1. BUILDING QUBECS FIRST DIAMOND MINEAnnual General Meeting, October 21st 2014, MontrealMatt Manson Patrick GodinPresident, CEO & Director COO & Director

2. 2Forward-Looking InformationThis presentation contains "forward-looking information" within the meaning of Canadian securities legislation and forward-looking statements within the meaningof 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 notlimited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of future production over any period; (iii) netpresent value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, average ore recovery, internal dilution, miningdilution and other mining parameters set out in the Feasibility Study or Optimization Study; (v) assumptions relating to gross revenues, operating cash flow andother revenue metrics set out in the Feasibility Study or Optimization Study; (vi) mine expansion potential and expected mine life; (vii) expected time frames forcompletion of permitting and regulatory approvals and making a production decision; (viii) future exploration plans; (ix) future market prices for rough diamonds;and (x) sources of and anticipated financing requirements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs,plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as expects, anticipates, plans,projects, estimates, assumes, intends, strategy, goals, objectives or variations thereof or stating that certain actions, events or results may, could,would, might or will be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact andmay 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 orachievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Suchstatements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Stornoway willoperate in the future, including the price of diamonds, anticipated costs and Stornoways ability to achieve its goals. Certain important factors that could causeactual results, performances or achievements to differ materially from those in the forward-looking statements include, but are not limited to: (i) required capitalinvestment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) receipt of regulatory approvals on acceptableterms within commonly experienced time frames; (iv) anticipated timelines for the commencement of mine production; (v) market prices for rough diamonds andthe potential impact on the Renard Projects value; and (vi) future exploration plans and objectives. Additional risks are described in Stornoway's most recentlyfiled Annual Information Form, annual and interim MD&As, and other disclosure documents available under the Companys 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 factorsand other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whether written or oral, that may be madefrom time to time by Stornoway or on our behalf, except as required by law.Readers are referred to the technical report dated as of February 28th, 2013 entitled The Renard Diamond Project, Qubec, Canada, Feasibility Study Update, NI43-101 Technical Report, February 28, 2013 in respect of the January 2013 Optimization Study, and the press release dated July 23, 2013 in respect of the July2013 Mineral Resource estimate for further details and assumptions relating to the project. The Qualified Persons that prepared the technical reports and pressreleases that form the basis for the presentation are listed in the Companys AIF dated July 29, 2014. Disclosure of a scientific or technical nature in thispresentation has been reviewed and approved by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a qualified person under NI 43-101. 3. 3Stornoways Board and Management TeamExecutive OfficersNon-Executive DirectorsHume KyleIndependentZara BoldtCFO and VPFinancePat GodinCOO & DirectorMatt MansonPresident, CEO& DirectorJohn LeBoutillierIndependent/IQ DesignateMonique MercierIndependent/IQ DesignatePeter NixonIndependentEbe ScherkusIndependent/Board ChairmanKey ManagersHead Office: Longueuil, QubecExploration Office: North Vancouver, BCCommunity Offices: Mistissini & Chibougamau QubecSerge VzinaIndependentYves PerronVP Engineering& ConstructionGhislainPoirierVP Public AffairsBrian GloverVP AssetProtectionMartin BoucherVP SustainableDevelopmentRobinHopkinsVP ExplorationOrinBaranowskyDirector, IRGuy BourqueChief MiningEngineerDouglas SilverOrion DesignateIan HollVP ProcessingHeleneRobitailleDirector, HRMarioCourchesneConstruct. ManagerJean-CharlesDumontCorporate ControllerFreddieMianscumIBA Implem. OfficerGaston MorinIndependent/IQ Designate 4. 