News

July 12, 2007

Sanatana Diamonds Inc. -- Exploration Progress Report for Mackenzie Diamond Project

Vancouver, British Columbia, Canada, July 12, 2007. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (ticker symbol STA TSX-V or SAN London AIM) is pleased to announce an exploration update for its Mackenzie diamond project.

Following the successful completion of the spring exploration program, which consisted of an Aeroquest Impulse EM and magnetic airborne survey using a helicopter over the Green Horn, Yeltea and Simpson indicator mineral, dispersion anomalies, the exploration crews have returned to the field to commence the summer sampling program.

Ground geophysical crews (magnetics and Max-Min) have completed the first phase of follow-up in the Green Horn area, on data generated by the Aeroquest survey, and several "kimberlite" drill targets are now in hand. The most prominent of these, dubbed "G14", is a 250m by 130m isolated magnetic anomaly that is at the termination of a major indicator mineral train. This will be the first drill target.

After conducting two community consultation meetings and a traditional knowledge study, the Company has submitted its application for a drill permit to the Sahtu Land and Water Board. The Company anticipates that the permit will be granted to enable drilling to commence in September.

Helicopter supported till sampling, based out of Fort Good Hope in the Yeltea area, commenced this week. All of the sampling planned for this year is designed to further define the known indicator mineral anomalies. The sample spacing is now close enough to start defining individual sources within the larger indicator mineral anomaly which the Company believes presently defines the kimberlite field. The work this year will begin to define individual sources within the field.

During the till sampling program, designed to find diamonds and their indicator minerals, the Company has been directing a portion of the sample to multi-element trace element analysis. This work has revealed five separate areas where there is elevated zinc (>250ppm), lead and silver in the till. The highest zinc value found in the till to date is 0.3%. Lead up to 360ppm and silver up to 1.4ppm has also been recorded. Ground traverses in one of these areas have recovered galena and sulphide float. The zinc anomalies appear to be associated within Ordovician limestone. Elsewhere, these same limestones host known mineralization such as the Pine Point, Polaris, and Nanasivik, all past producers of lead, zinc and silver. This style of mineralization is known as Mississippi Valley type and this is the model being used to find the source of these anomalies and float. Sanatana plans to complete a sampling and float mapping program this summer, designed to find the source of these till anomalies.

The budget for the 2007 exploration program is $6.1 million, of which approximately 50% has been spent to date.

Qualified Person
The Sanatana exploration programs are carried out under the supervision of Sanatana's Director and VP of Exploration, Mr. Buddy Doyle. Mr. Doyle meets the qualified person requirements (as defined by National Instrument 43-101) with 26 years of exploration experience, 16 years of which is in diamond exploration.

Forward Looking Statements
Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Sanatana's control, and may include statements regarding resource estimates, potential mineralization, exploration results, completion of work programs and studies, and future plans and objectives. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources, but from finding mineral deposits that though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by any forward-looking statements.

For additional information on the company, please contact:

Sanatana:
Mr. Peter Miles, President and Chief Executive Officer, at 604-408-6680 or email investor@sanatanadiamonds.com.

Insinger de Beaufort (Nominated Adviser):
Jasper Allen/Joe Lunn, at tel: +44 207-190 7000

NEITHER THE AIM MARKET OF THE LONDON STOCK EXCHANGE PLC NOR THE TSX VENTURE EXCHANGE HAS REVIEWED, NOR ACCEPTS RESPONSIBILITY FOR, THE ADEQUACY OR ACCURACY OF THIS RELEASE.

About the Company
Sanatana Diamonds Inc. is focused on the exploration of its Mackenzie Diamond Project, comprised of approximately 5.9 million acres of ground under claims and permits, located north of Great Bear Lake and approximately 700 kilometres northwest of Yellowknife in the Northwest Territories of Canada. The Sanatana Mackenzie project is a joint venture between Kennecott Canada Exploration Inc. and Sanatana Diamonds Inc., where Sanatana operates and Kennecott has a contributing 15%, interest. As part of the joint venture arrangement Kennecott has made available one of their project geologists and a geophysicist from their pool of experienced staff. Sanatana Diamonds, headquartered in Vancouver, is dual listed on the AIM Market of the London Stock Exchange plc and Toronto Venture Exchanges (AIM: SAN, TSX.V: STA).