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Building a Canadian Diamond Resource BaseStornoway’s Renard Diamond Project

June 1st, 2011Symposium MINES Baie-James 2011, Mistissini

Patrick Godin, Vice-President and COO

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Forward Looking Information

This presentation may contain forward looking statements, being statements which relate to future events, results or performance, including discussion relating to progressing with development initiatives and the completion of announced transactions. There can be no assurance that such statements will prove accurate or be achieved. Such statements are necessarilybased upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual resultsand future events to differ materially from those anticipated orprojected in the forward-looking statements. Important factorsthat could cause actual results to differ materially from theStornoway's expectations are in Stornoway’s news releaseof December 14, 2010 and other documents filed fromtime to time with provincial securities regulators, mostof which are available at www.sedar.com. Stornowaydisclaims any intention or obligation to reviseor update such statements, except asRequired by law.

Renard: Québec’s First Diamond Mine

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Renard: Québec’s First Diamond Mine

Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

Strateco

Eastmain MineWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

2 km

N

Legend

Stornoway Properties

HydroQuébec Facility

Renard Kimberlites

Kimberlitic Dyke

Regional Kimberlites

HydroQuébec Powerlines

Winter Road

Road

Exploration/ Mining Projects

� The Renard Diamond project comprises the Renard 1-10 kimberlite pipes and Lynx-Hibou kimberlite dyke system

� Owned 100% by Stornoway

� 2001: Discovery

� 2006-2008: Bulk Sampling

� 2008-2010: Establishment of NI 43-101 Resource and Preliminary Economic Assessment

� The Project is now undergoing a Bankable Feasibility Study and Environmental and Social Impact Assessment, and has the potential to become Québec’s first Diamond Mine.

60 0 60 120

Kilometers

Renard Kimberlite Bodies

Lynx

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Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

Strateco

Eastmain MineWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

2 km

R10

N

R7

R1Hibou

R4

R9R2

R3

R8

Kimberlite Bodies Under Assessment for Mining

R65

Kimberlite Bodies Under Re-Assessment for Resource Potential

R1Hibou

Lynx

60 0 60 120

Kilometers

Legend

Stornoway Properties

HydroQuébec Facility

Renard Kimberlites

Kimberlitic Dyke

Regional Kimberlites

HydroQuébec Powerlines

Winter Road

Road

Exploration/ Mining Projects

6Renard NI 43-101 ResourceMineral Resource Statement, January 24th, 2011

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.

Renard 453/44cpht

Renard 2103/118cpht

Renard 3106/118cpht

Indicated Resource � Drill Delineated

� Micro/Macro Diamond Sampling

� Bulk Sampling for Value

Renard 947cphtInferred Resource

� Lower Resolution Drilling, or no Bulk Sample

Renard 6529cpht

Potential Mineral Deposit� Lower Resolution Diamond

Sampling, or no Drilling.

Renard Mine Design7

� High grade Indicated Resources in R2 and R3 tobe early mining focus.

� R65 represents a large tonnage, open pit resourcefor future development *

� All pipes open at depth

� Mining rate of 6,000 / day

� Mining life of 25 years utilizing both Indicated and Inferred Mineral Resources **

Indicated Resource

Inferred Resource

Non-Resource Potential Mineral Deposit

As per Ongoing Bankable Feasibility Study, Expected Q3 2011

* Not illustrated** March 2010 Preliminary Economic Assessment at 5,000 tpd for 30mcarats mined** Numbers and design elements are part of the Ongoing Bankable Feasibility Study, Expected Q3 2011

Renard 453/44cpht

Renard 2103/118cpht

Renard 3106/118cpht

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Renard Processing

� Maximum capacity of 7,000 tpd

� Three stage crushing

� Jaw Crusher

� Cone Crusher

� High Pressure Grinding Roll

� Ferrosilicon Dense Media Separation for Heavy Mineral Recovery

� XRAY sorter for diamond concentrate production

� Final Stage : hand sorting and Diamond cleaning

As per Ongoing Bankable Feasibility Study, Expected Q3 2011

** Numbers and design elements are part of the Ongoing BankableFeasibility Study, Expected Q3 2011

Challenges, Innovation and Opportunities

Challenge – Water management

� Surrounded by Lakes and Fish Habitats

� Confined Area and close of the edge of two water sheds

� Reduced footprint

� Temporary use of land (waste dump/laydown)

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� Borrow pit used as a water collection and sedimentation pond

� Implementation of Water treatment Plant to treat suspended solid

� Disposal strategy minimize water consumption and maximize process water recycling

Innovation - Renard Processed Kimberlite

� PKC Disposal Innovation with the implementation of Dry Stacking

� Processed Kimberlite 80% Coarse & 20% Fine

� Application of Centrifuge Technology to extract water of fine material

� Recirculation of water in the Plant

� PK disposal with Mine trucks (comparable to mine waste rock handling)

