stornoway diamonds (swy.to) rbc diamond conference presentation
DESCRIPTION
Stornoway Diamonds (SWY.TO) RBC Diamond Conference PresentationTRANSCRIPT
Matt MansonMatt MansonPresident and CEOPresident and CEO
BUILDING QUÉBEC’S FIRST DIAMOND MINERBC Capital Markets Diamond Conference, June 12th 2012
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 hereinas “forward-looking statements”, are made as of the date of this presentation and the Company does not intend, and does not assume anyobligation, 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 andinclude, but are not limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of futureproduction over any period; (iii) net present value and internal rates of return of the mining operation; (iv) capital costs and operating costs; (v) mineexpansion potential and expected mine life; (vi) expected time frames for completion of permitting and regulatory approvals and making aproduction decision; (vii) future exploration plans; (viii) future market prices for rough diamonds; and (ix) sources of and anticipated financingrequirements. 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 statementsof 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 bysuch statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and theenvironment in which Stornoway will operate in the future, including the price of diamonds, anticipated costs and ability to achieve goals. Certainimportant factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statementsinclude, but are not limited to: (i) estimated completion date for the Environmental and Social Impact Assessment; (ii) required capital investmentand estimated workforce requirements; (iii) estimates of net present value and internal rates of return; (iv) receipt of regulatory approvals onacceptable terms within commonly experienced time frames; (v) the assumption that a production decision will be made, and that decision will bepositive; (vi) anticipated timelines for the commencement of mine production; (vii) anticipated timelines related to the Route 167 extension and theimpact on the development schedule at Renard; (viii) anticipated timelines for community consultations and the conclusion of an Impact andBenefits Agreement; (ix) market prices for rough diamonds and the potential impact on the Renard Project’s value; and (x) future exploration plansand objectives. Additional risks are described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A, and otherdisclosure 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 theforegoing factors and other uncertainties and potential events. Stornoway does not undertake to update any forward-looking statement, whetherwritten or oral, that may be made from time to time by Stornoway or on our behalf, except as required by law.
3
Why Stornoway?
Renard
Diamonds
Stornoway
Strong Feasibility Base Case Economics
Extensive Resource Upside
Excellent Long Term Fundamentals
Few New Mining Projects
Experienced Team
Strong Québec Backing
100% Ownership in Renard:
One of the World’s Best Development Stage Diamond Projects
In Québec, one of the World’s Best Mining Jurisdictions
4The Last 6 MonthsMoving Forward with Québec’s First Diamond Mine
November 2011: Released project BFS
December 2011: Filed project ESIA
February 2012: Announced commencement of access road construction.
March 2012: Signed project Impacts and Benefits Agreement (“MecheshooAgreement”)
March-May 2012: Raised $40m in a 50/50 debt/equity ratio
May 2012: Announced $28.4m 2012 Pre-Development Program
May 2012: Announced establishment of head office in Montréal
5
Lynx
R10
N
R7
R1Hibou
R4
R9R2 R3
R65
R8
Kimberlite Bodies with Probable Reserves
Hibou
Lynx
R4
R9R2
R3
R65
Kimberlite Bodies with Resource Potential
R1Hibou
Lynx
Legend
Stornoway PropertiesHydroQuébec FacilityRenard KimberlitesKimberlitic DykeRegional Kimberlites
HydroQuébecPowerlinesRoute 167 ExtensionRoadExploration/ Mining Projects
LEGEND:
0 1 2
Kilometers
60 0 60 120
Kilometers
Renard
LG3LG2LG4
Laforge 1
Laforge 2
Brisay
Foxtrot Property
StratecoEastmain MineWestern Troy
Troilus Mine
Eleonore
Temiscamie
Mistissini
ChibougamauMatagami
Wemindji
Renard Kimberlite Bodies
Kimberlite Bodies with Inferred Resources
6General Project ArrangementSmall Footprint of 3.1km2
Processed Kimberlite Containment (PKC)
OverburdenStockpile
Waste Rock
R2-R3
Ore Stockpile
R65
Camp
Plant
Route 167 Extension
7Renard NI 43-101 Mineral Reserves and ResourceResource announced January 24th, 2011. Reserve announced November 16th, 2011
Notes: Grades illustrated are for Indicated and Inferred Mineral Resources respectively at a +1DTC sieve size cut-off. Reserve and Resource categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. The potential quantity and grade of any Exploration Target (previously referred to as a “Potential Mineral Deposit”) is conceptual in nature, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Renard 453/44cphtRenard 453/44cpht
Renard 2103/118cpht
Renard 2103/118cpht
Renard 3106/118cpht
Renard 3106/118cpht
18 million carats
PROBABLE RESERVE
Drill DelineatedMicro/Macro Diamond SamplingBulk Sampling for Value
Renard 947cpht
Renard 947cpht
Renard 6529cpht
Renard 6529cpht
17 million carats
INFERRED RESOURCE
Lower Resolution Drilling, or no Bulk Sample
Lower Resolution Diamond Sampling, or no Drilling.
