News

April 19, 2006

Sanatana Announces Kennecott Agrees to Further $2.5 Million Exploration Contribution

Toronto, Ontario, Canada. Wednesday April 19, 2006 -- Sanatana Diamonds Inc. (the "Company") (AIM:SAN) is pleased to announce that Kennecott Canada Exploration Inc. ("Kennecott") has notified the Company that it intends to contribute $2.5 million on or before July 28, 2006 to the Company's 2006 exploration program. If Kennecott makes this contribution, it will earn a 15% interest in the Company's Mackenzie Diamond Project pursuant to the exploration and development agreement between the Company and Kennecott.

The principal terms of this exploration and development agreement are as follows:
• the Company manages and operates its exploration programs;
• Kennecott subscribed for C$2.5 million worth of the Company's shares at the time of the Company's admission to the Alternative Investment Market of the London Stock Exchange;
• Kennecott contributed C$2.5 million towards the Company's 2005 exploration
programs; and
• Kennecott may contribute a further C$2.5 million towards the Company's 2006
exploration programs on or before July 28, 2006.

By completing this C$7.5 million investment, Kennecott will earn a 15% interest in the Company's Mackenzie Diamond Project.

The exploration and development agreement also grants Kennecott the right to earn additional rights in any individual kimberlite project within the Company's Mackenzie Diamond Project on the following basis:
• Kennecott will earn a 49% interest in each individual project by completing, at its sole expense, a bulk sample and a positive feasibility study within 4 years; and
• Kennecott will earn a further 11% interest in each individual project by solely funding and managing all future evaluation through to such time as a decision to mine is made, provided that a decision to mine is made within twenty years of Kennecott earning the initial 49% interest in the individual project.

Sanatana Drilling and 2006 Plans
Sanatana has identified 8 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.

The spring 2006 drill program has been estimated by Sanatana to cost approximately $3.5 million.

During the summer of 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" and is a diamond exploration company with 382 prospecting permits over a total of 15,865,171 acres in the Northwest Territories and Nunavut.