1. BUILDING QUÉBEC’S FIRST DIAMOND MINE
PDAC March 4th 2014
Matt Manson
President, CEO & Director
Orin Baranowsky
Director of Investor Relations
2. 2
Forward-Looking Information
This presentation contains "forward-looking information" within the meaning of Canadian securities legislation and “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-
looking statements”, are made as of the date of this presentation and the Company does not intend, and does not assume any obligation, to update these
forward-looking statements, except as required by law.
Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include,
but are not limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of future production over any
period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, average ore recovery,
internal dilution, mining dilution and other mining parameters set out in the Feasibility Study or Optimization Study; (v) assumptions relating to gross
revenues, operating cash flow and other revenue metrics set out in the Feasibility Study or Optimization Study; (vi) mine expansion potential and expected
mine life; (vii) expected time frames for completion of permitting and regulatory approvals and making a production decision; (viii) future exploration plans;
(ix) future market prices for rough diamonds; and (x) sources of and anticipated financing requirements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or
variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of
any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results,
performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment
in which Stornoway will operate in the future, including the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals. Certain
important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include,
but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return;
(iii) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (iv) the assumption that a production decision will be
made, and that decision will be positive; (v) anticipated timelines for the commencement of mine production; (vi) market prices for rough diamonds and the
potential impact on the Renard Project’s value; and (vii) future exploration plans and objectives. Additional risks are described in Stornoway's most recently
filed Annual Information Form, annual and interim MD&As, and other disclosure documents available under the Company’s profile at: www.sedar.com.
When relying on our forward-looking statements to make decisions with respect to Stornoway, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whether written or oral, that
may be made from time to time by Stornoway or on our behalf, except as required by law.
Readers are referred to the technical report dated December 29th, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond
Project, the technical report dated February 28th, 2013 in respect of the January 2013 Optimization Study, and the press release dated July 23rd 2013 in
respect of the July 2013 Mineral Resource estimate for further details and assumptions relating to the project. These technical reports and this press
release list the names of the Qualified Persons in respect of these studies.
3. 3
Stornoway Diamond Corporation TSX:SWY
Strong Base Case Economics; World Class Upside
All-Season Access Road Opened Ahead of Schedule
and Under Budget
Mining Lease and Certificates of Authorization Issued
Strong Public Support in Québec; IBA in Place
Excellent Diamond Supply & Demand Fundamentals
100% Ownership in Renard, Québec’s First
Diamond Mine
One of the World’s Few New Diamond
Projects Under Development
Ready to Build
Focussed on Final Project Financing
4. 4
MAJOR SHAREHOLDINGS*
12 MONTH ANALYST TARGETSMarket Capitalization:
(based on voting and non-voting shares)
C$ 163 million
Total Shares Outstanding:
(Basic and Non-voting convertible shares)
175 million
Total Options & Warrants Outstanding:
(9m Options $0.40-$2.40; 25m warrants $1.20)
33 million
Consolidated Cash:
(as of January 31, 2014)
C$ 21 million
Consolidated Debt:
($100m Standby Facility with IQ undrawn)
C$ 66 million
IQ**
(common shares)
(non-voting convertible shares)
23.2% 33.0%
Agnico-Eagle 9.7% 8.4%
Caisse de dépôt et placement du
Québec
7.5%
(est)
6.5%
(est)
Float 59.7% 52.0%
Fully
Diluted
Basic
BMO
Ed Sterck Market Perform na
Desjardins
John Hughes Speculative Buy $1.70
Dundee
Laurence Curtis Speculative Buy na
Laurentian
Eric Lemieux Buy $1.70
Paradigm
David Davidson Buy $2.00
RBC
Des Kilalea,
Outperform-
Speculative Risk
$1.20
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 $0.93 on March 4rd 2014 and includes the issue of flow through shares which closed December 3rd 2013.
**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. 7
The Feasibility: 11
years of mining
Permitting and Long
Term Business Plan
The Vision: Deposit still
Open
40
60
80
100
120
140
Millions
of Tonnes
20
0
Exploration Target High Range
Inferred Resource
Exploration Target Low Range
Probable Reserve
The Renard Diamond Project
A Large, High Value Diamond Resource with a Very Long Mine Life Potential
0m
100m
200m
400m
600m
700m
500m
300m
Renard 65
29/24cpht Renard 3
103/112cpht
Renard 2
104/119cpht
Renard 9
53cpht
Renard 4
60/50cpht
27 mcarat Indicated Mineral Resource
17 mcarat Inferred Mineral Resource
26-48 mcarat Exploration Target
Grades illustrated are for Indicated and Inferred Mineral Resources respectively at a +1DTC sieve
size cut-off. Reserve and Resource categories are compliant with the "CIM Definition Standards on
Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The potential quantity and grade of any Exploration Target
(previously referred to as a “Potential Mineral Deposit”) is conceptual in nature, and it is uncertain if
further exploration will result in the target being delineated as a mineral resource.
