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Stornoway Confirms Negotiations for Project Financing

March 27, 2014

Stornoway Diamond Corporation (TSX-SWY) announced today that while it does not generally respond to rumors or media speculation, Stornoway is aware of unusual trading activity in its common shares and reports that the Company is in advanced negotiations with a number of parties regarding a comprehensive financing plan for its Renard diamond project located in north-central Québec.

Although management is encouraged with progress made in discussions to date, the outcome of these discussions is uncertain and subject to further negotiation and conclusion of binding term sheets and definitive agreements, and receipt of all applicable regulatory, shareholder and other approvals. There is no assurance that any transaction will result from these discussions, or as to the timing, structure or terms of any transaction (which may include any combination of debt, equity, forward sale of diamonds and other forms of financing) and no further comment will be forthcoming unless the situation so warrants.

Investors are cautioned that any statements or speculation made by parties other than Stornoway may be unsubstantiated, false or premature and Stornoway cannot be responsible for any investment losses attributable to reliance on such statements or speculation.

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 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 under National Instrument (“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 16.9 million carats classified as Inferred Mineral Resources, and 25.7 to 47.8 million carats classified as non-resource exploration upside. 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, the technical report dated February 28th, 2013 in respect of the January 2013 Optimization Study and the Stornoway press release dated July 23, 2013, 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 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 Québec’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

For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x101
or Orin Baranowsky (Director, Investor Relations) at 416-304-1026 x103
or toll free at 1-877-331-2232

** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **

NT2

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