24 - 49 million carats
EXPLORATION UPSIDE
8Mine PlanA Combined Open Pit and Underground Mine
Open Pit Mining at Renard 2 & 3 (years 1-2)
Underground Mining Renard 2, 3 & 4 (years 3-11)
Blast Hole Shrinkage with waste backfill from pits. Dilution and recovery estimates recently validated in post-BFS REBOP analysis.
6,000 tpd plant capacity, (2.2mtonnes/annum).
Pit at Renard 65 (initially) as a borrow-pit and waste water sump, pending resource conversion. Renard 4Renard 4
Renard 2Renard 2
Renard 3Renard 3
Renard 65Renard 65
Renard 2Renard 2Renard 3Renard 3
9Summary of Feasibility ResultsReleased November 16th, 2011
Valuation
NPV7% and IRR of C$672m and 18.7% (Pre-Tax) and C$376m and 14.9% (After-Tax)
Mining and Production Parameters
11 year reserve-based mine life
Peak diamond production reaching 2.1Mcarats per year, averaging 1.7Mcarats over LOM, and at a weighted average US$180/carat
Operating cash flow of C$2.7B
Costs
1 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.
Initial Capital Cost Estimate of C$802m including contingencies
LOM Operating Cost Estimate of C$54.71/tonne (C$70.27/carat) giving a 68% operating margin
Reserves and Resources1
Probable Mineral Reserve of 18.0 Mcarats (23.1Mtonnes at an average 78 cpht)
Inferred Mineral Resources of 17.5 Mcarats (31.1Mtonnes at an average 56 cpht)
Key AssumptionsC$1=US$1, Oil US$90/barrel, 2.5% real terms diamond price growth Q311-Q425, 83.5% ore recovery, 19.4% mining dilution, 0cpht dilution grade, January 1 2012 effective date for NPV and IRR calculation.
10Project ComparablesDiamond Industry Cost Curve (Anglo American November 2011 after De Beers 2010)
COST/REVENUE
Ren
ard
Ren
ard
with
Pow
erlin
e
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,0000
0.0
0.5
1.0
10.5
2.0
Cos
t/rev
enue
(x)
Cumulative revenue (US$m)
Jwan
eng N
amed
eoop
erat
ions
Gah
cho
Kue
(dev
elop
men
t pro
ject
)
Vene
tia
Ora
pa
Snap
lake
Dam
tsha
a
Source: Anglo-American (After De Beers, November 2011), and Stornoway Estimates
11
Production and Revenue Schedule
‐
500
1,000
1,500
2,000
2,500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Open Pit & Underground Mining Schedule (Ktonnes of Ore)
R4 UG
R3 UG
R2 UG
R3 Pit
R2 Pit
‐
500
1,000
1,500
2,000
2,500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Carat Production (Kcarats)
R4
R3
R2
‐
500
1,000
1,500
2,000
2,500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Plant Feed (Ktonnes)
R4
R3
R2
‐
100.0
200.0
300.0
400.0
500.0
600.0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Gross Revenue (C$M, Real)
R4
R3
R2
12
Long Term Business Plan
Stornoway has also developed a Long Term Business Plan (“LTBP”) based on the Project’s total Indicated and Inferred Mineral Resources to a depth of 700m.
This material is within the scope of the mine infrastructure costed within the Feasibility Study, and includes 6.1 Mcarats of high grade Inferred Mineral Resources between 600-700 meters depth in Renard 2.
The LTBP also contemplates an increased production rate within the scope of the process plant’s design parameters, which allows for expansion up to 7,000 tonnes per day (2.6 Mtonnes/annum).
Expansion mill feed is expected to be derived from the open pit on the Renard 65 kimberlite.
Although highly accretive, the project’s Inferred Mineral Resources are not included in the Feasibility Study economic analysis in accordance with NI 43-101.
The LTBP is the basis of the Renard mine permit application, and as such forms part of the project’s public disclosure in connection with the environmental assessment regulatory process under applicable federal and provincial legislation.
A 4 carat, top quality diamond recovered from Renard 65 drillcore
13Renard Diamond ValuationConducted by WWW International Diamond Consultants Ltd. May 8th-13th, 2011
Renard kimberlite pipes have a diamond population with a coarse size distribution and high proportion of large white gems. Lynx and Hibou kimberlite dykes have a finer distribution of browner stones.
99% by weight gem/near-gem quality. 1% industrial quality boart.
