BUILDING QUÉBEC’S FIRST DIAMOND MINECorporate Update August 5th, 2014

Matt MansonPresident, CEO & Director

Orin BaranowskyDirector of Investor Relations

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, Quebec, 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 25, 2013. 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

Stornoway Diamond Corporation TSX:SWY

100% Ownership in Renard, Québec’s First Diamond Mine

Fully Financed; Fully Permitted

Under Construction; First Production 2H 2016

One of the World’s Few New Diamond Projects Under Development:

C$150m-C$250m Operating Cash Flow Profile1

Top-Tier Operating Margins

Significant Resource and Diamond Price Upside

Excellent Commodity Fundamentals

Notes:

1. Cash flow assumptions itemized on slide 26

4Publicaly Listed Diamond Producers, Developers and ExplorersConsensus Analyst Views on Value

TickerPrice

(1/8/14)

Shares O/S

(mm)

Market Cap

($mm)NAV/sh(1) Current

P/NAV(1) Target (1) % Return to Target

AnnualDividend

Diamond ProducersDominion Diamonds DDC:T $15.22 85.1 $1,295.7 $23.49 0.7x $20.13 32% (n/a)

Gem GEMD:LN £1.90 138.3 £262.7 £1.69 1.1x £2.08 10% (n/a)

Lucara LUC:T $2.61 378.5 $991.8 $2.20 1.2x $2.69 5% $0.04/sh

Petra PDL:LN £1.975 512.1 £1,006.3 £2.50 0.8x £2.16 9% (n/a)

Diamond DevelopersFirestone FDI:LN £0.4025 309.0 £124.4 £0.83 0.5x £0.68 68% (n/a)

Mountain Province MPV:T $5.50 115.2 $633.6 $7.40 0.7x $6.87 25% (n/a)

Stornoway SWY:T $0.68 730.9 $497.0 $1.35 0.5x $1.15 69% (n/a)

Diamond ExplorersKennady Diamonds KDI:LN $6.05 22.9 $138.3 (n/a) (n/a) (n/a) (n/a) (n/a)

North Arrow Minerals NAR:V $0.75 49.8 $37.3 (n/a) (n/a) (n/a) (n/a) (n/a)

Peregrine Diamonds PGD:T $0.40 143.8 $57.5 (n/a) (n/a) $1.00 150% (n/a)

Shore Gold SGF:T $0.31 224.8 $69.7 (n/a) (n/a) $1.00 223% (n/a)

Notes:

1. Bloomberg Analyst Consensus

5Comparison of New Diamond MinesRenard has Best Cost Profile

Project/Company

Reserves

(Mt)

Reserve Grade(cpht)

Reserve Carats(Mct)

Diamond Value

(US$/ct)

Operating Cost

(US$/t)1

Operating Margin(US$/t)1

Cost/Rev

Production(Mct/Year)

Renard2

Stornoway23.8 75 18.0 $190 $50 $94 0.35 1.63

Gahcho Kué3

DeBeers/MPV35.4 157 55.5 $118 $67 $109 0.38 4.45

Liqhobong4

Firestone37.2 31 11.6 $107 $14 $28 0.41 1.15

Bunder5 Rio Tinto

53.7 64 34.2 $50 $20 $18 0.53 2.50

Ghaghoo6

Gem7.5 28 2.1 $267 $41 $33 0.55 0.60

Notes:

1. Based on US$ Conversion at C$0.92.

2. Source: January 2013 Optimization Study and October 2013 LNG Feasibility Study. Utilizing March 2014 Base Case Modeled Diamond Prices, Un-escalated.

