stornoway presentation at the 2012 rbc diamond conference (w/ appendix)

Matt MansonMatt MansonPresident and CEOPresident and CEO

BUILDING QUÉBEC’S FIRST DIAMOND MINEUpdate, July 22nd 2012

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 hereinas “forward-looking statements”, are made as of the date of this presentation and the Company does not intend, and does not assume anyobligation, 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 andinclude, but are not limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of futureproduction over any period; (iii) net present value and internal rates of return of the mining operation; (iv) capital costs and operating costs; (v) mineexpansion potential and expected mine life; (vi) expected time frames for completion of permitting and regulatory approvals and making aproduction decision; (vii) future exploration plans; (viii) future market prices for rough diamonds; and (ix) sources of and anticipated financingrequirements. 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 statementsof 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 bysuch statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and theenvironment in which Stornoway will operate in the future, including the price of diamonds, anticipated costs and ability to achieve goals. Certainimportant factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statementsinclude, but are not limited to: (i) estimated completion date for the Environmental and Social Impact Assessment; (ii) required capital investmentand estimated workforce requirements; (iii) estimates of net present value and internal rates of return; (iv) receipt of regulatory approvals onacceptable terms within commonly experienced time frames; (v) the assumption that a production decision will be made, and that decision will bepositive; (vi) anticipated timelines for the commencement of mine production; (vii) anticipated timelines related to the Route 167 extension and theimpact on the development schedule at Renard; (viii) anticipated timelines for community consultations and the conclusion of an Impact andBenefits Agreement; (ix) market prices for rough diamonds and the potential impact on the Renard Project’s value; and (x) future exploration plansand objectives. Additional risks are described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A, and otherdisclosure 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 theforegoing factors and other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whetherwritten or oral, that may be made from time to time by Stornoway or on our behalf, except as required by law.

3

Why Stornoway?

Renard

Diamonds

Stornoway

Strong Feasibility Base Case Economics

Extensive Resource Upside

Excellent Long Term Fundamentals

Few New Mining Projects

Experienced Team

Strong Québec Backing

100% Ownership in Renard:

One of the World’s Best Development Stage Diamond Projects

In Québec, one of the World’s Best Mining Jurisdictions

4

Zara BoldtCFO and VP

Finance

Pat GodinCOO & Director

Matt Manson President, CEO

& Director

Tony Walsh Chairman

Michel BlouinIndependent/ IQ Designate

Yves Harvey Independent

John LeBoutillierIndependent/ IQ Designate

Monique MercierIndependent/ IQ Designate

Peter NixonIndependent

Ebe ScherkusIndependent

Serge VézinaIndependent

Executive Officers

Non-Executive Directors

Key Managers

Ghislain Poirier

VP Public Affairs

Robin Hopkins

VP Exploration

Dave SkeltonVP Project

Development

Brian Glover VP Asset Protection

Guy BourqueChief Mining

Engineer

Martin BoucherManager,

Sustainable Dev

Yves PeronVP Engineering & Construction

Helene RobitailleDirector, HR

Stornoway recently announced the relocation of its head office to Montréal, which will

become the platform for the expansion of the mining team and corporate support staff.

John Armstrong

Diamond Resource Specialist

Patrick HouleManager,

Community Dev.

Stornoway’s Operating Credentials Board and Management Team

5The Last 8 MonthsMoving Forward with Québec’s First Diamond Mine

November 2011: Released project BFS

December 2011: Filed project ESIA

February 2012: Announced commencement of access road construction.

March 2012: Signed project Impacts and Benefits Agreement (“MecheshooAgreement”)

March-May 2012: Raised $40m in a 50/50 debt/equity ratio

May 2012: Announced $28.4m 2012 Pre-Development Program

May 2012: Announced establishment of head office in Montréal

July 2012: Signed the Declaration of Partnership with Chibougamau and Chapais

6

Lynx

R10

N

R7

R1Hibou

R4

R9R2

R3

R65

R8

Kimberlite Bodies with Probable Reserves

Hibou

Lynx

R4

R9R2

R3

R65

Kimberlite Bodies with Resource Potential

R1Hibou

Lynx

Legend

Stornoway PropertiesHydroQuébec FacilityRenard KimberlitesKimberlitic DykeRegional Kimberlites

HydroQuébecPowerlinesRoute 167 ExtensionRoadExploration/ Mining Projects

LEGEND:

0 1 2

Kilometers

60 0 60 120

Kilometers

Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

StratecoEastmain MineWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

Renard Kimberlite Bodies

Kimberlite Bodies with Inferred Resources

7Renard NI 43-101 Mineral Reserves and ResourceResource announced January 24th, 2011. Reserve announced November 16th, 2011

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 453/44cphtRenard 453/44cpht

Renard 2103/118cpht

Renard 2103/118cpht

Renard 3106/118cpht

Renard 3106/118cpht

18 million carats

PROBABLE RESERVE

Drill DelineatedMicro/Macro Diamond SamplingBulk Sampling for Value

Renard 947cpht

Renard 947cpht

Renard 6529cpht

Renard 6529cpht

17 million carats

INFERRED RESOURCE

Lower Resolution Drilling, or no Bulk Sample

Lower Resolution Diamond Sampling, or no Drilling.

24 - 49 million carats

EXPLORATION UPSIDE

8General Project ArrangementSmall Footprint of 3.1km2

Processed Kimberlite Containment (PKC)

OverburdenStockpile

Waste Rock

R2-R3

Ore Stockpile

R65

Camp

Plant

Route 167 Extension

9Mine PlanA Combined Open Pit and Underground Mine

Open Pit Mining at Renard 2 & 3 (years 1-2)

Underground Mining Renard 2, 3 & 4 (years 3-11)

Blast Hole Shrinkage with waste backfill from pits. Dilution and recovery estimates recently validated in post-BFS REBOP analysis.

