BUILDING QUÉBEC’S FIRST DIAMOND MINEAnnual General Meeting, October 21st 2014, Montreal

Matt Manson Patrick GodinPresident, CEO & Director COO & Director

2

Forward-Looking Information

This presentation contains "forward-looking information" within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning

of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements”,

are made as of the date of this presentation and the Company does not intend, and does not assume any obligation, to update these forward-looking statements,

except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not

limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of future production over any period; (iii) net

present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, average ore recovery, internal dilution, mining

dilution and other mining parameters set out in the Feasibility Study or Optimization Study; (v) assumptions relating to gross revenues, operating cash flow and

other revenue metrics set out in the Feasibility Study or Optimization Study; (vi) mine expansion potential and expected mine life; (vii) expected time frames for

completion of permitting and regulatory approvals and making a production decision; (viii) future exploration plans; (ix) future market prices for rough diamonds;

and (x) sources of and anticipated financing requirements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs,

plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”,

“projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”,

“would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and

may be forward-looking statements.

Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or

achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such

statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Stornoway will

operate in the future, including the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals. Certain important factors that could cause

actual results, performances or achievements to differ materially from those in the forward-looking statements include, but are not limited to: (i) required capital

investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) receipt of regulatory approvals on acceptable

terms within commonly experienced time frames; (iv) anticipated timelines for the commencement of mine production; (v) market prices for rough diamonds and

the potential impact on the Renard Project’s value; and (vi) future exploration plans and objectives. Additional risks are described in Stornoway's most recently

filed Annual Information Form, annual and interim MD&As, and other disclosure documents available under the Company’s profile at: www.sedar.com.

When relying on our forward-looking statements to make decisions with respect to Stornoway, investors and others should carefully consider the foregoing factors

and other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whether written or oral, that may be made

from time to time by Stornoway or on our behalf, except as required by law.

Readers are referred to the technical report dated as of February 28th, 2013 entitled “The Renard Diamond Project, Québec, Canada, Feasibility Study Update, NI

43-101 Technical Report, February 28, 2013” in respect of the January 2013 Optimization Study, and the press release dated July 23, 2013 in respect of the July

2013 Mineral Resource estimate for further details and assumptions relating to the project. The Qualified Persons that prepared the technical reports and press

releases that form the basis for the presentation are listed in the Company’s AIF dated July 29, 2014. Disclosure of a scientific or technical nature in this

presentation has been reviewed and approved by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a “qualified person” under NI 43-101.

3

Hume Kyle

Independent

Zara Boldt

CFO and VP

Finance

Pat Godin

COO & Director

Matt Manson

President, CEO

& Director

John LeBoutillier

Independent/

IQ Designate

Monique Mercier

Independent/

IQ DesignatePeter Nixon

Independent

Ebe Scherkus

Independent/

Board Chairman

Executive Officers

Non-Executive Directors

Key Managers

Head Office: Longueuil, Québec

Exploration Office: North Vancouver, BC

Community Offices: Mistissini & Chibougamau Québec

Stornoway’s Board and Management Team

Serge Vézina

Independent

Yves PerronVP Engineering

& Construction

Ghislain

PoirierVP Public Affairs

Brian Glover VP Asset

Protection

Martin BoucherVP Sustainable

Development

Robin

Hopkins VP Exploration

Orin

BaranowskyDirector, IR

Guy BourqueChief Mining

Engineer

Douglas Silver

Orion Designate

Ian HollVP Processing

Helene

RobitailleDirector, HR

Mario

CourchesneConstruct. Manager

Jean-Charles

DumontCorporate Controller

Freddie

MianscumIBA Implem. Officer

Gaston Morin

Independent/

IQ Designate

4

From the 2013 AGM…

43

Québec’s First Diamond Mine is Ready to Build

Project Green-lighted: Authorizations Issued

Community Agreements in Place

Stornoway Operating Team in Place

Access Road Opened

Resource Growing

Project Design Fully Optimized

Favourable Cost Environment

Stornoway is Fully Focused on the

Timely Completion of Final Project

Financing

5

Project Financing Announced April 9th, 2014, Closed July 8th 2014

The C$946m Project Financing Transaction for the Renard

Diamond Project was the Single Largest Project Financing

Transaction for a Publicly Listed Diamond Company

Highlights of the Transaction:

One-shot financing of all project costs, contingencies,

working capital requirements and financing costs.

Fully funds the project through to production.

Careful balance of stream, debt and equity to

maximize shareholder value growth from project

development.

Sponsors:

• Orion Mine Finance

• Investissement Québec/Ressources Québec

• Caisse de dépôt et placement du Québec

6

Renard Project Financing Structure

TypeAmount

(% of Total)Description

Common Equity C$374M (40%)• C$132M marketed public equity offering of subscription receipts

• C$242M private placement to Orion (US$110M), RQ (C$100M) and Caisse (C$22M)

Diamond Stream US$250M (29%) • 20% diamond stream (Orion 16%, Caisse 4%) with ~US$56/ct(1) ongoing payment

Convertible Debentures US$81M (9%)• Provided by Orion; 7 year, 6.25% coupon, 35% conversion premium to equity issue

price

Senior Debt C$120M (11%) • Provided by IQ; 7 year amortizing payment, Fixed (QC Bond)+5.75% or Prime +4.75%

