DIAMOND EXPLORATION NEWS Aviat Budget Set at $12.5 Million

NUNAVUT The Aviat diamond project on the Melville Peninsula will be a busy place this summer as explorationists set out to spend the $12.5 million budget. The project is a joint venture of STORNOWAY DIAMONDS (70%), BHP BILLITON DIAMONDS (20%) and HUNTER EXPLORATION (10%). An aggressive program including ground and airborne geophysics, prospecting, still sampling, and drilling is planned.

The airborne portion of the program will be flown using BHP Billiton's proprietary Falcon gravity system. It has been successfully used at BHP Billiton's Qilalugaq project where at least nine diamondiferous kimberlitic bodies have been identified since 2003.

Further information about the Aviat project and exploration results can be found at www.StornowayDiamonds.com.