6,000 tpd plant capacity, (2.2mtonnes/annum).

Pit at Renard 65 (initially) as a borrow-pit and waste water sump, pending resource conversion. Renard 4Renard 4

Renard 2Renard 2

Renard 3Renard 3

Renard 65Renard 65

Renard 2Renard 2Renard 3Renard 3

10Summary of Feasibility ResultsReleased November 16th, 2011

Valuation

NPV7% and IRR of C$672m and 18.7% (Pre-Tax) and C$376m and 14.9% (After-Tax)

Mining and Production Parameters

11 year reserve-based mine life

Peak diamond production reaching 2.1Mcarats per year, averaging 1.7Mcarats over LOM, and at a weighted average US$180/carat

Operating cash flow of C$2.7B

Costs

1 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.

Initial Capital Cost Estimate of C$802m including contingencies

LOM Operating Cost Estimate of C$54.71/tonne (C$70.27/carat) giving a 68% operating margin

Reserves and Resources1

Probable Mineral Reserve of 18.0 Mcarats (23.1Mtonnes at an average 78 cpht)

Inferred Mineral Resources of 17.5 Mcarats (31.1Mtonnes at an average 56 cpht)

Key AssumptionsC$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.

11

Long Term Business Plan

Stornoway has also developed a Long Term Business Plan (“LTBP”) based on the Project’s total Indicated and Inferred Mineral Resources to a depth of 700m.

This material is within the scope of the mine infrastructure costed within the Feasibility Study, and includes:• 6.1 Mcarats of high grade Inferred Mineral

Resources between 600-700 meters depth in Renard 2.

• 3.7 Mcarats of open pittable Inferred Mineral Resources to 290 meters depth in Renard 65

Although highly accretive, the project’s Inferred Mineral Resources are not included in the Feasibility Study economic analysis in accordance with NI 43-101, but do form the basis of the project’s ESIA and mine permitting. Mineral Reserve Included in

Feasibility Mine Plan

Upside Materials Not Included in Feasibility Mine Plan

Renard 65Renard 65

Renard 2Renard 2

Renard 3Renard 3

Renard 9Renard 9

Renard 4Renard 4

12

Feasibility Mine Plan Production Schedule and Cash Flow

500

1,000

1,500

2,000

2,500

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Open Pit & Underground MiningSchedule (Ktonnes of Ore)

R4 UG

R3 UG

R2 UG

R3 Pit

R2 Pit

500

1,000

1,500

2,000

2,500

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Carat Production (Kcarats)

R4

R3

R2

500

1,000

1,500

2,000

2,500

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Plant Feed (Ktonnes)

R4

R3

R2

100.0

200.0

300.0

400.0

500.0

600.0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Gross Revenue (C$M, Real)

R4

R3

R2

13

5,000t Trench

Northern R65 Contact

Renard 65 Bulk SampleAnnounced July 23rd, 2012.

Existing R65 Pit

A 4 carat, top quality diamond recovered from Renard 65 drillcore

Stornoway will commence the process of converting the project’s Inferred Mineral Resources with a 5,000 tonne bulk sample of the Renard 65 kimberlite, starting in July 2012.

Renard 65 has a good potential to return large diamonds, and it is expected that 1,000 carats will be recovered for valuation.

Ore will be trenched from the northern end of Renard 65 where kimberlite is already exposed at surface. Processing will occur at the 10 tph plant located at the project site, with diamond recovery at Stornoway’s North Vancouver facility.

Conversion of Renard 65 will allow an increase in planned production rate to 7,000 tonnes per day (2.6 Mtonnes/annum) and an extension of the project’s mine life and reserve tail.

Results are expected by year end.

14Renard’s DiamondsValuation 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.)

Implied grade loss through sampling breakage 15%-38%, not accounted for in the current resource work

KimberliteBody

Size ofValuation Sample(carats)

Largest Diamonds Recovered

(carats)

May 2011Diamond

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 $1361Based 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”

15

Permitting and Development Schedule

BFS (Complete)

ESIA (Complete)

Community Hearings

COMEX and CEAA Review

Specific Mine Permits (50)

Detailed Engineering

Project Financing

Road Construction

Mine Construction

Commissioning and Ramp-up

Commercial Production

2011

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

2012 2013 2014 2015

First Vehicle Access

16

Road: The Québec Ministry of Transportation “Route 167 Extension”, a new 2-lane gravel highway with a 70km/h speed limit.

Initial road construction cost of $332m will be funded by Québec. Stornoway will contribute $44m amortized over 10 years, starting in 2015. Additional Industry contributions expected.

Road construction commenced January 2012. Vehicle access is expected to be available to the Renard site to commence project construction in 2013.

Power: Separate feasibility study on a 165km 161kV powerline connecting Renard to the Laforge-1 generating station is ongoing.

The powerline would add capital cost to the project ($174m) but offers substantial operating cost savings ($9/tonne).

Stornoway has elected to proceed initially with diesel powered gensets for production startup, and will assess a powerline as a potential phase 2 capital program

LG2 LG3

Eastmain 1

LG4

Laforge 1

Laforge 2

Brisay

60 0 60 120

KilometersScale: 1:3,000,000

Route 167 Extension

Existing Winter Road

Stornoway Claims

Mining/Exploration Projects

Hydro Facility

Existing Hydro Line

Potential Hydro Line

Mistissini

Chibougamau

Route 167 Extension (268km) Existing

Winter Road

Potential Powerline

Temiscamie

Renard

Caniapiscau

Eleonore(Goldcorp)

Eastmain (Eastmain)

Troilus(Inmet)

McLeod Lake (Western Troy)

Mirage Camp

Matoush (Strateco)

Regional InfrastructureA Canadian Diamond Project with an All Season Highway and Potential Grid Power

17Permitting On-Track for Completion in 2012

Renard falls under the environmental protection regime of the James Bay and Northern Québec Agreement (JBNQA) and the Canadian Environmental Assessment Act.

