The Creation and Growth of a Mineral Resource

at Renard: Québec’s First Diamond Mine

November 21st, 2012

Matt Manson 2012 Congrès de l’AEMQ President, CEO & Director La prochaine génération de mines au Québec

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) capital costs and operating costs; (v) mine

expansion potential and expected mine life; (vi) expected time frames for completion of permitting and regulatory approvals and making a

production decision; (vii) future exploration plans; (viii) future market prices for rough diamonds; and (ix) 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 ability to achieve 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) estimated completion date for the Environmental and Social Impact Assessment; (ii) required capital investment

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

acceptable terms within commonly experienced time frames; (v) the assumption that a production decision will be made, and that decision will be

positive; (vi) anticipated timelines for the commencement of mine production; (vii) anticipated timelines related to the Route 167 extension and the

impact on the development schedule at Renard; (viii) anticipated timelines for community consultations and the conclusion of an Impact and

Benefits Agreement; (ix) market prices for rough diamonds and the potential impact on the Renard Project’s value; and (x) future exploration plans

and objectives. Additional risks are described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A, 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.

3

Lynx

R10

N

R7

R1 Hibou

R4

R9 R2

R3

R65

R8

Kimberlite Bodies with

Probable Reserves

Hibou

Lynx

R4

R9 R2

R3

R65

Kimberlite Bodies with

Resource Potential

R1 Hibou

Lynx

Legend

Stornoway Properties

HydroQuébec Facility

Renard Kimberlites

Kimberlitic Dyke

Regional Kimberlites

HydroQuébec

Powerlines

Route 167 Extension

Road

Exploration/ Mining

Projects

LEGEND:

0 1 2

Kilometers

60 0 60 120

Kilometers

Renard

LG3 LG2 LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

Strateco

Eastmain Mine Western Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

Chibougamau Matagami

Wemindji

Renard Kimberlite Bodies

Kimberlite Bodies with

Inferred Resources

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On November 15th 2012 Stornoway announced an

agreement by which the Government of Quebec will

provide $77m of financing to Stornoway to complete

segments “C” and “D” of the Route 167 Extension as a

mining grade road.

This agreement puts Stornoway in charge of the Renard

project’s overall project schedule for the first time.

All season access is now scheduled for Q4 2013.

The Route 167 Extension A Canadian Diamond Project with All Season Highway Access

Renard

Segments C & D

Stornoway

97km of Mining

Grade Road

(50km/hr)

Construction, September 2012

Segments A & B

Ministry of Transport

143km of Regional

Highway (70km/hr)

5

The Route 167 Extension Construction Images September 2012

6

Key Project Parameters

24 mcarat Indicated Mineral Resource

17 mcarat Inferred Mineral Resource

24-49 mcarat Exploration Upside

November 2011 Feasibility Study*

Mine Life 11 years

Mineral Reserve 18 mcarats

Initial Cap-ex $802m

Operating Cost $55/t ($70/carat)

Operating Margin 68%

Operating Cash Flow $2.7B

Diamond Valuation $180/carat

Peak Diamond Production 2.1 mcarats/yr

After Tax NPV (7%; Jan 1 2012) $376m

After Tax IRR 14.9%

Project Startup July 2015

Long Term Plan (Basis of December 2011 ESIA)

Includes the mining of the 17mcarat Inferred

Resources within the scope of the Feasibility Study

mine infrastructure: Extended mine life, increased

annual production, increased project valuation

*Key Assumptions: C$1=US$1, Oil US$90/barrel, 2.5% real terms diamond price growth

Q311-Q425, 83.5% ore recovery, 19.4% mining dilution, 0cpht dilution grade, January 1

2012 effective date for NPV and IRR calculation.

Notes: 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 4

53/44cpht Renard 9

47cpht

Renard 65

29cpht

Renard 2

103/118cpht

Renard 3

106/118cpht 0m

100m

200m

400m

600m

710m

500m

300m

7

Establishing the Geological Model Renard 3 as an Example

Renard 10

Renard 7

Renard 1

Renard 65

Renard 4

Renard 9

Renard 8

Renard 2

250 m

Renard 3

Kimberlite affected

Country Rock

Kimberlite

0.3ha N

N

Renard 3

Understanding a kimberlite’s geology is key to

developing a robust diamond resource

Renard Geological Data:

• 88,585m of core drilling from surface

• 2,382 m of underground drilling

• 6,151m of reverse circulation (RC) drilling

• 780 m of underground drifting (200 m in

kimberlite)

• +2,000 petrographic thin sections

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0m

100m

200m

300m

400m

455m 2 mm

2 mm

2 mm

Xenolith %

& Reaction

Olivine

% Magmaclasts

55-75

Low 10-20 Abundant TK

20-50

Moderate 15-50 Occasional HKt/TKt

0-25

High 35-50 Absent HK

N

x

x

x

x

x o

o

x

x

x

o

o

o

o

o

o

o

o

o

x

Establishing the Geological Model “Transitional” Kimberlites with TK, HKt/TKt, HK units