4From the 2013 AGM43Qubecs First Diamond Mine is Ready to BuildProject Green-lighted: Authorizations IssuedCommunity Agreements in PlaceStornoway Operating Team in PlaceAccess Road OpenedResource GrowingProject Design Fully OptimizedFavourable Cost EnvironmentStornoway is Fully Focused on theTimely Completion of Final ProjectFinancing 5. 5Project Financing Announced April 9th, 2014, Closed July 8th 2014The C$946m Project Financing Transaction for the RenardDiamond Project was the Single Largest Project FinancingTransaction for a Publicly Listed Diamond CompanyHighlights of the Transaction:One-shot financing of all project costs, contingencies,working capital requirements and financing costs.Fully funds the project through to production.Careful balance of stream, debt and equity tomaximize shareholder value growth from projectdevelopment.Sponsors: Orion Mine Finance Investissement Qubec/Ressources Qubec Caisse de dpt et placement du Qubec 6. 6Renard Project Financing StructureTypeAmount(% of Total)DescriptionCommon Equity C$374M (40%) C$132M marketed public equity offering of subscription receipts C$242M private placement to Orion (US$110M), RQ (C$100M) and Caisse (C$22M)Diamond Stream US$250M (29%) 20% diamond stream (Orion 16%, Caisse 4%) with ~US$56/ct(1) ongoing paymentConvertible Debentures US$81M (9%) Provided by Orion; 7 year, 6.25% coupon, 35% conversion premium to equity issuepriceSenior Debt C$120M (11%) Provided by IQ; 7 year amortizing payment, Fixed (QC Bond)+5.75% or Prime +4.75%Equipment Financing US$35M (4%) Provided by CaterpillarCost Overrun Facility C$48M (5%) C$20M provided by IQ (same terms as senior debt) C$28M provided by Caisse (unsecured, 7 year term, 10% coupon)Total C$946M (100%)Counter-PartyAmount(% of Total)Orion Mine Finance C$367M (39%)Investissement Qubec/Ressources QubecC$240M (25%)Caisse de dpt etplacement du QubecC$105M (11%)Caterpillar Financial C$39M (4%)Public C$195M (21%)Total C$946M (100%)Assumes US$1.00 = C$1.101. Includes reimbursement of marketing expensesC$77MC$67MC$811MC$946MC$70MFinancing Funding RequirementsNewFinancingExistingFinancingC$48M COF &C$27M WorkingCapitalFinancingCosts &Interest DuringConstructionInitial Capex &EscalationAllowanceRenard MineRoad 7. 7Recent Equity Issue Activity in the Mining SectorEquity Issuance by Sector (excl. Prefs) Mining Issuance: 2014 YTD100%90%80%70%60%50%40%30%20%10%0%2006 2007 2008 2009 2010 2011 2012 2013 2014YTDMetals/Mining Oil/Gas Industrial/ConsumerFinancials Real Estate/REIT Biotech/HealthTech/Telecom Other2014 YTDMining Sector BreakdownDiversified 20 $599.3Diamonds 8 $396.5Lithium 3 $35.0Nickel 1 $5.8Iron Ore 1 $3.0Total Mining Issuance Commentary$12.9Total Mining Issuance (C$Bn) Total Mining Issuance (#)$7.9$19.9$12.1$8.2$6.9$5.5 $4.3255110188303261148 129 1132007 2008 2009 2010 2011 2012 2013 2014 YTD2013Mining Sector BreakdownZinc 4 $65.9Diamonds 6 $54.8Iron Ore 2 $31.1 In 2013, C$5.5 billion was raised in the mining sectorthrough a total of 129 transactions The vast majority was within the gold sector, followedby the base metals and silver sectors The focus of 2014-YTD has been gold, representing55.6% of mining dollars raised and 49.3% of miningvolume issued Diamonds financings in 2014-YTD have been a largerproportion of new equity issuances over 2013Source: Dundee Equity Capital Markets and FP Infomart.Sub-Sector # Deals C$MMGold 53 $2,085.8Copper 5 $862.8Uranium 12 $164.7Silver 5 $127.3Rare Earth 4 $37.8Zinc 1 $15.8Coal 0 $0.0Molybdenum 0 $0.0Total 113 $4,334Sub-Sector # Deals C$MMGold 58 $4,454.2Diversified 18 $425.1Uranium 20 $186.6Copper 5 $104.6Lithium 6 $79.6Silver 4 $54.3Rare Earth 5 $33.7Coal 1 $7.7Molybdenum 0 $0.0Nickel 0 $0.0Total 129 $5,497 8. 8Top 15 Equity Offerings in the Mining Sector 2012-20142014 YTD 2013 2012Issuer Date Size ($ MM)Lundin Oct-14 C$674.2Franco-Nevada Aug-14 US$500.4HudBay Jan-14 C$172.7Detour Gold Feb-14 C$172.5Torex Gold Jan-14 C$143.8Ivanhoe Mines May-14 C$143.8Stornoway Apr-14 C$132.0Rubicon Minerals Feb-14 C$115.1Mountain Province Diamonds Sep-14 C$100.0MAG Silver Jun-14 C$79.0Altius Minerals Apr-14 C$65.0Pretium Jul-14 US$60.5Uranium Participation Jan-14 C$57.6Mountain Province Diamonds May-14 C$45.0True Gold Jan-14 C$42.0Source: Dundee Equity Capital Markets and Company disclosure.Issuer Date Size ($ MM)Barrick Oct-13 US$3,000.2Detour Gold May-13 C$176.1Platinum Group Metals Dec-13 C$175.2Allied Nevada Apr-13 US$150.5Ivanhoe Mines Sep-13 C$108.0Guyana Goldfields Jan-13 C$100.0Paladin Energy Aug-13 C$81.6Banro Corporation Mar-13 US$67.8Trevali Mining Nov-13 C$46.0Santacruz Silver Jan-13 C$40.4Sulliden Gold Sep-13 C$40.1Colossus Minerals Jul-13 C$38.0NGEx Resources Jan-13 C$34.0Copper Mountain Mining Nov-13 C$30.1Mountain Province Diamonds Nov-13 C$29.4Issuer Date Size ($ MM)Torex Gold Oct-12 C$380.0NovaGold Feb-12 US$332.5Ivanplats Sep-12 C$300.8Detour Gold Jan-12 C$240.8Rubicon Minerals Feb-12 C$200.9Sandstorm Gold Aug-12 C$150.1Detour Gold Nov-12 C$106.0PMI Gold Oct-12 C$100.0OceanaGold Dec-12 C$93.3Continental Gold Nov-12 C$86.3Pretium Resources May-12 C$80.5Aureus Mining Nov-12 US$79.8Labrador Iron Mines Feb-12 C$61.0Rainy River Resources Nov-12 C$57.5Premier Gold Feb-12 C$51.8 9. 