January 31, 2008                                 

Shear reports HIGH DIAMOND COUNTS FROM FOUR kimberliteS DISCOVERED at churchill IN 2007

Shear Minerals Ltd. (SRM:TSXV) and Stornoway Diamond Corporation (SWY:TSX) today announced additional caustic fusion results from four new kimberlite discoveries at the Churchill Diamond project in Nunavut. The kimberlite dykes identified from drilling in 2007 have returned significant micro and macrodiamond counts ranging from 29 to 138 diamonds per kilogram of kimberlite analyzed.

“Field activities at Churchill in 2007 identified additional, highly diamondiferous kimberlite bodies in close association with prominent structural trends,” says Shear President and CEO Pamela Strand. “Given the extremely high diamond counts, which in some cases exceed 100 diamonds per kilogram, the partners are optimistic that Churchill has the potential to host an economic diamond resource.”

Ms. Strand says that future work will include prospecting, geophysics and drilling along these favorable structures to examine grade variability and search for zones of higher tonnage potential.

In 2007 drilling discovered four new kimberlite dykes that are of high interest based on initial field observations confirmed by microdiamond counts (see October 11, 2007 news release). These kimberlites occur at the heads of three different G10 pyrope mineral trains in the Sedna Corridor and are believed to be the source of the mineral chemistry based on their close spatial association. The kimberlite dykes range in size from 10 to 50cm true width and are highly altered with visible pyrope garnets. 

Samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion.  Diamonds from these four dykes will be described, categorized and assessed for any breakage.  Complete diamond recoveries were as follows:

¹ The three largest diamonds measured 1.1mm x 0.9mm x 0.7mm; 0.78mm x 0.6mm x 0.5mm; 0.7mm x 0.5mm x 0.4mm

² The three largest diamonds measured 2.7mm x 1.9mm x 0.32mm; 0.92mm x 0.9mm x 0.24mm; 1.14mm x 0.74mm x 0.34mm

³ The three largest diamonds measured 1.4mm x 1.36mm x 1.1mm; 0.76mm x 0.66mm x 0.6mm; 0.7mm x 0.64mm x 0.48mm

⁴ The three largest diamonds measured 1.86mm x 1.58mm x 1.06mm; 1.74mm x 1.52mm x 0.96mm; 1.62mm x 1.38mm x1.1mm

Additional diamond results are also reported from the Meeka kimberlite. Meeka is an east-west linear kimberlite dyke 500m in length and open in both directions (based on interpretation from ground geophysics). It is located southeast of the Jigsaw kimberlite and was discovered by prospecting in 2007 (October 11, 2007 news release). A 15 kg sample of green coloured till adjacent to Meeka was sampled previously and returned nineteen diamonds using caustic fusion. During 2007 a 102.8 kg sample of weathered kimberlite was collected for testing with caustic dissolution in addition to a larger 1.8 tonne mini bulk sample for processing utilizing dense media separation (DMS).  Complete diamond recovery results from caustic fusion of the 103kg sample at SRC are as follows:

¹ The three largest diamonds measured 0.4mm x 0.3mm x 0.3mm; 0.28mm x 0.28mm x 0.22mm; 0.28mm x 0.2mm x 0.2mm

Prospecting on the property in 2007 also identified 16 new kimberlite discoveries occurring as outcrop and sub crop. A total of 291kg of kimberlite was collected in 15 to 25kg grab samples from each new outcrop and sub crop occurrence. In addition to the outcrops and sub crops, nine unforced kimberlite float anomalies were found. Recently completed caustic fusion of these samples did not return any significant diamond results.

The Churchill Diamond Project is owned 58.14% by Shear and 41.86% by Stornoway and is comprised of the diamond rights to more than two million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kigali region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tone. The 2008 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.  Ms. Burgess is an independent consultant to Shear and has reviewed this news release.

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives.  There can be no assurance that such statements will prove accurate.  Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected.  Important factors that could cause actual results to differ materially from either of the Companies’ expectations are in Company documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com.  The Companies disclaim any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.