Stornoway Diamond Corporation (TSX:SWY) (the "Corporation" or "Stornoway") is
pleased to announce that a formal decision to proceed to mine construction and
production at the Renard Diamond Project has been made by the Corporation's
Board of Directors in connection with the recent closing of the project's
comprehensive C$946million(1) financing package on July 8th and the overwhelming
approval by Stornoway shareholders of resolutions relating to the financing on
June 26th.


Concurrent with this announcement, a ground breaking ceremony was held today at
the Renard Project site in the presence of M. Philippe Couillard, the Premier of
Quebec, M. Jacques Daoust, the Quebec Minister of the Economy, Innovation and
Exports, M. Jean Boucher, the Member of the Quebec National Assembly for Ungava,
Chief Richard Shecapio, Chief of the Cree Nation of Mistissini, Mme Manon Cyr,
Mayor of Chibougamau and M. Steve Gamache, Mayor of Chapais. Project
construction has now been fully mobilized, with commercial production on
schedule for the second quarter of 2017 based on first plant commissioning in
late 2016.


Matt Manson, President and CEO, stated: "The formal decision to proceed to
construction and production at Renard, announced today at a ground breaking
ceremony in the presence of Premier Coulillard and our partners in the
communities of Mistissini, Chibougamau and Chapais, represents the most
significant milestone yet in the long journey to bring Quebec's first diamonds
to market. The Renard Diamond Project is now fully permitted, financed, and
ready to build. This is a moment to acknowledge the immense effort of all those
that have been involved over the last 18 years in the exploration, discovery,
assessment, design and financing of Renard, and to look forward to the
significant undertakings of mine construction, commissioning and successful
operation that lie ahead." 


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 November 2011, Stornoway released the results of a
Feasibility Study at Renard, followed by an Optimization Study in January 2013,
which highlighted the potential of the project to become a significant producer
of high value rough diamonds over a long mine life. Probable Mineral Reserves,
as defined in National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"), stand at 17.9 million carats. Total Indicated Mineral
Resources, inclusive of the Mineral Reserve, stand at 27.1 million carats, with
a further 16.85 million carats classified as Inferred Mineral Resources, and
25.7 to 47.8 million carats classified as non-resource exploration upside.
Readers are cautioned that the potential quality and grade of any target for
further exploration is conceptual in nature, there has been insufficient
exploration to define a Mineral Resource and it is uncertain if further
exploration will result in the target being delineated as a Mineral Resource.
All kimberlites remain open at depth. Readers are referred to the technical
report dated December 29th, 2011 in respect of the November 2011 Feasibility
Study for the Renard Diamond Project, and the technical report dated February
28th, 2013 in respect of the January 2013 Optimization Study, for further
details and assumptions relating to the project. Disclosure of a scientific or
technical nature in this press release was prepared under the supervision of
Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a "qualified
person" under NI 43-101.


(1) All figures assume a C$:US$ conversion rate of $1.10. 

About Stornoway Diamond Corporation 

Stornoway is a leading Canadian diamond exploration and development company
listed on the Toronto Stock Exchange under the symbol SWY and headquartered in
Montreal. Our flagship asset is the 100% owned Renard Diamond Project, on track
to becoming Quebec's first diamond mine. 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.


On behalf of the Board

STORNOWAY DIAMOND CORPORATION

/s/ "Matt Manson" 

Matt Manson 

President and Chief Executive

This press release contains "forward-looking information" within the meaning of
Canadian securities legislation. This information and these statements, referred
to herein as "forward-looking statements", are made as of the date of this press
release and the Corporation does not intend, and does not assume any obligation,
to update these forward-looking statements, except as required by law.


Forward-looking statements relate to future events or future performance and
reflect current expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the amount of mineral
resources and exploration targets; (ii) the amount of future production over any
period; (iii) net present value and internal rates of return of the mining
operation; (iv) assumptions relating to recovered grade, average ore recovery,
internal dilution, mining dilution and other mining parameters set out in the
Feasibility Study or the Optimization Study; (v) assumptions relating to gross
revenues, operating cash flow and other revenue metrics set out in the
Feasibility Study or the Optimization Study; (vi) mine expansion potential and
expected mine life; (vii) expected time frames for completion of permitting and
regulatory approvals and making a production decision; (viii) the expected time
frames for the completion of the Route 167 extension and the financial
obligations or costs incurred by Stornoway in connection with such road
extension; (ix) future exploration plans; (x) future market prices for rough
diamonds; (xi) the economic benefits of using liquefied natural gas rather than
diesel for power generation; (xii) sources of and anticipated financing
requirements; (xiii) the effectiveness of the various elements of the Financing
Transactions and the use of proceeds therefrom; and (xv) the impact of the
Financing Transactions on the Corporation's operations, infrastructure,
opportunities, financial condition, access to capital and overall strategy. Any
statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates", "assumes",
"intends", "strategy", "goals", "objectives", "schedule" or variations thereof
or stating that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical fact and
may be forward-looking statements. 


