Sanatana Diamonds Inc. . is a Canadian-based diamond exploration and development company focused on its 5.9 million acre Mackenzie Diamond Project located north of Great Bear Lake and approximately 700 kilometres northwest of Yellowknife, in the Northwest Territories of Canada. The company has been an active explorer of this area since early 2004 and has an agreement with Rio Tinto's diamond-focused subsidiary, Kennecott Canada Exploration Inc. ("Kennecott"), to help fund and develop this project. The results of four extensive till sampling programs in 2004 to 2007 have recovered superior kimberlite indicator mineral results and have led to the discovery of what is now called the Dharma kimberlite.

Founded in June of 2004, Sanatana acquired the diamond and mineral rights to the initial prospecting permits and claims that make up the Mackenzie Diamond Project through what is referred to as the Jaeger Agreement. Subsequent to the Jaeger Agreement, additional claims and prospecting permits were acquired in the same geographic area as the initial claim block.

Sanatana began trading on London's AIM (ticker symbol: SAN) in July 2005 and listed on the TVX Venture Exchange in Canada (ticker symbol: STA-V) in May 2006. Since its inception, Sanatana has raised more than C$20 million to fund its exploration programs and boasts a strong balance sheet coming through 2006 and into 2007.

The company has an experienced and active Board of Directors and exploration programs are managed by a team of proven mine-finders. Buddy Doyle, Sanatana's vice president in charge of exploration, leads the technical team with support from Kennecott, the North American subsidiary of Rio Tinto, the company that is responsible for the discovery and development of the currently-producing Diavik diamond mine, located 300 kilometres northeast of Yellowknife in the Northwest Territories. As per the terms of the Mackenzie Project Joint Venture Agreement between Sanatana and Kennecott, Kennecott has earned a 15% in the Mackenzie Diamond Project and has the right to earn up to 60% interest in any diamond discovery by funding and developing any project to a bankable feasibility study. This relieves Sanatana of the cost and risk of developing the project and provides access to Rio Tinto / Kennecott's expertise and management teams.

Sanatana Diamonds Inc., located in Vancouver, is dual listed on the London AIM and TSX Venture Exchange (AIM:SAN, TSX-V:STA).

This information is disclosed for the purposes of Rule 26 of the AIM Rules for Companies.