BUILDING QUÉBEC’S FIRST DIAMOND MINE

Update November 19th 2012

Matt Manson President , CEO & Director

2

Forward-Looking Information

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

within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein

as “forward-looking statements”, are made as of the date of this presentation and the Company does not intend, and does not assume any

obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and

include, but are not limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of future

production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) 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

Stornoway Diamond Corporation TSX:SWY

Renard

Diamonds

Strong Base Case Economics

World Class Resource Upside

All-Season Access Road Under Construction

Permitting Nearing Completion

Excellent Long Term Supply & Demand Fundamentals

Few New Mining Projects

100% Ownership in Renard:

The World’s Most Advanced New Diamond

Mine Under Development

On Track for Construction Start-up in 2013

4

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 November 15th 2012: Stornoway Assumes Management of Road Completion

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

Nick Thomas Manager,

Investor Relations

Yves Perron VP Engineering

& Construction

Zara Boldt

CFO and VP

Finance

Pat Godin

COO & Director

Matt Manson

President, CEO

& Director

Michel Blouin

Independent/

IQ Designate

Yves Harvey

Independent

John LeBoutillier

Independent/

IQ Designate

Monique Mercier

Independent/

IQ Designate

Peter Nixon

Independent

Ebe Scherkus

Independent/

Board Chairman

Serge Vézina

Independent

Executive Officers

Non-Executive Directors

Key Managers

Ghislain

Poirier VP Public Affairs

Dave Skelton VP Project

Development

Brian Glover VP Asset

Protection

Martin Boucher Manager,

Sust. Dev

Guy Bourque Chief Mining

Engineer

Helene

Robitaille Director, HR

Head Office: Longueuil Québec,

Exploration Office: North Vancouver, BC

Community Office: Mistissini, Québec

John

Armstrong Senior Geologist

Patrick Houle Manager,

Community Dev.

Stornoway’s Board and Management Team

Robin

Hopkins VP Exploration

6

MAJOR SHAREHOLDINGS*

12 MONTH ANALYST TARGETS Market Capitalization: (based on voting and non-voting shares)

C$ 81 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 July 31st 2012)

C$ 41 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%

(est)

7.5%

(est)

Float 55.4% 49.9%

Fully

Diluted Basic

RBC Des Kilalea,

November 5th 2012

Outperform-

Speculative Risk $2.05

Paradigm David Davidson

Nov 17th 2011

Buy $3.15

BMO Ed Sterck

November 15th 2012

Market Perform $1.00

Desjardins Brian Christie

November 15th 2012

Speculative Buy $1.70

Laurentian Eric Lemieux

November 16th 2012

Buy $2.75

National Bank Eldon Brown

October 31st 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 Investissment

Québec, 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 $0.50 on November 16th 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

7

12 Months of Milestones Achieved Moving Forward with Québec’s First Diamond Mine

Dec 2011: ESIA Filed

Nov 2011:

Feasibility Study

Completed

Feb 2012: Road

Construction Commences

Mar 2012: IBA (Mecheshoo Agreement) Signed

May 2012: $28.4m Pre-Development Program Announced

Mar to May 2012: $40m Debt/Equity Raised

May 2012: Head Office Moved to Montreal

July 2012: Commencement of R65 Bulk Sample

Aug 2012: Community Hearings Completed

July 2012: Partnership Agreement with Chibougamau and Chapais

Sept 6th 2012: Mandate Letter Signed for $475m Debt Financing

Oct 18th 2012: Mining Lease Issued

2011 2012

8 8

The Renard Diamond Project

9

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

10

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

11

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

The resource upside at depth at Renard is world class.

Although highly accretive, the project’s Inferred Mineral

Resources are not included in the Feasibility Study

economic analysis in accordance with NI 43-101.

Renard 4

53/44cpht Renard 9

47cpht

Renard 65

29cpht

Renard 2

103/118cpht

Renard 3

106/118cpht

12

Mine Plan A 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)

Underground method: Blast Hole

Shrinkage with waste backfill from pits.

