News

August 29, 2007

Sanatana receives drill permit for Greenhorn project, begins camp construction, drilling program will follow.

Vancouver, British Columbia, Canada, August 29, 2007. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (ticker symbol STA TSX-V or SAN London AIM) is pleased to announce that it has received its Land Use Permit from the Sahtu Land and Water Board. This permit allows camp construction and drilling on our promising Greenhorn target.

The prime target at Greenhorn, designated G14, is a double lobed magnetic high. Close spaced sampling (nominal 300m spacing) around this target has demonstrated that it is at the head of a prominent indicator mineral train. The indicators include the full spectrum of minerals you would expect from a diamond bearing kimberlite; pyrope, eclogitic garnet, ilmenite, chromite, chrome diopside and olivine. Electron microprobe results show that many of these indicator minerals have chemistry consistent with diamond mineralization.

The G14 magnetic anomaly, measuring 160m by 100m lies in a till covered area of subdued topography. This will be the first drill target. Numerous other kimberlite targets exist in the area and these will also be the subject of drill testing.

Camp construction has begun and once complete drilling, with a small heli-portable diamond drill rig, will commence.

Meanwhile, Sanatana's summer sampling program has been completed with 1100 follow-up till samples taken. These samples are designed to enhance known indicator mineral anomalies around the region and test for indicator dispersion emanating from kimberlite-like magnetic targets in the Colville and Simpson areas. Ground geophysical crews have recently completed magnetic surveys in the Simpson area.

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):
Nandita Sahgal, 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.

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.

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).