9Recent Debt & Convert Offerings in the Mining SectorDebt IssuancesIssuer Date Size ($ MM) Coupon Rate (%) Term (Years) DescriptionFirst Quantum Minerals May-14 US$850.0 7.25% 8 Senior Secured NotesLundin Oct-14 US$550.0 7.50% 6 Senior Secured NotesGoldcorp Jun-14 US$549.3 3.63% 7 Senior Unsecured NotesChina Gold Jul-14 US$500.0 3.50% 3 Guaranteed Corporate BondCameco Jun-14 US$499.8 4.19% 10 Senior Unsecured DebenturesYamana Gold Jun-14 US$499.5 4.95% 10 Senior Unsecured NotesLundin Oct-14 US$450.0 7.88% 8 Senior Secured NotesGoldcorp Jun-14 US$447.8 5.45% 30 Senior Unsecured NotesImperial Metals Mar-14 US$325.0 7.00% 5 Senior Unsecured NotesAuRico Mar-14 US$304.1 8.50% 6 Senior Secured Second Lien NotesHudBay Jul-14 US$181.9 9.50% 6 Senior Unsecured NotesStornoway Apr-14 C$120.0 Prime + 4.75% 10 Senior Secured LoanTrevali Mining May-14 US$52.5 12.50% 5 Senior Secured NotesConvertible Debt IssuancesIssuer Date Size ($ MM) Coupon Rate (%) Term (Years) DescriptionImperial Metals Sep-14 C$115.0 6.00% 6 Convertible Senior Unsecured DebenturesStornoway Apr-14 US$81.3 6.25% 7 Convertible Unsecured Subordinated Debentures5N Plus May-14 US$66.0 5.75% 5 Convertible Unsecured Subordinated DebenturesBanro Jun-14 US$40.0 8.00% 3.5 Convertible Preferred SharesNorth American Palladium Apr-14 C$30.0 7.50% 5 Convertible Unsecured Subordinated DebenturesNorth American Palladium Mar-14 C$27.5 7.50% 5 Convertible Unsecured Subordinated DebenturesArgex Titanium Jan-14 C$7.5 8.00% 5 Convertible Unsecured Subordinated DebenturesMason Graphite Mar-14 C$4.2 12.00% 5 Convertible DebenturesSource: Dundee Equity Capital Markets and Company disclosure. 10. 10Recent Alternative Finance Agreements in the Mining SectorInvestor - Issuer Date Size ($ MM) DescriptionFranco-Nevada - Lundin Oct-14 US$648 Franco-Nevada to receive 68% of payable Au and Ag production until 720k oz Au and 12MM oz Ag are deliveredOrion Mine Finance & Caisse de dpt -Stornowayfrom 100% of Candelaria; thereafter reduces to 40% of LOM payable metals from 100% of the mine. Acquisitionfinancing package also consists of C$50MM private placement exclusive of stream value.Apr-14 US$250 Stream agreement for 20% interest on run of mine diamond production from certain kimberlite bodies fromThe Renard Project. Investors to pay the Issuer in 3 deposits.Gold Holding - Banro Aug-14 US$121 Streams on Banro's Twangiza and Namoya mines for US$41MM and US$80MM, respectively. Investor to receive40k oz Au from Twangiza mine over 4 years. Investor to also receive 10% LOM Au production from Namoyaincluding Au processed at the site from other mines within 20 km; maximum deliverable Au of 12k oz per annum.Franco-Nevada & Sandstorm - True Gold Aug-14 Up to US$120 Franco-Nevada (75%) & Sandstorm (25%) to receive 100k oz Au over 5 years, and 6.5% LOM Au productionfrom True Gold's Karma Project thereafter. True Gold holds an 18 month option to increase funding by US$20MMfor an additional 30k oz Au. Ongoing payments of 20% of spot Au.Royal Gold - Rubicon Feb-14 US$75 Royal Gold to receive 6.3% of Au production from Rubicon's Phoenix Project until 135k oz have been deliveredand 3.15% LOM Au production thereafter. Ongoing payments of 25% spot Au. Advance deposit payments fromRoyal Gold payable in 5 installments.Orion Mine Finance - Aldridge Aug-14 US$40 Consists of US$5MM private placement and US$35MM 2-year bridge loan facility. Bridge loan bears interest at9% plus the greater of 3 month USD LIBOR and 1%. Aldridge also entered into offtake agreements with Orion for~20% of Pb & ~50% of Au production over the first 10 years of the mine plan.Franco-Nevada - Klondex Feb-14 US$35 Franco-Nevada to receive 38k oz Au by December 31, 2018, and a 2.5% NSR royalty on Klondex's Fire Creekand Midas properties commencing 2019. Gold financing package provided to support Klondex's acquisition of theMidas Mine and Mill Complex from Newmont.JMET - Santacruz Silver Sep-14 US$28 5-year pre-paid forward silver purchase