Coarse size distribution: potential for significant “Specials”, not accounted for in the current resource work. (Three to six 50-100ct stones and one to two +100ct stones every 100,000 carats.)
Implied grade loss through sampling breakage 15%-38%, not accounted for in the current resource work
KimberliteBody
Size ofValuation Sample(carats)
Largest Diamonds Recovered
(carats)
May 2011Diamond
Price (US$/carat)1
Sensitivities(Minimum to High)
Renard 2 1,580 15.46, 8.80, 8.42$182
$163 to $236
Renard 3 2,753 10.15, 7.78, 6.36 $153 to $205
Renard 4 2,674 5.92, 5.74, 3.99 $1122 $105 to $185
Lynx Dyke 535 21.53, 5.36, 5.34 $119 $99 to $144
Hibou Dyke 772 3.14, 3.07, 2.72 $118 $88 to $1361Based on an average of five independent valuations conducted between May 9th and 13th 2011, and supervised by WWW International Diamond Consultants Limited.2The Renard NI 43-101 compliant Mineral Resource of January 2011 and the Feasibility Study of November 2011 utilize a higher diamond price based on an analysis of diamond breakage and poor plant recovery of the Renard 4 valuation sample, which is $164/carat. All samples utilize a +0.85mm (+1 DTC) cutoff
Renard 3 Bulk Sample Stones larger than 2 carats. “Run of Mine”
14
Permitting and Development Schedule
BFS (Complete)
ESIA (Complete)
Community Hearings
COMEX and CEAA Review
Specific Mine Permits (50)
Detailed Engineering
Project Financing
Road Construction
Mine Construction
Commissioning and Ramp-up
Commercial Production
2011
2H 2H 2H 2H2H 1H 1H 1H1H
2012 2013 2014 2015
First Vehicle Access
15
Road: The Québec Ministry of Transportation “Route 167 Extension”, connecting Renard to the provincial highway to the south.
Initial road construction cost of $332m will be funded by Québec. Stornoway will contribute $44m amortized over 10 years, starting in 2015. Additional Industry contributions expected.
Road construction commenced January 2012. Vehicle access is expected to be available to the Renard site to commence project construction by mid-2013.
Power: Separate feasibility study on a 165km 161kV powerline connecting Renard to the Laforge-1 generating station is ongoing.
The powerline would add capital cost to the project but offers substantial operating cost savings.
Hydro-Québec expect to complete their study in 2012, and the impact of the powerline on the Renard Diamond Project will be assessed at that time.
LG2 LG3
Eastmain 1
LG4
Laforge 1
Laforge 2
Brisay
60 0 60 120
KilometersScale: 1:3,000,000
Route 167 Extension
Existing Winter Road
Stornoway Claims
Mining/Exploration Projects
Hydro Facility
Existing Hydro Line
Potential Hydro Line
Mistissini
Chibougamau
Route 167 Extension (268km) Existing
Winter Road
Potential Powerline
Temiscamie
Renard
Caniapiscau
Eleonore(Goldcorp)
Eastmain (Eastmain)
Troilus(Inmet)
McLeod Lake (Western Troy)
Mirage Camp
Matoush (Strateco)
Infrastructure: Power and Road AccessA Canadian Diamond Project with an All Season Highway and Potential Grid Power
16Permitting On-Track for Completion in 2012
Renard falls under the environmental protection regime of the James Bay and Northern Québec Agreement (JBNQA) and the Canadian Environmental Assessment Act.
Stornoway filed the Renard Environmental and Social Impact Assessment (ESIA) with Québec and federal regulators in December 2011.
Public consultations under the auspices of the federal regulator where held in Chibougamau and Mistissinibetween June 5th and 7th. Hearings under the auspices of the Review Committee of the JBNQA are expected to be held later in the summer, with the project becoming eligible for its Certificates of Authorization thereafter.
The Renard ESIA describes a limited-footprint project with modest impacts on the local environment, all of which are well within existing Québec and federal standards.
Stornoway has published the complete ESIA, the Environmental Baseline Study, and the project Closure Plan online.
17
The Renard Diamond Project is situated close to the Cree Nation of Mistissini (CNM) and the mining community of Chibougamau.
Stornoway and its predecessor companies have conducted extensive community consultations in Mistissini since 2001 on the basis of respect, transparency and full regulatory compliance.
In March 2012 Stornoway concluded an Impacts and Benefits Agreement, the “Mecheshoo Agreement”, with the CNM and the Grand Council of the Crees (EI).
The Mecheshoo Agreement provides for employment and business opportunities for the Crees, fosters cultural, environmental and social protection, and provides for the Crees’ participation in the project’s long term financial success. From left: Chief Richard Shecapio, of the Cree Nation of
Mistissini, Grand Chief Matthew Coon-Come, of the Crees of Eeyou Itschee, and Matt Manson, CEO of Stornoway, in Mistissini on March 27th, 2012, on the occasion of the signing of the Mecheshoo Agreement.
