BUILDING QUÉBEC’S FIRST DIAMOND MINE
Annual General and Special Meeting, Montreal, October 20, 2011
Matt Manson Patrick Godin
President and CEO COO
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 potential mineral deposits; (ii) the amount of
future production over any period; (iii) expected mine life; (iv) expected time frames for completion of permitting and regulatory approvals,
completion of a Feasibility Study and making a production decision for the Renard Diamond Project; (v) future exploration plans; (vi) the potential of
discovering kimberlite bodies and kimberlite bodies that are diamondiferous; (vii) future market prices for rough diamonds; and (viii) 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 Feasibility Study and the Environmental and Social Impact Assessment; (ii)
required capital investment and estimated workforce requirements; (iii) receipt of regulatory approvals on acceptable terms within commonly
experienced time frames; (iv) the assumption that a production decision for the Renard Diamond Project will be made, and that decision will be
positive; (v) anticipated timelines for the commencement of mine production; (vi) anticipated timelines related to the Route 167 extension and the
impact on the development schedule at Renard; (vii) anticipated timelines for community consultations and the conclusion of an Impact and
Benefits Agreement; (viii) market prices for rough diamonds and the potential impact on the Renard Diamond Project’s value; and (ix) future
exploration plans, objectives and results. 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
Your Board and Management Team
Additional Management
Robin Hopkins, VP Exploration
Dave Skelton, VP Project Development
Ghislain Poirier, VP Public Affairs
Matt Manson Pat Godin Zara Boldt Nick Thomas, Manager, Investor Relations
President, CEO COO & Director CFO and VP
& Director Nominee Finance Hélène Robitaille, Directrice, Relations avec les
communautés – Formation & Développement
Michel Blouin John leBoutillier
Tony Walsh Independent/ Yves Harvey Independent/
Chairman IQ Designate Independent IQ Designate
Monique Mercier
Independent/ Peter Nixon Ebe Scherkus Serge Vézina
IQ Designate Independent Agnico-Eagle Independent
4
4
A Look Back at Last Year’s AGM
Taken from the
September 2010
AGM Presentation
5
5
The Past 12 Months
Renard Project Resources1
+3% and +31% (Indicated and Inferred Mineral Resources respectively)
Stock Price2
-32%
Milestones Achieved
Acquired the 100% interest in the Renard Project.
Raised $35 million in a bought deal financing and rebalanced the company`s capital structure.
Secured a $100 million standby credit facility from Investissement Québec.
Advanced Renard Feasibility Study, ESIA and Permitting Program.
Secured Québec`s commitment on the Route 167 Extension and Stornoway`s participation.
Advanced our exploration portfolio towards multiple drill programs in 2012.
1
Based on an increase of National Instrument (“NI”) 43-101 compliant Indicated Mineral Resources from 23 to 24 million carats and Inferred
Mineral Resources from 13 to 17.5 million carats between December 2009 and January 2011. 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.
2
Measured between September 8th 2010 and October 17th 2011
6
A Future in Diamonds
Stornoway is committed to
building a business based on the
mining of diamonds in Canada
WHY?
Diamond Supply is Shrinking
Diamond Demand is Growing
Prices are Increasing
We have a World Class Asset in
Renard and a Quality Project Pipeline
Why Diamonds?
8
Who Is Buying Diamonds
Share of World Diamond Jewelry Market, 2005 to 2020
China (and
Asia-Pacific) Others 2005: $62B
10% 4% By 2020 Asia will have grown to 57%
of the World Diamond Jewelry Market
India (and US
Asia-Arabia) 49%
13%
Europe
China (and
Asia-Pacific) 2010: $74B
10% 15%
Japan
14% US
42%
India (and
Asia-Arabia)
18%
2020F: $128B
China (and
Asia-Pacific)
32% US
27%
By 2020 the US will have declined to 27% of
the World Diamond Jewelry Market
India (and
Source: AllanHochtreiter June 2011 after De Beers, Tacy Ltd., Alrosa 1H results Asia-Arabia)
Presentation, October 2011 25%
9
Why? It’s about Economic Growth
2020
World Total
2010-2020 GDP GDP of $136
(PPP) Growth Trillion
Forecast
By 2020, China’s
GDP on a purchase
Rest of the power parity (PPP)
35%
2010 World basis is forecast to
World Total
GDP of $76
grow 190% to $28
Trillion Trillion and China will
rank #1 in the world.