8. Reserve Based Mine Plan
Jan 2013 Feasibility Study Optimization
0m
100m
200m
400m
600m
700m
500m
300m
Notes
1. Key Assumptions:C$1=US$1, Oil US$95/barrel, 2.5% real terms diamond price growth
Q311-Q425, 82.9% ore recovery, 23.8% mining and internal dilution, 0cpht dilution
grade, January 1 2013 effective date for NPV and IRR calculation.
2. Expressed in May 2011 terms.
3. Expressed in October 2012 terms, as adjusted in October 2013 LNG FS.
4. Actual.
5. Excludes capitalized preproduction costs.
6. Expressed in de-escalated nominal terms.
Reserve Based Mine Plan1
(Jan 2013 FS Optimization using Parity Dollar and May
2011 Diamond Pricing)
Mining Parameters
Mine Life 11 years
Mineral Reserve 17.9 mcarats
Ave. Diamond Price2
$180/carat
Production Rate 2.2 mtonnes/yr
Ave. Diamond Production 1.6 mcarats/yr
Gross Revenue (C$M) $4,268
Initial Capital Costs
Initial Cap-ex3
$754m
Escalation Allowance $45m
Renard Mine Road4
$70m
Operating Parameters
Operating Cost3,5
$58/t ($76/carat)
Operating Margin 67%
Operating Cash Flow $2.7B
Valuation Parameters6
After Tax NPV (7%; Jan 1 2013) $391m
After Tax IRR 16.3%
Payback 4.8 years
Renard 65
Renard 2 Renard 3
Renard 4
9. 9
Resource Based Mine Plan
Long Term Plan: Foundation of Permitting and ESIA
0m
100m
200m
400m
600m
700m
500m
300m
Renard 65
Renard 2 Renard 3
Renard 4
Renard 9
27 mcarat Indicated Mineral Resource
17 mcarat Inferred Mineral Resource
26-48 mcarat Exploration Target
Resource Based Mine Plan
(Basis of December 2012 ESIA and Mine Permitting)
Represents the mine plan contained within the
Renard December 2012 ESIA and operating
authorizations. Not part of Stornoway’s public
disclosure consistent with NI 43-101.
Increased project valuation and mine life.
Includes the mining of up to 17mcarat Inferred
Resources within the scope of the Feasibility
Study mine infrastructure.
Includes the mining of up to 2.3mcarat Indicated
Resources within a Renard 65 open pit for
increased annual processing capacity from
2.2mtonnes/yr to 2.5mtonnes/yr.
Additional sustaining capital only, principally on
underground mine. Incremental capital for
deepening of production ramp from 600m to
700m depth.
Does not include non-resource exploration
upside. All pipes open at depth.
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.
10. 10
What has Changed Since the January 2013 Optimization Study?
0m
100m
200m
400m
600m
700m
500m
300m
Renard 65
Renard 2 Renard 3
Renard 4
Renard 9
27 mcarat Indicated Mineral Resource
17 mcarat Inferred Mineral Resource
26-48 mcarat Exploration Target
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.
14% Increase in Indicated Resources
July 2013: Additional 2.3Mcarats at Renard 65 (7.9
Mtonnes at 29cpht), open pittable to 150m depth.
7% Reduction in Op-ex with LNG Option
October 2013: Annual op-ex reduction of up to $10m
using LNG for power generation, with incremental cap-
ex increase of just $2.6m.
10% Improvement in C$:US$ Exchange
Current US$0.90 rate boosts operating margin and
increases NAV compared to parity dollar assumption
used in Jan 2013 FS Optimization.
Increase in Average Diamond Prices
March 2013: Revised estimates of US$190/ct for
Renard 2; US$180/ct for Renard 65, and an estimated
+5% additional market movement since.
New Québec Tax Regime Absorbed
May 2013: New Québec system of mining taxation and
royalties: Long term clarity on tax environment.
12. 12
Stornoway will be a Significant Diamond Producer
Current and Future Diamond Producers
Source: Kimberly process and Company Reports
1 De Beers (Anglo/Botswana) $6,404m
2 Alrosa (Russia) $4,801m
3 Dominion Diamond (TSX: DDC) $940m
4 Rio Tinto (ASE: RIO) $783m
5 Petra (note 1; L: PDL) $432m
6 Stornoway (note 2; TSX: SWY) $306m
7 Mountain Province (note 3; TSX: MPV) $273m
8 Gem (L: GEMD) $218m
9 Lucara (note 4; TSX: LUC) $155m
10 Others $2,588m
Total $16,900m
DeBeers
38%
Alrosa
28%
BHPB/
Dominion
6%
RioTinto
5%
Petra
2%
SWY
2%
MPV
2%
GEM
1%
LUC
1%
Others
15%
2013 World Diamond Production Data/
Forecast Future Production
Notes:
1. Petra 12 month results for period ending December 31, 2013
2. Renard estimated at FS average annual diamond production of 1.7 million carats, and WWW April 2011 weighted diamond price of $180/ct, un-escalated
3. Gahcho Kue estimated at 50% of FS average annual production of 4.5 million carats, and WWW April 2011 weighted diamond price of $121/ct, un-escalated