“Stornoway has demonstrated an immense openness and has been willing to adapt the project in a manner that respects the Creesof Mistissini, our interests, our values, our culture and our way of life. This is the way we want to be dealt with.” Chief Richard
Shecapio, CNM, March 2012.
The “Mecheshoo” Agreement (IBA)Renard’s Social Licence
18
Jean Charest, Premier of Québec, and Matt Manson, CEO of Stornoway, in Chibougamau on August 1st for the announcement of Route 167 Extension Financing Agreement. Mr. Charest is holding core from Renard 65 containing a four-carat diamond.
Strong Sponsorship in QuébecOne 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 49th parallel through infrastructure investment, community development and biodiversity
conservation.
Stornoway enjoys strong support from Investissement Québec and the Québec government• IQ is a 25% equity shareholder (34% fully
diluted) with pre-emptive right to maintain ownership at 25%
• IQ is committed to providing material lending support ($100M in project finance)
The Québec government is committed to infrastructure development as part of its “Plan Nord”• Québec has budgeted C$1.2B in
infrastructure developments over the next five years.
• One of the priority initiatives is the extension of Route 167 which will provide year-round road access to Renard and to which Québec has committed $331.6 million.
19
Zara BoldtCFO and VP
Finance
Pat GodinCOO & Director
Matt Manson President, CEO
& Director
Tony Walsh Chairman
Michel BlouinIndependent/ IQ Designate
Yves Harvey Independent
John LeBoutillierIndependent/ IQ Designate
Monique MercierIndependent/ IQ Designate
Peter NixonIndependent
Ebe ScherkusIndependent
Serge VézinaIndependent
Executive Officers
Non-Executive Directors
Key Managers
Ghislain Poirier
VP Public Affairs
Robin Hopkins
VP Exploration
Dave SkeltonVP Project
Development
Brian Glover VP Asset Protection
Guy BourqueChief Mining
Engineer
Martin BoucherManager,
Sustainable Dev
Yves PeronVP Engineering & Construction
Helene RobitailleDirector, HR
Stornoway recently announced the relocation of its head office to Montréal, which will
become the platform for the expansion of the mining team and corporate support staff.
John Armstrong
Diamond Resource Specialist
Patrick HouleManager,
Community Dev.
Stornoway’s Operating Credentials Board and Management Team
20
Stornoway’s Project Pipeline and Technical Credentials
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The potential quantity and grade of any non-resource potential mineral deposit” (“PMD”) is
conceptual in nature, and it is uncertain if further exploration will result in the targetbeing delineated as a mineral resource.
Aviat (90%)Advanced Project24-40 mcarats “PMD”
Qilalugaq (100%)Advanced Project
Pikoo (100%)Grassroots Exploration
AEON (100%)Grassroots Exploration
Renard (100%)NI 43-101 Resource
24 mcarats Indicated17 mcarats Inferred
24-49 mcarats “PMD”
As a strategic priority, Stornowaymaintains an active exploration program and technical team based in Vancouver.
Stornoway’s project pipeline comprises both advanced and grassroots projects.
• Internal growth opportunities through the advanced Aviat and Qilalugaq Projects.
• Grassroots discovery potential in Saskatchewan (“Pikoo”) and Québec (“AEON”) based on un-sourced indicator mineral anomalies with diamond potential.
Stornoway considers the maintenance of in-house technical expertise key to the growth of a successful diamond mining business.
21
PRO-FORMA SHAREHOLDING*
ANALYST COVERAGEMarket Capitalization:(based on voting and non-voting shares)h C$ 135 million
Total Shares Outstanding: (Basic and Non-voting convertible shares) 161.2 million
Total Options & Warrants Outstanding: 31.2 million
Cash and Short Term Deposits: (as of April 30th, 2012 and May 4th Financing) C$ 47.3 million
Debt: ($100m Standby Facility with IQ undrawn) C$ 20 million
IQ** (common shares)(non-voting convertible shares)
25.0%-------- 33.7%
Agnico-Eagle 10.6% 8.9%
Rio Tinto plc 4.5% 3.5%
Lorito Holdings (Lundin Family) 3.1% 2.4%
Float 56.8% 51.5%
Fully Diluted
Basic
RBC Des Kilalea,May11th, 2012
Outperform-Speculative Risk $2.05
Paradigm David DavidsonNov 17th, 2011
Buy $3.15
BMO Ed SterckMay 23rd 2012
Market Perform $1.50
Desjardins Brian ChristieMay 8th, 2012
Speculative Buy $1.70
Laurentian Eric LemieuxMay 25th, 2012
Buy $2.75
National BankEldon BrownMay 4th, 2012
Outperform-Speculative Risk $2.00
BALANCE SHEET*
Notes: Debt Facility: In December 2010, Stornoway announced a $100 million Credit Support Agreement with a subsidiary of Société générale de financement du Québec, now InvestissmentQuébec, 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 $0.84 on June 6 2012.
