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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Sanatana Diamonds Inc., ("Sanatana" or the "Company") (TSX VENTURE:STA) reports that it has entered into an option agreement (the "Agreement") with Marmac Mines Ltd. ("Marmac") to acquire up to a 50% undivided interest in four mineral concessions located in the Piche Lake area of Alberta, approximately 170 kilometres northeast of Edmonton (the "Property"). The Property is road accessible and is comprised of four contiguous industrial and metallic mineral permits consisting of approximately 27,323 hectares.

Marmac is the registered and beneficial owner of the Property, is a privately held company incorporated pursuant to the laws of Alberta and is arm's length to the Company.

Pursuant to the Agreement, Marmac has granted the Company the exclusive right and option to acquire up to a 50% undivided interest in the Property. The Company will earn a 10% undivided interest (the "10% Interest") in the Property by (i) paying to Marmac the sum of $52,500 upon receipt of TSX Venture Exchange ("TSX-V") approval of the Agreement, (ii) drilling a minimum of two test holes on the Property and retrieving samples necessary to determine the presence of a kimberlite pipe, if any, on or before April 10, 2010 and (iii) incurring a minimum of $100,000 of exploration expenditures on the Property on or before June 30, 2010.

Upon the Company having earned the 10% Interest, Sanatana will have the right to earn a further 40% undivided interest (the "50% Interest") in the Property (for a total undivided interest of 50%) by incurring an additional $1,000,000 in exploration expenditures on the Property on or before April 1, 2012.

Upon Sanatana earning its final interest in the Property, Sanatana and Marmac will enter into a joint venture agreement for the continued development of the Property. Each party's interest in the joint venture will be pro-rata to their respective interest in the Property.

The Agreement and completion of the transactions contemplated therein are subject to the approval of the TSX-V.

About the Company

Sanatana Diamonds Inc. is focused on the exploration of its Mackenzie Diamond Project, comprised of approximately 1.8 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 in which 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 listed on the TSX Venture Exchange (TSX VENTURE:STA).

SANATANA DIAMONDS INC.

Peter Miles, President and Chief Executive Officer

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 the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.