agreement. JMET to receive 4.6MM oz Ag through August 2019 with noounces delivered over the first 12 months. Ongoing payments of spot Ag less an undisclosed fixed discount.Quintana - Arian Silver Oct-14 US$16 Quintana to receive 78.2% of Zn and Pb from San Jos until 32MMlbs and 38MMlbs, respectively, are delievered,Orion Mine Finance - Claude Mar-14 US$12 3.0% NSR royalty on Claude's Seabee Gold Operation. The NSR provides Claude with the option to repurchaseSource: Dundee Equity Capital Markets and Company disclosure.and 27.4% thereafter for 50 years. Issuer can buy 50% of stream for US$11MM before 2017. Investor alsoacquires US$16MM of senior secured convertible notes to be restructured into new notes (8% interest).half of the NSR for US$12MM until December 31, 2016.BlackRock - Avanco Jul-14 US$12 2.0% NSR royalty on Cu; 25.0% NSR royalty on Au and 2.0% NSR royalty on all other metals produced from theIssuer's Antas North and Pedra Branca licensed areas. Additionally, BlackRock to receive a 2% NSR Royalty onother discoveries within Avanco's current licence portfolio.Sprott - Veris Gold Apr-14 US$8 0.5% NSR royalty on Veris Gold's Jerritt Canyon mines and processing plant. 11. 11Post-Financing Balance Sheet and Capital StructureShareholdingShare Price (TSX-SWY):October 17, 2014C$ $0.5352 week High-Low C$ $0.50$1.22Average Daily Volume:2014 YTD605,302Average Daily Volume:Since July 8th 20141,013,138Market Capitalization: C$ 387 millionTotal Shares Outstanding: 731 millionTotal Options & Warrants Outstanding:(25.3m Options $0.40-$5.36; 123.8mwarrants $0.90-$1.21)149 millionConsolidated Cash1:(as of July 31, 2014)C$ 438 millionConsolidated Debt1:(as of July 31, 2014)C$ 182 millionUndrawn Financing Commitments2:(Subject to Financing Agreement CPs)C$ 462 millionBalance SheetNotes1. Unaudited2. Assuming a C$:US$ conversion rate of C$1.10Basic DilutedInvestissement Qubec 28.7% 22.5%Orion Mine Finance 24.8% 22.0%CDPQ 6.1% 6.3%Float 40.4% 49.2%8,0007,0006,0005,0004,0003,0002,0001,0000$1.40$1.20$1.00$0.80$0.60$0.40$0.20$0.00Volume (000s)Price 12. 12Renards Cash Flow Potential Base Case EconomicsRenard is Expected to Generate Substantial Cash Flowover its first 11 years of MiningAfter Tax, After Stream Operating Cash Flow of between$150 and $250 million, or $0.20 to $0.30 per shareAssumptionsMineral reserve case onlyCapital and operating cost parameters as established in the January 2013 Optimization Studyand October 2013 LNG FSBase case diamond pricing from March 2014; No special diamonds.2.5% annual real diamond price escalationC$:US$ conversion rate of C$1.10Based on terms of Financing Transaction closed on July 8th 2014Assumes full conversion to equity of US$81million of ConvertibleDebentures giving 825 million shares outstanding. 13. 13Moving Forward Fully Financed and in ConstructionRenard: Qubecs Next Major MineThirteen years in the makingNow, fully permitted, fully financed, fullyaccessible, under constructionDiamondsGrowing demand, underpinned by giftingtraditions that are universal, aspirational andcross-culturalbut mined: supply is limited and finiteStrong price outlookFor StornowayFocus on budget, schedule, operatingexcellence, cash flow 14. 1144Construction Report (Patrick Godin) 15. 15LynxR10NR7R1R65R2R8Kimberlite Bodies withMeasured and IndicatedResourcesHibouR4R9R3Kimberlite Bodies withResource PotentialEleonoreWestern Troy Eastmain MineWemindjiLegendStornoway PropertiesHydro-Qubec FacilityRenard KimberlitesKimberlitic DykeRegional KimberlitesLaforge 1Hydro-QubecPowerlinesRoute 167 Extension/Renard Mine RoadRoadExploration/ MiningProjectsLEGEND:0 1 2Kilometers60 0 60 120KilometersRenardLG2 LG3LG4Laforge 2BrisayFoxtrot PropertyStratecoTroilus MineTemiscamieMistissiniChibougamauMatagamiRenard Kimberlite BodiesKimberlite Bodies withInferred Resources 16. 16The Renard Diamond ProjectA Large, High Value Diamond Resource with a Very Long Mine Life PotentialTFFE Low RangeThe Vision: Deposit stillOpenPermitting and LongTerm PlanThe Feasibility: 11 yearsof mining on 18mcaratMineral Reserve(24mtonnes)Millionsof Tonnes140120100806040200TFFE High RangeInferred Mineral ResourceIndicated Mineral Resource0m100m200m300m400m500m600m700mRenard 6529/24cpht Renard 3103/112cphtRenard 2104/119cphtRenard 953cphtRenard 460/50cphtSource: Stornoway, 201427 mcarat Indicated Mineral Resource17 mcarat Inferred Mineral Resource26-48 mcarat TFFEGrades illustrated are for Indicated and Inferred Mineral Resources respectively at a +1DTC sievesize cut-off. Reserve and Resource categories are compliant with the "CIM Definition Standards onMineral Resources and Reserves". Mineral resources that are not mineral reserves do not havedemonstrated 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 iffurther exploration will result in the target being delineated as a mineral resource. 