**IQ: Investissement Québec, the Québec government's industrial and financial holding company whose mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region
Stornoway’s Platform for Project Development and Financing
22
Outlook
Renard: One of the world’s leading undeveloped diamond projects• Strong base case economics• Extensive resource upside• On-track permitting• Strong social licence• Good jurisdiction• Infrastructure under development
The next 6-12 months• $28.4m Pre-Development Program (EPCM)• Permitting milestones through 2H 2012• Project financing by 1H 2013
Financing Strategy• Starting point: strong sponsor support ($100m credit
support agreement with Investissement Québec and 25% pre-emptive right on new equity).
• Currently pursuing a balanced debt-equity mix, with engagement in the commercial debt market.
• Currently pursuing financing options tied to future diamond supply.
2323
Appendix 1: Diamond Market Overview
24Major Diamond Mines and Development Projects WorldwideFew Enough Mines to Fit on One Map
South Africa • Venetia (De Beers)
• Finsch, Premier (Petra Diamonds)
• Lace (DiamondCorp)
Tanzania• Williamson (Petra Diamonds)
Russia • Arkhangelsk District (Alrosa)
• Yakutia District (Alrosa)
• Grib (LUKOIL)
India• Bundar (Rio Tinto)
Australia• Argyle (Rio Tinto)
• Ellendale (Gem Diamonds)
Canada• Ekati (BHPB)
• Diavik (Rio Tinto/Harry Winston)
• Victor, Snap Lake, Gahcho Kue (De Beers)
• Renard (Stornoway)
• Star (Shore Gold/Newmont)
Botswana• Jwaneng, Orapa (De Beers)
• Gope (Gem Diamonds)
• AK6 (Lucara Diamonds)
Angola• Catoca (Alrosa)
Democratic Republic of Congo• Mbuyi-Mayi
Sierra Leone• Koidu, (Steinmetz Group)
Lesotho• Letseng (Gem Diamonds)
• Kao (Namakwa Diamonds)
• Liqhobong (Firestone)
• Mothai (Lucara)
25The Rough Diamond Business in Context1/8th the Size of the Copper Business in 2011
0
20
40
60
80
100
120
140
160
Diamond Pt-Pd Ni Al Au Cu
Valu
e W
orld
Pro
duct
ion
(Bill
ion
USD
)
2008200920102011
Source: USGS, LME, Kimberly Process
26Rough Diamond ProductionStornoway Estimates
2011 Production, by Company, by Value 2011 Production, by Company, by Carats
2010 Production, by Country, by Value
Source: Kimberly Process
Source: Company Reports and SWY Estimates Source: Company Reports and SWY Estimates
De Beers24.4%
Alrosa26.9%
BHPB2.0%
Rio Tinto9.1%
Petra1.1%
Gem0.2%
HW2.1%
Zimbabwe7.1%
Others27.2%
De Beers34.7%
Alrosa25.2%
BHPB5.1%
Rio Tinto4.9%
Petra1.4%
Gem1.8%
HW1.9%
Zimbabwe2.5%
Others22.7%
27
Estimated Prices per Carat (US$)
Source: Stornoway Estimates, or Company Reports based on FY2011 reporting. Source: Company Reports. De Beers shown at 100%
De Beers and Alrosa maintain the bulk of the world’s formerly established diamond resources (78% by SWY estimates).
Not all diamond resources are created equal: large diversity in ore body grades and diamond value.
$731
$360 $335
$182 $155 $137 $121 $120
$340
50100150200250300350400450500550600650700750800850900950
1,000
$US
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Mct
s
`
Resources (mCarats)$2776
World Rough Diamond Resource Base
28
G l o b a l R o u g h D i a m o n d P r o d u c t i o n ( M M c t )
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
1 8 0
2 0 0
2006
A
2007
A
2008
A
2009
A
2010
A
2011
E
2012
E
2013
E
2014
E
2015
E
2016
E
2017
E
2018
E
2019
E
Ct
MM
A n g o la A u s t r a lia B o t s w a n a C a n a d a D R C N a m ib ia R u s s ia S o u t h A f r i c a Z im b a b w e O t h e r
Almost all rough diamond production forecasts show flat or declining production long term.
Alrosa is an optimistic forecaster, with a 23% increase in carat supply 2010 to 2020. Others (such as RBC below) forecast 15-17% supply growth. Rough production may not reach 2008 levels in carat terms again.