4. Karowe estimated as mid-range per Lucara FY2014 Operating Guidance.
13. 13
490 m
asl
-275 m
asl
0 m
790 m
Indicated Resource
Legend
Inferred Resource
Inferred Resource of R2 CRB
Low TFFE
High TFFE
Ongoing Resource Expansion
$10m Drill Program for 2014 Announced on Jan 22nd 2014
Renard 2 Renard 3 Renard 4 Renard 65 Renard 9
1. Conversion of Renard 65 Inferred Resources to Indicated to 150m
depth (July 2013: Completed)
2. Addition of Renard 2 Country Rock Breccia to both Indicated and
Inferred Resources (July 2013: Completed)
3. 6.2 Mcarats in 5.23 Mtonnes (at 119 cpht) in Renard 2 Inferred
Resources between 610m and 700m depth: 4.2 to 7.3 Mcarats
TFFE between 700m and 770m depth. Open below 770m. (2014
Drill Program)
1
2
3
14. 14
Renard’s High Value Diamonds
Large Diamond Potential Not Included in Base Case Diamond Valuation Models
The Renard kimberlite pipes have similar, but marginally different diamond populations
exhibiting coarse size distributions and with high proportions of large white gems.
99% by weight gem/near-gem quality. 1% industrial quality boart.
Value Upside in Large Gems: Diamonds larger than 10.8ct (“Specials”) estimated at three to six 50 -
100ct stones and one to two +100ct stones every 100,000 carats (two weeks). Not accounted for in
the revenue model.
The January 2013 FS Optimization utilized an average diamond valuation of US$180/ct based on
May 2011 prices.
Kimberlite
Body
Size of
Valuation
Sample
(carats)
WWW March
2013 Sample
Price
(US$/carat)1
WWW March
2013 Base
Case Price
Model
(US$/carat)1
Sensitivities
(Minimum to High)
Renard 2 1,580 $180 $190 $171 to $214
Renard 3 2,753 $173 $151 $141 to $185
Renard 4 2,674 $100 $104 ($150)2
$98 to $168
Renard 65 997 $250 $180 $169 to $203
Notes
1. All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off.
2. Should the Renard 4 diamond population prove to have a diamond population with a size distribution
equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model of
$150 per carat based on March 2013 pricing.
Renard 3 Bulk Sample Stones larger
than 2 carats. “Run of Mine”Diamond Valuations:
15. 15
100
150
200
250
300
350
01/01/10 01/01/11 01/01/12 31/12/12 01/01/14
Indexto2009=100
WWW Rough Index, CPI Adjusted Renard Model Price Growth
WWW R.I.
CPI Adj Base Price
May 2011 Mar 2013
+20%
-10%
+10%
-20%
Rough Diamond Price Movements
The Diamond Market, January 2010 to March 2014
A tracking of the diamond market since the publication of the November 2011 FS indicates rough diamond
prices have generally remained within the bounds of sensitivities contained within the FS financial model
(May 2011 spot prices and a 2.5% real terms annual price escalator).
May 2011 Valuation
utilized in the FS based
on the average of 5
diamantaires c.10%
below the WWW rough
index price
16. 16
Waste Rock
Processed Kimberlite
Containment (PKC)
Overburden
Stockpile
R2-R3
Ore Stockpile
R65
Camp
Plant
Road from Chibougamau
General Project Arrangement
Small Project Footprint of 3.1km2, Modest Environmental Impact
17. 17
Project Execution
Accommodation Complex
Process and Power Plants
Access Infrastructure Pre-Financed and
Already Constructed
Renard Mine Road open to traffic since August 30th
2013. Aerodrome open since November 5th 2013.
Favourable Cost and Labour Environment
Limited amount of recent mine construction activity in
Quebec means competitive cost environment and good
contractor/labour availability.
Owner’s Team and EPCM Contract in
Place
Montreal based owner’s team in place for planning,
engineering, environment, stakeholder relations and
cost management. Stornway will also enter into an
EPCM agreement with SNC-Lavalin & AMEC.
LNG Power Option Completed for Reduced
Operating Cost Risk
LNG power option utilizes all-season access road and
existing commercial LNG distribution network in
Quebec.
18. 18
Permitting and Social Acceptability
Strong Regulatory and Public Support for Québec’s First Diamond Mine
Social Licence
Permitting
March 2012: Impact and Benefits Agreement (“IBA” or the
“Mecheshoo Agreement”) with the Cree Nation of Mistissini
and the Grand Council of the Crees (EI).
July 2012: Partnership Agreements Signed with
Chibougamau and Chapais.
May 2013: Settlement of future Québec mining tax regime
Oct. 2012: Québec Mining license issued.
Dec. 2012: Québec Certificate of Authorization issued.
July 2013: Positive Federal Environmental Assessment
decision issued.