3. Source: May 2014 Feasibility Study. Utilizing April 2014 Base Case Modeled Diamond Prices, Un-escalated.

4. Source: Nov 2013 Updated DFS. November 2013 Base Case Modeled Diamond Prices, Un-escalated.

5. Source: SWY Estimates

6. Source: March 2011 technical report. Utilizing Jan 2014 reserve carat values, Un-escalated.

6Stornoway 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%

Domin-ion6%

RioT-into5%

Petra2%

SWY2%

MPV1%

GEM1%

LUC1%

Fire-stone

1%

Others17%

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

77

The Renard Diamond Project

8

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

9

The Feasibility: 11 years of mining

Permitting and Long Term Business Plan

The Vision: Deposit still Open

40

60

80

100

120

140

Millions of Tonnes

20

0

Exploration Target High Range

Inferred Resource

Exploration Target Low Range

Probable Reserve

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 6529/24cpht Renard 3

103/112cpht

Renard 2104/119cpht

Renard 953cpht

Renard 460/50cpht

27 mcarat Indicated Mineral Resource

17 mcarat Inferred Mineral Resource

26-48 mcarat Exploration Target

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

11

Waste Rock

Processed Kimberlite Containment (PKC)

Overburden Stockpile

R2-R3

Ore Stockpile

R65

Camp

Plant

Road from Chibougamau

General Project Arrangement

12

Project Execution

Accommodation Complex

Process and Power Plants

Access Infrastructure in Place

Renard Mine Road open to traffic since August 30th 2013. Aerodrome open since November 5th 2013.

Owner’s Team and EPCM in Place

Montreal based owner’s team for planning, engineering, environment, stakeholder relations and cost management. EPCM with SNC-Lavalin, DRA & AMEC.

Favourable Construction Environment

Competitive cost environment and good contractor/labour availability currently in Québec.

LNG Power

LNG power option utilizes all-season access road and existing commercial LNG distribution network in Québec.

Schedule

Construction Start-up July 2014; Plant Commissioning 2H 2016; Commercial Production Q2 2017.

13Site ProgressAugust 2014

Civil Works at Accommodation ComplexAirstrip July 2014

Nov 2013

Ground Breaking Ceremony July 10 2014 Project Site July 30 2014

R65 PitConstruction Camp

14The Route 167 Extension and the Renard Mine Road The Only Canadian Diamond Mine with an All-Season Access Road

50 km

Renard Diamond Project

Explor./Mining Projects

Stornoway Properties

Albanel-Témiscamie-Otish Par

Segment A: 0-82kmSegment B: 82-143kmSegment C: 143-195kmSegment D: 195-240km

Legend

Renard

WesternTroy

EastmainAbitex

Strateco

Mistissini

Lac Mistassini

Lac Naococane

Lac Hecla

Lac Albanel

Km 0

Km82

Km240

Km195

Km143

Rou

te 1

67

Construction of an all-season access road connecting Renard to the Québec highway system began in Feb. 2012.

Road segments A & B (143 km) constructed by Québec as a 2-lane highway. Segments C & D (97 km) constructed by Stornoway as the single lane “Renard Mine Road”.

All 4 segments were connected and opened for mine construction traffic on August 30th 2013, 2 months ahead of schedule and approximately 10% below budget.

To complete this work, Québec provided Stornoway $77m of debt financing, repayable upon commercial production at Renard.

Stornoway has been able to apply $7m of debt savings to complete the civil works for the Renard Mine Airport.

Segments C & DStornoway

97km of Mine Road (50km/hr)

Segments A & BMin. of Transport

143km of Regional Highway (70km/hr)

Road Link-UpAugust 30th 2013

Transportation of Pre-Fabricated Temporary Bridge

Spans March 2013

15

Views of the Road

Renard Project

Explor./Mining ProjectsStornoway Properties

Albanel-Témiscamie-Otish Par

Segment A: 0-82kmSegment B: 82-143kmSegment C: 143-195kmSegment D: 195-240km

Legend

Renard

WesternTroy

EastmainAbitex

Strateco

Mistissini

Lac Mistassini

Lac Naococane

Lac Hecla

Lac Albanel

Km 0

Km82

Km240

Km195

Km143

Rou

te 1

67

KM 237

KM 155

Eastmain River Bridge KM 184

16Permitting and Social AcceptabilityStrong Regulatory and Public Support for Québec’s First Diamond Mine

Social Licence

Permitting

March 2012: Impact and Benefits Agreement (“IBA” or the “Mecheshoo Agreement”) with the Cree Nation of Mistissini and the Grand Council of the Crees (EI).