India
8%
During this period,
40% 5% Japan
Rest of the world GDP CAGR will
World equal 6.1%
21% China
India 5%
Japan 6%
China 13%
USA
USA 19% 17%
Source: IMF
10
and Demographics
PERCENTAGE CHANGE IN
CHINESE POPULATION, 2005-2020
120% 240M
100% 160M
80% The Baby Boomers of
60%
China and India are
40%
20% entering the age brackets
0% which, by experience from
-20%
Under 25 25-34 35-44 45-54 55-64 more developed markets,
are the peak years for
PERCENTAGE CHANGE IN
INDIAN POPULATION, 2005-2020 luxury goods purchases
250% 140M
200% 720 million potential
150% consumers will be aged
180M
100% between 45 and 64 in India
50%
and China by 2020
0%
-50%
Under 25 25-34 35-44 45-54 55-64
Source: AllanHochtreiter June 2011
11
Interesting Facts about Diamonds and China
(after De Beers, May 2011)
Between 2010 and 2015 the middle class in both
China and India will double in size with each country
having a larger middle class than the next 6
developing countries combined
The Chinese upper middle class (income
>$30,000/a) outspend European and American
consumers by 7 times when it comes to luxury
goods on a per capita basis.
Chow Thai Fook is planning on opening 1,000 new
jewellery stores in China over the next 15 years
alone and will have an implied market valuation of
$20B following their upcoming Hong Kong IPO.
In China there are over 11 million marriages a year.
In India there are over 10 million.
If say in 15 years from now, the Chinese urban per
capital income increases to the level of Taiwan
today, and if urban Chinese consumers acquire
diamonds at the same per capita rate as the
Taiwanese do today, the diamond industry will need
to double the supply of diamonds annually just to
meet this demand.
12
World Supply, and Renard’s Role in this New World
Star-Orion (SGF)
Renard (SWY)
200 Gahcho Kue (MPV, De Beers)
AK6 (LUC)
160
2010-2020: Maximum
M Carats
120 23% increase in carat
80 supply according to the
40 most optimistic
0
forecaster (Alrosa).
Alrosa
Others 27.8%
Stornoway 9.8%
3.0%
Tans Hex Stornoway`s production
0.8%
Gem profile will be equivalent
2.2%
to 3% of world supply by
Petra
1.7% 2010 World value, normalized on
Harry Winston
2.4% Rough Diamond 2010 data.
BHP
3.6% Rio Tinto
Production:
5.8% De Beers $11.9B
42.9%
Source: Company Reports, Alrosa 1H results Presentation, October 2011
13
Diamond Prices are Responding
Rough and Polished Diamonds Against a Basket of Indicators, 2003-Present
COMMODITY INDEX DATA
700 16000
WWW Rough Diamond Index
Polished Prices Index
Gold Closing Fix 14000
600 IMF CPI
S&P TSX Composite Index Weekly Closing
IMF IPI
IMF CPI NonFuel
IMF Coal(Aust)
12000
500 IMF Metal
Index October 2003 = 100
S&P TSX Composite Index
10000
400
8000
300
6000
200
4000
100
2000
Successive WWW Valuations of the Sept07 Mar08 Sept09 May11
Renard Diamond Bulk Sample $109/ct $121/ct $117/ct $182/ct
0 0
01/01/03 01/01/04 31/12/04 31/12/05 01/01/07 01/01/08 31/12/08 31/12/09 01/01/11 01/01/12
Renard prices illustrated represent base case model valuations for the Renard 2-Renard 3 samples
Rough Diamond Price data after WWW International Diamond Consultants Limited Indexed to October 2003
Renard:
Québec’s First Diamond Mine
15
The Renard Diamond Project
One of the World’s Best New Diamond Development Projects
In one of the World’s Best Mining Jurisdictions
16
Renard: Québec’s First Diamond Mine
Resource Size
(24m Carats Ind. Resource, 17m Carats Inf.
