News

February 16, 2006

Sanatana Announces Agreement with Diamonds North and Majercor to Acquire Mackenzie Property

Toronto, Ontario, Canada, Thursday, Feb 16, 2006. Canadian diamond explorer,
Sanatana Diamonds Inc. ("Sanatana" or "the Company") (L:SAN) today announced that it has entered into an agreement with Diamonds North Resources Ltd. ("Diamonds North") and Majescor Resources Inc. ("Majescor") to acquire 10 prospecting permits (the "Diamonds North Permits") located within the outer boundaries of Mackenzie Diamond Project Area.

Diamonds North / Majescor Agreement
Sanatana has entered into an agreement with Diamonds North and Majescor to purchase 10 prospecting permits registered in the name of Diamonds North Resources Ltd. and covering approximately 372,208 acres which are strategically located within the outer boundaries of the Mackenzie Diamond Project area.

As consideration for the Diamonds North Permits, the Company granted Diamonds North and Majescor a 1.5% gross overriding royalty on diamonds and a 1.5% net smelter royalty on other minerals (the "Diamonds North Royalties"), agreed to file a report of work and, when received, refund the deposit lodged in respect of the Diamonds North Permits for the 2005 exploration season, and agreed to provide information and data with respect to the Diamonds North Permits. Mathew Mason has retained a 0.5% gross overriding royalty on diamonds and a 0.5% net smelter royalty on other minerals, with respect to the Diamonds North Permits, the "Mason Diamonds North Royalties".

Diamonds North Permits Exploration Program
Sanatana is planning an airborne geophysical program and till sampling program over the Diamonds North Permits.

This airborne program will be carried out in spring 2006, together with the airborne surveys over portions of the Mackenzie Diamond Project that were not undertaken due to weather conditions late last year. Till sampling will take place in summer 2006.

Sanatana Drilling and 2006 Plans
Sanatana has identified 12 separate target areas within its Mackenzie Diamond Project Area where there are coincident magnetic geophysical anomalies and kimberlite indicator mineral concentrations.

Two areas, namely the Kilekale Lake area and the Colville Lake-Lac Des Bois area are planned for ground geophysical follow up and drilling in the spring of 2006. At Kilekale Lake 12 targets have been identified for drilling out of a camp to be constructed in close proximity to the drill sites. On going negotiations are taking place for land use permits in these two areas.
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The spring 2006 program has been estimated by Sanatana to cost approximately $3.5 million.

During summer 2006 additional till sampling, ground geophysics and drilling will be carried out on the other 6 target areas and on a regional basis throughout the Mackenzie Diamond Project area.

Sanatana is listed on the London AIM market under the trading symbol "SAN."