Equipment Financing US$35M (4%) • Provided by Caterpillar

Cost Overrun Facility C$48M (5%)• C$20M provided by IQ (same terms as senior debt)

• C$28M provided by Caisse (unsecured, 7 year term, 10% coupon)

Total C$946M (100%)

Assumes US$1.00 = C$1.10

1. Includes reimbursement of marketing expenses

Counter-PartyAmount

(% of Total)

Orion Mine Finance C$367M (39%)

Investissement Québec/

Ressources QuébecC$240M (25%)

Caisse de dépôt et

placement du QuébecC$105M (11%)

Caterpillar Financial C$39M (4%)

Public C$195M (21%)

Total C$946M (100%)

C$77M

C$811M

C$946M

C$70M

C$67M

Financing Funding Requirements

New

Financing

Existing

Financing

C$48M COF &

C$27M Working

Capital

Financing

Costs &

Interest During

Construction

Renard Mine

Road

Initial Capex &

Escalation

Allowance

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014YTD

Metals/Mining Oil/Gas Industrial/Consumer

Financials Real Estate/REIT Biotech/Health

Tech/Telecom Other

$12.9

$7.9

$19.9

$12.1

$8.2$6.9

$5.5 $4.3

255

110188

303261

148 129 113

2007 2008 2009 2010 2011 2012 2013 2014 YTD

Total Mining Issuance (C$Bn) Total Mining Issuance (#)

Recent Equity Issue Activity in the Mining Sector

Equity Issuance by Sector (excl. Prefs) Mining Issuance: 2014 YTD

CommentaryTotal Mining Issuance

• In 2013, C$5.5 billion was raised in the mining sector

through a total of 129 transactions

• The vast majority was within the gold sector, followed

by the base metals and silver sectors

• The focus of 2014-YTD has been gold, representing

55.6% of mining dollars raised and 49.3% of mining

volume issued

• Diamonds financings in 2014-YTD have been a larger

proportion of new equity issuances over 2013

Source: Dundee Equity Capital Markets and FP Infomart.

Sub-Sector # Deals C$MM

Gold 53 $2,085.8

Copper 5 $862.8

Uranium 12 $164.7

Silver 5 $127.3

Rare Earth 4 $37.8

Zinc 1 $15.8

Coal 0 $0.0

Molybdenum 0 $0.0

Nickel 1 $5.8

Total 113 $4,334

2014 YTDMining Sector Breakdown

Diamonds 8 $396.5

Diversified 20 $599.3

Lithium 3 $35.0

Iron Ore 1 $3.0

Sub-Sector # Deals C$MM

Gold 58 $4,454.2

Diversified 18 $425.1

Uranium 20 $186.6

Copper 5 $104.6

Lithium 6 $79.6

Silver 4 $54.3

Rare Earth 5 $33.7

Coal 1 $7.7

Molybdenum 0 $0.0

Nickel 0 $0.0

Total 129 $5,497

2013Mining Sector Breakdown

Zinc 4 $65.9

Iron Ore 2 $31.1

Diamonds 6 $54.8

8

Stornoway Apr-14 C$132.0Stornoway Apr-14 C$132.0

Top 15 Equity Offerings in the Mining Sector 2012-2014

2014 YTD 2013 2012

Source: Dundee Equity Capital Markets and Company disclosure.

Issuer Date Size ($ MM)

Lundin Oct-14 C$674.2

Franco-Nevada Aug-14 US$500.4

HudBay Jan-14 C$172.7

Detour Gold Feb-14 C$172.5

Torex Gold Jan-14 C$143.8

Ivanhoe Mines May-14 C$143.8

Rubicon Minerals Feb-14 C$115.1

Mountain Province Diamonds Sep-14 C$100.0

MAG Silver Jun-14 C$79.0

Altius Minerals Apr-14 C$65.0

Pretium Jul-14 US$60.5

Uranium Participation Jan-14 C$57.6

Mountain Province Diamonds May-14 C$45.0

True Gold Jan-14 C$42.0

Issuer Date Size ($ MM)

Barrick Oct-13 US$3,000.2

Detour Gold May-13 C$176.1

Platinum Group Metals Dec-13 C$175.2

Allied Nevada Apr-13 US$150.5

Ivanhoe Mines Sep-13 C$108.0

Guyana Goldfields Jan-13 C$100.0

Paladin Energy Aug-13 C$81.6

Banro Corporation Mar-13 US$67.8

Trevali Mining Nov-13 C$46.0

Santacruz Silver Jan-13 C$40.4

Sulliden Gold Sep-13 C$40.1

Colossus Minerals Jul-13 C$38.0

NGEx Resources Jan-13 C$34.0

Copper Mountain Mining Nov-13 C$30.1

Mountain Province Diamonds Nov-13 C$29.4

Issuer Date Size ($ MM)

Torex Gold Oct-12 C$380.0

NovaGold Feb-12 US$332.5

Ivanplats Sep-12 C$300.8

Detour Gold Jan-12 C$240.8

Rubicon Minerals Feb-12 C$200.9

Sandstorm Gold Aug-12 C$150.1

Detour Gold Nov-12 C$106.0

PMI Gold Oct-12 C$100.0

OceanaGold Dec-12 C$93.3

Continental Gold Nov-12 C$86.3

Pretium Resources May-12 C$80.5

Aureus Mining Nov-12 US$79.8

Labrador Iron Mines Feb-12 C$61.0

Rainy River Resources Nov-12 C$57.5

Premier Gold Feb-12 C$51.8

9

Stornoway Apr-14 C$120.0 Prime + 4.75% 10 Senior Secured Loan

Stornoway Apr-14 US$81.3 6.25% 7 Convertible Unsecured Subordinated DebenturesStornoway Apr-14 US$81.3 6.25% 7 Convertible Unsecured Subordinated Debentures

Stornoway Apr-14 C$120.0 Prime + 4.75% 10 Senior Secured Loan

Recent Debt & Convert Offerings in the Mining Sector

Debt Issuances

Convertible Debt Issuances

Source: Dundee Equity Capital Markets and Company disclosure.