Resource, US$7B Contained Value) 60 0 60 120
Kilometers
Resource Upside Laforge 2
(24 to 49m Carats ”Potential Mineral Deposit”, Laforge 1
Brisay
US$4B to US$8B Contained Value)
LG4
LG2 LG3
High Value Diamonds Foxtrot Property
Eleonore
Strong Mining Margins Wemindji Renard
Western Troy Eastmain Mine
Modest Cap-ex and Op-ex Strateco
Road and Power Opportunities Troilus Mine
Temiscamie
100% Ownership Mistissini
Matagami
Chibougamau
Strong Stakeholder Sponsorship
Québec: a Leading Mining Jurisdiction Legend
LEGEND:
Stornoway Properties HydroQuébec
Renard is at the Feasibility Study HydroQuébec Facility Powerlines
stage and is on track to becoming Renard Kimberlites Route 167 Extension
Québec’s first Diamond Mine Kimberlitic Dyke Road
Regional Kimberlites Exploration/ Mining
Projects
17
Renard Kimberlite Bodies
0 1 2
Kilometers
N
60 0 60 120
Kilometers
Laforge 2
Laforge 1
R10 Brisay
LG4
LG2
R7 LG3
Foxtrot Property
Hibou R1
Eleonore
Wemindji Renard
R65 Western Troy Eastmain Mine
R4 Strateco
R8
R9 R3
Troilus Mine
R2 Temiscamie
Lynx Mistissini
Matagami
Chibougamau
Kimberlite Bodies Under
Assessment for Mining
Legend
LEGEND:
Kimberlite Bodies Under Stornoway Properties HydroQuébec
Re-Assessment for HydroQuébec Facility Powerlines
Resource Potential Renard Kimberlites Route 167 Extension
Kimberlitic Dyke Road
Regional Kimberlites Exploration/ Mining
Projects
18
Developing the Renard NI 43-101 Resource
Mineral Resource Statement, January 24th, 2011
INDICATED RESOURCE Renard 65
29cpht
Drill Delineated Renard 3
Micro/Macro Diamond Sampling Renard 2 106/118cpht
103/118cpht
Bulk Sampling for Value
24 million carats
Renard 4
53/44cpht Renard 9
INFERRED RESOURCE 47cpht
Lower Resolution Drilling,
or no Bulk Sample
17 million carats
POTENTIAL MINERAL DEPOSIT
Lower Resolution Diamond
Sampling, or no Drilling.
24 - 49 million carats
Grades illustrated are for Indicated and Inferred Mineral Resources respectively at a +1DTC sieve size cut-off. 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 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.
19
Renard’s Growing Resource 2001-2011
A Project with a Long Mine Life
Millions 2010 Geostrat NI 43-101 Resource
(Tonnes, Carats, $) 24mcarats Indicated, 17 mcarats Inferred
US$7 billion contained value
140 140
Expenditures ($)
120 120
Carats (IND+INF)
Tonnes PMD High The Vision: 40+ years of
100 100 mining
Tonnes PMD Low
Tonnes Inferred
80 Tonnes Indicated 80
Tonnes “Conceptual”
60 60
Permitting and Long
Term Plan: 20 years of
40 40 mining
20
The Feasibility: 10-12
20
years of mining
0 0
2001-2004 2005-2006 2007-2008 2009 2010
Note: 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 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 Renard Kimberlite Cluster 20
Mine Plan under Development in the Upcoming Feasibility Study
A large proportion of the project’s total Mineral Resources, and the non-resource upside, lie within the scope of
the principal infrastructure elements contained in the Feasibility Study (Shaft, Tailings Facility, Site Infrastructure).
All ore bodies remain open at depth.
21
Feasibility Study and ESIA
In July 2010 Stornoway announced the formal commencement of a $28.3m
feasibility level program for Renard designed to lead to a production decision.
FEASIBILITY WORK PROGRAM:
Bankable Feasibility Study (SNC-Lavalin, AMEC,
GMining, Golder, Itasca)
Separate power line study and ESIA (Hydro-Québec)
Permitting
Environmental and Social Impact Assessment (Roche)
Community Consultations
Impact and Benefits Agreement
Creation of Québec-based mine development team
PERMITTING:
Renard is subject to the environmental protection regimes
of the James Bay and Northern Québec Agreement and
the Canadian Environmental Assessment Act.
Public Hearings expected in Q1 2012
On track for Certificates of Authorization by end Q2 2012
22
Renard Bankable Feasibility Study
CONCEPTUAL MINE PLAN
Combined open pit and underground mine based on a
reserve derived from the Indicated Resources in
Renard 2, 3 & 4 only.