July 2012: Partnership Agreements Signed with Chibougamau and Chapais.

Oct. 2012: Québec Mining license issued.

Dec. 2012: Québec Certificate of Authorization issued.

July 2013: Positive Federal Environmental Assessment decision issued.

All Community Agreements and Regulatory Authorizations Required to Proceed with

Construction are in Place.

1717

Upside

18

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

19Renard’s DiamondsLarge Diamond Potential Not Included in Base Case Diamond Valuation Models

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

Kimberlite Body

Size ofValuation 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.

20

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%.

2121

Balance Sheet

22

Renard is Fully Financed

On July 8th 2014 Stornoway Closed 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

23

Transaction 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 StreamUS$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$1.101. Includes reimbursement of marketing expenses

Counter-PartyAmount

(% of Total)

Orion Mine Finance C$367M (39%)

Investissement Québec/ Ressources Québec C$240M (25%)

Caisse de dépôt et placement du Québec

C$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

24World’s First Diamond Streaming AgreementWhy a Stream?

Project Cash Operating Margin (Reserve Case, Nominal Terms)

The Renard Diamond Project is ideally suited for a streaming arrangement: the project has a high operating margin and its capital requirements are front-ended.

The proposed stream-debt-equity financing structure minimizes shareholder dilution and is accretive to Stornoway’s NAV per share.

US$250m for a 20% stream represents 34% of the Renard Diamond Project’s initial capital cost and 29% of the overall financing plan.

67.2%

2013 Optimization Study1

`

20% Stream

-6.6% +2.6%+3.8% -2.1%

Current Reserve Case Mine Plan

October 2013 LNG Operating Case

Exchange Rate Diamond Price Assumptions1

64.9%

Notes: 1. The January 2013 Optimized FS utilized May 2011 diamond pricing

25

Shareholding

Share Price (TSX-SWY):August 1, 2014

C$ $0.68

52 week High-Low C$ $0.49–$1.22

Average Daily Volume:2014 YTD

565,144

Market Capitalization: C$ 497 million

Total Shares Outstanding: 731 million

Total Options & Warrants Outstanding:(24.9m Options $0.40-$2.39; 123.8m warrants $0.95-$1.21)

149 million

Consolidated Cash1: (as of July 8, 2014)

C$ 462 million

Consolidated Debt1: (as of July 8, 2014)

C$ 173 million

Undrawn Financing Commitments1: (Subject to Financing Agreement CPs)

C$ 462 million

Balance Sheet

Post-Financing Balance Sheet and Capital Structure

Notes1. Unaudited, and 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

31-Dec

-11

23-Feb-12

17-Apr-12

10-Jun-12

3-Aug-12

26-Sep-12

19-Nov-1

2

12-Jan-13

7-Mar-

13

30-Apr-13

23-Jun-13

16-Aug-13

9-Oct-

13

2-Dec

-13

25-Jan-14

20-Mar-

14

13-May

-14

6-Jul-1

4

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Price

Volu

me

(000

s)

26

Renard’s Cash Flow Potential

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.

27

Stornoway Diamond Corporation TSX:SWY

100% Ownership in the Renard Diamond Project, One of the World’s Few New

Diamond Projects Under Development

Fully Permitted and Fully Financed

Québec: World Leading Mining Jurisdiction

Top Tier Profitability Profile

Now, In Construction to Build Canada’s Next Diamond Mine

First Production 2H 2016

2828

Appendix

29

Probable Mineral ReserveMining Recovery Factors Utilized in the Reserve

Calculation

Kimberlite Grade(cpht)

Tonnes(millions)

Contained Carats(Millions)

Internal Dilution

Mining Recovery

MiningDilution

Renard 2 OP 95 1.31 1.24 0.0% 96.0% 7.1%Renard 2 UG 80 17.03 13.62 7.0% 82.4% 20.2%Renard 3 OP 93 0.72 0.67 0.0% 96.0% 10.5%Renard 3 UG 84 1.00 0.84 21.1% 85.0% 14.0%Renard 4 UG 42 3.72 1.58 1.4% 78.2% 14.0%

Total 75 23.79 17.95 5.9% 82.9% 17.9%

Notes: Reserve categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Totals may not add due to rounding. Grades are estimated at a +1DTC sieve size cut-off.