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 4

Renard 2

Renard 3

Renard 65

Renard 2

Renard 3

13

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

14

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

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

10.15 carat gem

quality

octahedron

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

15

Feasibility Mine Plan Production Schedule and Cash Flow

-

500

1,000

1,500

2,000

2,500

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

Open Pit & Underground Mining Schedule (Ktonnes of Ore)

R4 UG

R3 UG

R2 UG

R3 Pit

R2 Pit

-

500

1,000

1,500

2,000

2,500

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

Carat Production (Kcarats)

R4

R3

R2

-

100.0

200.0

300.0

400.0

500.0

600.0

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

Gross Revenue (C$M, Real)

R4

R3

R2

16

Renard will Make Stornoway a Significant Diamond Producer

Source: Kimberly process, Company Reports and SWY Estimates

1 De Beers (Anglo/Botswana) $6,420m

2 Alrosa (Russia) $4,660m

3 BHPB (ASE: BHP) $940m

4 Rio Tinto (ASE: RIO) $910m

5 Peak Stornoway (TSX: SWY) $380m

6 Harry Winston (TSX: HW) $350m

7 Gem (L: GEMD) $340m

8 Petra (L: PDL) $250m

Others $2,160m

De Beers 39%

Alrosa 28%

BHPB 6%

Rio Tinto 6%

Peak Stornoway

2%

Harry Winston 2%

Gem 2%

Petra 2%

Others 13%

2011 World Diamond

Production Data with

Renard Included at

Peak Production (2.1mcarats/yr at US$182/carat)

17

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 by year end. Valuation Q1 2013

A 4 carat, top quality diamond

recovered from Renard 65 drillcore

Renard 65

R65 Pit on September 2nd

18 18

Moving Forward

19

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 2H 2H 1H 1H 1H 1H

2012 2013 2014 2015

First Vehicle Access

Following Stornoway’s November

14th Agreement with Quebec, first

road access is expected to Renard by

Q4 2013 compared to July 2013 in the

November 2011 Feasibility Study

20

The Route 167 Extension Construction Images September 2012

21

Permitting 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/August 2012: Successful public hearings in

Mistissini and Chibougamau

• October 2012: Mining Lease Issued by the Quebec

Ministry of Natural Resources

Renard is on track for the receipt of its Certificate

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.

22

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 “Mecheshoo

Agreement”, 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

23

What to Expect

Significant Development and Financing

Milestones in the next 12 months

Completion of Project Permitting • Certificate of Authorization in Q4 2012

Capital Cost Optimization • Shaft/Ramp Tradeoff Study Q4 2012

Reserve Growth through R65 • Results Q4 2012. Valuation Q1 2013

Completion of Project Financing • Completion of Project Debt Financing Announced on

September 6th 2012

• Balance on “Minimum Capital/Minimum Equity Terms

Stornoway is Targeting Construction

Mobilization in 2013

24

0%

100%

200%

300%

400%

500%

600%

6-S

ep-9

5

6-M

ar-

96

6-S

ep-9

6

6-M

ar-

97

6-S

ep-9

7

6-M

ar-

98

6-S

ep-9

8

6-M

ar-

99

6-S

ep-9

9

6-M

ar-

00

6-S

ep-0

0

6-M

ar-

01

6-S

ep-0

1

6-M

ar-

02

6-S

ep-0

2

6-M

ar-

03

6-S

ep-0

3

6-M

ar-

04

6-S

ep-0

4

6-M

ar-

05

6-S

ep-0

5

6-M

ar-

06

6-S

ep-0

6

6-M

ar-

07

6-S

ep-0

7

B

A. 1994-1995 – Discovery of A21, A154S, A154N, A418 pipes

B. July 1995 – Bulk Sample Completed

B. September 1996 – Pre-Feasibility Completed

C. July 1999 – Announces equity financing of $100.0m with Tiffany and Co and Off-Take Deal

E. July 1999 – Feasibility Completed

F. November 1999 – Principal Permits Received

G. December 2000 – Sells minority stake in Snap Lake Project to De Beers for $173.00 mm,

H. November 2001 – Bank financing of $230.0 m

I. January 2003 – First Production

A

C

D E

H

I

Post Financing,

De-Risking Phase

Aber Diamond Corporation Stockprice Index Sept. 95 to Sept. 07

Production

G

F SWY December 2008 to August 2012

Discovery/

Resource

Growth

Pre-Feas/

Feas Post-Feas

Pre-Financing

Low Point

Why Invest in Stornoway? The Lassonde Curve: Value Creation through Project Financing and Development

4x Return

1999-2004

Stornoway’s

Objective is to Build

Shareholder Value by

Building Renard

25 25

Appendix 1: The Diamond Market

26

Diamond Jewelry Demand is Forecast to Grow Dramatically

Share of World Diamond Jewelry Market, 2005 to 2020

US 49%

Japan 14%

Europe 10%

India (and Asia-

Arabia) 13%

China (and Asia-

Pacific) 10%

Others 4%

2005: $62B

US 42%

India (and Asia-Arabia)