All Community Agreements and Regulatory
Authorizations Required to Proceed to
Construction are in Place.
19. 19
The Route 167 Extension and the Renard Mine Road
The Only Canadian Diamond Mine with an All-Season Access Road
50 km
Renard Project
Explor./Mining Projects
Stornoway Properties
Albanel-Témiscamie-
Otish Par
Segment A: 0-82km
Segment B: 82-143km
Segment C: 143-195km
Segment D: 195-240km
Legend
Renard
WesternTroy
Eastmain
Abitex
Strateco
Mistissini
Lac
Mistassini
Lac
Naococane
Lac Hecla
Lac
Albanel
Km 0
Km82
Km240
Km195
Km143
Construction of an all-season access road connecting
Renard to the Québec highway system began in Feb. 2012.
Road segments A & B (143 km) constructed by Québec as
a 2-lane highway. Segments C & D (97 km) constructed by
Stornoway as the single lane “Renard Mine Road”.
All 4 segments were connected and opened for mine
construction traffic on August 30th 2013, 2 months ahead of
schedule and approximately 10% below budget.
To complete this work, Québec provided Stornoway $77m
of debt financing, repayable upon commercial production at
Renard.
Stornoway has been able to apply $7m of debt savings to
complete the civil works for the Renard Aerodrome.
Segments C & D
Stornoway
97km of Mine
Road (50km/hr)
Segments A & B
Min. of Transport
143km of Regional
Highway (70km/hr)
Eastmain Bridge,
March 2013
Transportation of Pre-
Fabricated Temporary Bridge
Spans March 2013
21. 21
Renard Mine Aerodrome
Civil Works Completed Early Utilizing Savings Under the Renard Mine Road Credit Facility
Tree Cutting Area
Runway
Centerline
First Landing: November 5th
23. 23
Project Schedule
January 2013 Optimization Study
BFS (Complete)
ESIA (Complete)
Community Hearings (Complete)
Reg. Authorizations (Complete)
Specific Operating Permits (50)
Detailed Engineering
Project Financing
Road Construction
Site Construction
Commissioning and Ramp-up
Commercial Production
2011
2H 2H 2H 2H2H 1H 1H 1H1H
2012 2013 2014 2015
2H1H
2016
First Vehicle Access
The timely completion of mine project financing is the principal driver on the
schedule of project construction and start up
24. 24
Québec’s First Diamond Mine – Ready to Build
Project Green-lighted: Authorizations Issued
Community Agreements in Place
Stornoway Operating Team in Place
Access Road Opened 2 Months Ahead of
Schedule and Under Budget
LNG Power Plant Results in Meaningful Cost
Savings
Resource Continuing to Grow
Favourable Cost Environment for Project
Construction
Stornoway is Focused on Completing
Project Financing for Construction in 2014
and 2015, with first Production in 2016
26. 26
Probable Mineral Reserve
Mining Recovery Factors Utilized in the Reserve
Calculation
Kimberlite
Grade
(cpht)
Tonnes
(millions)
Contained
Carats
(Millions)
Internal
Dilution
Mining
Recovery
Mining
Dilution
Renard 2 OP 95 1.31 1.24 0.0% 96.0% 7.1%
Renard 2 UG 80 17.03 13.62 7.0% 82.4% 20.2%
Renard 3 OP 93 0.72 0.67 0.0% 96.0% 10.5%
Renard 3 UG 84 1.00 0.84 21.1% 85.0% 14.0%
Renard 4 UG 42 3.72 1.58 1.4% 78.2% 14.0%
Total 75 23.79 17.95 5.9% 82.9% 17.9%
Notes: Reserve categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Totals may not add due to rounding. Grades are estimated at a
+1DTC sieve size cut-off.
R2 ,
83%
R3, 8%
R4, 9%
Revenue
R2 , 77%
R3, 7%
R4, 16%
Tonnage
R2 , 83%
R3, 8%
R4, 9%
Carats
NI 43-101 Probable Mineral Reserves
January 28th 2013
27. 27
Notes: Resource categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Indicated Mineral resources are Inclusive of the Mineral Reserve. Totals may not add due to rounding. Grades are estimated at a +1DTC sieve size
cut-off.