Permitting Milestones:• December 2011: Filing of the Renard Environmental

and Social Impact Assessment (ESIA)• June 2012: Successful public hearings in Mistissini

and Chibougamau hosted by the federal regulator• August 2012: Scheduled public hearings under the

auspices of the Review Committee of the JBNQA.

Renard is on track for the receipt of its “Certificates of Authorization” within 2012.

The Renard ESIA describes a limited-footprint project with modest impacts on the local environment, all of which are well within existing Québec and federal standards.

Stornoway has published the complete ESIA, the Environmental Baseline Study, and the project Closure Plan online.

18

The Renard Diamond Project is situated close to the Cree Nation of Mistissini (CNM).

In March 2012 Stornoway concluded an Impacts and Benefits Agreement, the “MecheshooAgreement”, with the CNM and the Grand Council of the Crees (EI).

The Mecheshoo Agreement provides for employment and business opportunities for the Crees, fosters cultural, environmental and social protection, and provides for the Crees’ participation in the project’s long term financial success.

From left: Chief Richard Shecapio, of the Cree Nation of Mistissini, Grand Chief Matthew Coon-Come, of the Crees of

Eeyou Itschee, and Matt Manson, CEO of Stornoway, in Mistissini on March 27th, 2012, on the occasion of the signing of

the Mecheshoo Agreement.

“Stornoway has demonstrated an immense openness and has been willing to adapt the project in a manner that respects the Crees of Mistissini, our interests, our

values, our culture and our way of life…At this point, we can assure without a doubt that this project has a clear

social acceptability from Mistissini”

Chief Richard Shecapio, CNM, March 2012.

The “Mecheshoo” Agreement (IBA)Renard’s Social Licence

19

Jean Charest, Premier of Québec, and Matt Manson, CEO of Stornoway, in Chibougamau on August 1st for the announcement of Route 167 Extension

Financing Agreement. Mr. Charest is holding core from Renard 65 containing a four-carat diamond.

Strong Sponsorship in QuébecOne of the World’s Best Mining Jurisdictions

Stornoway enjoys strong support from Investissement Québec and the Québec government• IQ is a 25% equity shareholder (34% fully

diluted) with pre-emptive right to maintain ownership at 25%

• IQ is committed to providing material lending support ($100M in project finance)

The Québec government is committed to infrastructure development as part of its “Plan Nord”• Québec has budgeted C$1.2B in

infrastructure developments over the next five years, including the Route 167 Extension highway project.

• Stornoway’s involvement in the financing of the Route 167 Extension represents the first agreement signed under the “Plan Nord”.

20

From left : Steve Gamache the Mayor of Chapais, Manon Cyr the Mayor of Chibougamau and Patrick Godin the COO of Stornoway on

July 5th, 2012, on the occasion of the signing of the Declaration of Partnership

Declaration of PartnershipCooperation Agreement with Chapais and Chibougamau

“The Declaration of Partnership is part of a new era of economic and social development based on

respect, mutual trust and a shared understanding of the issues of each partner ”

M. Steve Gamache , Mayor of Chapais, July 5 2012

In July 2012 Stornoway concluded a “Declaration of Partnership” with the nerabycommunities of Chapais and Chibougamau.

Chapais and Chibougamau are important regional hubs for civic and mining services.

The Declaration provides for a framework to address issues of mutual interest such as communication, employment, economic diversification, and attracting people to move to the region.

21

Stornoway’s Project Pipeline and Technical Credentials

As a strategic priority, Stornowaymaintains an active exploration program and technical team based in Vancouver.

Stornoway’s project pipeline comprises both advanced and grassroots projects.

• Internal growth opportunities through the advanced Aviat and Qilalugaq Projects.

• Grassroots discovery potential in Saskatchewan (“Pikoo”) and Québec (“AEON”) based on un-sourced indicator mineral anomalies with diamond potential.

Stornoway considers the maintenance of in-house technical expertise key to the growth of a successful diamond mining business.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The potential quantity and grade of any “Target for Further Exploration” (“TFFE”) is conceptual

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

being delineated as a mineral resource.

Aviat (90%)Advanced Project24-40 mcarats “TFFE”

Qilalugaq (100%)Advanced Project

26 mcarats Inferred

Pikoo (100%)Grassroots Exploration

AEON (100%)Grassroots Exploration

Renard (100%)NI 43-101 Resource

24 mcarats Indicated17 mcarats Inferred

24-49 mcarats “TFFE”

22

PRO-FORMA SHAREHOLDING*

ANALYST COVERAGEMarket Capitalization:(based on voting and non-voting shares)h C$ 119 million

Total Shares Outstanding: (Basic and Non-voting convertible shares) 161 million

Total Options & Warrants Outstanding: 31 million

Cash and Short Term Deposits: (as of April 30th, 2012 and May 4th Financing) C$ 47 million

Debt: ($100m Standby Facility with IQ undrawn) C$ 20 million

IQ** (common shares)(non-voting convertible shares)

25.0%-------- 33.7%

Agnico-Eagle 10.6% 8.9%

Caisse de dépôt et placement du Québec 9.0% 7.5%

Rio Tinto plc 3.1% 2.4%

Float 52.3% 47.5%

Fully Diluted

Basic

RBC Des Kilalea,May11th, 2012

Outperform-Speculative Risk $2.05

Paradigm David DavidsonNov 17th, 2011

Buy $3.15

BMO Ed SterckJune 7th 2012

Market Perform $1.00

Desjardins Brian ChristieMay 8th, 2012

Speculative Buy $1.70

Laurentian Eric LemieuxJuly 5th, 2012

Buy $2.75

National BankEldon BrownMay 4th, 2012

Outperform-Speculative Risk $2.00

BALANCE SHEET*

Notes: Debt Facility: In December 2010, Stornoway announced a $100 million Credit Support Agreement with a subsidiary of Société générale de financement du Québec, now InvestissmentQuébec, with respect to future project debt financing. The Credit Support Agreement has an annual commitment fee of 175 bps undrawn, and will take the form of a direct project loan ranking pari passu with concurrent senior lenders or, as appropriate, on a stand alone basis on terms no less favourable than prevailing commercially reasonable market terms.

