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NEWS! SWY raises $15 MIL via PIPE!!

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SevenTheHardway   Wednesday, 04/11/12 12:13:54 PM
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NEWS! SWY raises $15 MIL via PIPE!!

Stornoway Closes its $15 Million Bought Deal Equity Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Stornoway Diamond Corporation (TSX:SWY) (Stornoway" or the "Company") is pleased to announce that it has completed its bought deal equity financing previously announced on March 8, 2012 for aggregate gross proceeds to Stornoway of $15 million (the "Offering"). Scotia Capital Inc. (the "Underwriter"), as sole underwriter, purchased 15 million units (the "Units"), each consisting of one common share of Stornoway and one-half of one common share purchase warrant of Stornoway (a "Warrant"). The Units were sold at a price of $1.00 per Unit. Each Warrant entitles its holder to purchase one common share in the capital of Stornoway at a price of $1.20 per share at any time prior to 5:00 p.m. (Vancouver time) on March 31, 2014. Stornoway granted to the Underwriter an over-allotment option, exercisable in whole or in part, up to 30 days after the completion of the Offering, to purchase up to an additional 2,250,000 Units at a price of $1.00 per Unit. This over-allotment option has not been exercised at the time of this press release.

Stornoway intends to apply the net proceeds of the Offering, after deducting the underwriter's fees and the expenses related to the Offering, to fund pre-development expenditures at the Renard Diamond Project, located in north-central Québec, for the 2012 calendar year and for general corporate purposes.

The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any securities or "blue sky" laws of any state of the United States, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

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 Québec. In November 2011, Stornoway released the results of a feasibility study for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.

About Stornoway Diamond Corporation

Stornoway is a leading Canadian diamond exploration and development company listed on the TSX under the symbol "SWY". Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. Stornoway is a growth oriented company with a world class asset, in one of the world's best mining jurisdictions, in one of the world's great mining businesses.

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