Issuer Date Size ($ MM) Coupon Rate (%) Term (Years) Description

Lundin Oct-14 US$550.0 7.50% 6 Senior Secured Notes

Lundin Oct-14 US$450.0 7.88% 8 Senior Secured Notes

Yamana Gold Jun-14 US$499.5 4.95% 10 Senior Unsecured Notes

Cameco Jun-14 US$499.8 4.19% 10 Senior Unsecured Debentures

Goldcorp Jun-14 US$447.8 5.45% 30 Senior Unsecured Notes

Trevali Mining May-14 US$52.5 12.50% 5 Senior Secured Notes

AuRico Mar-14 US$304.1 8.50% 6 Senior Secured Second Lien Notes

Issuer Date Size ($ MM) Coupon Rate (%) Term (Years) Description

Imperial Metals Sep-14 C$115.0 6.00% 6 Convertible Senior Unsecured Debentures

5N Plus May-14 US$66.0 5.75% 5 Convertible Unsecured Subordinated Debentures

Banro Jun-14 US$40.0 8.00% 3.5 Convertible Preferred Shares

First Quantum Minerals May-14 US$850.0 7.25% 8 Senior Secured Notes

China Gold Jul-14 US$500.0 3.50% 3 Guaranteed Corporate Bond

Goldcorp Jun-14 US$549.3 3.63% 7 Senior Unsecured Notes

Imperial Metals Mar-14 US$325.0 7.00% 5 Senior Unsecured Notes

HudBay Jul-14 US$181.9 9.50% 6 Senior Unsecured Notes

Argex Titanium Jan-14 C$7.5 8.00% 5 Convertible Unsecured Subordinated Debentures

Mason Graphite Mar-14 C$4.2 12.00% 5 Convertible Debentures

North American Palladium Mar-14 C$27.5 7.50% 5 Convertible Unsecured Subordinated Debentures

North American Palladium Apr-14 C$30.0 7.50% 5 Convertible Unsecured Subordinated Debentures

10

Orion Mine Finance & Caisse de dépôt -

Stornoway

Apr-14 US$250 Stream agreement for 20% interest on run of mine diamond production from certain kimberlite bodies from

The Renard Project. Investors to pay the Issuer in 3 deposits.

Orion Mine Finance & Caisse de dépôt -

Stornoway

Apr-14 US$250 Stream agreement for 20% interest on run of mine diamond production from certain kimberlite bodies from

The Renard Project. Investors to pay the Issuer in 3 deposits.

Recent Alternative Finance Agreements in the Mining Sector

Source: Dundee Equity Capital Markets and Company disclosure.

Investor - Issuer Date Size ($ MM) Description

Quintana - Arian Silver Oct-14 US$16 Quintana to receive 78.2% of Zn and Pb from San José until 32MMlbs and 38MMlbs, respectively, are delievered,

and 27.4% thereafter for 50 years. Issuer can buy 50% of stream for US$11MM before 2017. Investor also

acquires US$16MM of senior secured convertible notes to be restructured into new notes (8% interest).

Franco-Nevada - Lundin Oct-14 US$648 Franco-Nevada to receive 68% of payable Au and Ag production until 720k oz Au and 12MM oz Ag are delivered

from 100% of Candelaria; thereafter reduces to 40% of LOM payable metals from 100% of the mine. Acquisition

financing package also consists of C$50MM private placement exclusive of stream value.

JMET - Santacruz Silver Sep-14 US$28 5-year pre-paid forward silver purchase agreement. JMET to receive 4.6MM oz Ag through August 2019 with no

ounces delivered over the first 12 months. Ongoing payments of spot Ag less an undisclosed fixed discount.

Orion Mine Finance - Aldridge Aug-14 US$40 Consists of US$5MM private placement and US$35MM 2-year bridge loan facility. Bridge loan bears interest at

9% plus the greater of 3 month USD LIBOR and 1%. Aldridge also entered into offtake agreements with Orion for

~20% of Pb & ~50% of Au production over the first 10 years of the mine plan.

Gold Holding - Banro Aug-14 US$121 Streams on Banro's Twangiza and Namoya mines for US$41MM and US$80MM, respectively. Investor to receive

40k oz Au from Twangiza mine over 4 years. Investor to also receive 10% LOM Au production from Namoya

including Au processed at the site from other mines within 20 km; maximum deliverable Au of 12k oz per annum.

Franco-Nevada & Sandstorm - True Gold Aug-14 Up to US$120 Franco-Nevada (75%) & Sandstorm (25%) to receive 100k oz Au over 5 years, and 6.5% LOM Au production

from True Gold's Karma Project thereafter. True Gold holds an 18 month option to increase funding by US$20MM

for an additional 30k oz Au. Ongoing payments of 20% of spot Au.