*Based on market close of $0.74 on July 12 2012.

**IQ: Investissement Québec, the Québec government's industrial and financial holding company whose mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region

Stornoway’s Platform for Project Development and Financing

23Value Creation Through Project FinancingAber Diamond Corporation, 1995-2007

Feasibility StudyJuly 1999 Market Low

24

Outlook

Renard: One of the world’s leading undeveloped diamond projects• Strong base case economics• Extensive resource upside• On-track permitting• Strong social licence• Good jurisdiction• Infrastructure under development

The next 6-12 months• $28.4m Pre-Development Program (EPCM)• Permitting milestones through 2H 2012• Resource Growth: Renard 65 Bulk Sample• Project financing by 1H 2013

Financing Strategy• Starting point: strong sponsor support ($100m credit

support agreement with Investissement Québec and 25% pre-emptive right on new equity).

• Currently pursuing a balanced debt-equity mix, with engagement in the commercial debt market.

• Currently pursuing financing options tied to future diamond supply.

2525

Appendix 1: Diamond Market Overview

26Major 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• Bundar (Rio Tinto)

Australia• Argyle (Rio Tinto)

• Ellendale (Gem Diamonds)

Canada• Ekati (BHPB)

• Diavik (Rio Tinto/Harry Winston)

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

• Renard (Stornoway)

• Star (Shore Gold/Newmont)

Botswana• Jwaneng, Orapa (De Beers)

• Gope (Gem Diamonds)

• AK6 (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)

• Mothai (Lucara)

27The Rough Diamond Business in Context1/8th the Size of the Copper Business in 2011

0

20

40

60

80

100

120

140

160

Diamond Pt-Pd Ni Al Au Cu

Valu

e W

orld

Pro

duct

ion

(Bill

ion

USD

)

2008200920102011

Source: USGS, LME, Kimberly Process

28Rough Diamond ProductionStornoway Estimates

2011 Production, by Company, by Value 2011 Production, by Company, by Carats

2010 Production, by Country, by Value

Source: Kimberly Process

Source: Company Reports and SWY Estimates Source: Company Reports and SWY Estimates

De Beers24.4%

Alrosa26.9%

BHPB2.0%

Rio Tinto9.1%

Petra1.1%

Gem0.2%

HW2.1%

Zimbabwe7.1%

Others27.2%

De Beers34.7%

Alrosa25.2%

BHPB5.1%

Rio Tinto4.9%

Petra1.4%

Gem1.8%

HW1.9%

Zimbabwe2.5%

Others22.7%

29

Estimated Prices per Carat (US$)

Source: Stornoway Estimates, or Company Reports based on FY2011 reporting. Source: Company Reports. De Beers shown at 100%

De Beers and Alrosa maintain the bulk of the world’s formerly established diamond resources (78% by SWY estimates).

Not all diamond resources are created equal: large diversity in ore body grades and diamond value.

$731

$360 $335

$182 $155 $137 $121 $120

$340

50100150200250300350400450500550600650700750800850900950

1,000

$US

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Mct

s

`

Resources (mCarats)$2776

World Rough Diamond Resource Base

30

G l o b a l R o u g h D i a m o n d P r o d u c t i o n ( M M c t )

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

1 8 0

2 0 0

2006

A

2007

A

2008

A

2009

A

2010

A

2011

E

2012

E

2013

E

2014

E

2015

E

2016

E

2017

E

2018

E

2019

E

Ct

MM

A n g o la A u s t r a lia B o t s w a n a C a n a d a D R C N a m ib ia R u s s ia S o u t h A f r i c a Z im b a b w e O t h e r

Almost all rough diamond production forecasts show flat or declining production long term.

Alrosa is an optimistic forecaster, with a 23% increase in carat supply 2010 to 2020. Others (such as RBC below) forecast 15-17% supply growth. Rough production may not 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. New production from projects under development is not expected to materially impact overall supply.

Source: RBC Capital Markets

AK6 (LUC)Koidu (Steinmetz)

Zimbabwe

Renard (SWY) Star-Orion (SGF)Gahcho Kue (MPV, De Beers)

Global Rough Diamond Production Forecast

3131Rough Diamond Supply and Demand ForecastsAlrosa October 2011

Normal GDP Forecast by Region

Diamond Jewellery Consumption by RegionRough Diamond Demand

Source: Alrosa October 2011 after Global insightNote: GDP at purchasing power parity

Source: Alrosa October 2011 Source: Alrosa October 2011 after Global insights and Company estimates

14,527 17,770 22,0874,322

5,0975,756

4,1686,756

11,17510,260

16,769

26,112

76,047

101,845

136,959

0

20,000

40,000

60,000

80,000

2010 2015F 2020F

$bill

ions

United States Japan India China World

CAGR10-20

+9.8%

+10.4%

+2.9%

+4.3%

40.8

25.4

15.1

0

5

10

15

20

25

30

35

40

45

50

2010 2015F 2020F

$bill

ions

28.2 35.7 44.57.9

8.810.0

7.212.5

20.5

8.0

15.1

26.024.5%

21.5%

28.2%

0

20

40

60

80

100

120

2010 2015F 2020F

$bill

ions

United States Japan India China % of India to China World

73.8 97.4 127.8CAGR10-20

+12.5%

+11.0%

+2.4%

+4.7%

Current rough diamond demand forecasting focusses on the expected expansion of the diamond jewelry markets in Asia.

Asian diamond jewelry demand growth is expected to outpace GDP growth between 2010 and 2020 as the traditions of diamond gifting become established within the growing middle classes.

