Stornoway Closes $11.5 Million Equity Financing; Proceeds to be Used for Renard Diamond Project

pStornoway Diamond Corporation has closed the equity financing previously announced on February 3, 2010 pursuant to which Stornoway has sold 23,000,000 common shares at a price of $0.50 per share for gross proceeds of $11,500,000 (the Offering)./p
pThe Company intends to use the net proceeds of the Offering to complete a bankable feasibility study and conduct exploration activities on the Renard Diamond Project, and for general working capital purposes.br /
The transaction was completed by a syndicate of underwriters led by Canaccord Financial Ltd. and including Cormark Securities Inc., Haywood Securities Inc., Desjardins Securities Inc., BMO Capital Markets, Paradigm Capital Inc. and Raymond James Ltd. (the Underwriters). The Underwriters received a cash fee equal to 6.5% of the gross proceeds from the sale of 16,000,000 of the common shares and 3% from the sale of 7,000,000 common shares pursuant to the Offering and broker warrants entitling the Underwriters to subscribe for up to 1,380,000 common shares of the Company at $0.50 per share until February 23, 2012.br /
The Company has granted the Underwriters an over-allotment option, exercisable in whole or in part at the sole discretion of the Underwriters at any time prior to the 30th day following the close of the Offering, to purchase up to an additional 3,450,000 Common Shares at a price of $0.50 per share./p
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About Stornoway Diamond Corporationbr /
Stornoway Diamond Corporation is one of Canadas leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in seven Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond pipeline from exploration to marketing./p

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