BlackRock - Avanco Jul-14 US$12 2.0% NSR royalty on Cu; 25.0% NSR royalty on Au and 2.0% NSR royalty on all other metals produced from the

Issuer's Antas North and Pedra Branca licensed areas. Additionally, BlackRock to receive a 2% NSR Royalty on

other discoveries within Avanco's current licence portfolio.

Sprott - Veris Gold Apr-14 US$8 0.5% NSR royalty on Veris Gold's Jerritt Canyon mines and processing plant.

Orion Mine Finance - Claude Mar-14 US$12 3.0% NSR royalty on Claude's Seabee Gold Operation. The NSR provides Claude with the option to repurchase

half of the NSR for US$12MM until December 31, 2016.

Franco-Nevada - Klondex Feb-14 US$35 Franco-Nevada to receive 38k oz Au by December 31, 2018, and a 2.5% NSR royalty on Klondex's Fire Creek

and Midas properties commencing 2019. Gold financing package provided to support Klondex's acquisition of the

Midas Mine and Mill Complex from Newmont.

Royal Gold - Rubicon Feb-14 US$75 Royal Gold to receive 6.3% of Au production from Rubicon's Phoenix Project until 135k oz have been delivered

and 3.15% LOM Au production thereafter. Ongoing payments of 25% spot Au. Advance deposit payments from

Royal Gold payable in 5 installments.

11

Shareholding

Share Price (TSX-SWY):October 17, 2014

C$ $0.53

52 week High-Low C$ $0.50–$1.22

Average Daily Volume:2014 YTD

605,302

Average Daily Volume:Since July 8th 2014

1,013,138

Market Capitalization: C$ 387 million

Total Shares Outstanding: 731 million

Total Options & Warrants Outstanding:(25.3m Options $0.40-$5.36; 123.8m

warrants $0.90-$1.21)

149 million

Consolidated Cash1: (as of July 31, 2014)

C$ 438 million

Consolidated Debt1:

(as of July 31, 2014)C$ 182 million

Undrawn Financing Commitments2: (Subject to Financing Agreement CPs)

C$ 462 million

Balance Sheet

Post-Financing Balance Sheet and Capital Structure

Notes

1. Unaudited

2. Assuming a C$:US$ conversion rate of C$1.10

Investissement Québec 28.7% 22.5%

Orion Mine Finance 24.8% 22.0%

CDPQ 6.1% 6.3%

Float 40.4% 49.2%

DilutedBasic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Vo

lum

e (

00

0s)

Pri

ce

12

Renard’s Cash Flow Potential – Base Case Economics

Renard is Expected to Generate Substantial Cash Flow

over its first 11 years of Mining

After Tax, After Stream Operating Cash Flow of between

$150 and $250 million, or $0.20 to $0.30 per share

Assumptions

Mineral reserve case only

Capital and operating cost parameters as established in the January 2013 Optimization Study

and October 2013 LNG FS

Base case diamond pricing from March 2014; No “special” diamonds.

2.5% annual real diamond price escalation

C$:US$ conversion rate of C$1.10

Based on terms of Financing Transaction closed on July 8th 2014

Assumes full conversion to equity of US$81million of Convertible

Debentures giving 825 million shares outstanding.

13

Renard: Québec’s Next Major Mine

Thirteen years in the making

Now, fully permitted, fully financed, fully

accessible, under construction

Diamonds

Growing demand, underpinned by gifting

traditions that are universal, aspirational and

cross-cultural…

…but mined: supply is limited and finite

Strong price outlook

For Stornoway

Focus on budget, schedule, operating

excellence, cash flow

Moving Forward Fully Financed and in Construction

1414

Construction Report (Patrick Godin)

15

Lynx

R10

N

R7

R1Hibou

R4

R9R2

R3

R65

R8

Kimberlite Bodies with

Measured and Indicated

Resources

Hibou

Lynx

R4

R9R2

R3

R65

Kimberlite Bodies with

Resource Potential

R1Hibou

Lynx

Legend

Stornoway Properties

Hydro-Québec Facility

Renard Kimberlites

Kimberlitic Dyke

Regional Kimberlites

Hydro-Québec

Powerlines

Route 167 Extension/

Renard Mine Road

Road

Exploration/ Mining

Projects

LEGEND:

0 1 2

Kilometers

60 0 60 120

Kilometers

Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

Strateco

Eastmain MineWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

Renard Kimberlite Bodies

Kimberlite Bodies with

Inferred Resources

16

The Feasibility: 11 years

of mining on 18mcarat

Mineral Reserve

(24mtonnes)

Permitting and Long

Term Plan

The Vision: Deposit still

Open

40

60

80

100

120

140

Millions

of Tonnes

20

0

TFFE High Range

Inferred Mineral Resource

TFFE Low Range

Indicated Mineral Resource

The Renard Diamond ProjectA Large, High Value Diamond Resource with a Very Long Mine Life Potential

0m

100m

200m

400m

600m

700m

500m

300m

Renard 65

29/24cpht Renard 3

103/112cpht

Renard 2

104/119cphtRenard 9

53cpht

Renard 4

60/50cpht

27 mcarat Indicated Mineral Resource

17 mcarat Inferred Mineral Resource

26-48 mcarat TFFE

Source: Stornoway, 2014

Grades illustrated are for Indicated and Inferred Mineral Resources respectively at a +1DTC sieve

size cut-off. Reserve and Resource categories are compliant with the "CIM Definition Standards on

Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have

demonstrated economic viability. The potential quantity and grade of any Exploration Target

(previously referred to as a “Potential Mineral Deposit”) is conceptual in nature, and it is uncertain if

further exploration will result in the target being delineated as a mineral resource.