Alrosa (after Global Insight, October 2011) forecast global diamond jewelry consumption g CAGR of 5.6% a year, reaching $128bn by 2020, helping rough diamond demand to grow by 10.4% on average till 2020 and to reach $40.8bn (from 2010 level of $15.1bn).

32Diamond Price GrowthRough and Polished Diamonds Against a Basket of Indicators, 2003-April 2012

Source: LME, IMF, Rough Diamond Price data after WWW International Diamond Consultants Limited Indexed to October 2003

33Diamond Price Growth The Impact of Rising Prices on Producer Results and Cutting Centre Liquidity

Long term price growth since 2000 has caused De Beers sales volumes to increase in dollar terms despite a shrinking market share.

De Beers average sales price up +27% 2009-2010 and +29% 2010-2011.

Long term increase in cutting center debt levels to accommodate higher value business with based on disproportionately smaller change in sales volumes.

$- $1 $2 $3 $4 $5 $6 $7 $8

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Sale

s (B

illio

n U

SD)

$- $2 $4 $6 $8

$10 $12 $14 $16

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Deb

t (B

illio

n U

SD)

Source: RBC Capital Markets

Source: Company Reports

Cutting Centre Debt, 2000-2011

De Beers Sales, 2000-2011

34Future Rough Diamond Price GrowthMarket Estimates and Stornoway’s Views

$0bn

$10bn

$20bn

$30bn

$40bn

$50bn

$60bn

2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Production and Demand in Rough Terms(Q1 2012 values)

Production

Demand

source:WWWForecasts Ltd

Recent WWW supply and demand modeling predicts excess diamond supply between 2011 and 2014, and a Rough Diamond Price CAGR of 7.5% (Nominal) between 2011 and 2025.

WWW modeling highlights short term discrepancy between rough and polished diamond pricing, yielding short term price caution and long term optimism

Recent De Beers supply and demand modeling contains no surplus supply prediction, and is closer to the Alrosarough demand 10% CAGR (Nominal) forecast to 2020, but with a more pessimistic supply forecast.

In line with its peers and based on guidance from WWW, Stornowayassumes a 2.5% real price growth factor to 2025 in the the Renard Feasibility Study in the all-equity case valuation and for mine planning purposes. A 0% factor (ie flat diamond prices) is assumed in the Financing Case model. Source: De Beers November 2011

Source: WWW February 2011

3535

Appendix 1: Feasibility Study Materials

36

Feasibility Study Contributors

Capital and Operating Cost Estimates, Onsite Infrastructure Design, Construction Strategy, Risk Assessment

Process Plant, Underground Mine Design and Underground Reserve

Open Pit Design, Open Pit Reserve and Financial Analysis

Geotechnical, Processed Kimberlite Containment, Waste Water Management

Environmental, Social and Permitting Considerations

Rock Mechanics, Hydrogeology

NI 43-101 Resource

Human Resources, Operating Plan, Marketing Plan

37Financial Analysis Project Assumptions, Valuation and Pay-Back

Key Assumptions in the Financial Model

Mining Parameters

Reserve Carats (m) 18.0Tonnes Processed (m) 23.0Recovered Grade (cpht) 78Average Ore Recovery (%) 83.5%Average Mining Dilution (%) 14%Dilution Grade (cpht) 0Processing Rate (Mtonnes/a) 2.2Mine Life (years) 11

Cost Parameters

Pre-Production Cap-ex (C$m) $802LOM Cap-Ex (C$m) $994Oil Price (US$/barrel) $90LOM Op-ex (C$/tonne) $54.71LOM Op-ex (C$/carat) $70.27

Revenue Parameters (real terms)

Gross Revenue (C$m) $4,112Marketing Costs 2.7%DIAQUEM Royalty 2.0%Operating Cash Flow (C$m) $2,677Operating Margin 68%Total Taxes and Mining Duties (C$m) $571After Tax Net Cash Flow (C$m) $1,151

Diamond Price

Parameters

Renard 2 and Renard 3 (US$/carat) $182Renard 4 (US$/carat) $164Diamond Price Escalation, 2012-2025 2.5%Exchange Rate 1C$=1US$

Schedule Parameters

Effective Date for NPV Calculation January 1 2012Construction Mobilization July 1 2013Plant Commisioning Commences July 1 2015Commercial Production Declared January 1 2016

Valuation Results (C$m)

Pre-Tax After Tax

NPV5% $899 $534

NPV7% (Base Case) $672 $376NPV9% $490 $248

IRR 18.7% 14.9%Pay-Back (years) 4.65 4.80

38Financial Analysis Capital Costs

Capital Costs (C$m)

Site Preparation & General $22.9

Mining $236.9

Mineral processing plant $168.4

Onsite utilities and infrastructures $102.4

Owner’s Cost $86.2

Spares, fills, tools $10.2

EPCM services $45.0

Field indirect costs, vendor representatives $22.5

Construction camp & Catering $25.0

Freight and duties $8.1

Contingency $74.3

Total Pre-Production Capital $801.8Escalation Allowance on Initial Capital $57.3

Pre-Production Revenue ($24.6)

Deferred & Sustaining Capital $138.8

Deferred Capital (Route 167 Extension) $44.0

Salvage Value2 ($22.9)

Total LOM Capital $994.4

Site Prep. & General

4%Mining45%

Plant32%

Onsite utilities

and infra.19%

Direct Costs (C$531m)

Owner’s Cost32%

Spares4%

EPCM17%

Field, Vendor

reps8%

Camp9%

Freight3%

Conting. 27%

Indirect Costs (C$271m)

39

Operating Unit Costs (Real Terms; C$)

$/tonne

Open Pit Mine $19.99

Underground Mine $24.11

Plant $14.82

G&A $14.69

Total $54.71 ($70.27/ct)Notes: Pit costs incurred before January 1st, 2016 are capitalized

