Santana Diamonds Inc Reports on Drilling at Kilekale Lake, NWT

Santana Diamonds Inc Reports on Drilling at Kilekale Lake, NWT

Sanatana Diamonds Inc. (TSX VENTURE: STA)(AIM: SAN) wishes to report on the spring 2006 drill program in and around the Kilekale Lake area at the Company’s Mackenzie Diamond Project, located near Great Bear Lake in Canada’s Northwest Territories.

Drilling at the Kilekale Lake Targets – Spring 2006

The Kilekale Lake area was defined as a possible kimberlite field through Sanatana’s 2005 airborne magnetic study. With the assistance and input from geophysicists from Kennecott Canada Exploration Inc, over 30 magnetic anomalies with some minor associated diamond indicator mineral counts were defined, all of which represented potential kimberlite targets.

Based on the results of these geophysical studies, the relative ease of access to the property and the fact that a land use permit was awarded to Sanatana on May 24th, 2006, Sanatana’s technical team and management made the decision to drill a number of the magnetic anomalies present in the Kilekale Lake area.

A helicopter-borne low level magnetic survey over the Kilekale Lake area at 100 meter spacings was used to define 12 drill targets. Drilling commenced on June 1, 2006 on an ice target located about 600 metres from the Camp Kilekale site. Four out of the 12 targets were drill tested with eight diamond drill holes (total 1225.3 meters) No kimberlite was intercepted. No drilling problems were experienced and all holes were drilled to their planned depths of 47 to 277 meters. The drill program was completed on June 26, 2006. All drill holes intercepted a poorly lithofied mudstone. The overlying glacial till depth varied from 18 meters to 42 meters. Seven of the drill holes passed into a bright red/orange/yellow weathered mudstone profile that persisted for approximately 40 meters before entering into fresh black mudstone. One drill hole went directly into fresh mudstone beneath the till. In most of the drill holes, two distinct till blankets were present, separated by a layer of glaciofluvial material. None of the material cored in the drill holes had sufficient magnetism to adequately explain the magnetic anomalies.

Sanatana’s program is still in the early stages of exploration on this vast land holding and management will continue with its plan to examine thoroughly each of the eight separate areas that have been identified by Sanatana as potential kimberlite targets. The company remains confident in the exploration potential of these areas and the company strongly believes that the experience gained through this early, limited, drill program will prove useful in ranking future potential drill targets. Sanatana has recently applied for additional drilling permits and will report on the summer 2006 work program as soon as the results are available. With the recent additional financial contribution of $2.5 million by Kennecott (see August 23, 2006 press release) and the proceeds from the May 16, 2006 equity financing, the company is fully funded to continue its robust exploration program.

Qualified Person

The Sanatana exploration programs are carried out under the supervision of Sanatana’s VP Exploration, Mr. Buddy Doyle. Mr. Doyle meets the qualified person requirements (as defined by National Instrument 43-101) with more than 25 years of experience in the gold and diamond exploration industry.

About the Company

Sanatana Diamonds Inc. is focused on the exploration of its 16-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 in active exploration of this area since early 2004 and has an agreement with diamond-producer Rio Tinto’s subsidiary, Kennecott Canada Exploration Inc. Till samples taken from Sanatana’s Project have recovered superior kimberlite indicator mineral results and exploration continues on a number of potential kimberlite targets. To date, eight separate areas have been identified by Sanatana that have potential kimberlite targets.

Sanatana Diamonds, headquartered in Vancouver with a Toronto corporate office, is dual listed on the AIM Market of the London Stock Exchange plc and Toronto Venture stock exchanges (TSX VENTURE:STA, AIM:SAN).

Contacts: Sanatana Diamonds Inc. Naomi Nemeth Vice President, Investor Relations (416) 368-1820, ext 26

Sanatana Diamonds Inc. Peter Miles Executive Vice President

(604) 408-6680

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