A Long Term Business Plan will contemplate the mining The Renard Bankable
of additional Inferred Resources in Renards 2, 3, 4, 9 Feasibility Study is due
and 65 within the scope of the Feasibility infrastructure.
shortly, and will provide
PRODUCTION RATE updated capital cost,
6,000 tpd (2.2 mtonnes/annum) expandable to 7,000
operating cost, and rate of
tpd (2.6 mtonnes/annum. Maximum annual carat return estimates.
production in excess of 2 million carats/annum.
DIAMOND PRICE ESTIMATE
US$182/carat for Renard 2 and 3, based on a May 10.15 carat gem
2011 diamond valuation exercise undertaken by WWW quality octahedron
International Diamond Consultants Ltd.
REVENUE PROFILE
Maximum annual revenue in excess of US$350
million/annum.
23
Feasibility Study
Mine Design Elements (Draft)
Renard will have a small footprint: 3.1km2 (compared to Diavik Mine at 13km2 and Victor Mine at 28.8km2)
Environmental baseline studies have been completed. Processed kimberlite disposal will be through a dry
stack with no liner and minimal leach potential. No fish habitat will be impacted by tailings disposal.
Renard 65 will be developed initially as a borrow-pit and waste water management sump, pending resource
conversion.
Processed Kimberlite Containment
(PKC)
R65
Waste Rock
Plant R2-R3
Overburden
Stockpile
Ore Stockpile
Camp
24
24
Feasibility Study
Mine Design Elements (Draft)
Renard 4
Renard 3
Underground mining method at
Renard 2 & 3 will be blast-hole
shrink stopage with backfill from
the surface pits.
Renard 2
The Renard shaft will be sunk to
740 meters, and will be rated at
7,000 tpd at 1,400m deep.
Three production levels at
250m, 430m and 610m.
25
Permitting and Development Schedule
2011 2012 2013 2014 2015
2H 1H 2H 1H 2H 1H 2H 1H 2H
BFS
ESIA
Community Hearings
Certificates of Authorisation
Detailed Engineering
Project Financing
Road Construction First Vehicle Access
Mine Construction
Production
Project construction and production
schedule to be specified in the
upcoming Renard Feasibility Study
26
Infrastructure: Power and Road Access
A Canadian Diamond Project with an All Season Highway and Cheap Grid Power
Road: The Québec Ministry of Transportation Caniapiscau
“Route 167 Extension”, connecting Renard to Route 167 Extension Hydro Facility
Existing Winter Road Existing Hydro Line
the provincial highway to the south.
Stornoway Claims Potential Hydro Line
Mining/Exploration Projects
Initial road construction cost of $332m will be
funded by Québec. Stornoway will contribute Laforge 2
Brisay
$44m amortized over 10 years and starting
in 2015. Additional Industry contributions Laforge 1
expected. LG2
LG4
LG3
Mirage Proposed
Camp Powerline
Road ground-breaking expected 2H 2011.
Vehicle access is expected to be available to
the Renard site to commence project Renard
Eleonore
construction by mid-2013. (Goldcorp)
McLeod Lake
(Western Troy)
Power: Separate study on a 165km 120kV Eastmain 1
Eastmain
(Eastmain)
powerline connecting Renard to the line of Matoush
Route 167
generating stations along the Trans-Taiga Extension (Strateco)
Highway to the north. (268km) Existing
Winter Road
The BFS will address the optimal Troilus Temiscamie
infrastructure configuration for the project (Inmet)
and establish the schedule for project Mistissini
development and production.
60 0 60 120
Kilometers
Chibougamau Scale: 1:3,000,000
27
Québec’s “Plan Nord”: Launched May 9th 2011
One of the World’s Best Mining Jurisdictions
The Renard Diamond project is at the
center of the Plan Nord, the visionary
initiative to sustainably develop Québec
north of the 47th parallel through
infrastructure investment, community
development and biodiversity conservation.
Investments include:
$1.2b for infrastructure projects, including
the Route 167 Extension
$434m for social measures
$500m for direct investments through
Investissement Québec Jean Charest, Premier of Québec, and Matt Manson, CEO of Stornoway, in
Chibougamau on August 1st for the announcement of Route 167 Extension
The “Route 167 Extension” and Financing Agreement. Mr. Charest is holding core from Renard 65 containing a
four-carat diamond.