R2 ; 83%

R3, 8%R4, 9%

Revenue

R2 ; 77%

R3; 7%

R4; 16%Tonnage

R2 ; 83%

R3; 8%R4; 9%

Carats

NI 43-101 Probable Mineral ReservesJanuary 28th 2013

30

Notes: 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. Indicated Mineral resources are Inclusive of the Mineral Reserve. Totals may not add due to rounding. Grades are estimated at a +1DTC sieve size cut-off.

Renard NI 43-101 Mineral ResourcesJuly 23rd 2013. Changes to Previous January 2011 Mineral Resource in Italics

Kimberlite Grade(cpht)

Tonnes(millions)

Contained Carats(Millions)

Renard 2 – Total 100 (n/a) 18.58 (n/a 18.66 (n/a)

Renard 2 104 (+1.2%) 17.71 (-0.4%) 18.38 (+1.6%)

Renard 2 CRB-2a 32 (n/a) 0.87 (n/a) 0.28 (n/a)

Renard 3 103 (-2.2%) 1.76 (+0.5%) 1.82 (-1.7%)

Renard 4 60 (+13.1%) 7.25 -- 4.31 (+13.0%)

Renard 65 29 (n/a) 7.87 (na) 2.30 (n/a)

Total Indicated 76.4 (-14.3%) 35.45 (33.1%) 27.09 (+14.0%)

Renard 2 – Total 64 (n/a) 11.77 (n/a) 7.47 (n/a)

Renard 2 119 (+1.2%) 5.23 (+0.4%) 6.23 (+1.6%)

Renard 2 CRB 19 (n/a) 6.54 (n/a) 1.24 (n/a)

Renard 3 112 (-4.5%) 0.54 (+0.2%) 0.61 (-4.2%)

Renard 4 50 (+13.7%) 4.75 (-0.1%) 2.37 (+13.7%)

Renard 9 53 (+13.2%) 5.70 (+0.1%) 3.04 (+13.2%)

Renard 65 24 (-16.8%) 4.93 (-61.9%) 1.18 (-68.3%)

Lynx Dyke 107 -- 1.80 -- 1.92 --

Hibou Dyke 144 -- 0.18 -- 0.26 --

Total Inferred 56.8 (+1.2%) 29.67 (-4.6%) 16.85 (-3.5%)

31

Notes: The potential quantity and grade of any exploration target (previously referred to as “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. The exploration upside for the Renard kimberlite pipes has been determined by projecting reasonable kimberlite

volumes from the base of the inferred Resource to a depth of 700m below surface. In the case of the Lynx and Hibou dykes, the exploration upside was established on the basis of known drill intersections of kimberlite for which insufficient diamond sampling exists to adequately estimate a diamond resource grade.

Target for Further ExplorationJuly 23rd 2013. Changes to Previous January 2011 Estimates in Italics

Kimberlite Grade(cpht)

Tonnes(millions)

Contained Carats(Millions)

Renard 2 104 to 158 4.0 to 4.6 4.2 to 7.3Renard 3 105 to 168 0.8 to 1.7 0.8 to 2.8Renard 4 50 to 77 11.1 to 15.4 5.6 to 11.8Renard 9 52 to 68 3.9 to 6.3 2.0 to 4.3Renard 65 25 to 33 29.0 to 40.9 7.3 to 13.5Lynx Dyke 96 to 120 3.1 to 3.2 3.0 to 3.8Hibou Dyke 104 to 151 2.7 to 2.9 2.9 to 4.3Total Exploration Upside

54.6 (-0.8%)

to74.9

(-0.8%)25.7

(+9.1%)to

47.8(-1.4%)

32

Chronology of Renard Studies

Feasibility Study

Released on November 16th 2011. NI 43-101 Technical Report filed December 29 2011.