Open Pit Mine,

$40.70 , 3%

Underground Mine, $547.90 ,

43%

Plant, $337.00 ,

27%

G&A, $334.00 ,

27%

Operating Costs (C$1,260m)

0

10

20

30

40

50

60

70

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Operating Costs LOM

Others

Power

Labour

Financial Analysis Operating Costs

40Financial Analysis Valuation Sensitivities

80% 90% 100% 110% 120%Operating Cost 16.5% 15.7% 14.9% 14.0% 13.2%Capital Cost 19.1% 16.8% 14.9% 13.2% 11.8%Revenue 9.2% 12.2% 14.9% 17.4% 19.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

80% 90% 100% 110% 120%Operarting Cost 20.7% 19.7% 18.7% 17.7% 16.7%Capital Cost 23.7% 21.0% 18.7% 16.7% 15.0%Revenue 11.6% 15.4% 18.7% 21.8% 24.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

80% 90% 100% 110% 120%Operating Cost 808,813 740,372 671,932 603,487 535,040Capital Cost 829,526 750,717 671,932 593,125 514,316Revenue 235,672 453,813 671,932 890,040 1,108,14

200,000

400,000

600,000

800,000

1,000,000

1,200,000

80% 90% 100% 110% 120%Operating Cost 463,661 419,627 375,577 331,523 287,283Capital Cost 488,669 432,381 375,577 318,658 261,323Revenue 94,589 236,370 375,577 513,934 651,296

100,000

200,000

300,000

400,000

500,000

600,000

700,000

PRE-TAX IRR

AFTER-TAX IRR

PRE-TAX NPV7%

AFTER-TAX NPV7%

41Financial Analysis Renard Diamond Valuation. Conducted by WWW May 9th to 13th 2011

1The Renard Feasibility Study of November 2011, consistent with the NI 43-101 compliant Mineral Resource of January 2011, utilizes 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.

KimberliteBody

ValuationSample(carats)

Achieved Prices for the Valuation Samples WWW Price Modeling

Number ofIndependentValuations

Average ofIndependentValuations(US$/carat)

Minimum ofIndependentValuations(US$/carat)

Maximum ofIndependentValuations(US$/carat)

WWWValuation(US$/carat)

WWW BaseCase Model(US$/carat)

WWW "High"Model

(US$/carat)

WWW"Minimum"

Model(US$/carat)

Renard 2 1,580 5 $173 $143 $195 $195 $182 $236 $163

Renard 3 2,753 5 $171 $137 $195 $190 $182 $205 $153

Renard 4 2,674 5 $100 $87 $107 $107 $1121 $185 $105

Conducted by WWW International Diamond Consultants Ltd. May 9th-13th 2011

42

Kimberlite BodyWWW Base Case Model (US$/carat)

WWW "High" Model

(US$/carat)

WWW "Minimum"

Model (US$/carat)

Renard 2Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $182 $201 $163

Scenario 2 (Alternative): Utilizing an R2 only Size Frequency Model $208 $236 $186





WWW determine High and Minimum sensitivities on their Base Case diamond price model. WWW state that it is unlikely that an actual diamond price achieved for each kimberlite body upon production would fall below the “Minimum” sensitivity, but it is possible that the actual diamond price achieved may be higher than the “High” sensitivity, which is not a maximum price.

The Feasibility Study Base Case diamond price of US$182/carat for Renard 2 and 3 and US$164/carat for Renard 4 derives from a value modeling approach that assumes a single diamond size distribution in the three kimberlites.

An alternative interpretation, that each kimberlite’s diamond population is unique and is correctly represented by its diamond sample, yields diamond price models of US$208/carat for Renard 2, US$165/carat for Renard3 and US$112/carat for Renard 4.

Financial AnalysisRenard Diamond Valuation Sensitivities

43

This “Alternative” diamond price model is highly accretive to the project’s valuation given the dominance of Renard 2 in the mine plan. The interpretation of similarity in the diamond populations is the more conservative approach.

A real-terms diamond price growth factor of 2.5% per annum has been applied between 2012 and 2025. This is consistent with well constrained rough diamond supply and demand forecasts and industry best-practice. WWW have advised that Stornoway’s assumptions on diamond price and diamond price growth are “reasonable in the context of the overall supply and demand environment” of the diamond industry. The project shows strong sensitivity to future diamond price growth.

Kimberlite BodyPre-Tax After-Tax

NPV7% (C$m) IRR Pay-Back

(years) 1NPV7% (C$m) IRR Pay-Back

(years) 1

WWW Minimum Model $397 14.6% 5.34 $199 11.5% 5.46Feasibility Study Base Case Model $672 18.7% 4.65 $376 14.9% 4.80Alternative Model $871 21.8% 4.07 $502 17.4% 4.20WWW High Model $1,261 26.5% 3.49 $747 21.4% 3.90

Financial AnalysisRenard Diamond Valuation Sensitivities

Diamond Price Escalation (2012-2025)1Pre-Tax After-Tax

NPV7% (C$m) IRR Pay-Back

(years) 1NPV7% (C$m) IRR Pay-Back

(years) 1

0% per annum $227 11.8% 5.80 $93 9.2% 5.912.5% per annum (Base Case) $672 18.7% 4.65 $376 14.9% 4.805% per annum $1,228 25.1% 3.87 $724 20.3% 4.00

1Calculated on an after-tax basis

1Calculated on an after-tax basis

44

Probable Mineral Reserve Mining Recovery Factors Utilized in the Reserve Calculation

Kimberlite Grade(cpht)

Tonnes(millions)

Contained Carats(Millions)

InternalDilution

Mining Recovery

MiningDilution

Renard 2 OP 95 1.31 1.24 0.0% 96.0% 7.1%Renard 2 UG 84 16.30 13.66 6.9% 83.2% 14.0%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 Indicated 78 23.06 18.00 5.9% 83.5% 13.5%

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%

Carats

R2 ,76%

R3,7%

R4,16%

Tonnage

R2 ,84%

R3, 8%

R4, 8%

Revenue

Reserves and Resources Renard Mineral Reserve Estimate, Announced November 16th, 2011

45Reserves and Resources Renard Mineral Resource Estimate, Announced January 24th, 2011

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.