Investissement Québec’s investment in
Stornoway are key planks of the Plan
28
Community Relations
The Renard Diamond Project is situated close to
the Cree Nation of Mistissini (CNM) and the mining
community of Chibougamau.
The project is under the environmental protection
regime of the James Bay and Northern Québec
Agreement and the New Relationship Agreement
(or Paix des Braves).
Environmental Exchange Group Meeting in Mistissini
In July 2010 Stornoway concluded a Pre-
Development Agreement with the CNM and the
Grand Council of the Crees (EI).
Negotiations are ongoing towards an Impacts and
Benefits Agreement (IBA).
Stornoway opened a liaison office in Mistissini in
February 2011 to develop local skills and business
capacity, and hosts regular Environmental
Exchange group meetings in Mistissini.
Renard will provide meaningful employment and
business opportunities for several communities
within the James Bay region of Québec.
Chibougamau with Regional Hospital in Foreground
Stornoway’s Project Pipeline
30
Stornoway’s Project Pipeline
Mineral resources that are not mineral reserves
Stornoway possess a strong pipeline do not have demonstrated economic viability.
The potential quantity and grade of any non-
of advanced and grassroots exploration resource potential mineral deposit” (“PMD”) is
conceptual in nature, and it is uncertain if
projects. further exploration will result in the target
being delineated as a mineral resource.
Internal growth opportunities through
the advanced Aviat and Qilalugaq Aviat (90%)
Projects. Qilalugaq (100%) Advanced Project
Advanced Project 24-40 mcarats “PMD”
2011 expenditures focused on
discovery oriented exploration. Hammer (75%)
$5.6m budgeted. Discovery Project
LG4-Consorem (25%)
New claim acquisition in Saskatchewan Grassroots Exploration
(“Pikoo”) and Québec (“AEON”)
following up pre-2008 indicator
anomalies: potential for new kimberlite Pikoo (100%)
cluster close to infrastructure. Grassroots Exploration
New LG4-Consorem Project in Québec
with three partners. Virginia Mines Inc.
Renard (100%)
operator. NI 43-101 Resource
AEON (100%) 24 mcarats Indicated
Follow-up of Hammer kimberlite Grassroots 17 mcarats Inferred
discovered in Nunavut in 2009. Exploration 24-49 mcarats “PMD”
31
Aviat, Melville Peninsula, Nunavut
Stornoway 90% Ownership. Awaiting Bulk Sample
AV1 ES 1
WEST ES 2
AV1 ES 3
ES 4
AV4 Area of
Drill Intercepts
Eastern Sheet CentennialFault
Kimberlite
February 2009: Complex (ESC) Outcrop
43 tonne sample
yields 210 cpht
A May 2009:
AV6 148 tonne
AV7 sample yields
SRK Conceptual Study (October 2008) 144 cpht
AV2 AV2 Upper
12.4 to 16.0 mtonnes conceptual estimate of
AV5
kimberlite material within four dykes of the ESC
AV3
235 +/- 30 cpht conceptual estimate of total
diamond content AV3-S
24.1 to 40.3 mcarats contained
A conceptual study does not comprise a NI 43-101 compliant mineral AV9
resource estimate, and no mineral resource has yet been established at
Aviat. The total diamond content estimate is based on limited micro and AV8
macro diamond data as per October 2008 and assuming 100%
1 km
recovery of stones in all size fractions down to a +1.00 mm bottom cut- A’
off. The contained carats estimate uses the conceptual range of total
content of kimberlite material, conceptual estimate of total diamond
content and an allowance for approximately 5% internal dilution within
the conceptual model.
32
Qilalugaq Project, Repulse Bay, Nunavut
Stornoway 100% Ownership. Awaiting Bulk Sample
Discovered by BHP and acquired by Stornoway. 11 pipes - 8
dykes.
Includes the Q1-4 kimberlite: the largest kimberlite in the eastern
Arctic at 14ha
50 carats of diamonds recovered to date from drilling and surface
sampling. Largest diamond recovered 1.49ct.
Stornoway conceptual estimate (non-NI 43-101 compliant) of 90 to
110 Mt and 30 to 35 Mcts to 330m depth.
Excellent location: occurs 10km from town of Repulse Bay and
7km from coast.
Diamond population dominated by white makeables and white
clivage, with potentially significant fancy yellow component.