11 Year Mine Plan based on 18 Mcarat Mineral Reserve derived from January 2011 NI 43-101 Resource.

Long Term Business Plan

Companion study to the Feasibility Study with an extended mine plan incorporating the project`s 17.5 million carats of Inferred Mineral Resources.

Basis of overall mine design and project permitting. Not part of the project`s public disclosure, consistent with Canadian reporting standards

Optimization Study

Released on January 28th, 2013. NI 43-101 Technical Report filed March 2013.

Refined of Feasibility mine design, including shaft deferral and a modified underground mining sequence.

11 Year Mine Plan based on 17.9 million carat Mineral Reserve.

Resource Update

Released July 2013. NI 43-101 Resource update with 14% increase in Indicated Resource contained carats

LNG Feasibility Study

Released October 2013. Modified project Cap-ex and Op-ex for LNG powered gensets

33January 2013 Optimization Study Project Assumptions, Valuation and Pay-Back in the January 2013 FS Optimization Study

Key Assumptions in the Financial Model1

Mining Parameters

Reserve Carats (M) 17.9Tonnes Processed (M) 23.8Recovered Grade (cpht) 75Average Ore Recovery (%) 82.9%Average Mining Dilution (%) 17.9%Dilution Grade (cpht) 0Processing Rate (Mtonnes/annum) 2.2Mine Life (years) 11

Cost Parameters

Initial Cap-ex (C$M)2 $752LOM Cap-ex (C$M)4 $1,013Oil Price (US$/barrel)2 $95LOM Op-ex (C$/tonne)2 $57.63LOM Op-ex (C$/carat)2 $76.63

Revenue Parameters

Gross Revenue (C$M)2 $4,268Marketing Costs 2.7%DIAQUEM Royalty 2.0%Cash Operating Margin (C$M)2 $2,693% Operating Margin 67%Income Tax, Mining Duties and IBA Payments (C$M)1 $625

After Tax Net Cash Flow (C$M) $1,084

Diamond Price

Parameters3

Renard 2 and Renard 3 (US$/carat) $182Renard 4 (US$/carat) $164Diamond Price Escalation 2.5%Exchange rate 1C$=1US$

Schedule Parameters

Effective Date for NPV Calculation Jan. 1 2013Construction Mobilization/Early Works Aug. 1 2013Plant Commissioning Commences Dec. 1 2015Commercial Production Declared Jun. 1 2016

Valuation Results5 (C$m)

Pre-Tax After Tax

NPV5% $894 $537

NPV7% (Base Case) $683 $391 NPV9% $514 $274

IRR 20.4% 16.3%

Pay-Back (years) 4.69 4.82

Notes

1. Optimization Study, released January 28th 2013.

2. Expressed in October 2012 terms.

3. Expressed in May 2011 terms.

4. Expressed in nominal terms.

5. Expressed in de-escalated nominal terms.

34Liquefied Natural Gas Power Plant Feasibility Study Released October 2013

With a view to project optimization, Stornoway has been investigating more cost efficient alternatives for on-site power supply than traditional diesel fuelled gen-sets.

A Hydro-Québec powerline has been ruled out in the short term due to high cap-ex cost.

On October 21st 2013 Stornoway announced it will proceed with an LNG fuelled gen-set option, made possible by the ability to receive regular cryogenic LNG shipments on 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.

35Liquefied Natural Gas Power PlantFeasibility Study Released October 2013

An LNG fuelled powerplant for Renard offers many advantages over diesel:• Greatly reduced annual operating costs of $8m to $10m per year, for a small incremental capital cost

of $2.6m.• Up to 43% less greenhouse gas emissions.• Long term, stable supply market utilizing existing commercial distribution network within Québec.• Elimination of on-site propane, as LNG will be used for building and underground mine heating.