No large scale diamond mine has been discovered since the discovery of EKATI and Diavik in the early 1990s. New production from projects under development is not expected to materially impact overall supply.
Source: RBC Capital Markets
AK6 (LUC)Koidu (Steinmetz)
Zimbabwe
Renard (SWY) Star-Orion (SGF)Gahcho Kue (MPV, De Beers)
Global Rough Diamond Production Forecast
2929Rough Diamond Supply and Demand ForecastsAlrosa October 2011
Normal GDP Forecast by Region
Diamond Jewellery Consumption by RegionRough Diamond Demand
Source: Alrosa October 2011 after Global insightNote: GDP at purchasing power parity
Source: Alrosa October 2011 Source: Alrosa October 2011 after Global insights and Company estimates
14,527 17,770 22,0874,322
5,0975,756
4,1686,756
11,17510,260
16,769
26,112
76,047
101,845
136,959
0
20,000
40,000
60,000
80,000
2010 2015F 2020F
$bill
ions
United States Japan India China World
CAGR10-20
+9.8%
+10.4%
+2.9%
+4.3%
40.8
25.4
15.1
0
5
10
15
20
25
30
35
40
45
50
2010 2015F 2020F
$bill
ions
28.2 35.7 44.57.9
8.810.0
7.212.5
20.5
8.0
15.1
26.024.5%
21.5%
28.2%
0
20
40
60
80
100
120
2010 2015F 2020F
$bill
ions
United States Japan India China % of India to China World
73.8 97.4 127.8CAGR10-20
+12.5%
+11.0%
+2.4%
+4.7%
Current rough diamond demand forecasting focusses on the expected expansion of the diamond jewelry markets in Asia.
Asian diamond jewelry demand growth is expected to outpace GDP growth between 2010 and 2020 as the traditions of diamond gifting become established within the growing middle classes.
Alrosa (after Global Insight, October 2011) forecast global diamond jewelry consumption g CAGR of 5.6% a year, reaching $128bn by 2020, helping rough diamond demand to grow by 10.4% on average till 2020 and to reach $40.8bn (from 2010 level of $15.1bn).
30Diamond Price GrowthRough and Polished Diamonds Against a Basket of Indicators, 2003-April 2012
Source: LME, IMF, Rough Diamond Price data after WWW International Diamond Consultants Limited Indexed to October 2003
31Diamond Price Growth The Impact of Rising Prices on Producer Results and Cutting Centre Liquidity
Long term price growth since 2000 has caused De Beers sales volumes to increase in dollar terms despite a shrinking market share.
De Beers average sales price up +27% 2009-2010 and +29% 2010-2011.
Long term increase in cutting center debt levels to accommodate higher value business with based on disproportionately smaller change in sales volumes.
$- $1 $2 $3 $4 $5 $6 $7 $8
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Sale
s (B
illio
n U
SD)
$- $2 $4 $6 $8
$10 $12 $14 $16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Deb
t (B
illio
n U
SD)
Source: RBC Capital Markets
Source: Company Reports
Cutting Centre Debt, 2000-2011
De Beers Sales, 2000-2011
32Future Rough Diamond Price GrowthMarket Estimates and Stornoway’s Views
$0bn
$10bn
$20bn
$30bn
$40bn
$50bn
$60bn
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
Production and Demand in Rough Terms(Q1 2012 values)
Production
Demand
source:WWW Forecasts Ltd
Recent WWW supply and demand modeling predicts excess diamond supply between 2011 and 2014, and a Rough Diamond Price CAGR of 7.5% (Nominal) between 2011 and 2025.
WWW modeling highlights short term discrepancy between rough and polished diamond pricing, yielding short term price caution and long term optimism
Recent De Beers supply and demand modeling contains no surplus supply prediction, and is closer to the Alrosarough demand 10% CAGR (Nominal) forecast to 2020, but with a more pessimistic supply forecast.