17. Renard Mine Plan and Key Operating AssumptionsA Combined Open Pit and Underground Operation0m100m200m300m400m500m600m700mNotes1. Key Assumptions:C$1=US$1, Oil US$95/barrel, 2.5% real terms diamond price growth,82.9% ore recovery, 23.8% mining and internal dilution, 0cpht dilution grade.2. Expressed in May 2011 terms. Average price US$190/carat in March 2014 terms.3. Expressed in October 2012 terms, as adjusted in October 2013 LNG FS. IncludesC$754m of costs and contingencies and C$57m of escalation allowance.4. Expressed in October 2012 terms. Operating costs C$54/tonne in October 2013 LNGFS terms. Excludes capitalized preproduction costs.5. Before streamReserve and Resource categories are compliant with the "CIM Definition Standards on MineralResources and Reserves". Mineral resources that are not mineral reserves do not havedemonstrated economic viability. The potential quantity and grade of any Exploration Target isconceptual in nature, and it is uncertain if further exploration will result in the target beingdelineated as a mineral resource.Reserve Based Mine Plan1(Jan 2013 FS Optimization and October 2013 LNGOption FS)Mine Life 11 yearsMineral Reserve 17.9 mcaratsAve. Diamond Price2 $180/caratProduction Rate 2.2 mtonnes/yrAve. Diamond Production 1.6 mcarats/yrGross Revenue (C$M)2 $4,268Initial Capital Costs3 $811mOperating Cost4 $58/t ($76/carat)Operating Margin5 67%Payback 4.8 yearsResource Based Mine Plan(Basis of December 2012 ESIA and Mine Permitting. Notpublic disclosure consistent with NI 43-101)Includes the mining of 2.3mcarats of IndicatedResources within a Renard 65 open pit,additional Inferred Resources in Renard 2, 3, 4and 9, and an increased annual processingcapacity up to 2.5mtonnes/yr.Increased project valuation and mine life.Renard 65Renard 2 Renard 3Renard 4Renard 917 18. 18Project Well Prepared for ExecutionProject Site July 2014Site Layout under ConstructionAccess Infrastructure in PlaceRenard Mine Road opened to traffic on Aug. 30th 2013.Renard Aerodrome opened to landings Nov. 5th 2013.Owners Team and EPCM in PlaceOwners construction team located in Longueuil. EPCMcontract negotiated with SNC-Lavalin, DRA & AMEC.Authorizations and Social LicenceMecheshoo Agreement signed with Crees in March2012, partnership agreements with Chibougamau andChapais in July 2012, Quebec and FederalAuthorisations in Dec. 2012 and July 2013 respectively.Favourable Construction EnvironmentCompetitive cost environment and good contractor/labour availability in Qubec.LNG PowerLNG power option selected to utilize all-season roadand commercial LNG distribution network in Qubec.R65 Borrow PitExploration CampLac Lagopede 19. 19Kick Off: Ground Breaking Ceremony, July 10th 2014 20. 20Waste RockProcessedKimberliteContainment(PKC)OverburdenR65R2-R3 StockpileOre StockpileAdministrationAccommodation ComplexPlantGarageRoad from ChibougamauPortalGeneral Project ArrangementFuel Storage23 451Early Construction Focus 21. 21 Site ProgressSite Overview by Week 10Project Site September 23rd, 2014ConstructionCamp1: R65 Borrow Pitand Pre-strip3: Major Facilities Pads(Plant, Garage, Admin)4: OverburdenStoragePad and Box-Cut for DeclinePortalFuture R2-R3 PitLocation2: Permanent Camp Construction5: WaterManagementDitches 22. 22 Site ProgressBorrow Pit and Pre-Strip at Renard 65Construction CampR65 Sample PitBorrow PitR65 Borrow Pit, August 2014 23. 23 Site ProgressCivil Works at Permanent CampPermanent Camp Pad, August 2014 Module Foundations, September 23rd 2014SFiitres tO Dvoerrmvie Wwi,n Sge, pOtecmtobbeerr 233rdrd22001144 Three Wings In, October 11th 2014 24. 24 Site ProgressCivil Works at Plant, Garage and Admin Office SitesPermanent Camp Construction Plant Site PreparationSite Overview, September 23rd 2014Permanent CampDormitoriesAdministration (MineDry) and Garage PadsSite Overview, October 11th 2014Process Plant andCrusher Pads 25. 25PKCWaste RockOverburdenProcessPlantRamp PortalPump StationWaste WaterManagementSchematicMine wastewatertreatment plantCollection DitchesSite ProgressWater and Waste ManagementWaste Treatment Facility, Sept. 27th 2014Water Management Ditches inRamp Portal Area, Sept. 27th 20143D Rendering of Mabarex WasteWater Treatment Facility 26. 26Airstrip, July 2014Nov 2013Airstrip, August 20141,497m Airstrip Designed for Q400 PlanesSite ProgressRenard Airstrip (FCX5)Airstrip Facilities, October 2014 27. 