News

January 14, 2011

Sanatana Announces Closing of Final Tranche of Private Placement

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia, Canada, January 14, 2011 - Sanatana Diamonds Inc., ("Sanatana" or the "Company", TSX-V: STA). Further to the Company's news releases of December 15, 2010 (the "December 15th News Release"), December 17, 2010, December 30, 2010 and December 31, 2010, Sanatana is pleased to announce that it has closed the final tranche of the private placement and has issued an aggregate of 6,666,666 units (the "Units") at a price of $0.15 per Unit for gross proceeds of $1,000,000. Each Unit consists of one non flow-through common share in the capital of the Company (a "Share") and one half of a share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Share at a price of $0.25 per Share until January 14, 2012. All securities issued in connection with this closing will be subject to a hold period which expires on May 15, 2011.

In connection with this closing, the Company also paid an aggregate cash commission of $47,160 to certain arm's length finders (equal to 6% of the subscriptions placed by the finders) and issued 163,333 non-transferable broker's warrants (the "Broker's Warrants") to an arm's length finder (equal to 7% of the Units placed by the finder). Each Broker's Warrant entitles the holder to purchase one additional Share at an exercise price of $0.25 per Share until January 14, 2012.

The funds raised from the third tranche will be used for the purposes described in the December 15th News Release.

About the Company

Sanatana Diamonds Inc. is an exploration stage company seeking new projects to complement its existing properties in the Northwest Territories and the Yukon. With an experienced management team and board of directors, Sanatana has the skills required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX-V: STA).

SANATANA DIAMONDS INC.

"Peter Miles"

Peter Miles
President and Chief Executive Officer

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

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement Regarding "Forward-Looking" Information

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 can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.