News

October 24, 2007

Sanatana Completes CDN $3.7 Million Financing

Vancouver, British Columbia, Canada, October 24, 2007. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (ticker symbol STA TSX-V or SAN London AIM) is pleased to announce that it has completed a brokered private placement of 6,669,000 flow-through units at a price of $0.30 per flow-through unit and 6,846,420 common share units at $0.25 per common share unit for gross proceeds of $3.7 million through J.F. Mackie & Company Ltd. ("J.F. Mackie").

Each flow-through unit comprises one common share issued as a "flow-through share" pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant, each whole warrant entitling the holder to purchase one common share at the price of $0.35 per share for a period of 18 months. Each common share unit comprises one common share of the Company and one-half of one common share purchase warrant, each whole warrant entitling the holder thereof to purchase one common share at the price of $0.30 per share for a period of 18 months.

Proceeds of the sale of the flow-through units will be used for exploration expenditures on the Company's Mackenzie Diamond Project and are eligible for flow-through share treatment under the Income Tax Act (Canada). The proceeds of the sale of the common share units will be used to fund further exploration on the Mackenzie Diamond Project and for general working capital purposes.

In consideration for services rendered in connection with this private placement, Sanatana paid J.F. Mackie a cash commission equal to 8% of the gross proceeds and paid J.F. Mackie's reasonable expenses in connection with the private placement which are estimated at $45,000.

Application will be made for 13,515,420 new ordinary shares to be admitted to trading on AIM. Dealings are expected to commence on October 31, 2007.

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 or email
nsahgal@insinger.com

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).