18%

China (and Asia-Pacific)

15%

2010: $74B

US 27%

India (and Asia-Arabia)

25%

China (and Asia-Pacific)

32%

2020F: $128B

Source: AllanHochtreiter after De Beers, Tacy Ltd.,

1 CAGR estimates after Alrosa October 2011. Nominal Terms

Diamond Jewelry

CAGR of 5.6%1

2010-2020

Rough Diamond

CAGR of 10%1

2010-2020

27

Major Diamond Mines and Development Projects Worldwide Few 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)

28

Global Rough Diamond Production (MMct)

0

20

40

60

80

100

120

140

160

180

200

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 M

M

Angola Australia Botswana Canada DRC Namibia Russia South Africa Zimbabwe Other

Almost all rough diamond production forecasts show flat or declining

production long term. 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 such as Renard is not expected to

materially impact overall supply.

Source: RBC Capital Markets

AK6 (LUC)

Koidu (Steinmetz)

Zimbabwe

Renard (SWY)

Gahcho Kue

(MPV, De Beers)

Star-Orion (SGF)

Future Rough Diamond Production is Forecast to be Static

Only 15% Supply

Growth

2010-2020

29

0

2000

4000

6000

8000

10000

12000

14000

16000

0

100

200

300

400

500

600

700

01/01/07 01/01/08 31/12/08 31/12/09 01/01/11 01/01/12

Ind

ex

Oc

tob

er

20

03

= 1

00

Commodity Index Data

WWW R.I. Polished Prices Index Gold IMF CPI

IMF IPI IMF CPI NonFuel IMF Coal(Aust) IMF Metal

IMF Cu S&P TSX Comp Index

S&

PT

SX

Co

mp

os

ite

In

de

x W

ee

kly

Clo

sin

g

Diamond Prices are Growing Rough 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. CAGR in Nominal Terms.

8% CAGR in

Rough Prices

2003-2012

Rough

Diamonds

30 30

Appendix 2: Feasibility Study Sensitivities

31

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

32

Financial Analysis Project Assumptions, Valuation and Pay-Back

Key Assumptions in the Financial Model

Mining

Parameters

Reserve Carats (m) 18.0

Tonnes Processed (m) 23.0

Recovered Grade (cpht) 78

Average Ore Recovery (%) 83.5%

Average Mining Dilution (%) 14%

Dilution Grade (cpht) 0

Processing Rate (Mtonnes/a) 2.2

Mine Life (years) 11

Cost

Parameters

Pre-Production Cap-ex (C$m) $802

LOM Cap-Ex (C$m) $994

Oil Price (US$/barrel) $90

LOM Op-ex (C$/tonne) $54.71

LOM Op-ex (C$/carat) $70.27

Revenue

Parameters

(real terms)

Gross Revenue (C$m) $4,112

Marketing Costs 2.7%

DIAQUEM Royalty 2.0%

Operating Cash Flow (C$m) $2,677

Operating Margin 68%

Total Taxes and Mining Duties (C$m) $571

After Tax Net Cash Flow (C$m) $1,151

Diamond

Price

Parameters

Renard 2 and Renard 3 (US$/carat) $182

Renard 4 (US$/carat) $164

Diamond Price Escalation, 2012-2025 2.5%

Exchange Rate 1C$=1US$

Schedule

Parameters

Effective Date for NPV Calculation January 1 2012

Construction Mobilization July 1 2013

Plant Commisioning Commences July 1 2015

Commercial Production Declared January 1 2016

Valuation Results (C$m)

Pre-Tax After Tax

NPV5% $899 $534

NPV7% (Base Case) $672 $376

NPV9% $490 $248

IRR 18.7% 14.9%

Pay-Back (years) 4.65 4.80

33

Financial 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 $801.8

Escalation 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% Mining 45%

Plant 32%

Onsite utilities

and infra. 19%

Direct Costs (C$531m)

Owner’s Cost 32%

Spares 4%

EPCM 17%

Field, Vendor

reps 8%

Camp 9%

Freight 3%

Conting. 27%

Indirect Costs (C$271m)

34

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

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

Operating Costs LOM

Others

Power

Labour

Financial Analysis Operating Costs

35

Financial 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 808,813 740,372 671,932 603,487 535,040

Capital Cost 829,526 750,717 671,932 593,125 514,316

Revenue 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 463,661 419,627 375,577 331,523 287,283

Capital Cost 488,669 432,381 375,577 318,658 261,323

Revenue 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%

36

Financial 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.