In line with its peers and based on guidance from WWW, Stornowayassumes a 2.5% real price growth factor to 2025 in the the Renard Feasibility Study in the all-equity case valuation and for mine planning purposes. A 0% factor (ie flat diamond prices) is assumed in the Financing Case model. Source: De Beers November 2011
Source: WWW February 2011
3333
Appendix 2: Feasibility Study Materials
34
Feasibility Study Contributors
Capital and Operating Cost Estimates, Onsite Infrastructure Design, Construction Strategy, Risk Assessment
Process Plant, Underground Mine Design and Underground Reserve
Open Pit Design, Open Pit Reserve and Financial Analysis
Geotechnical, Processed Kimberlite Containment, Waste Water Management
Environmental, Social and Permitting Considerations
Rock Mechanics, Hydrogeology
NI 43-101 Resource
Human Resources, Operating Plan, Marketing Plan
35Financial Analysis Project Assumptions, Valuation and Pay-Back
Key Assumptions in the Financial Model
Mining Parameters
Reserve Carats (m) 18.0Tonnes Processed (m) 23.0Recovered Grade (cpht) 78Average Ore Recovery (%) 83.5%Average Mining Dilution (%) 14%Dilution Grade (cpht) 0Processing Rate (Mtonnes/a) 2.2Mine Life (years) 11
Cost Parameters
Pre-Production Cap-ex (C$m) $802LOM Cap-Ex (C$m) $994Oil Price (US$/barrel) $90LOM Op-ex (C$/tonne) $54.71LOM Op-ex (C$/carat) $70.27
Revenue Parameters (real terms)
Gross Revenue (C$m) $4,112Marketing Costs 2.7%DIAQUEM Royalty 2.0%Operating Cash Flow (C$m) $2,677Operating Margin 68%Total Taxes and Mining Duties (C$m) $571After Tax Net Cash Flow (C$m) $1,151
Diamond Price
Parameters
Renard 2 and Renard 3 (US$/carat) $182Renard 4 (US$/carat) $164Diamond Price Escalation, 2012-2025 2.5%Exchange Rate 1C$=1US$
Schedule Parameters
Effective Date for NPV Calculation January 1 2012Construction Mobilization July 1 2013Plant Commisioning Commences July 1 2015Commercial Production Declared January 1 2016
Valuation Results (C$m)
Pre-Tax After Tax
NPV5% $899 $534
NPV7% (Base Case) $672 $376NPV9% $490 $248
IRR 18.7% 14.9%Pay-Back (years) 4.65 4.80
36Financial Analysis Capital Costs
Capital Costs (C$m)
Site Preparation & General $22.9
Mining $236.9
Mineral processing plant $168.4
Onsite utilities and infrastructures $102.4
Owner’s Cost $86.2
Spares, fills, tools $10.2
EPCM services $45.0
Field indirect costs, vendor representatives $22.5
Construction camp & Catering $25.0
Freight and duties $8.1
Contingency $74.3
Total Pre-Production Capital $801.8Escalation Allowance on Initial Capital $57.3
Pre-Production Revenue ($24.6)
Deferred & Sustaining Capital $138.8
Deferred Capital (Route 167 Extension) $44.0
Salvage Value2 ($22.9)
Total LOM Capital $994.4
Site Prep. & General
4%Mining45%
Plant32%
Onsite utilities
and infra.19%
Direct Costs (C$531m)
Owner’s Cost32%
Spares4%
EPCM17%
Field, Vendor
reps8%
Camp9%
Freight3%
Conting. 27%
Indirect Costs (C$271m)
37
Operating Unit Costs (Real Terms; C$)
$/tonneOpen Pit Mine $19.99
Underground Mine $24.11
Plant $14.82
G&A $14.69
Total $54.71 ($70.27/ct)Notes: Pit costs incurred before January 1st, 2016 are capitalized
Open Pit Mine,
$40.70 , 3%
Underground Mine, $547.90 ,
43%
Plant, $337.00 ,
27%
G&A, $334.00 ,
27%
Operating Costs (C$1,260m)
0
10
20
30
40
50
60
70
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Operating Costs LOM
Others
Power
Labour
Financial Analysis Operating Costs
38Financial Analysis Valuation Sensitivities
80% 90% 100% 110% 120%Operating Cost 16.5% 15.7% 14.9% 14.0% 13.2%Capital Cost 19.1% 16.8% 14.9% 13.2% 11.8%Revenue 9.2% 12.2% 14.9% 17.4% 19.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
80% 90% 100% 110% 120%Operarting Cost 20.7% 19.7% 18.7% 17.7% 16.7%Capital Cost 23.7% 21.0% 18.7% 16.7% 15.0%Revenue 11.6% 15.4% 18.7% 21.8% 24.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
80% 90% 100% 110% 120%Operating Cost 808,813 740,372 671,932 603,487 535,040Capital Cost 829,526 750,717 671,932 593,125 514,316Revenue 235,672 453,813 671,932 890,040 1,108,14
‐
200,000
400,000
600,000
800,000
1,000,000
1,200,000
80% 90% 100% 110% 120%Operating Cost 463,661 419,627 375,577 331,523 287,283Capital Cost 488,669 432,381 375,577 318,658 261,323Revenue 94,589 236,370 375,577 513,934 651,296
‐
100,000
200,000
300,000
400,000
500,000
600,000
700,000
PRE-TAX IRR
AFTER-TAX IRR
PRE-TAX NPV7%
AFTER-TAX NPV7%
39Financial Analysis Renard Diamond Valuation. Conducted by WWW May 9th to 13th 2011
1The Renard Feasibility Study of November 2011, consistent with the NI 43-101 compliant Mineral Resource of January 2011, utilizes a higher diamond price based on an analysis of diamond breakage and poor plant recovery of the Renard 4 valuation sample, which is $164/carat. All samples utilize a +0.85mm (+1 DTC) cutoff.
