News

May 2, 2006

Sanatana Announces Final Permits for Drilling Granted and Provides Exploration Update

Toronto, Ontario, Canada, Tuesday, May 2, 2006. Sanatana Diamonds Inc ("Sanatana or the Company") is pleased to announce that final permits for drilling, namely the land use and water permits, for the Kilekale Lake area were granted on April 24, 2006 and drill camp construction has commenced. In addition Sanatana provides an update on exploration activities on the Mackenzie Diamond Project.

Drilling at the Kilekale Lake Targets
The final permits necessary for drilling, namely the land use and the water permits, for the Kilekale Lake targets have been issued. All the necessary camp construction materials are on site at Camp Kilekale and construction has commenced.

The Kilekale Lake area lies 15km north of Great Bear Lake where there are over 30 magnetic anomalies with associated diamond indicator minerals. The Kilekale Lake area is one of 8 areas identified by Sanatana in the Mackenzie Diamond Project area that have kimberlite targets with drill potential.

A helicopter-borne low level magnetic survey has commenced over the Kilkale Lake area at 100m spacings to further define drill targets. Ground magnetics are complete over the first drill target 600m from the Camp Kilekale site.

Dependent on the weather, drilling is expected to commence in the next 10 days to 2 weeks. If the conditions deteriorate, drilling will be held over until after the Spring melt in late June, 2006.

The proposed Spring 2006 Exploration Program in the Kilekale Lake area will test at least 12 targets for potential kimberlites.

Exploration Update
Till Sampling and Airborne Geophysics
The processing and observation of the 2,135 till samples collected during the Summer 2005 exploration program is complete. The addition of these samples to the 2004 till samples data base has resulted in a till sampling density in many areas over the Mackenzie Diamond Project that is equivalent to less than one sample per 3 square kilometers. The results from the 2005 program confirm and reinforce the original 2004 results.

All the data from the 160,000 line kilometer airborne magnetic survey, completed in 2005 by using up to 4 fixed aircraft flying at a 400 meter grid, have been received. The interpretation of this data generated many targets which have signatures consistent with groupings of potential kimberlites with most showing co-incidence between kimberlite indicator minerals collected from the till samples and magnetic geophysical anomalies. Kennecott Exploration Canada Inc. continued to provide geophysical input and interpretation for the Company's airborne geophysical surveys.

An airborne geophysical survey is planned in Spring 2006, to complete the work that was not undertaken due to poor weather conditions late last year.

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 Dubois area are planned for ground geophysical follow up and drilling in the spring and summer of 2006. Ongoing negotiations are taking place for land use permits in these two areas.

The Spring 2006 program has been estimated by Sanatana to cost approximately $3.5 million During the 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.

Total exploration expenditure for 2006 is forecast at $8.3 million, plus staking costs in respect of the Mackenzie Diamond Project area.

Qualified Persons
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.

Sanatana is a Canadian diamond company focused on the exploration of its 16 million acre Mackenzie Diamond Project located north of Great Bear Lake and approximately 700 kilometers northwest of the town of Yellowknife, in the Northwest Territories of Canada Santana is quoted on the London AIM market under the trading symbol "SAN".