Kimberlite Body

Valuation Sample (carats)

Achieved Prices for the Valuation Samples WWW Price Modeling

Number of Independent Valuations

Average of Independent Valuations (US$/carat)

Minimum of Independent Valuations (US$/carat)

Maximum of Independent Valuations (US$/carat)

WWW Valuation

(US$/carat)

WWW Base Case 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

37

Kimberlite Body

WWW Base

Case Model

(US$/carat)

WWW "High"

Model

(US$/carat)

WWW

"Minimum"

Model

(US$/carat)

Renard 2 Scenario 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

Renard 3 Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $182 $205 $168

Scenario 2 (Alternative): Utilizing an R3 only Size Frequency Model $165 $183 $153

Renard 4 Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $164 $185 $152

Scenario 2 (Alternative): Utilizing an R4 only Size Frequency Model $112 $121 $105

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 Renard

3 and US$112/carat for Renard 4.

Financial Analysis Renard Diamond Valuation Sensitivities

38

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 Body

Pre-Tax After-Tax

NPV7%

(C$m) IRR

Pay-Back

(years) 1

NPV7%

(C$m) IRR

Pay-Back

(years) 1

WWW Minimum Model $397 14.6% 5.34 $199 11.5% 5.46

Feasibility Study Base Case Model $672 18.7% 4.65 $376 14.9% 4.80

Alternative Model $871 21.8% 4.07 $502 17.4% 4.20

WWW High Model $1,261 26.5% 3.49 $747 21.4% 3.90

Financial Analysis Renard Diamond Valuation Sensitivities

Diamond Price Escalation (2012-2025)1

Pre-Tax After-Tax

NPV7%

(C$m) IRR

Pay-Back

(years) 1

NPV7%

(C$m) IRR

Pay-Back

(years) 1

0% per annum $227 11.8% 5.80 $93 9.2% 5.91

2.5% per annum (Base Case) $672 18.7% 4.65 $376 14.9% 4.80

5% 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

39 39

Appendix 3: Project Comparables

40

Project Comparables Diamond Industry Cost Curve (Anglo American November 2011 after De Beers 2010)

COST/REVENUE

Ren

ard

Ren

ard

wit

h P

ow

erl

ine

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0

0.0

0.5

1.0

10.5

2.0

Co

st/

rev

en

ue (

x)

Cumulative revenue (US$m)

Jw

an

en

g Nam

ed

eo

op

era

tio

ns

Gah

ch

o K

ue (

dev

elo

pm

en

t p

roje

ct)

Ven

eti

a

Ora

pa

Sn

ap

lake

Dam

tsh

aa

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

41

Project Comparables Recent 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 Built

Estimates

Diavik (1999)

Rio-Tinto, As

Built Estimates

Victor (2008)

De Beers, As

Built Estimates

Renard FS

(2011)

Resource Parameters Resource (m carats) 161 133 No data 41

Resource (US$) $10B $6.7B No data $7.2B Resource Grade (cpht) 110 360 No data 72

Average Resource Diamond Price $60 $50 No data $175

Resource Mine Life 25 25 No data n/a

Reserve Parameters Reserve (carats) 72 102 6 18

Reserve (dollars) $6B $5.5B $2.4B (est) $3.2B Reserve Grade (cpht) 109 400 20 78

Average Reserve Diamond Price $84 $55 $400 $180

Average Reserve Ore Value (US$) $92 $220 $80 $140

Reserve Mine Life 17 19 12 11

Production Parameters Annual Production (mCarats) Up to 3.6 Up to 7 0.5 Up to 2.1

Annual Revenue (US$m) $302 $385 $215 $364

LOM Op-ex (Cdn$/tonne) $100 to $60 $100 No data $55

LOM Op-ex (Cdn$/carat) $92 to $55 $25 No data $70

Canadian-US Dollar c.$0.75 $0.67 c.$1.00 $1.00

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

42

Project Comparables Recent 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 Parameters Resource (m carats) 61 43 41

Resource (US$) $5.1B $11B $7.2B Resource Grade (cpht) 168 12 72

Average Resource Diamond Price $85 (WWW Apr 10)

$65 (DTC Apr 10) $256 (WWW Feb 11) $175 (WWW May 11)

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

Reserve Parameters Reserve (carats) 49 34 18

Reserve (dollars) $3.7B $8.2B $3.2B Reserve Grade (cpht) 157 12 78

Average Reserve Diamond Price $75 $242 $180

Average Reserve Ore Value (US$) $118 $30 $140

Reserve Mine Life 11 20 11

Production Parameters Annual Production (mCarats) 4.5 1.7 Up to 2.1

Annual Revenue (US$m) $338 $411 $364

LOM Op-ex (Cdn$/tonne) $49 $14 $55

LOM Op-ex (Cdn$/carat) $31 $114 $70

Canadian-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.