Renard NI 43-101 Mineral Resources
July 23rd 2013. Changes to Previous January 2011 Mineral Resource in Italics
Kimberlite
Grade
(cpht)
Tonnes
(millions)
Contained Carats
(Millions)
Renard 2 – Total 100 (n/a) 18.58 (n/a 18.66 (n/a)
Renard 2 104 (+1.2%) 17.71 (-0.4%) 18.38 (+1.6%)
Renard 2 CRB-2a 32 (n/a) 0.87 (n/a) 0.28 (n/a)
Renard 3 103 (-2.2%) 1.76 (+0.5%) 1.82 (-1.7%)
Renard 4 60 (+13.1%) 7.25 -- 4.31 (+13.0%)
Renard 65 29 (n/a) 7.87 (na) 2.30 (n/a)
Total Indicated 76.4 (-14.3%) 35.45 (33.1%) 27.09 (+14.0%)
Renard 2 – Total 64 (n/a) 11.77 (n/a) 7.47 (n/a)
Renard 2 119 (+1.2%) 5.23 (+0.4%) 6.23 (+1.6%)
Renard 2 CRB 19 (n/a) 6.54 (n/a) 1.24 (n/a)
Renard 3 112 (-4.5%) 0.54 (+0.2%) 0.61 (-4.2%)
Renard 4 50 (+13.7%) 4.75 (-0.1%) 2.37 (+13.7%)
Renard 9 53 (+13.2%) 5.70 (+0.1%) 3.04 (+13.2%)
Renard 65 24 (-16.8%) 4.93 (-61.9%) 1.18 (-68.3%)
Lynx Dyke 107 -- 1.80 -- 1.92 --
Hibou Dyke 144 -- 0.18 -- 0.26 --
Total Inferred 56.8 (+1.2%) 29.67 (-4.6%) 16.85 (-3.5%)
28. 28
Notes: The potential quantity and grade of any exploration target (previously referred to as “potential mineral deposit”) is conceptual in nature, and it is uncertain if further exploration
will result in the target being delineated as a mineral resource. The exploration upside for the Renard kimberlite pipes has been determined by projecting reasonable kimberlite
volumes from the base of the inferred Resource to a depth of 700m below surface. In the case of the Lynx and Hibou dykes, the exploration upside was established on the basis of
known drill intersections of kimberlite for which insufficient diamond sampling exists to adequately estimate a diamond resource grade.
Target for Further Exploration
July 23rd 2013. Changes to Previous January 2011 Estimates in Italics
Kimberlite
Grade
(cpht)
Tonnes
(millions)
Contained Carats
(Millions)
Renard 2 104 to 158 4.0 to 4.6 4.2 to 7.3
Renard 3 105 to 168 0.8 to 1.7 0.8 to 2.8
Renard 4 50 to 77 11.1 to 15.4 5.6 to 11.8
Renard 9 52 to 68 3.9 to 6.3 2.0 to 4.3
Renard 65 25 to 33 29.0 to 40.9 7.3 to 13.5
Lynx Dyke 96 to 120 3.1 to 3.2 3.0 to 3.8
Hibou Dyke 104 to 151 2.7 to 2.9 2.9 to 4.3
Total Exploration
Upside
54.6
(-0.8%)
to
74.9
(-0.8%)
25.7
(+9.1%)
to
47.8
(-1.4%)
30. 30
Chronology of Renard Studies
Feasibility Study
Released on November 16th 2011. NI 43-101 Technical Report filed December 29 2011.
11 Year Mine Plan based on 18Mcarat Mineral Reserve derived from January 2011 NI 43-101 Resource.
Long Term Business Plan
Companion study to the Feasibility Study with an extended mine plan incorporating the project`s 17.5 million carats of
Inferred Mineral Resources.
Basis of overall mine design and project permitting. Not part of the project`s public disclosure, consistent with Canadian
reporting standards
Optimization Study
Released on January 28th, 2013. NI 43-101 Technical Report filed March 2013.
Refined of Feasibility mine design, including shaft deferral and a modified underground mining sequence.
11 Year Mine Plan based on 17.9 million carat Mineral Reserve.
Resource Update
Released July 2013. NI 43-101 Resource update with 14% increase in Indicated Resource contained carats
LNG Feasibility Study
Released October 2013. Modified project Cap-ex and Op-ex for LNG powered gensets
31. 31
Optimization Study Financial Analysis
Project Assumptions, Valuation and Pay-Back
Key Assumptions in the Financial Model1
Mining
Parameters
Reserve Carats (M) 17.9
Tonnes Processed (M) 23.8
Recovered Grade (cpht) 75
Average Ore Recovery (%) 82.9%
Average Mining Dilution (%) 17.9%
Dilution Grade (cpht) 0
Processing Rate (Mtonnes/annum) 2.2
Mine Life (years) 11
Cost
Parameters
Initial Cap-ex (C$M)2 $752
LOM Cap-ex (C$M)4 $1,013
Oil Price (US$/barrel)2 $95
LOM Op-ex (C$/tonne)2 $57.63
LOM Op-ex (C$/carat)2 $76.63
Revenue
Parameters
Gross Revenue (C$M)2 $4,268
Marketing Costs 2.7%
DIAQUEM Royalty 2.0%
Cash Operating Margin (C$M)2 $2,693
% Operating Margin 67%
Income Tax, Mining Duties and IBA
Payments (C$M)1 $625
After Tax Net Cash Flow (C$M) $1,084
Diamond
Price
Parameters3
Renard 2 and Renard 3 (US$/carat) $182
Renard 4 (US$/carat) $164
Diamond Price Escalation 2.5%
Exchange rate 1C$=1US$
Schedule
Parameters
Effective Date for NPV Calculation Jan. 1 2013
Construction Mobilization/Early Works Aug. 1 2013
Plant Commissioning Commences Dec. 1 2015
Commercial Production Declared Jun. 1 2016
Valuation Results5
(C$m)