27 Views of the Route 167 Extension/Renard Mine RoadOpened for Construction Traffic since August 2013KM 237Eastmain River Bridge KM 184KM 155 28. 28 17 Bridges on the Renard Mine Road Constructed by StornowayThe Eastmain River Bridge by Chantier Chibougamau - Engineered Wood Construction 29. 29Diamond Processing PlantIn Detailed Design StageProcess Plant at 6,000tpd (2.2Mtonnes perannum) nameplate capacity, expandable to7,000tpd (2.6Mtonnes per annum)Optimization by DRA Americas Inc. hasallowed addition of Large DiamondRecovery (LDR) capacity to the flow sheetfor no additional capital.Flow sheet: Primary jaw crushing to < 230mm Twin DMS circuits at +1mm -19mm LDR circuit at +19mm -45mm, scalableto -60mm Oversize +45mm to secondary conecrusher LDR and DMS tails +6mm -19mm totertiary High Pressure Grinding RollsCap-ex (Direct Costs, without Capitalized Op-ex) Jan 2013 Cap-ex without LDR: $162.7m Optimized Cap-ex with LDR: $147.1mThickening and centrifugal treatment offines and tails to create a truckable productfor dry-stack disposal.Crushed ore stockpileScrubbing andScreeningHPGRCone crushing Centrifuge DMSWater 30. 30Liquefied Natural Gas Power PlantThe Renard Diamond Project will bepowered using Liquid Natural Gas (LNG)fuelled gen-sets, with daily supplies ofcryogenic LNG from GazMetro in Montrealutilizing the Renard Mine Road.The Renard LNG plant will comprise seven2.1MW rated gas gen-sets, providingsufficient power generation capacity for theprojects normal operating specification of9.5MW.LNG has significant cost and environmentaladvantages over traditional diesel poweredgen-sets and a Hydro-Quebec power-lineoption.Diesel will continue to be used for the mobilemining fleet and construction activities. 31. 31Environmental Impact and Rehabilitation PlanThe Project is a temporary user of land that will bereturned to its traditional users at the end of minelife. Project design has therefore prioritizedminimal environmental footprint and progressiverehabilitation.The Renard Project occupies just 3.1km2 within asingle watershed.All water in contact with mining materials will becollected and treated prior to release.Geochemical characterisation of ProcessedKimberlite and country rock waste indicatesminimal metal leach potential and no acidgeneration.Buildings have been designed and materialsselected to facilitate dismantling, recycling and re-vegetationat the end of the mine life.First part of $15.2 financial guarantee for siterehabilitation and closure costs provided to theMinistre de lnergie et des Ressources naturelleson August 29th 2014.Mine Site Post Reclamation 32. 32In March 2012 Stornoway concluded the Mecheshoo Agreementwith the Cree Nation of Mistissini and the Grand Council of theCrees (EI).The Mecheshoo Agreement provides for employment andbusiness opportunities, the Crees, fosters cultural, environmentaland social protection, and provides for the Crees participation inthe projects long term financial success.In July 2012 Stornoway concluded a Declaration of Partnershipwith the communities of Chapais and Chibougamau.The Declaration of Partnership provides a framework to addressissues of mutual interest such as communication, employment andeconomic diversification.Signing the Mecheshoo Agreement, March 2012Renards Social LicenceLocal and Regional Participation in the ProjectSigning Partnership Agreements withChibougamau and Chapais, July 2012September 2014 Onsite ContractorsBlasteck Makaahikan Sodexo ForchemexEntreprise Maltais MY Surveying Forages Rouillier Foresterie NordicESG Const. Tanguay Groupe Qualitas Recyclage UngavaEskan RCM Modulaire Plomberie Chibou. Brul MurrayJos Ste-Croix Swallow-Fournier Petroles RL Barette et filsKiskinshiish Tessier Equipement JVC ASDR Environnem.Telesignal SPI Sant/Scurit Installation AC Gardium/Shecapio 33. 33 September 2014 Employment Statistics261 People Employed in Stornoway or at the Renard Project at End of SeptemberLongueuil43%Lagopede34%Crees58%Vancouver9%Toronto8%Chibougamauand Missitini6%Stornoway EmployeesTotal: 68Non-Crees42%Contractor Employees at SiteTotal: 193 34. 34 Project ScheduleBased on Construction Mobilization July 10th 2014Feasibility Study (Complete)ESIA (Complete)Public Hearings (Complete)Reg. Authorizations (Complete)Specific Operating Permits (50)Road Construction (Complete)Project Financing (Complete)Detailed EngineeringSite ConstructionCommissioning and Ramp-upCommercial Production20122013 2014 2015 20162H 1H 2H 1H 2H 1H 2H 1H 2H20171H 2HOctober 2014First Vehicle AccessBased on the Renard Diamond Project Construction Schedule, PlantCommissioning is Planned for H2 2016 and Commercial Production in Q2 2017. 