Renard Mine Plan and Key Operating AssumptionsA Combined Open Pit and Underground Operation

0m

100m

200m

400m

600m

700m

500m

300m

Notes

1. Key Assumptions:C$1=US$1, Oil US$95/barrel, 2.5% real terms diamond price growth,

82.9% ore recovery, 23.8% mining and internal dilution, 0cpht dilution grade.

2. Expressed in May 2011 terms. Average price US$190/carat in March 2014 terms.

3. Expressed in October 2012 terms, as adjusted in October 2013 LNG FS. Includes

C$754m of costs and contingencies and C$57m of escalation allowance.

4. Expressed in October 2012 terms. Operating costs C$54/tonne in October 2013 LNG

FS terms. Excludes capitalized preproduction costs.

5. Before stream

Reserve and Resource categories are compliant with the "CIM Definition Standards on Mineral

Resources and Reserves". Mineral resources that are not mineral reserves do not have

demonstrated economic viability. The potential quantity and grade of any Exploration Target is

conceptual in nature, and it is uncertain if further exploration will result in the target being

delineated as a mineral resource.

Reserve Based Mine Plan1

(Jan 2013 FS Optimization and October 2013 LNG

Option FS)

Mine Life 11 years

Mineral Reserve 17.9 mcarats

Ave. Diamond Price2 $180/carat

Production Rate 2.2 mtonnes/yr

Ave. Diamond Production 1.6 mcarats/yr

Gross Revenue (C$M)2 $4,268

Initial Capital Costs3 $811m

Operating Cost4 $58/t ($76/carat)

Operating Margin5 67%

Payback 4.8 years

Resource Based Mine Plan(Basis of December 2012 ESIA and Mine Permitting. Not

public disclosure consistent with NI 43-101)

Includes the mining of 2.3mcarats of Indicated

Resources within a Renard 65 open pit,

additional Inferred Resources in Renard 2, 3, 4

and 9, and an increased annual processing

capacity up to 2.5mtonnes/yr.

Increased project valuation and mine life.

Renard 65Renard 2 Renard 3

Renard 4

Renard 9

17

18

Project Well Prepared for Execution

Project Site July 2014

Site Layout under Construction

Access Infrastructure in Place

Renard Mine Road opened to traffic on Aug. 30th 2013.

Renard Aerodrome opened to landings Nov. 5th 2013.

Owner’s Team and EPCM in Place

Owner’s construction team located in Longueuil. EPCM

contract negotiated with SNC-Lavalin, DRA & AMEC.

Authorizations and Social Licence

Mecheshoo Agreement signed with Crees in March

2012, partnership agreements with Chibougamau and

Chapais in July 2012, Quebec and Federal

Authorisations in Dec. 2012 and July 2013 respectively.

Favourable Construction Environment

Competitive cost environment and good contractor/

labour availability in Québec.

LNG Power

LNG power option selected to utilize all-season road

and commercial LNG distribution network in Québec.

R65 Borrow Pit

Exploration Camp

Lac Lagopede

19

Kick Off: Ground Breaking Ceremony, July 10th 2014

20

Waste Rock

Processed

Kimberlite

Containment

(PKC)

Overburden

StockpileR2-R3

Ore Stockpile

R65

Accommodation Complex

Plant

Road from Chibougamau

Garage

Administration

Portal

General Project Arrangement

Fuel Storage

2

3 4

5

1

Early Construction Focus

21

Site ProgressSite Overview by Week 10

Project Site September 23rd, 2014

Construction

Camp

1: R65 Borrow Pit

and Pre-strip

3: Major Facilities Pads

(Plant, Garage, Admin)

2: Permanent Camp Construction

Pad and Box-

Cut for Decline

Portal

Future R2-R3 Pit

Location

5: Water

Management

Ditches

4: Overburden

Storage

22

Site ProgressBorrow Pit and Pre-Strip at Renard 65

Construction Camp

R65 Sample Pit

Borrow Pit

R65 Borrow Pit, August 2014

23

Site ProgressCivil Works at Permanent Camp

Permanent Camp Pad, August 2014 Module Foundations, September 23rd 2014

Site Overview, September 23rd 2014First Dorm Wing, October 3rd 2014 Three Wings In, October 11th 2014

24

Site ProgressCivil Works at Plant, Garage and Admin Office Sites

Site Overview, September 23rd 2014

Permanent Camp Construction Plant Site Preparation

Site Overview, October 11th 2014

Permanent Camp

DormitoriesAdministration (Mine

Dry) and Garage Pads

Process Plant and

Crusher Pads

25

PKC

Waste Rock

Overburden

Ramp Portal

Process

PlantWaste Water

Management

Schematic

Mine wastewater

treatment plantCollection Ditches

Pump Station

Site ProgressWater and Waste Management

Waste Treatment Facility, Sept. 27th 2014

Water Management Ditches in

Ramp Portal Area, Sept. 27th 2014

3D Rendering of Mabarex Waste

Water Treatment Facility

26

Airstrip, July 2014

Nov 2013

Airstrip, August 2014

1,497m Airstrip Designed for Q400 Planes

Site ProgressRenard Airstrip (“FCX5”)

