News

October 2, 2007

Sanatana Discovers Kimberlite on the Greenhorn Project -- Northwest Territories

Vancouver, British Columbia, Canada, October 2, 2007. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (ticker symbol STA TSX-V or SAN London AIM) is pleased to announce that it has discovered a kimberlite on the Company's Greenhorn project, Northwest Territories.

Sanatana received the land use permit on the 23rd of August, which gave it permission to conduct a drill program. Camp construction commenced on the 31st of August and was completed by the 14th of September. The drill was mobilized to the site on the 22nd of September, and drilling began on the 29th of September.

Kimberlite (subject to verification by petrology), was intersected at 5.5m depth during the drilling of a vertical hole on the G14 magnetic anomaly. The new kimberlite has been named "Dharma". Drilling is continuing in kimberlite at >145m depth. The drill core shows a volcanic breccia with country rock dolomite fragments in a dark, fine grained matrix with numerous olivine macrocryst. Drilling on this hole will continue as long as it remains in kimberlite or until the drill reaches the end of its supply of drilling rods at 250m.

The G14 target was selected as the first to be tested in the drilling program as it presented a 300nt complex magnetic high measuring 160m by 100m at the head of a prominent indicator mineral train in the down ice till. The indicators in the train include the full spectrum of minerals usually encountered from a diamond bearing kimberlite, namely: 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.

Sanatana intends to take 750kg to 1000kg of split NQ size core from this kimberlite for caustic fusion analysis of the micro-diamond content. Three to four vertical and angle holes will be completed to achieve this. This drilling will also help determine the true size of the target and if there is any geological complexity. Heavy mineral concentrate will also be taken from the core with a view to verifying that the indicator chemistry matches that in the indicator train.

Management at Sanatana is pleased by this result as it represents a significant milestone after more than three years of work. Linking geophysical anomalies to geochemistry was the key to this discovery. The Company holds at least five other areas outside of the Greenhorn project where it hopes this method will find new diamond bearing kimberlite pipes. Kimberlite emplacement is usually not a solitary event and kimberlite pipes often occur in fields. On average, a kimberlite field contains 30 members, but the number can vary widely. With this knowledge in mind, the Company has been conducting ground magnetic surveys over other potential kimberlite targets in the Greenhorn project area. This work is already demonstrating other kimberlite-like targets that warrant drill testing. The Company is optimistic about discovering additional kimberlite pipes.

Weather will limit how much drill testing can be conducted before the poor visibility and cold make helicopter supported drilling too hazardous. The Company will stand down the rig in 2-3 weeks time to start up again in the new year when spring arrives.

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.

Forward Looking Statements
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control, and may include statements regarding resource estimates, potential mineralization, exploration results, completion or continuation 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 be economic or to return a profit from production. There can be no assurance that such statements and information will prove to be accurate and actual results could differ materially from those suggested by any forward-looking statements and information.

Sanatana disclaims any obligation to update or revise such forward looking statements and information except as required by law.

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 are 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).