Forward-looking statements are made based upon certain assumptions by Stornoway
or its consultants and other important factors that, if untrue, could cause the
actual results, performances or achievements of Stornoway to be materially
different from future results, performances or achievements expressed or implied
by such statements. Such statements and information are based on numerous
assumptions regarding present and future business prospects and strategies and
the environment in which Stornoway will operate in the future, including the
price of diamonds, anticipated costs and Stornoway's ability to achieve its
goals, anticipated financial performance, regulatory developments, development
plans, exploration, development and mining activities and commitments. Although
management considers its assumptions on such matters to be reasonable based on
information currently available to it, they may prove to be incorrect. Certain
important assumptions by Stornoway in making forward-looking statements include,
but are not limited to: (i) required capital investment and estimated workforce
requirements; (ii) estimates of net present value and internal rates of return;
(iii) receipt of regulatory approvals on acceptable terms within commonly
experienced time frames; (iv) the assumption that a production decision will be
made, and that decision will be positive; (v) anticipated timelines for the
commencement of mine production; (vi) anticipated timelines related to the
completion of the Route 167 extension and the impact on the development schedule
at Renard; (vii) market prices for rough diamonds and the potential impact on
the Renard Diamond Project; and (viii) future exploration plans and objectives.
Additional risks are described in Stornoway's most recently filed Annual
Information Form, annual and interim MD&A, the final short form prospectus filed
for the marketed public offering and other disclosure documents available under
the Corporation's profile at: www.sedar.com. 


By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that estimates,
forecasts, projections and other forward-looking statements will not be achieved
or that assumptions do not reflect future experience. We caution readers not to
place undue reliance on these forward-looking statements as a number of
important risk factors could cause the actual outcomes to differ materially from
the beliefs, plans, objectives, expectations, anticipations, estimates,
assumptions and intentions expressed in such forward-looking statements. These
risk factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur, including the assumption in many
forward-looking statements that other forward-looking statements will be
correct, but specifically include, without limitation, (i) risks relating to
variations in the grade, kimberlite lithologies and country rock content within
the material identified as mineral resources from that predicted; (ii)
variations in rates of recovery and breakage; (iii) the uncertainty as to
whether further exploration of exploration targets will result in the targets
being delineated as mineral resources; (iv) developments in world diamond
markets; (v) slower increases in diamond valuations than assumed; (vi) risks
relating to fluctuations in the Canadian dollar and other currencies relative to
the US dollar; (vii) increases in the costs of proposed capital and operating
expenditures; (viii) increases in financing costs or adverse changes to the
terms of available financing if any; (ix) tax rates or royalties being greater
than assumed; (x) uncertainty of results of exploration in areas of potential
expansion of resources; (xi) changes in development or mining plans due to
changes in other factors or exploration results; (xii) changes in project
parameters as plans continue to be refined; (xiii) risks relating to the receipt
of regulatory approvals or the implementation of the existing Impact and
Benefits Agreement with aboriginal communities; 

(xiv) the effects of competition in the markets in which Stornoway operates;
(xv) operational and infrastructure risks; (xvi) execution risk relating to the
completion of the Route 167 extension; (xvi) future sales or issuances of Common
Shares lowering the Common Share price and diluting the interest of existing
shareholders; (xvii) Stornoway being unable to meet its diamond delivery
obligations under the purchase and sale agreement for the forward sale of
diamonds, (xviii) Stornoway's ability to comply with its obligations under the
various agreements forming part of the Financing Transaction and to draw on the
funding available under those financing elements, and (xviii) the additional
risks described in Stornoway's most recently filed Annual Information Form,
annual and interim MD&A and the final short form prospectus filed for the
marketed public offering, and Stornoway's anticipation of and success in
managing the foregoing risks. Stornoway cautions that the foregoing list of
factors that may affect future results is not exhaustive, and new, unforeseeable
risks may arise from time to time. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Matt Manson
President and CEO
416-304-1026 x101


Orin Baranowsky
Director, Investor Relations
at 416-304-1026 x103
Toll Free: 1-877-331-2232
www.stornowaydiamonds.com
info@stornowaydiamonds.com