700m
330m
Note: A conceptual study does not comprise a NI 43-101 compliant mineral resource estimate, and no mineral resource has yet been established at Qilalugaq.
33
Hammer Kimberlite, Coronation District, Nunavut
Stornoway 75% Interest
Discovered by surface pitting in October 2009. Single microdiamond
from 6kg sample at that time.
Delineation drilling during summer 2011 Kugluktuk
• 21 short drill holes; 1,800m of core; 930m of kimberlite
• deepest intersection: 200m vertical (ended in kimberlite)
• 0.4ha surface area
Knife Pipe
Sampled for diamond content. Results pending
• 200 kg for microdiamond analyses by caustic dissolution Hammer Kimberlite
• 3.4 tonnes for macrodiamond analysis by dense media separation
Joint venture with North Arrow Minerals Inc. (25% participating) Napaktulik
Lake Jericho Pipe
25 km
200m
34
Pikoo (Saskatchewan) and Aeon (Québec) Exploration Projects
Stornoway 100% Ownership. Advancing to Drilling.
PIKOO, SASKATCHEWAN Brabant
McLennan Lake
Multiple Kimberlites Implied by Kimberlitic Indicator Pukatawagan
Mineral Anomalies. Island Falls
Stanley Mission
Diamondiferous Geochemistry Pikoo Project
Pelican Narrows
La Ronge
Ground Acquired February-March 2011 Deschambault Lake Jan Lake
Flin Flon
Geophysics Completed Summer 2011
Molanosa
Target Verification Ongoing; Potential Drilling in 2012. Sturgeon Landing
Pikoo Project
Timber Lake
7km from Road at Deschambault Lake 50 km
National Park
Provincial Park
AEON, Québec
Multiple Kimberlites Implied by Kimberlitic Indicator
Mineral Anomalies. Aeon Project
Diamondiferous Geochemistry
Ground Acquired April 2011
95 kilometers
Geophysics Completed Summer 2011
Laforge 2 Hydro
Target Verification Ongoing; Potential Drilling in 2012 Québec facility
Proximity to Renard Highly Beneficial 50 km
Brisay Hydro Québec facility
35
Pikoo Project, Saskatchewan
Stornoway 100% Ownership. Advancing to Drilling.
Brabant
McLennan Lake
Pukatawagan
Island Falls
Stanley Mission
Pikoo Project
Pelican Narrows
La Ronge
Deschambault Lake Jan Lake
Flin Flon
Pikoo Project
33,374 Hectares
Molanosa
Sturgeon Landing
Pikoo Project
Timber Lake National Park
50 km Provincial Park
5 km
36
Aeon Project, Québec
Stornoway 100% Ownership. Advancing to Drilling.
Aeon Project
95 kilometers
Laforge 2 Hydro
Québec facility
50 km Brisay Hydro Québec facility
Aeon Project
49,350 Hectares
5 km
Outlook for the Year Ahead
38
Stornoway’s Platform for Project Development and Financing
BALANCE SHEET*
Market Capitalization:
C$ 216 million
(based on voting and non-voting shares)
Total Shares Outstanding:
146 million ANALYST COVERAGE
(fully diluted)
Cash and Short Term Deposits: RBC Outperform-
C$ 25 million
(as of July 31st 2011) Des Kilalea, Speculative $3.50
April 4th, 2011 Risk
Debt Facility:
C$ 100 million
(undrawn) Raymond James
Bart Jaworski Outperform $2.90
Aug. 11th, 2011
PRO-FORMA SHAREHOLDING*
Paradigm
Basic Fully Diluted David Davidson Buy $3.50
(common shares) 25.0% 21.0% Sept. 9th, 2011
IQ**
(non-voting convertible shares) -------- 16.0% BMO
Agnico-Eagle 10.8% 9.1% Ed Sterck Market Perform $2.50
June 6th, 2011
Rio Tinto plc 5.3% 4.4%
Desjardins
Lorito Holdings (Lundin Family) 3.5% 2.9% Brian Christie Speculative Buy $3.10
Sept.15th, 2011
Float 55.4% 46.6%
Notes:
Debt Facility: In December 2010 Stornoway announced a credit support agreement with a subsidiary of Société générale de financement du Québec, now Investissment Québec, with
respect to future project debt financing of a minimum of $100 million. The credit support bears 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 $1.53 on October 17, 2011
**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
39
The Year Ahead
12 MONTH OUTLOOK
Completion of the Renard Bankable Feasibility Study
Ground Breaking on the Route 167 Extension
Completion of the Renard Environmental and Social Impact Assessment
Community Consultations and Certificates of Authorization (end 1H-2012)
Continued Renard Resource Expansion (Renard 65)
Pipeline Project Exploration and Target Drilling
18 MONTH OUTLOOK
Finalisation of Renard Project Financing
Renard Construction Mobilization (end 1H-2013)
Questions?