35. 3355Renards Potential (Matt Manson) 36. 36The Challenge of Finding and Developing New Diamond MinesKimberlite Discoveries Since 18706,8001,0006578754202010,0001,000100101KimberlitesDiscoveredDiamondiferous Economic Tier 1*Tier 1 defined as mines with Ultimate reserves greater than US$20B: Jwaneng, Orapa, Mir,Udachnya, Venetia, Catoca, PremierRecent Diamond MinesEconomic kimberlites represent just 1% of alldiscoveries made since 1870 (1.7% in Canada)Source: De Beers/SWYTime from Discovery to First ProductionEkati (1998, BHPB, now Dominion) 7 yearsDiavik (2002, Rio Tinto/Dominion) 9 yearsVictor (2008, De Beers) 20 yearsSnap Lake (2008, De Beers) 11 yearsKarowe (2012, Lucara) 10 yearsGrib (2013, Lukoil) 18 yearsGhaghoo (2014, Gem) 23 yearsRenard (2017, Stornoway) 16 yearsGahcho Ku (2017, DeBeers/MPV) 21 yearsBunder (2019, Rio Tinto) 15 YearsProjects are taking longer to develop 37. 37 Major Diamond Mines and Development Projects WorldwideFew Enough Mines to Fit on One MapTanzania Williamson (Petra Diamonds)South Africa Venetia (De Beers) Finsch, Premier (Petra Diamonds) Lace (DiamondCorp)Russia Arkhangelsk District (Alrosa) Yakutia District (Alrosa) Grib (LUKOIL)India Bunder (Rio Tinto)Australia Argyle (Rio Tinto) Ellendale (Kimberly Diamonds)Canada Ekati (Dominion) Diavik (Rio Tinto/Dominion) Victor, Snap Lake, Gahcho Ku (De Beers) Renard (Stornoway) Fort a la Corne (Shore Gold/Newmont)Sierra Leone Koidu, (Steinmetz Group)Democratic Republic of Congo Mbuyi-MayiBotswana Jwaneng, Orapa (De Beers) Ghaghoo (Gem Diamonds) Karowe (Lucara Diamonds)Angola Catoca (Alrosa)Lesotho Letseng (Gem Diamonds) Kao (Namakwa Diamonds) Liqhobong (Firestone) Mothae (Lucara) 38. 38A Snapshot of Rough Diamond SupplyIndustry Supply Themes146mcarats produced in 2013(US$18b)No return to peak diamond productionof 176mcarats achieved in 2005Maximum 20mcarats new productionon deck assuming all new projectsmeet proponents published productionand schedule estimatesConsensus forecast of 2% supplyCAGR (in carat terms) to 2018,declining thereafterRough Diamond SupplyPotential or Actual New ProjectsSourcesThe Global Diamond Report, September 2013: Bain & Co/Antwerp World Diamond CentreThe Diamond Insight Report, September 2014: McKinsey/De Beers 39. 39A Snapshot of Rough Diamond DemandRough Diamond DemandSupply and DemandIndustry Demand ThemesDiamond jewelry/polished diamond demandgrowth tied to GDP growth in principalmarketsDiamond jewelry sales strongly correlated tomarket demographics (age, gender, wealth)US still dominant polished diamond market(40% in 2013, 2% CAGR 2008-13) withChina the growth market (15% in 2013, 20%CAGR 2008-13)Consensus forecast of c.5% rough demandCAGR (in dollar terms) over next 10 yearsConsensus forecasts of 2-4% real roughdiamond price CAGR over next 10 yearsgiven supply/demand imbalanceSourcesThe Global Diamond Report, September 2013: Bain & Co/Antwerp World Diamond CentreThe Diamond Insight Report, September 2014: McKinsey/De Beers 40. 40Rough Diamond Pricing 2009-2014350300250200150100501-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15A tracking of the diamond market since the publication of the November 2011 FS and January 2013 Opt.FS indicates rough diamond prices have generally remained within the bounds of sensitivities containedwithin the FS financial model (May 2011 spot prices and a 2.5% real terms annual price escalator).Index to 2009=100The May 2011 diamondvaluation utilized in the FSwas 10% below the WWWrough index priceFS 2.5% Price Model(Nominal, adjustedfor CPI) with +/- 10%SensitivityWWW RoughDiamond PriceIndexCOMEX GoldMay 2011 FSDiamond Valuation 41. 41 Stornoway will be a Significant Diamond ProducerCurrent and Future Diamond ProducersSource: Kimberly process and Company Reports2013 World Diamond Production Data/Forecast Future Production1 De Beers (Anglo/Botswana) $6,404m2 Alrosa (Russia) $4,801m3 Dominion Diamond (TSX: DDC) $934m4 Rio Tinto (ASE: RIO) $859m5 Petra (note 1; L: PDL) $432m6 Stornoway (note 2; TSX: SWY) $310m7 Mountain Province (note 3; TSX: MPV) $258m8 Gem (L: GEMD) $213m9 Lucara (note 4; TSX: LUC) $181m10 Firestone (note 5; L: FDI) $123m11 Others $3,076mTotal $17,592mDeBeers36%Alrosa27%Dominion6%RioTinto5%Petra2%SWY2%MPV2%GEMLUC 1%Firestone 1%1%Others18%Notes:1. Petra 12 month results for period ending December 31, 20132. Renard estimated at FS average annual diamond production of 1.63 million carats, and WWW March 2014 weighted diamond price of US$190/ct, un-escalated3. Gahcho Ku estimated at 49% of Revised FS average annual production of 4.45 million carats, and average modeled diamond price of US$118/ct, un-escalated4. Lucara 12 month results for the period ending December 31, 20135. Firestone estimated at FS average annual production of 1.15 million carats at an average price of US$107/ct un-escalated 42. 