Airstrip Facilities, October 2014

27

Views of the Route 167 Extension/Renard Mine RoadOpened for Construction Traffic since August 2013

KM 237

KM 155

Eastmain River Bridge KM 184

28

17 Bridges on the Renard Mine Road Constructed by StornowayThe Eastmain River Bridge by Chantier Chibougamau - Engineered Wood Construction

29

Process Plant at 6,000tpd (2.2Mtonnes per

annum) nameplate capacity, expandable to

7,000tpd (2.6Mtonnes per annum)

Optimization by DRA Americas Inc. has

allowed addition of Large Diamond

Recovery (“LDR”) capacity to the flow sheet

for no additional capital.

Flow sheet:

• Primary jaw crushing to < 230mm

• Twin DMS circuits at +1mm -19mm

• LDR circuit at +19mm -45mm, scalable

to -60mm

• Oversize +45mm to secondary cone

crusher

• LDR and DMS tails +6mm -19mm to

tertiary High Pressure Grinding Rolls

Cap-ex (Direct Costs, without Capitalized Op-ex)

• Jan 2013 Cap-ex without LDR: $162.7m

• Optimized Cap-ex with LDR: $147.1m

Thickening and centrifugal treatment of

fines and tails to create a truckable product

for dry-stack disposal.

Diamond Processing PlantIn Detailed Design Stage

Crushed ore stockpile

Scrubbing and

Screening

DMSCentrifugeCone crushing

HPGR

Water

30

Liquefied Natural Gas Power Plant

The Renard Diamond Project will be

powered using Liquid Natural Gas (“LNG”)

fuelled gen-sets, with daily supplies of

cryogenic LNG from GazMetro in Montreal

utilizing the Renard Mine Road.

The Renard LNG plant will comprise seven

2.1MW rated gas gen-sets, providing

sufficient power generation capacity for the

project’s normal operating specification of

9.5MW.

LNG has significant cost and environmental

advantages over traditional diesel powered

gen-sets and a Hydro-Quebec power-line

option.

Diesel will continue to be used for the mobile

mining fleet and construction activities.

31

The Project is a temporary user of land that will be

returned to its traditional users at the end of mine

life. Project design has therefore prioritized

minimal environmental footprint and progressive

rehabilitation.

The Renard Project occupies just 3.1km2 within a

single watershed.

All water in contact with mining materials will be

collected and treated prior to release.

Geochemical characterisation of Processed

Kimberlite and country rock waste indicates

minimal metal leach potential and no acid

generation.

Buildings have been designed and materials

selected to facilitate dismantling, recycling and re-

vegetation at the end of the mine life.

First part of $15.2 financial guarantee for site

rehabilitation and closure costs provided to the

Ministre de l’Énergie et des Ressources naturelles

on August 29th 2014.

Environmental Impact and Rehabilitation Plan

Mine Site Post Reclamation

32

In March 2012 Stornoway concluded the “Mecheshoo Agreement”

with the Cree Nation of Mistissini and the Grand Council of the

Crees (EI).

The “Mecheshoo Agreement” provides for employment and

business opportunities, the Crees, fosters cultural, environmental

and social protection, and provides for the Crees’ participation in

the project’s long term financial success.

In July 2012 Stornoway concluded a “Declaration of Partnership”

with the communities of Chapais and Chibougamau.

The Declaration of Partnership provides a framework to address

issues of mutual interest such as communication, employment and

economic diversification.

Signing the Mecheshoo Agreement, March 2012

Renard’s Social LicenceLocal and Regional Participation in the Project

Signing Partnership Agreements with

Chibougamau and Chapais, July 2012

September 2014 Onsite Contractors

Blasteck Makaahikan Sodexo Forchemex

Entreprise Maltais MY Surveying Forages Rouillier Foresterie Nordic

ESG Const. Tanguay Groupe Qualitas Recyclage Ungava

Eskan RCM Modulaire Plomberie Chibou. Brulé Murray

Jos Ste-Croix Swallow-Fournier Petroles RL Barette et fils

Kiskinshiish Tessier Equipement JVC ASDR Environnem.

Telesignal SPI Santé/Sécurité Installation AC Gardium/Shecapio

33

September 2014 Employment Statistics261 People Employed in Stornoway or at the Renard Project at End of September

Longueuil43%

Lagopede34%

Vancouver9%

Toronto8%

Chibougamau and Missitini

6%

Stornoway Employees

Total: 68

Crees58%

Non-Crees42%

Contractor Employees at Site

Total: 193

34

Project ScheduleBased on Construction Mobilization July 10th 2014

Feasibility Study (Complete)

ESIA (Complete)

Public Hearings (Complete)

Reg. Authorizations (Complete)

Specific Operating Permits (50)

Road Construction (Complete)

Project Financing (Complete)

Detailed Engineering

Site Construction

Commissioning and Ramp-up

Commercial Production

2012

2H 2H 2H 2H2H 1H 1H 1H1H

2013 2014 2015 2016

2H1H

2017

Based on the Renard Diamond Project Construction Schedule, Plant

Commissioning is Planned for H2 2016 and Commercial Production in Q2 2017.