Diesel will continue to be used for the mobile mining fleet and construction activities

Cost Improvements with LNG 2013 Optimization Study with Diesel

2013 Optimization Study with LNG

Unit Power Cost (C$/kWh) 1 $0.299 $0.188 (-37%)

Unit Operating Cost (C$/tonne) 1,2 $57.63 $53.84 (-7%)

Initial Capital Cost (C$m) 1 $752.1 $754.0 (+0.3%)

Life of Mine Capital Cost (C$m) 1,3 $1,013 $1,010 (-0.3%)

Annual Diesel Consumption (million litres) 27.5 5.9 (-79%)

Annual LNG Consumption (thousand m3/annum) n/a 41.7

Annual Propane Consumption (thousand m3/annum) 3.5 n/a

Notes

1. 2013 Optimization Study costs expressed in October 2012 terms.

2. Excludes capitalized preproduction costs.

3. Includes all initial, sustaining and deferred capital, contingencies and escalation

Key Assumptions

Based on the 11 year reserve-based mine life (17.9 mcarats) contained within the 2013 Optimization Study, with a normal operating load of 9.49MW, C$1=US$1, Oil US$95/barrel

36Rough Diamond Price MovementsThe Diamond Market, January 2010 to Aug 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).

May 2011 Valuation utilized in the FS

based on the average of 5

diamantaires c.10% below the WWW

rough index price

37Major 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 (Gem Diamonds)

Canada• Ekati (BHPB)

• Diavik (Rio Tinto/Harry Winston)

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

• Renard (Stornoway)

• Star (Shore Gold/Newmont)

• Chidliak (Peregrine)

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

Future Rough Diamond Supply

0

20

40

60

80

100

120

140

160

180

Pro

duci

ton

/ Sup

ply

Mct

Production and Supply Forecast (Rio Tinto)

Alluvial

Open Cut

U/G

3x increase in U/G caratsHigher cost

De Beers Production Forecast Rio Tinto Production Forecast

Almost all rough diamond production forecasts show flat or declining production long term. De Beers see production peaking in 2017, and broad reserve depletion thereafter.

Rough production is not expected to reach 2008 levels in carat terms again.

No large scale diamond mine has been discovered since the discovery of EKATI and Diavik in the early 1990s. The movement to underground mining in Russia, South Africa and Canada will lower overall industry margins.

39The Diamond PipelineAn Industry with Many Intermediaries

Source: Tacy D.I.B. 2014

Mine Production Rough Trading and Diamond Polishing Diamond Jewelery

ProductionCost

ProductionValue

Mine Sales toIndustry

Rough SalesTo Cutting

Centres

Value of PolishedProduced

Value ofDiamonds in

RetailJewelery

Sales

Retail SalesOf Diamond

Jewelery

Value in US$Bterms of eachstage of the

diamondpipeline

$7.0B $15.1B $15.3B $15.6B $21.6B $22.6B

$74.5B

EstimatedAverage Marginsafter Costs (%)

Rough Mining: 0 to 50% Rough Dealing: 0 to 10%Polishing:-10 to 15%

JeweleryManufac: -10

to 10%

JeweleryRetail: 20

to 50%

40

Rough Diamond Supply

Diamond Market OutlookCompelling Supply and Demand Fundamentals

Rough Diamond Demand

Rough diamond supply forecasting is robust given the small number of diamond producers worldwide and the difficulty in finding and bringing to production new deposits. Consensus is for a modest increase in supply to 2018 and a decline in supply thereafter.

Demand growth forecasting is based upon applying regional diamond consumption habits to GDP growth forecasts.

The August 2013 report issued by Bain & Co and the Antwerp World Diamonds Center forecasts a rough diamond supply CAGR of 2.0% and a rough diamond demand CAGR of 5.1%.

