News

January 16, 2008

Issuance of 641,025 Shares

Vancouver, British Columbia, Canada, January 16, 2008. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (TSX-V:STA and AIM:SAN) is pleased to announce that the subscription for common shares of the Company by an affiliate of Kennecott Canada Exploration Inc., as previously announced on December 21, 2007, has now been completed. The affiliate, QIT-Fer et Titane Inc., acquired 641,025 common shares at a price of C$1.56 per share. The shares may not be traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada until May 16, 2008. There are 55,006,096 issued and outstanding common shares of Sanatana Diamonds Inc. following the issuance of the above shares. An application will be made for the new ordinary shares issued pursuant to the above subscription to be admitted to trading on AIM on January 21, 2008.


FOR FURTHER INFORMATION PLEASE CONTACT:

Sanatana Diamonds Inc.

Mr. Peter Miles
President and Chief Executive Officer

Phone: (604) 408-6680 or Toll Free: 1-877-881-6680
Fax: (604) 408-6682
Email: investor@sanatanadiamonds.com
Website: www.sanatanadiamonds.com

OR

Seymour Pierce Limited (Nominated Adviser)
David Newton
Phone: +44 (0) 20 7107 8000
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.