ACQUISITION – Stornoway completes Contact Diamond deal

VANCOUVER - STORNOWAY DIAMOND CORP. and CONTACT DIAMOND CORP. are pleased to announce that at midnight (Toronto time) on Jan. 17, 2007, Stornoway acquired all of the remaining outstanding common shares of Contact. Contact is now a wholly-owned subsidiary of Stornoway.

Each shareholder whose Contact shares were deemed to have been acquired will receive common shares of Stornoway on the basis of 0.36 of a Stornoway share for each Contact share held. In order to receive certificates representing their Stornoway shares, Contact shareholders are required to deliver the certificate(s) representing their Contact shares to Pacific Corporate Trust Company, 2nd Floor, 510 Burrard St., Vancouver, BC V6C 3B9, in accordance with the instructions on the Transmittal and Election Form that was delivered to shareholders of Contact on Dec. 18, 2006.

Contact shareholders with questions or requests for copies of documents are invited to contact Nick Thomas, manager investor relations for Stornoway, at 604-331-2259 or 888-338-2200.