43 43

Appendix 4: Management Biographies

44

Appendix: Management Biographies

PRESIDENT, CHIEF EXECUTIVE

OFFICER AND DIRECTOR

STORNOWAY DIAMOND CORPORATION

49 WELLINGTON STREET EAST, SUITE 300

TORONTO, ONT M5E 1C9

TEL. : (416) 304-1026

www.stornowaydiamonds.com TSX:SWY

Matt Manson, PhD.

Matt Manson was appointed President of Stornoway Diamond

Corporation in March 2007 following the acquisition of Ashton

Mining of Canada and Contact Diamond Corporation, and

subsequently President & CEO in January 2009.

As President & CEO, Mr. Manson is responsible for the

management of the company as a whole, playing a leadership role

in all key business units including finance and budgets, exploration,

human resources, investor relations and advanced project

development including the Renard Diamond Project.

Between 1999 and 2005 he was employed by Aber Diamond

Corporation (now Harry Winston 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 during the feasibility, construction and early

production phases of Diavik. Between 2005 and 2007 he was

employed by Contact Diamond Corporation, formerly Sudbury

Contact Mines and a 40% owned subsidiary of Agnico-Eagle Mines

Limited, as President & COO and subsequently President & CEO.

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 17 years of experience in

diamond exploration, development and production.

45

CHIEF OPERATING OFFICER

AND DIRECTOR

Patrick Godin, Eng., Asc.

Pat Godin joined Stornoway as Chief Operating Officer in May 2010 and

was appointed to the Board of Directors in October 2011. He is

responsible 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 development

of mining projects in the Americas and West Africa, and was responsible

for the developed of the Essakane Mine in Burkina Faso under contract to

IAMGOLD.

He was previously Vice President of Operations for Canadian Royalties,

specifically heading the development of their nickel project in Northern

Québec. He was also President and General Manager of CBJ-CAIMAN

S.A.S., a French subsidiary of Cambior / IAMGOLD, holder of the Camp

Caïman gold mining project located in French Guiana. 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. Mr. Godin is a member of the “Ordre des Ingénieurs du

Québec”, of the Certified Directors College and of The Canadian Institute

of Mining, Metallurgy and Petroleum (CIM). He is the Chairman of the

Board of Geomega Resources and a director of Orbit-Garant Drilling.

Appendix: Management Biographies

STORNOWAY DIAMOND CORPORATION

1111 RUE ST. CHARLES O.

LONGUEUIL, QUÉBEC J4K 4G4

TEL. : (450) 616-5555

www.stornowaydiamonds.comTSX:SWY

46

Appendix: Management Biographies

VICE PRESIDENT, FINANCE AND

CFO

STORNOWAY DIAMOND CORPORATION

980 W FIRST STREET, #116

NORTH VANCOUVER, BC V7P 3N4

TEL. : (604) 983-7750

www.stornowaydiamonds.com TSX:SWY

Zara Boldt, B.A., CGA

Zara Boldt was appointed Vice President, Finance with Stornoway

in May 2007, after serving as Stornoway’s Controller between 2004

and 2007, and Chief Financial Officer in March 2010.

As Vice President Finance and CFO, Ms. Boldt is responsible for the

management of the corporate and financial affairs of the

corporation, and for the oversight of its regulatory reporting

requirements.

Ms. Boldt has held positions of progressive responsibility with

several mineral exploration companies, in addition to severeal years

of experience with a national investment dealer. Her most recent

resource industry roles include CFO for Sherwood Copper

Corporation from May 2006 to May 2007 and Controller for the

Northair Group of Companies between May 2004 and April 2007.

Ms. Boldt is a Certified General Accountant and a graduate of the

University of Puget Sound in Tacoma, Washington. She is a director

of Troon Ventures Ltd., where she serves as Chair of the Audit

Committee.