October 2014

First Vehicle Access

3535

Renard’s Potential (Matt Manson)

36

The Challenge of Finding and Developing New Diamond Mines

“Tier 1” defined as mines with Ultimate reserves greater than US$20B: Jwaneng, Orapa, Mir,

Udachnya, Venetia, Catoca, Premier

Kimberlite Discoveries Since 1870

6,800

1,000

65

7

875

420

20

1

10

100

1,000

10,000

KimberlitesDiscovered

Diamondiferous Economic Tier 1*

Recent Diamond Mines

Source: De Beers/SWY

Economic kimberlites represent just 1% of all

discoveries made since 1870 (1.7% in Canada)

Time from Discovery to First Production

Ekati (1998, BHPB, now Dominion) 7 years

Diavik (2002, Rio Tinto/Dominion) 9 years

Victor (2008, De Beers) 20 years

Snap Lake (2008, De Beers) 11 years

Karowe (2012, Lucara) 10 years

Grib (2013, Lukoil) 18 years

Ghaghoo (2014, Gem) 23 years

Renard (2017, Stornoway) 16 years

Gahcho Kué (2017, DeBeers/MPV) 21 years

Bunder (2019, Rio Tinto) 15 Years

Projects are taking longer to develop

37

Major Diamond Mines and Development Projects WorldwideFew Enough Mines to Fit on One Map

South Africa

• Venetia (De Beers)

• Finsch, Premier (Petra Diamonds)

• Lace (DiamondCorp)

Tanzania

• Williamson (Petra Diamonds)

Russia

• Arkhangelsk District (Alrosa)

• Yakutia District (Alrosa)

• Grib (LUKOIL)

India

• Bunder (Rio Tinto)

Australia

• Argyle (Rio Tinto)

• Ellendale (Kimberly Diamonds)

Canada

• Ekati (Dominion)

• Diavik (Rio Tinto/Dominion)

• Victor, Snap Lake, Gahcho Kué (De Beers)

• Renard (Stornoway)

• Fort a la Corne (Shore Gold/Newmont)

Botswana

• Jwaneng, Orapa (De Beers)

• Ghaghoo (Gem Diamonds)

• Karowe (Lucara Diamonds)

Angola

• Catoca (Alrosa)

Democratic Republic of Congo

• Mbuyi-Mayi

Sierra Leone

• Koidu, (Steinmetz Group)

Lesotho

• Letseng (Gem Diamonds)

• Kao (Namakwa Diamonds)

• Liqhobong (Firestone)

• Mothae (Lucara)

38

A Snapshot of Rough Diamond Supply

Industry Supply Themes

146mcarats produced in 2013

(US$18b)

No return to peak diamond production

of 176mcarats achieved in 2005

Maximum 20mcarats new production

on deck assuming all new projects

meet proponents published production

and schedule estimates

Consensus forecast of 2% supply

CAGR (in carat terms) to 2018,

declining thereafter

Potential or Actual New Projects

Rough Diamond Supply

Sources

The Global Diamond Report, September 2013: Bain & Co/Antwerp World Diamond Centre

The Diamond Insight Report, September 2014: McKinsey/De Beers

39

A Snapshot of Rough Diamond Demand

Rough Diamond Demand

Supply and Demand

Industry Demand Themes

Diamond jewelry/polished diamond demand

growth tied to GDP growth in principal

markets

Diamond jewelry sales strongly correlated to

market demographics (age, gender, wealth)

US still dominant polished diamond market

(40% in 2013, 2% CAGR 2008-13) with

China the growth market (15% in 2013, 20%

CAGR 2008-13)

Consensus forecast of c.5% rough demand

CAGR (in dollar terms) over next 10 years

Consensus forecasts of 2-4% real rough

diamond price CAGR over next 10 years

given supply/demand imbalance

Sources

The Global Diamond Report, September 2013: Bain & Co/Antwerp World Diamond Centre

The Diamond Insight Report, September 2014: McKinsey/De Beers

40

Rough Diamond Pricing 2009-2014

A tracking of the diamond market since the publication of the November 2011 FS and January 2013 Opt.

FS indicates rough diamond prices have generally remained within the bounds of sensitivities contained

within the FS financial model (May 2011 spot prices and a 2.5% real terms annual price escalator).

50

100

150

200

250

300

350

1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15

Ind

ex

to

20

09

=1

00

The May 2011 diamond

valuation utilized in the FS

was 10% below the WWW

rough index price

FS 2.5% Price Model

(Nominal, adjusted

for CPI) with +/- 10%

Sensitivity

WWW Rough

Diamond Price

Index

COMEX Gold

May 2011 FS

Diamond Valuation

41

Stornoway will be a Significant Diamond ProducerCurrent and Future Diamond Producers

Source: Kimberly process and Company Reports

2013 World Diamond Production Data/

Forecast Future Production

1 De Beers (Anglo/Botswana) $6,404m

2 Alrosa (Russia) $4,801m

3 Dominion Diamond (TSX: DDC) $934m

4 Rio Tinto (ASE: RIO) $859m

5 Petra (note 1; L: PDL) $432m

6 Stornoway (note 2; TSX: SWY) $310m

7 Mountain Province (note 3; TSX: MPV) $258m

8 Gem (L: GEMD) $213m

9 Lucara (note 4; TSX: LUC) $181m

10 Firestone (note 5; L: FDI) $123m

11 Others $3,076m

Total $17,592m

DeBeers36%

Alrosa27%

Dominion6%

RioTinto5%

Petra2%

SWY2%

MPV2%

GEM1%LUC

1%Firestone1%

Others18%

Notes:

1. Petra 12 month results for period ending December 31, 2013

2. Renard estimated at FS average annual diamond production of 1.63 million carats, and WWW March 2014 weighted diamond price of US$190/ct, un-escalated

3. Gahcho Kué estimated at 49% of Revised FS average annual production of 4.45 million carats, and average modeled diamond price of US$118/ct, un-escalated

4. Lucara 12 month results for the period ending December 31, 2013

5. Firestone estimated at FS average annual production of 1.15 million carats at an average price of US$107/ct un-escalated

6 Stornoway (note 2; TSX: SWY) $310m

42

Renard’s DiamondsLarge Diamond Potential Not Included in Base Case Diamond Valuation Models

March 2014 Diamond Valuations (WWW International Diamond Consultants Ltd.)

Kimberlite

Body

Size of

Valuation

Sample(carats)

WWW March

2014 Sample

Price(US$/carat)1

WWW March

2014 Base Case

Price Model(US$/carat)1

Sensitivities(Minimum to High)

Renard 2 1,580 $187 $197 $178 to $222

Renard 3 2,753 $179 $157 $146 to $192

Renard 4 2,674 $101 $106 ($155)2 $100 to $174

Renard 65 997 $262 $187 $175 to $211

Notes

1. All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off.

2. Should the Renard 4 diamond population prove to have a diamond population with a size distribution

equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model

of $155 per carat based on March 2014 pricing. Source: WWW March 2014 Valuation Update

Three Renard 65

diamonds: 9.78 ct and

6.41 ct diamonds

recovered from bulk

sampling and a 4 carat

stone discovered in

drillcore in 2003

Base Case Diamond Valuation

Estimates Using on Best

Practice Methodology

Average diamond price estimate in

March 2014 for the Mineral Reserves

at US$190/ct (un-escalated)

compared to US$180/ct in the January

2013 Optimization Study.

High Quality Production with

Large Stone Potential

The Renard kimberlites have similar,

but marginally different diamond

populations exhibiting a high

incidence of large white gems.

Coarse Size Distribution in Renard 2

predicts three to six 50-100ct stones

and one to two +100ct stones every

100,000 carats (two weeks).

Substantial revenue potential from

large diamonds not accounted for in

the base case cash-flow model.

43

490 m

asl

-275 m

asl

0 m

790 m

Indicated Resource

Legend

Inferred Resource

Inferred Resource

of R2 CRB

Low TFFE

High TFFE

Ongoing Resource Expansion$10m Drill Program for 2014 Announced on Jan 22nd 2014

Renard 2 Renard 3 Renard 4 Renard 65 Renard 9

1. Conversion of Renard 65 Inferred Resources to Indicated to

150m depth (July 2013: Completed)

2. Addition of Renard 2 Country Rock Breccia to both

Indicated and Inferred Resources (July 2013: Completed)

3. 6.2 Mcarats in 5.23 Mtonnes (at 119 cpht) in Renard 2

Inferred Resources between 610m and 700m depth: 4.2 to

7.3 Mcarats TFFE between 700m and 770m depth. Open

below 770m. (2014 Drill Program)

12

3

Drilling has confirmed R2 to a

970m depth so far.

-480 m

asl

44

Notable Exploration Properties and Joint Ventures

Reserve and Resource categories are compliant with the "CIM Definition

Standards on Mineral Resources and Reserves". Mineral resources that are

not mineral reserves do not have demonstrated economic viability. The

potential quantity and grade of any Exploration Target is conceptual in

nature, and it is uncertain if further exploration will result in the target being

delineated as a mineral resource.

Renard (100%)

Aviat (90%)

Qilalugaq (100%)

Pikoo (20%)

Aviat – 90% SWY, 10% Hunter Exploration Group

Kimberlite sheet and blow system on 197k Ha property located on

Melville Peninsula in eastern Nunavut.

TFFE estimated at 12.4 to 16.0mtonnes of kimberlite containing

24.1mcarats to 40.3mcarats.

Pikoo – 80% North Arrow (NAR-V), 20% SWY

2 New Kimberlites discovered in 2013 on 33k Ha property in east

central Saskatchewan.

209kg sample of PK150 kimberlite returned 745 diamonds larger

than 0.106mm

Till sampling underway during summer 2014 under an 80/20 JV

with North Arrow, pursuant to 2012 Option Agreement.

Qilalugaq – 100% SWY (Subject to NAR Option)

8 Kimberlites on 7k Ha property in eastern Nunavut.

Q1-4 pipe has an Inferred Resource of 48.8mtonnes with total

diamond content of 26.1mcarats to 205m.

C$3.7m sampling program underway to recover 500 carat parcel

for diamond valuation, pursuant to 2012 Option agreement with

NAR to earn an 80% interest, subject to a one time back in right

of SWY’s to increase its interest to 40%.

4545

Moving Forward

46

Stornoway Diamond Corporation TSX:SWYOur Priorities

www.stornowaydiamonds.com

Solid project execution

Budget, schedule and operating

excellence

Disciplined management of cash and

expenditures

Strong balance sheet

Delivering on project’s strong margin

and cash flow potential

Then…

Retain exposure to pipeline exploration

assets through JVs

With successful construction and

commissioning behind us, look to the

future

4747

Questions