41
BUILDING A CANADIAN
DIAMOND RESOURCE BASE
Appendix: Renard Mineral Resource Estimate 42
Published January 24th, 2011
Grade Tonnes Contained Carats
Kimberlite
(cpht) (millions) (Millions)
Renard 2 103 17.63 18.09
Renard 3 106 1.75 1.85
Renard 4 53 7.25 3.81
Renard 9 -- -- --
Lynx Dyke -- -- --
Hibou Dyke -- -- --
Total Indicated 89 26.63 23.76
(+2%) (+0.5%) (+3%)
Renard 2 118 5.21 6.14
Renard 3 118 0.54 0.64
Renard 4 44 4.76 2.09
Renard 9 47 5.70 2.69
Renard 65 29 12.94 3.72
Lynx Dyke 107 1.80 1.92
Hibou Dyke 144 0.18 0.26
Total Indicated 56 31.12 17.45
(-25%) (+75%) (+31%)
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. Changes from NI 43-101 Mineral Resource Estimate Published in December 2008 are shown in italics. Totals may not add due to rounding.
Grades and diamond prices are estimated at a +1DTC sieve size cut-off. Increases/Decreases from Mineral Resource Statement Published December 2009 are shown in italics.
Appendix: Renard Potential Mineral Deposit 43
Published January 24th, 2011
Kimberlite Grade Tonnes Contained Carats
(cpht) (millions) (Millions)
Renard 2 103 to 188 4.0 to 4.6 4.1 to 8.6
Renard 3 107 to 168 0.8 to 1.6 0.8 to 2.8
Renard 4 38 to 79 11.1 to 15.3 4.2 to 12.1
Renard 9 45 to 50 3.9 to 6.3 1.7 to 3.2
Lynx Dyke 23 to 33 29.5 to 41.6 6.8 to 13.7
Renard 65 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
55.1 to 75.5 23.5 to 48.5
Total PMD
(+106% and +65%) (+93% and +83%)
Notes: The potential quantity and grade of any 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 potential mineral deposit 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 potential mineral deposit was established on the basis of known drill intersections of
kimberlite for which insufficient diamond sampling exists to adequately estimate a diamond resource grade.
Increases/Decreases from Mineral Resource Statement Published December 2009 are shown in italics.
44
Appendix: Renard Diamond Valuation
Published June 13th, 2011
Renard kimberlite pipes have a diamond population with a coarse size distribution and high proportion of
large white gems. Lynx and Hibou kimberlite dykes have a finer distribution of browner stones.
99% by weight gem/near-gem quality. 1% industrial quality boart.
Coarse size distribution: potential for significant “Specials”, not accounted for in the current resource work.
(Three to six 50-100ct stones and one to two +100ct stones every 100,000 carats.)
Implied grade loss through sampling breakage 15%-38%, not accounted for in the current resource work.
Size of May 2011 Price % Increase since Sensitivities
Kimberlite Body Valuation Sample Diamond Price
September 2009 (Minimum to High)
(carats) (US$/carat)1
Renard 2 1,580 $163 to $236
$182 +56%
Renard 3 2,753 $153 to $205
Renard 4 2,674 $1122 +49% $105 to $185
Lynx Dyke 535 $119 +109% $99 to $144
Hibou Dyke 772 $118 +107% $88 to $136
1
Based on an average of five independent valuations conducted between May 9th and 13th 2011, and supervised by WWW International Diamond Consultants Limited.
2
The Renard NI 43-101 compliant Mineral Resource of January 2011 and the PEA of March 2010 utilize a higher diamond price based on an analysis of diamond breakage and poor plant recovery of the Renard 4
valuation sample, which in the Renard feasibility Study is expected to be $164/carat.
All samples utilize a +0.85mm (+1 DTC) cutoff