News

February 5, 2008

Sanatana Announces Closing Of Private Placement

Vancouver, British Columbia, Canada, February 5, 2008. Sanatana Diamonds Inc. ("Sanatana" or the "Company") (TSX-V:STA and AIM:SAN) is pleased to announce that it has closed its previously announced private placement of 4,200,055 Units and 2,793,500 Flow-Through Shares at a price of $1.35 per Unit and $1.55 per Flow-Through Share, raising total gross proceeds of $9,999,999.25. The Units consist of one common share of the Company and one-half of one warrant, each whole warrant entitling the holder to purchase one common share of the Company at an exercise price of $1.65 for a period of 18 months following the closing. A syndicate of agents led by Genuity Capital Markets and including J.F. Mackie & Company Ltd., Haywood Securities Inc. and Raymond James Ltd. acted as agents in connection with the brokered portion of the private placement. The agents received broker warrants to purchase in aggregate 489,549 common shares of the Company at an exercise price of $1.35 for a period of 12 months following the closing. All securities issued in connection with the private placement are subject to a four month hold period ending June 6, 2008.

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):
Nandita Sahgal, at +44 (0) 20 7107 8000 or email
nanditasahgal@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.