Tonnes(millions)


Renard 2 103 17.63 18.09Renard 3 106 1.75 1.85Renard 4 53 7.25 3.81Renard 9 -- -- --Lynx Dyke -- -- --Hibou Dyke -- -- --

Total Indicated 89 26.63 23.76

Renard 2 118 5.21 6.14Renard 3 118 0.54 0.64Renard 4 44 4.76 2.09Renard 9 47 5.70 2.69Renard 65 29 12.94 3.72Lynx Dyke 107 1.80 1.92Hibou Dyke 144 0.18 0.26

Total Inferred 56 31.12 17.45

46

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 kimberlitevolumes 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.


Tonnes(millions)


Renard 2 103 to 188 4.0 to 4.6 4.1 to 8.6Renard 3 107 to 168 0.8 to 1.6 0.8 to 2.8Renard 4 38 to 79 11.1 to 15.3 4.2 to 12.1Renard 9 45 to 50 3.9 to 6.3 1.7 to 3.2Renard 65 23 to 33 29.5 to 41.6 6.8 to 13.7Lynx 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 ExplorationUpside 55.1 to 75.5 23.5 to 48.5

Reserves and ResourcesRenard Exploration Upside, Announced January 24th, 2011

47

Processed Kimberlite Containment

PKC site selection was based on acomprehensive evaluation of 5 sites.

Geochemical characterisation of Processed Kimberlite (“PK”) and country rock waste indicates minimal metal leach potential and no acid generation.

PKC facility will be a dry stacked facility with no requirement for a liner.

PKC facility can accommodate all current Indicated and Inferred Resources (44.3 Mt).

Waste rock can be used as construction aggregate.

PK will be de-watered by centrifuge and trucked to the PKC site. PKC is an engineered facility requiring compaction of berms and placement of erosion barriers. The PK deposition plan allows for progressive rehabilitation and re-vegetation.

No fish habitat will be impacted by PK disposal.

Characterisation

PKC Facility in 2026

Dewatered PK

48

Water Management

PKC

R65Waste Rock

R2/R3 Overburden

Ore

Process Plant

Waster Water Management Schematic

Mine wastewatertreatment plant

Wastewater Treatment Plant

Collection Ditches

Pump Station

All water in contact with mining materials will be collected and treated prior to release. Treated water willmeet standards defined by Québec MDDEP Directive 019, Québec environmental effluent objectives forthe protection of aquatic life, and the Canadian Metal Mining Effluent Regulation.

Single watershed impacted by all mining activities.

Water recycling for process plant.

Water management system includes a network of collection ditches, apumping network, a catch basin sump at Renard 65, a watertreatment plant, and submerged discharge within Lake Lagopede

49

Closure Plan

Before

After

Stornoway acknowledges that it is only a temporaryuser of land that will be returned to its traditionalusers at the end of mine life. In this context, projectdesign has prioritized minimal environmentalfootprint and progressive rehabilitation.

Buildings have been designed and materialsselected to facilitate dismantling, recycling and sitere-vegetation at the end of the mine life.

Mine planning ensures that all waste rock will beused for construction, backfill of the undergroundmine. Open-pits will be flooded to create new fishhabitats.

PKC facility has been designed to ensureprogressive re-vegetation and ease of maintenanceduring operations.

Benches will be progressively rehabilitated.

Airstrip will either be rehabilitated or vested toauthorities to become a regional infrastructure.

Post-closure environmental monitoring program willbe implemented.

5050

Appendix 2: Project Comparables

51Project ComparablesRecent Canadian Diamond Mines Compared as of the Date of each BFS

Source: Company Reports and Stornoway Estimates. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators. Assumes similar diamond recovery and mining dilution parameters.

Ekati (1998)BHPB, As BuiltEstimates

Diavik (1999)Rio-Tinto, As Built Estimates

Victor (2008)De Beers, As Built Estimates

Renard FS (2011)

Resource ParametersResource (m carats) 161 133 No data 41Resource (US$) $10B $6.7B No data $7.2BResource Grade (cpht) 110 360 No data 72Average Resource Diamond Price $60 $50 No data $175Resource Mine Life 25 25 No data n/a

Reserve ParametersReserve (carats) 72 102 6 18Reserve (dollars) $6B $5.5B $2.4B (est) $3.2BReserve Grade (cpht) 109 400 20 78Average Reserve Diamond Price $84 $55 $400 $180Average Reserve Ore Value (US$) $92 $220 $80 $140Reserve Mine Life 17 19 12 11

Production ParametersAnnual Production (mCarats) Up to 3.6 Up to 7 0.5 Up to 2.1Annual Revenue (US$m) $302 $385 $215 $364LOM Op ex (Cdn$/tonne) $100 to $60 $100 No data $55LOM Op ex (Cdn$/carat) $92 to $55 $25 No data $70Canadian US Dollar c.$0.75 $0.67 c.$1.00 $1.00

Pre Production Cap ex (Cdn$) $900m $1.3B $982m $802m

52Project ComparablesRecent Canadian Diamond Development Projects Compared as of the Date of each BFS

Gahcho Kué FS (2010) Mountain Province

Star-Orion FS (2011) Shore Gold

Renard FS (2011)

Resource ParametersResource (m carats) 61 43 41Resource (US$) $5.1B $11B $7.2BResource Grade (cpht) 168 12 72

Average Resource Diamond Price $85 (WWW Apr 10)$65 (DTC Apr 10) $256 (WWW Feb 11) $175 (WWWMay 11)

Resource Mine Life n/a n/a n/a

Reserve ParametersReserve (carats) 49 34 18Reserve (dollars) $3.7B $8.2B $3.2BReserve Grade (cpht) 157 12 78Average Reserve Diamond Price $75 $242 $180Average Reserve Ore Value (US$) $118 $30 $140Reserve Mine Life 11 20 11

Production ParametersAnnual Production (mCarats) 4.5 1.7 Up to 2.1Annual Revenue (US$m) $338 $411 $364LOM Op ex (Cdn$/tonne) $49 $14 $55LOM Op ex (Cdn$/carat) $31 $114 $70Canadian US Dollar 0.96 0.945 1.00

Pre Production Cap ex (Cdn$) $550m($800m De Beers Dec 11) $1.9B $802m

Source: Company Reports. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators. Assumes similar diamond recovery and mining dilution parameters.