Pre-Tax After Tax
NPV5% $894 $537
NPV7% (Base Case) $683 $391
NPV9% $514 $274
IRR 20.4% 16.3%
Pay-Back (years) 4.69 4.82
Notes
1. Optimization Study, released January 28th 2013.
2. Expressed in October 2012 terms.
3. Expressed in May 2011 terms.
4. Expressed in nominal terms.
5. Expressed in Dde-escalated nominal terms.
32. 32
Optimization Study Financial Analysis
Capital Costs
Capital Costs1
(C$m)
Site Preparation & General $32.7
Mining $151.2
Mineral processing plant $175.4
Onsite utilities and infrastructures $114.8
Owner’s Cost $94.7
Spares, fills, tools $7.1
EPCM services $47.9
Field indirect costs, vendor representatives $33.9
Construction camp & Catering $24.5
Freight and duties $5.5
Contingency $64.7
Total Initial Capital $752.1
Escalation Allowance on Initial Capital $45.1
Pre-Production Revenue $(25.0)
Deferred & Sustaining Capital2 $175.9
Deferred Capital (Route 167 Extension) $0.0
Renard Mine Road2 $78.0
Salvage Value2 $(13.3)
Total LOM Capital $1,012.9
Site Prep.
& General
7%
Mining
32%
Plant
37%
Onsite
utilities
and
infrastruc.
24%
Direct Costs (C$474m)
Owner’s
Cost
34%
Spares
3%
EPCM
17%
Field,
Vendor
reps
12%
Camp
9%
Freight
2%
Contin.
23%
Indirect Costs (C$278m)
Notes
1. Optimization Study, released January 28th 2013. 2. After Escalation
33. 33
Optimization Study Financial Analysis
Operating Costs
Notes:
1. Optimization Study, released January 28th 2013. Costs are
expressed in October 2012 terms. Totals may not add due
to rounding.
2. Unit cost per processed tonnes.
Open Pit Unit Costs1
$/tonne
Open Pit 21.22
Processing 15.29
G&A2 and Infrastructure 18.27
Total Open Pit3 54.78
Underground Unit Costs1
$/tonne
Underground 23.64
Processing 15.29
G&A2 and Infrastructure 18.27
Total Underground3 57.20
Life of Mine Operating Costs1,4
(Real Terms)
Total Operating Cost (C$M) 1,352
Diamond Prod. (Mcarats) 17.6
Production Cost3
57.63 C$/ t
76.63 C$/ ct
3. G&A unit costs do not include closure cost
4. “Life of Mine Operating Costs” exclude diamond production prior to Commercial
Production and exclude pre-production operating costs, which are capitalized.
Open Pit,
$10m, 1%
UG Mine,
$555m,
41%
Plant,
$359m,
26%
G&A,
$429m,
32%
Operating Cost (C$1,352m)
34. 34
Optimization Study Financial Analysis
Carat Production and Revenue
Revenue Parameters1
(Real Terms)
Total Gross Revenue (C$m) $4,268
Marketing Costs (%) 2.7%
DIAQUEM Royalty (%) 2.0%
Cash Operating Margin (C$m) $2,693
% Operating Margin 67%
Taxes and Mining Duties and IBA Payments (C$m) $625
Cumulative After Tax Cash Flow (C$m) $1,084
Production Parameters1
(Mcarats)
Renard 2 Open Pit 1.24
Renard 3 Open Pit 0.67
Total Open Pit 1.91
Renard 2 Underground 13.62
Renard 3 Underground 0.84
Renard 4 Underground 1.58
Total Underground 16.03
Total 17.95
11%
89%
Diamond Production by Mining Method
Open Pit
Underground
83%
8%
9%
Diamond Production by Kimberlite Pipe
Renard 2
Renard 3
Renard 4
Notes:
1. Optimization Study, released January 28th 2013.
36. 36
Liquefied Natural Gas Power Plant
Feasibility Study Released October 2013
With a view to project optimization,
Stornoway has been investigating more
cost efficient alternatives for on-site power
supply than traditional diesel fuelled gen-
sets.
A Hydro-Québec powerline has been ruled
out in the short term due to high cap-ex
cost.
On October 21st Stornoway announced it
will proceed with an LNG fuelled gen-set
option, made possible by the ability to
receive regular cryogenic LNG shipments
on the Renard Mine Road.
The Renard LNG plant will comprise seven
2.1MW rated gas gen-sets, providing
sufficient power generation capacity for the
project’s normal operating specification of
9.5MW.
37. 37
Liquefied Natural Gas Power Plant
Feasibility Study Released October 2013
An LNG fuelled powerplant for Renard offers many advantages over diesel:
• Greatly reduced annual operating costs of $8m to $10m per year, for a small incremental capital cost
of $2.6m.
• Up to 43% less greenhouse gas emissions.