42 Renards DiamondsLarge Diamond Potential Not Included in Base Case Diamond Valuation ModelsMarch 2014 Diamond Valuations(WWW International Diamond Consultants Ltd.)KimberliteBodySize ofValuationSample(carats)WWW March2014 SamplePrice(US$/carat)1WWW March2014 Base CasePrice Model(US$/carat)1Sensitivities(Minimum to High)Renard 2 1,580 $187 $197 $178 to $222Renard 3 2,753 $179 $157 $146 to $192Renard 4 2,674 $101 $106 ($155)2 $100 to $174Renard 65 997 $262 $187 $175 to $211Notes1. All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off.2. Should the Renard 4 diamond population prove to have a diamond population with a size distributionequal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price modelof $155 per carat based on March 2014 pricing. Source: WWW March 2014 Valuation UpdateThree Renard 65diamonds: 9.78 ct and6.41 ct diamondsrecovered from bulksampling and a 4 caratstone discovered indrillcore in 2003Base Case Diamond ValuationEstimates Using on BestPractice MethodologyAverage diamond price estimate inMarch 2014 for the Mineral Reservesat US$190/ct (un-escalated)compared to US$180/ct in the January2013 Optimization Study.High Quality Production withLarge Stone PotentialThe Renard kimberlites have similar,but marginally different diamondpopulations exhibiting a highincidence of large white gems.Coarse Size Distribution in Renard 2predicts three to six 50-100ct stonesand one to two +100ct stones every100,000 carats (two weeks).Substantial revenue potential fromlarge diamonds not accounted for inthe base case cash-flow model. 43. 43Ongoing Resource Expansion$10m Drill Program for 2014 Announced on Jan 22nd 2014490 masl-275 masl0 m790 mLegendRenard 2 Renard 3 Renard 4 Renard 65 Renard 92 1Indicated ResourceInferred ResourceInferred Resourceof R2 CRBLow TFFEHigh TFFE1. Conversion of Renard 65 Inferred Resources to Indicated to150m depth (July 2013: Completed)2. Addition of Renard 2 Country Rock Breccia to bothIndicated and Inferred Resources (July 2013: Completed)3. 6.2 Mcarats in 5.23 Mtonnes (at 119 cpht) in Renard 2Inferred Resources between 610m and 700m depth: 4.2 to7.3 Mcarats TFFE between 700m and 770m depth. Openbelow 770m. (2014 Drill Program)3Drilling has confirmed R2 to a970m depth so far.-480 masl 44. 44Notable Exploration Properties and Joint VenturesReserve and Resource categories are compliant with the "CIM DefinitionStandards on Mineral Resources and Reserves". Mineral resources that arenot mineral reserves do not have demonstrated economic viability. Thepotential quantity and grade of any Exploration Target is conceptual innature, and it is uncertain if further exploration will result in the target beingdelineated as a mineral resource.Aviat (90%)Renard (100%)Qilalugaq (100%)Pikoo (20%)Aviat 90% SWY, 10% Hunter Exploration GroupKimberlite sheet and blow system on 197k Ha property located onMelville Peninsula in eastern Nunavut.TFFE estimated at 12.4 to 16.0mtonnes of kimberlite containing24.1mcarats to 40.3mcarats.Pikoo 80% North Arrow (NAR-V), 20% SWY2 New Kimberlites discovered in 2013 on 33k Ha property in eastcentral Saskatchewan.209kg sample of PK150 kimberlite returned 745 diamonds largerthan 0.106mmTill sampling underway during summer 2014 under an 80/20 JVwith North Arrow, pursuant to 2012 Option Agreement.Qilalugaq 100% SWY (Subject to NAR Option)8 Kimberlites on 7k Ha property in eastern Nunavut.Q1-4 pipe has an Inferred Resource of 48.8mtonnes with totaldiamond content of 26.1mcarats to 205m.C$3.7m sampling program underway to recover 500 carat parcelfor diamond valuation, pursuant to 2012 Option agreement withNAR to earn an 80% interest, subject to a one time back in rightof SWYs to increase its interest to 40%. 45. 4455Moving Forward 46. 46 Stornoway Diamond Corporation TSX:SWYOur Prioritieswww.stornowaydiamonds.comSolid project executionBudget, schedule and operatingexcellenceDisciplined management of cash andexpendituresStrong balance sheetDelivering on projects strong marginand cash flow potentialThenRetain exposure to pipeline explorationassets through JVsWith successful construction andcommissioning behind us, look to thefuture 47. 4477Questions