News

December 21, 2007

Kennecott Exercises Option To Subscribe For C$1 Million Of Sanatana Common Shares

Vancouver, British Columbia, Canada, December 21, 2007. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (TSX-V:STA and AIM:SAN) is pleased to announce that Kennecott Canada Exploration Inc. ("Kennecott"), in order to preserve its right to increase its interest under the Mackenzie Project Agreement dated July 19, 2005, as amended, has notified the Company that it will exercise its option to subscribe for C$1 million of Santana common shares with the subscription price per share to be set pursuant to the terms of the Mackenzie Project Agreement.

The subscription will close on January 15, 2008. Pursuant to the Mackenzie Project Agreement, proceeds from the sale of the share to Kennecott must be used to pay deposits under the Canada Mining Regulations in respect of the exploration area tenures of the Mackenzie Diamond Project and for expenditures associated with sampling programs.

A description of the relevant terms of the Mackenzie Project Agreement (also referred to as the "Kennecott Agreement") can be found in the Company's prospectus dated April 19, 2006 available at www.SEDAR.com.

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.

Seymour Pierce Limited (Nominated Adviser):
David Newton, at +44 (0) 20 7107 8000 or email davidnewton@seymourpierce.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., which Sanatana operates and Kennecott has a participating 15% interest. As part of the joint venture arrangement, Kennecott has made available one of their project geologists and a geophysicist. 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).