Renard 3

9

TK

HK

HKt

TKt / HKt

FCR CRB

R3 has 5 main phases of kimberlite 0m

100m

200m

300m

400m

455m

1

2 3 4

5 6

7

3

4

5

6

7

8

N

Establishing the Geological Model Multiple Units Representing Multiple Venting Events

Additional late HK dykes 5 cm

3

4

5

6

7

1

2

TK TKt/HKt

Sharp Contacts (here in R2 U/G Drift)

Renard 3

10

0m

100m

200m

300m

400m

455m

underground

drift

N

View looking North

Establishing the Geological Model Each Unit Carries a Distinct Grade

Bulk Sample Grades

shown in Carats per

Hundred Tonnes (cpht)

Renard 3

11

0m

100m

200m

400m

600m

710m

500m

300m

2008 model 2008 Model

Renard 2 and 3 predominantly TK type

Renard 2 simpler internal geology

Deep diatreme to root zone

Deep drilling required

View looking North

Renard 2 Renard 3

Establishing the Geological Model Drilling Renard 2 & 3 at Depth (2009)

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0m

100m

200m

400m

600m

710m

500m

300m

View looking North

2010 (and current) model Renard 2 Renard 3

Establishing the Geological Model Drilling Renard 2 & 3 at Depth (2009)

After 2009 Drill Program

Renard 2 and 3 transitional TKt to HKt/TKt

type

Renard 2 volume quadrupled to 710m

depth

Renard 3 volume doubled to 450m depth

Appreciation of affected country rock

(CCR/CRB) in emplacement model

Confidence in the Model

During the 2009 drill program, Stornoway

updated the R2 and R3 geological

models dynamically with each drill hole

completed.

Ultimately, drill intersected contacts were

being predicted within 5m.

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0m

100m

200m

400m

600m

710m

500m

300m

View looking North

2010 (and current) model Renard 2 Renard 3

Establishing the Geological Model Drilling Renard 2 & 3 at Depth (2009)

After 2009 Drill Program

Renard 2 and 3 transitional TKt to HKt/TKt

type

Renard 2 volume quadrupled to 710m

depth

Renard 3 volume doubled to 450m depth

Appreciation of affected country rock

(CCR/CRB) in emplacement model

Confidence in the Model

During the 2009 drill program, Stornoway

updated the R2 and R3 geological

models dynamically with each drill hole

completed.

Ultimately, drill intersected contacts were

being predicted within 5m.

Renard Diamond Sampling Data:

• 4,563 tonnes of underground bulk samples

• 3,520 tonnes of surface trench bulk samples

• 903 tonnes of RC chip samples

• 154 tonnes of drill core samples

• 9,212 carats of macrodiamonds (+1 DTC) from

DMS work

• 16.4 tonnes of samples submitted for

microdiamond analysis

• Diamond valuation exercises in 2005, 2007, 2008,

2009 and 2011

Underground Sampling Surface Sample Renard 4

14

Bulk Sample Dense Media Separation (DMS) Plant

Establishing Diamond Grade Successive Diamond Sampling Campaigns 2002-2010

15

Establishing Diamond Grade at Renard

The Renard diamond grade estimation methodology starts from the geology: In HKt/TKt

(“Transitional”) Kimberlites the following paradigms apply:

• The diamond population within the ore has not been sorted.

• Each lithological unit should show continuity of diamond grade and size distribution (“SFD”).

Grade in the Renard kimberlites is therefore a combination of:

• Pure (undliluted) grade of the lithological unit.

• The degree of dilution (eg country rock xenoliths) in the ore

Grade models derived this way are Testable

• Test for grade and SFD continuity by sampling with microdiamonds across the breadth of the ore body.

• Test accuracy of grade block model by using it to back-calculate sample results from RC drilling and

bulk sampling.

16

-2

0

2

4

6

8

10

-5 -4 -3 -2 -1 0 1

Log

Sto

ne

Fre

q

log MSS

Spht_ui

Macro

Micro

Kimb2a Model

-1

0

1

2

3

4

5

-5 -4 -3 -2 -1 0 1

Lof C

arat

Fre

q.

Log MSS

Cpht_ui

Macros

Micros

Kimb2a Model

Diamond Grade Models

Diamond grade models were created for each Renard lithology from the totality of all

micro and macro diamond data (Renard 2 Kimb2a or “Blue” illustrated)

Grade models are adjusted (reduced) for the expected non-recovery of small

diamonds in a commercial process plant

Unadjusted grade

Adjusted grade: after non-recovery of small stones

Stones per Tonne per

Unit Interval (sptpui) Micros and Macros Recovered from

Caustic Dissolution of Drill Core

Commercial Sized Stones Recovered

from RC and Bulk Sampling

Quadratic Best Fit

after Chapman and

Boxer (2004)

Kimb2a

83cpht

17

Dilution Models

Dilution data from drill core was measured

using:

• ‘modal’ visual estimates of dilution over 3m core

intervals

• ‘line scan’ observations measuring dilution per

metre of core in quantitative and consistent

manner.

