social and environmental baseline study and stakeholder consultations within the communities of Mistissini, Chibougamau and Chapais. In particular, it has benefitted from the participation of individual community members in the Renard Environmental Exchange Group which has met regularly throughout 2011 in the Cree community of Mistissini. The Renard ESIA describes a small-footprint project with modest impacts on local land, water and air quality, all of which are well within existing Quebec and federal standards. At the same time, the project offers substantial economic benefits in the form of long term employment and business opportunities across the James Bay region of Quebec."

The Renard Diamond Project falls under the environmental protection regimes of the James Bay and Northern Quebec Agreement (the "JBNQA") and the Canadian Environmental Assessment Act. The purpose of the Renard ESIA is to allow the relevant Quebec and federal regulators to properly assess the impact of the project and to seek input from local stakeholders on the proposed development. In this context, the Renard ESIA has been filed with both the MDDEP and the Canadian Environmental Assessment Agency (the "CEAA"). Subject to a schedule to be established by the Review Committee of the JBNQA ("COMEX") and the CEAA, it is currently expected that public hearings will be held in the first half of 2012 and, upon the satisfaction of all regulatory requirements, the project will be eligible for the receipt of Quebec and federal Certificates of Authorization by the middle of 2012. Once the provincial and federal administrators have issued authorizations for project development, final mine permits will be sought from the MDDEP, the Ministere des Ressources Naturelles et de la Faune, and all relevant federal authorities.

The Feasibility Study for the Renard Diamond Project that was released on November 16th 2011 contemplates an 11 year mine life based on an initial National Instrument ("NI") 43-101 compliant Mineral Reserve of 18 million carats (23.0 mtonnes at an average grade of 78 carats per hundred tonnes). Stornoway has also developed a Long Term Business Plan ("LTBP") based on the project's total Indicated and Inferred Mineral Resources to a depth of 700m, all of which are within the scope of the Feasibility Study mine infrastructure. The LTBP contemplates a longer mine life, and an increased production rate within the scope of the process plant's design parameters. In accordance with NI 43-101, the project's Inferred Mineral Resources are not included in the Feasibility Study economic analysis. However, in order to allow a proper assessment of the project's full environmental and social impact, the Renard ESIA is based upon the extended mine plan contained within the LTBP, which thus forms part the project's public disclosure under applicable federal and provincial legislation. A copy of the ESIA will be available on the Stornoway website at http://stornowaydiamonds.com/renard/esia