• Long term, stable supply market utilizing existing commercial distribution network within Quebec.
• Elimination of on-site propane, as LNG will be used for building and underground mine heating.
Diesel will continue to be used for the mobile mining fleet and construction activities
Cost Improvements with LNG
Jan 2013
Optimization Study
with Diesel
Jan 2013
Optimization Study
with LNG
Unit Power Cost (C$/kWh) 1
$0.299 $0.188 (-37%)
Unit Operating Cost (C$/tonne) 1,2
$57.63 $53.84 (-7%)
Initial Capital Cost (C$m) 1
$752.1 $754.0 (+0.3%)
Life of Mine Capital Cost (C$m) 1,3
$1,013 $1,010 (-0.3%)
Annual Diesel Consumption (million litres) 27.5 5.9 (-79%)
Annual LNG Consumption (thousand m3
/annum) n/a 41.7
Annual Propane Consumption (thousand m3
/annum) 3.5 n/a
Notes
1. January 2013 Optimization Study costs expressed in October 2012 terms.
2. Excludes capitalized preproduction costs.
3. Includes all initial, sustaining and deferred capital, contingencies and escalation
Key Assumptions
Based on the 11 year reserve-based mine life (17.9 mcarats) contained within the
January 2013 Optimization Study, with a normal operating load of 9.49MW,
C$1=US$1, Oil US$95/barrel
39. 39
Diamond Industry Cost Curve
Source: Published FY2012 Results, FS Life of Reserve Data and Company Estimates
World Diamond Project Comparables
Cost/Revenue
40. 40
Project Comparables
Recent Canadian Diamond Mines Compared as of the Date of each FS
Source: Company Reports and Stornoway Estimates. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators.
Assumes similar diamond recovery and mining dilution parameters.
Ekati (1998)
BHPB, As Built
Estimates
Diavik (1999)
Rio-Tinto, As
Built Estimates
Victor (2008)
De Beers, As
Built Estimates
Renard FS
Optimization
Study (2013)
Resource Parameters
Resource (m carats) 161 133 No data 41
Resource (US$) $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 17.9
Reserve (dollars) $6B $5.5B $2.4B (est) $3.2B
Reserve Grade (cpht) 109 400 20 75
Average Reserve Diamond Price $84 $55 $400 $180
Average Reserve Ore Value (US$) $92 $220 $80 $136
Reserve Mine Life 17 19 12 11
Production Parameters
Annual Production (mCarats) Up to 3.6 Up to 7 0.5 1.7
Annual Revenue (US$m) $302 $385 $215 $306
LOM Op-ex (Cdn$/tonne) $100 to $60 $100 No data $58
LOM Op-ex (Cdn$/carat) $92 to $55 $25 No data $76
Canadian-US Dollar c.$0.75 $0.67 c.$1.00 $1.00
Pre-Production Cap-ex (Cdn$) $900m $1.3B $982m $752m
41. 41
Project Comparables
Recent Canadian Diamond Development Projects Compared as of the Date of each FS
Gahcho Kué FS (2010)
De Beers/Moun. Prov.
Star-Orion FS (2011)
Shore Gold
Renard FS Optimization
Study (2013)
Resource Parameters
Resource (m carats) 61 43 41
Resource (US$) $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 17.9
Reserve (dollars) $3.7B $8.2B $3.2B
Reserve Grade (cpht) 157 12 75
Average Reserve Diamond Price $75 $242 $180
Average Reserve Ore Value (US$) $118 $30 $136
Reserve Mine Life 11 20 11
Production Parameters
Annual Production (mCarats) 4.5 1.7 1.7
Annual Revenue (US$m) $338 $411 $306
LOM Op-ex (Cdn$/tonne) $49 $14 $58
LOM Op-ex (Cdn$/carat) $31 $114 $76
Canadian-US Dollar 0.96 0.945 1.00
Pre-Production Cap-ex (Cdn$)
$550m
($800m De Beers Dec 11)
$1.9B $752m
Source: Company Reports. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators. Assumes similar diamond
recovery and mining dilution parameters.