A block model of dilution was created and each

block coded by lithology.

Input of pure grade model for each lithology

derived a grade block model.

The grade model can be used to successfully

back-calculate RC and bulk sample grades.

Provides the required +/-15% grade confidence

for the Indicated Mineral Resource.

Renard 2 Dilution Model

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Grade Continuity in Renard Kimberlites

Micro-diamond samples from across the breadth

of Renard 2 (Kimb2b or “Brown” illustrated)

demonstrate continuity of grade and size

distribution at:

• 50m depth slices (“A”);

• Across N-E-S-W quadrants (“B”); and

• Across the whole breadth of the ore body (“C”)

This confidence allows the Renard 2 Indicated

Resource to be extended to 600m depth, below

the level of RC drilling and bulk sampling.

C

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Renard’s Diamonds Valuation Conducted by WWW International Diamond Consultants Ltd. May 8th-13th, 2011

Renard kimberlite pipes have a diamond population with a coarse size distribution and

high proportion of large white gems. Lynx and Hibou kimberlite dykes have a finer

distribution of browner stones.

99% by weight gem/near-gem quality. 1% industrial quality boart.

Coarse size distribution: potential for significant “Specials”, not accounted for in the

current resource work. (Three to six 50-100ct stones and one to two +100ct stones every

100,000 carats.)

Kimberlite

Body

Size of

Valuation

Sample (carats)

Largest

Diamonds

Recovered (carats)

May 2011

Diamond

Price (US$/carat)1

Sensitivities (Minimum to High)

Renard 2 1,580 15.46, 8.80, 8.42 $182

$163 to $236

Renard 3 2,753 10.15, 7.78, 6.36 $153 to $205

Renard 4 2,674 5.92, 5.74, 3.99 $1122 $105 to $185

Lynx Dyke 535 21.53, 5.36, 5.34 $119 $99 to $144

Hibou Dyke 772 3.14, 3.07, 2.72 $118 $88 to $136

1Based on an average of five independent valuations conducted between May 9th and 13th 2011, and supervised by

WWW International Diamond Consultants Limited. 2The Renard NI 43-101 compliant Mineral Resource of January 2011 and the Feasibility Study of November 2011

utilize a higher diamond price based on an analysis of diamond breakage and poor plant recovery of the Renard 4

valuation sample, which is $164/carat. All samples utilize a +0.85mm (+1 DTC) cutoff

Renard 3 Bulk Sample Stones larger than 2 carats. “Run of Mine”

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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

Notes: 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’s Resource Upside A Project with a Long Resource Tail and Very Long Mine Life Potential

Renard 4

53/44cpht Renard 9

47cpht

Renard 65

29cpht

Renard 2

103/118cpht

Renard 3

106/118cpht

24 mcarat Indicated Mineral Resource

17 mcarat Inferred Mineral Resource

24-49 mcarat Exploration Upside

0m

100m

200m

400m

600m

710m

500m

300m

21

Renard 2

Renard 3

Renard 9

Renard 4

Renard is Continuing to Grow Renard 65 Bulk Sample: Expansion in the Project Reserve

Stornoway commenced a 5,000 tonne bulk sample at

Renard 65 in July 2012.

The objective is the recovery of a 1,000 carat parcel of

diamonds for valuation, to allow conversion of Inferred

Resources to Reserve.

Renard 65 currently contains:

• 3.7 mcarats of Inferred Mineral Resources

(12.9mtonnes at 29 carats per hundred tonnes)

• 6.8 to 13.7 mcarats of Exploration Target (29.5 to 41.6

mtonnes at 23 to 33 cpht)

Renard 65 has a good potential to return large diamonds.

Results are expected in Q1 2013

A 4 carat, top quality diamond

recovered from Renard 65 drillcore

Renard 65

R65 Pit on September 2nd

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General Project Arrangement Small Project Footprint of 3.1km2, Modest Environmental Impact

Processed Kimberlite

Containment (PKC)

Overburden

Stockpile

Waste Rock

R2-R3

Ore Stockpile

R65

Camp

Plant

Route 167 Extension

23

Acknowledgements

Stornoway

• Robin Hopkins

• John Armstrong

• Isabelle Lepine

• Colleen Laroulandie

• Cathy Fitzgerald (now Peregrine)

Geostrat Inc.

• David Farrow

• Darrell Farrow

Mineral Services Inc.

• Casey Hetman (now Northern Superior)

Scott-Smith Petrology Inc.

• Barbara Scott Smith

WWW International Diamond Consultants

Galaxy Diamond Experts SA

24 24

Renard: Québec’s First Diamond Mine