The January 2013 Optimization Study contains a real diamond price CAGR of 2.5%, consistent with consensus forecasts.

The actual rough diamond price CAGR has been 9.2% between October 2003 and Aug 2014 in nominal terms.

Sources: WWW International Diamond Consultants Ltd.; The Global Diamond Report, August 2013: Bain & Co/Antwerp World Diamond Centre

CAGR (2012-2023)

5.1%

CAGR (2012-2023)

2.0%

41

Yves Harvey Independent

Hume KyleIndependent

Zara BoldtCFO and VP

Finance

Pat GodinCOO & Director

Matt Manson President, CEO

& Director

John LeBoutillierIndependent/ IQ Designate

Monique MercierIndependent/ IQ Designate

Peter NixonIndependent

Ebe ScherkusIndependent/

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 VézinaIndependent

Yves PerronVP Engineering & Construction

Ghislain Poirier

VP Public Affairs

Brian Glover VP Asset Protection

Martin BoucherVP Sustainable Development

Robin Hopkins

VP Exploration

Orin Baranowsky

Director, IR

Guy BourqueChief Mining

Engineer

Douglas SilverOrion Designate

Michel BlouinIndependent/ IQ Designate

Ian HollVP Processing

Helene RobitailleDirector, HR

Mario CourchesneConstruct. Manager

Jean-Charles Dumont

Corporate ControllerFreddie Mianscum

IBA Implem. Officer

42

Pat GodinCOO & Director

Biographies

Ebe ScherkusChairman of the

Board

Matt Manson was appointed President of Stornoway Diamond Corporation in March 2007 and subsequently

President & CEO in January 2009. Between 1999 and 2005 he was employed by Aber Diamond Corporation

(now Dominion Diamond Corporation) as VP Marketing and subsequently VP Technical Services & Control,

during which time he participated in the US$230m project financing for the Diavik Diamond Project and

oversaw Aber's technical and marketing operations. Mr. Manson is a graduate of the University of Edinburgh

(BSc Geophysics, 1987) and the University of Toronto (MSc Geology 1989 and PhD Geology, 1996), and has

over 18 years of experience in diamond exploration, development and production.

Pat Godin joined Stornoway as COO in May 2010. He was previously VP, Project Development for GMining

Services, responsible for the development of the Essakane Mine in Burkina Faso under contract to IAMGOLD,

VP Operations for Canadian Royalties, and President and General Manager of CBJ-CAIMAN S.A.S., a French

subsidiary of Cambior / IAMGOLD. For many years, he was involved in Cambior’s various Canadian

properties in Abitibi-Témiscamingue, through progressive management positions in project development and

mine management. He holds a bachelor’s degree in mining engineering from Université Laval in Québec and

is a member of the “Ordre des Ingénieurs du Québec”. He is the Chairman of the Board of Geomega

Resources and a director of Orbit-Garant Drilling.

Mr. Scherkus served as the President and Chief Operating Officer and a director of Agnico-Eagle from 2005 to

February 2012. Prior to his appointment as President and Chief Operating Officer in December 2005, Mr.

Scherkus served as Executive Vice-President and Chief Operating Officer from 1998 to 2005, as Vice-

President, Operations from 1996 to 1998, as a manager of Agnico Eagle LaRonde Division from 1986 to 1996

and as a project manager from 1985 to 1986. Mr. Scherkus is a graduate of McGill University (B.Sc.), a

member of the Association of Professional Engineers of Ontario and past president of the Québec Mining

Association. He is Chairman of the Board of Premier Gold Mines Ltd.

Matt Manson President, CEO

& Director

43

Stornoway Diamond Corporation TSX:SWY

Head Office:

1111 Rue St. Charles Ouest,

Longueuil, Québec J4K 4G4

Tel: +1 (450) 616-5555

IR Contact:

Orin Baranowsky, CFA, Director IR

obaranowsky@stornowaydiamonds.com

Tel: +1 (416) 304-1026 x103

www.stornowaydiamonds.com

Info@stornowaydiamonds.com