43. 43
Major Diamond Mines and Development Projects Worldwide
Few Enough Mines to Fit on One Map
South Africa
• Venetia (De Beers)
• Finsch, Premier (Petra Diamonds)
• Lace (DiamondCorp)
Tanzania
• Williamson (Petra Diamonds)
Russia
• Arkhangelsk District (Alrosa)
• Yakutia District (Alrosa)
• Grib (LUKOIL)
India
• Bundar (Rio Tinto)
Australia
• Argyle (Rio Tinto)
• Ellendale (Gem Diamonds)
Canada
• Ekati (BHPB)
• Diavik (Rio Tinto/Harry Winston)
• Victor, Snap Lake, Gahcho Kue (De Beers)
• Renard (Stornoway)
• Star (Shore Gold/Newmont)
Botswana
• Jwaneng, Orapa (De Beers)
• Gope (Gem Diamonds)
• Karowe (Lucara Diamonds)
Angola
• Catoca (Alrosa)
Democratic Republic of Congo
• Mbuyi-Mayi
Sierra Leone
• Koidu, (Steinmetz Group)
Lesotho
• Letseng (Gem Diamonds)
• Kao (Namakwa Diamonds)
• Liqhobong (Firestone)
• Mothai (Lucara)
44. 44
The Rough Diamond Business in Context
1/8th the Size of the Copper Business
Source: USGS, LME, Kimberly Process
45. 45
The Diamond Pipeline
An Industry with Many Intermediaries
Source: Tacy
D.I.B.April 2013
Production
Cost
Production
Value
Mine Sales to
Industry
Rough Sales
to Cutting
Centers
Value of
Polished
Produced
Value of
Diamonds in
Retail
Jewelery
Sales
Retail Sales
of Diamond
Jewelery
Estimated
Average Margins
after Costs (%)
Polishing:
-10 to 15%
Jewelery
Manufac: -10
to 10%
Jewelery
Retail: 20 to
50%
Mine Production Rough Trading and Diamond Polishing Diamond Jewelery
Value in US$B
terms of each
stage of the
diamond
pipeline
Rough Mining: 0 to 50% Rough Dealing: 0 to 10%
$6.0B $13.37B $15.5B $15.2B $17.6B $21.9B
$72.1B
46. 46
Future Rough Diamond Supply
0
20
40
60
80
100
120
140
160
180
Produciton/SupplyMct
Alluvial
Open Cut
U/G
3x increase in
U/G carats
Higher cost
De Beers Production Forecast Rio Tinto Production Forecast
Almost all rough diamond production forecasts show flat or declining production long term. De Beers see
production peaking in 2017, and broad reserve depletion thereafter.
Rough production is not expected to reach 2008 levels in carat terms again.
No large scale diamond mine has been discovered since the discovery of EKATI and Diavik in the early
1990s. The movement to underground mining in Russia, South Africa and Canada will lower overall industry
margins.
47. 4747
Rough Diamond Supply and Demand Forecasts
An Example: Bain September 2013
Rough Diamond Demand
Supply and Demand
Rough Diamond Supply
Since 2012, Bain & Co in partnership with the
Antwerp World Diamonds Center have published
an annual review of the diamonds sector.
The September 2013 edition forecasts a rough
diamond supply CAGR of 2% and a rough
diamond demand CAGR of 5.1%.
48. 48
$109
$121
$117
$182 $190
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013
IndexOctober2003=100
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&PTSXCompositeIndexWeeklyClosingS&PTSXCompositeIndexWeeklyClosingS&PTSXCompositeIndexWeeklyClosingS&PTSXCompositeIndexWeeklyClosing
Rough Diamond Pricing Since 2003
Rough and Polished Diamonds Against a Basket of Indicators, 2003- October 2013
Source: LME, IMF, Rough Diamond Price data after WWW International Diamond Consultants Limited Indexed to October 2003. CAGR in Nominal Terms. WWW R.I. to May 2013
8% CAGR in
Rough Prices
2003-2012
50. 50
Hume Kyle
Independent
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
Executive Officers
Non-Executive Directors
Key Managers
Head Office: Longueuil, Québec
Exploration Office: North Vancouver, BC
Community Offices: Mistissini & Chibougamau Québec
Stornoway’s Board and Management Team
Serge Vézina
Independent
Orin
Baranowsky
Director, IR
Jean-Charles
Dumont
Corporate Controller
Yves Perron
VP Engineering
& Construction
Ghislain
Poirier
VP Public Affairs
Brian Glover
VP Asset
Protection
Martin Boucher
VP Sustainable
Development
Guy Bourque
Chief Mining
Engineer
Helene
Robitaille
Director, HR
Robin
Hopkins
VP Exploration
Mario
Courchesne
Construct. Manager
Freddie
Mianscum
IBA Implem. Officer
51. 51
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.
Appendix: Management Biographies
52. 52
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.
STORNOWAY DIAMOND CORPORATION
1111 RUE ST. CHARLES O.
LONGUEUIL, QUÉBEC J4K 4G4
TEL. : (450) 616-5555
www.stornowaydiamonds.comTSX:SWY
Appendix: Management Biographies
53. 53
VICE PRESIDENT, FINANCE AND
CFO
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 several 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.
STORNOWAY DIAMOND CORPORATION
980 W FIRST STREET, #116
NORTH VANCOUVER, BC, V7P 3N4
TEL. : (604) 983-7750
www.stornowaydiamonds.comTSX:SWY
Appendix: Management Biographies
54. 54
Stornoway Diamond Corporation TSX:SWY
Head Office:
1111 Rue St. Charles Ouest,
Longueuil, Québec J4K 4G4
Tel: +1 (450) 616-5555
IR Contact:
Orin Baranowsky, CFA, Director IR
obaranowsky@stornowaydiamonds.com
Tel: +1 (416) 304-1026 x103
www.stornowaydiamonds.com
Info@stornowaydiamonds.com