53Project ComparablesDiamond Industry Cost Curve (Anglo American November 2011 after De Beers 2010)

COST/REVENUE

Ren

ard

Ren

ard

with

Pow

erlin

e

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,0000

0.0

0.5

1.0

10.5

2.0

Cos

t/rev

enue

(x)

Cumulative revenue (US$m)

Jwan

eng N

amed

eoop

erat

ions

Gah

cho

Kue

(dev

elop

men

t pro

ject

)

Vene

tia

Ora

pa

Snap

lake

Dam

tsha

a

Source: Anglo-American (After De Beers, November 2011), and Stornoway Estimates

5454

Appendix 3: Management Biographies

55

Appendix: Management Biographies

PRESIDENT, CHIEF EXECUTIVEOFFICER AND DIRECTOR

STORNOWAYDIAMOND COPRORATION

36 TORONTO STREET, SUITE 1000

TORONTO, ONT, M5C2C5

TEL. : (416) 304-1026

www.stornowaydiamonds.com TSX:SWY

Matt Manson, PhD.

Matt Manson was appointed President of Stornoway DiamondCorporation in March 2007 following the acquisition of AshtonMining of Canada and Contact Diamond Corporation, andsubsequently President & CEO in January 2009.

As President & CEO, Mr. Manson is responsible for themanagement of the company as a whole, playing a leadership rolein all key business units including finance and budgets, exploration,human resources, investor relations and advanced projectdevelopment including the Renard Diamond Project.

Between 1999 and 2005 he was employed by Aber DiamondCorporation (now Harry Winston Diamond Corporation) as VPMarketing and subsequently VP Technical Services & Control,during which time he participated in the US$230m project financingfor the Diavik Diamond Project and oversaw Aber's technical andmarketing operations during the feasibility, construction and earlyproduction phases of Diavik. Between 2005 and 2007 he wasemployed by Contact Diamond Corporation, formerly SudburyContact Mines and a 40% owned subsidiary of Agnico-Eagle MinesLimited, as President & COO and subsequently President & CEO.

Mr. Manson is a graduate of the University of Edinburgh (BScGeophysics, 1987) and the University of Toronto (MSc Geology 1989and PhD Geology, 1996), and has over 17 years of experience indiamond exploration, development and production.

56

CHIEF OPERATING OFFICERAND DIRECTOR

LES DIAMANTS STORNOWAY (CANADA) INC.

1111 RUE ST. CHARLES

LONGUEUIL, QUÉBEC J4K 4G4

TEL. : (450) 616-5555


Patrick Godin, Eng., Asc.

Pat Godin joined Stornoway as Chief Operating Officer in May 2010 andwas appointed to the Board of Directors in October 2011. He isresponsible for the development of the Renard Diamond Project in north-central Québec, on track to becoming Québec’s first diamond mine.

Prior to joining Stornoway Diamond, Mr. Godin acted as Vice President,Project Development for GMining Services, focused on the developmentof mining projects in the Americas and West Africa, and was responsiblefor the developed of the Essakane Mine in Burkina Faso under contract toIAMGOLD.

He was previously Vice President of Operations for Canadian Royalties,specifically heading the development of their nickel project in NorthernQuébec. He was also President and General Manager of CBJ-CAIMANS.A.S., a French subsidiary of Cambior / IAMGOLD, holder of the CampCaïman gold mining project located in French Guiana. For many years, hewas involved in Cambior’s various Canadian properties in Abitibi-Témiscamingue, through progressive management positions in projectdevelopment and mine management.

He holds a bachelor’s degree in mining engineering from Université Lavalin Québec. Mr. Godin is a member of the “Ordre des Ingénieurs duQuébec”, of the Certified Directors College and of The Canadian Instituteof Mining, Metallurgy and Petroleum (CIM). He is the Chairman of theBoard of Orbit-Garant Drilling and is a member of the Technical AdvisoryCommittee for CANMET, known for its technical excellence in mining andmineral processing.


57


VICE PRESIDENT, FINANCE ANDCFO

STORNOWAYDIAMOND COPRORATION

980 W FIRST STREET, #116

NORTH VANCOUVER, BC V7P 3N4

TEL. : (604) 983-7750


Zara Boldt, B.A., CGA

Zara Boldt was appointed Vice President, Finance with Stornowayin May 2007, after serving as Stornoway’s Controller between 2004and 2007, and Chief Financial Officer in March 2010.

As Vice President Finance and CFO, Ms. Boldt is responsible for themanagement of the corporate and financial affairs of thecorporation, and for the oversight of its regulatory reportingrequirements.

Ms. Boldt has held positions of progressive responsibility withseveral mineral exploration companies, in addition to severeal yearsof experience with a national investment dealer. Her most recentresource industry roles include CFO for Sherwood CopperCorporation from May 2006 to May 2007 and Controller for theNorthair Group of Companies between May 2004 and April 2007.

Ms. Boldt is a Certified General Accountant and a graduate of theUniversity of Puget Sound in Tacoma, Washington. She is a directorof Troon Ventures Ltd., where she serves as Chair of the AuditCommittee.