� Less foot print impact

� Progressive reclamation process

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Underground SamplingSurface Sample Renard 4

Underground Sample

Renard 2 & 3

Innovation – Environmental Exchange Group

� Up to recommendation of GCC & CNM

� To improve the content of the ESIA

� Held on a regular basis with Mistissini Stakeholders

� To integrate the Tradional Knowledge, address concerns and expectations and to share information

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Underground SamplingSurface Sample Renard 4

Underground Sample

Renard 2 & 3

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Opportunity – All-Season Road Access

� All season road access via the Québec Ministry of Transportation “Route 167 Extension”, linking Renard to the provincial highway network to the south.

� The BFS will address the optimal infrastructure configuration for project development and establish the development and production startup schedule.

� Industry contribution expected for construction and maintenance.

Underground Sampling

LG2 LG3

Eastmain 1

LG4

Laforge 1

Laforge 2

Brisay

60 0 60 120

KilometersScale: 1:3,000,000

Caniapiscau

Eleonore(Goldcorp)

Eastmain (Eastmain)

Troilus(Inmet)

McLeod Lake (Western Troy)

Mirage Camp

Matoush (Strateco)

Route 167 Extension Project

Existing Winter Road

Stornoway Claims

Hydro Facility

Existing Hydro Line

Potential Hydro Line

Mining/Exploration Projects

Mistissini

Chibougamau

Proposed All Season Road

(268km) Existing Winter Road

Potential Powerline

Renard

Temiscamie

Opportunity – Power supply 14

Underground SamplingSurface Sample Renard 4

Underground Sample

Renard 2 & 3

� Separate study on a 165km 161kV powerline connecting Renard to the line of generating stations along the Trans-Taiga Highway to the north.

� Corporate sensitivity to long term fuel price and Environmental Impact

� Largest single cost item of the project

� If feasible, this will eliminate an estimated an annual consumption of 37,000,000 liter of fuel to generate electricity.

� The power line will be available and attractive to facilitate the development of other projects

� Will facilitate the development of additional mineral resources

LG2 LG3

Eastmain 1

LG4

Laforge 1

Laforge 2

Brisay

60 0 60 120

KilometersScale: 1:3,000,000

Caniapiscau

Eleonore(Goldcorp)

Eastmain (Eastmain)

Troilus(Inmet)

McLeod Lake (Western Troy)

Mirage Camp

Matoush (Strateco)

Route 167 Extension Project

Existing Winter Road

Stornoway Claims

Hydro Facility

Existing Hydro Line

Potential Hydro Line

Mining/Exploration Projects

Mistissini

Chibougamau

Proposed All Season Road

(268km) Existing Winter Road

Potential Powerline

Renard

Temiscamie

Opportunity - Stakeholder Relations

� Closest community: Cree Nation of Mistissini (“CNM”)

� In July 2010 Stornoway concluded a Pre-Development Agreement with the CNM and the Grand Council of the Crees (EI) providing for employment and business opportunities for the period leading up to mine construction and production.

� Negotiations are ongoing towards the conclusionof an Impacts and Benefits Agreement (IBA) tocover the period of mine operation.

� Strong common interest to be champions intraining and employment

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Opportunity - Stakeholder Relations

� Access way to the Project is the mining communities of Chibougamau / Chapais

� Strong Local suppliers base

� Infrastructure in place to supportproject development

� Airport

� Housing for employees

� Training facilities

� Source of skilled employees

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Opportunity - The Renard Diamonds

� Strong long term supply and demand fundamentals in diamond industry.

� Single, high quality diamond population throughout all Renard kimberlite pipes.

� 99% by weight gem/near-gem quality. 1% industrial quality boart.

� Mean model price of US$117/ct for Renard pipes from September 2009 Independent valuation on 6,900 carat bulk sample, +0.85mm (+1 DTC) cutoff, sensitivities of $US103 to US$131

� An updated diamond valuation will be conducted in Q2 2011 in support of the Bankable Feasibility Study.

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

� Stornoway is committed to invest $32M to complete a feasibility level program for Renard.

� Features include:

� Bankable Feasibility Study (SNC-LAVALIN, AMEC, GMINING, GOLDER, ITASCA )

� Separate power line study (Hydro-Québec )� Permitting� Environmental and Social Impact

Assessment (ROCHE)� Community Consultations� Impact and Benefits Agreement� Creation of Québec based mine

development team

Key Targets:� BFS and ESIA by Q3 2011

� Public Hearings by Q4 2011

� Certificates of Authorization by Q1 2012

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Feasibility Work Program 2010-2011

Merci, Thank you, MeegwetchMerci, Thank you, Meegwetch

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