KimberliteBody
Valuation Sample (carats)
Achieved Prices for the Valuation Samples WWW Price Modeling
Number of Independent Valuations
Average of Independent Valuations (US$/carat)
Minimum of Independent Valuations (US$/carat)
Maximum of Independent Valuations (US$/carat)
WWW Valuation (US$/carat)
WWW Base Case Model (US$/carat)
WWW "High" Model
(US$/carat)
WWW "Minimum"
Model (US$/carat)
Renard 2 1,580 5 $173 $143 $195 $195 $182 $236 $163
Renard 3 2,753 5 $171 $137 $195 $190 $182 $205 $153
Renard 4 2,674 5 $100 $87 $107 $107 $1121 $185 $105
Conducted by WWW International Diamond Consultants Ltd. May 9th-13th 2011
40
Kimberlite BodyWWW Base Case Model (US$/carat)
WWW "High" Model
(US$/carat)
WWW "Minimum"
Model (US$/carat)
Renard 2Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $182 $201 $163
Scenario 2 (Alternative): Utilizing an R2 only Size Frequency Model $208 $236 $186
Renard 2Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $182 $205 $168
Scenario 2 (Alternative): Utilizing an R3 only Size Frequency Model $165 $183 $153
Renard 2Scenario 1 (Base Case): Utilizing an R2-R3 Size Frequency Model $164 $185 $152
Scenario 2 (Alternative): Utilizing an R4 only Size Frequency Model $112 $121 $105
WWW determine High and Minimum sensitivities on their Base Case diamond price model. WWW state that it is unlikely that an actual diamond price achieved for each kimberlite body upon production would fall below the “Minimum” sensitivity, but it is possible that the actual diamond price achieved may be higher than the “High” sensitivity, which is not a maximum price.
The Feasibility Study Base Case diamond price of US$182/carat for Renard 2 and 3 and US$164/carat for Renard 4 derives from a value modeling approach that assumes a single diamond size distribution in the three kimberlites.
An alternative interpretation, that each kimberlite’s diamond population is unique and is correctly represented by its diamond sample, yields diamond price models of US$208/carat for Renard 2, US$165/carat for Renard3 and US$112/carat for Renard 4.
Financial AnalysisRenard Diamond Valuation Sensitivities
41
This “Alternative” diamond price model is highly accretive to the project’s valuation given the dominance of Renard 2 in the mine plan. The interpretation of similarity in the diamond populations is the more conservative approach.
A real-terms diamond price growth factor of 2.5% per annum has been applied between 2012 and 2025. This is consistent with well constrained rough diamond supply and demand forecasts and industry best-practice. WWW have advised that Stornoway’s assumptions on diamond price and diamond price growth are “reasonable in the context of the overall supply and demand environment” of the diamond industry. The project shows strong sensitivity to future diamond price growth.
Kimberlite BodyPre-Tax After-Tax
NPV7% (C$m) IRR Pay-Back
(years) 1NPV7% (C$m) IRR Pay-Back
(years) 1
WWW Minimum Model $397 14.6% 5.34 $199 11.5% 5.46Feasibility Study Base Case Model $672 18.7% 4.65 $376 14.9% 4.80Alternative Model $871 21.8% 4.07 $502 17.4% 4.20WWW High Model $1,261 26.5% 3.49 $747 21.4% 3.90
Financial AnalysisRenard Diamond Valuation Sensitivities
Diamond Price Escalation (2012-2025)1Pre-Tax After-Tax
NPV7% (C$m) IRR Pay-Back
(years) 1NPV7% (C$m) IRR Pay-Back
(years) 1
0% per annum $227 11.8% 5.80 $93 9.2% 5.912.5% per annum (Base Case) $672 18.7% 4.65 $376 14.9% 4.805% per annum $1,228 25.1% 3.87 $724 20.3% 4.00
1Calculated on an after-tax basis
1Calculated on an after-tax basis
42
Probable Mineral Reserve Mining Recovery Factors Utilized in the Reserve Calculation
Kimberlite Grade(cpht)
Tonnes(millions)
Contained Carats(Millions)
InternalDilution
Mining Recovery
MiningDilution
Renard 2 OP 95 1.31 1.24 0.0% 96.0% 7.1%Renard 2 UG 84 16.30 13.66 6.9% 83.2% 14.0%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 Indicated 78 23.06 18.00 5.9% 83.5% 13.5%
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%
Carats
R2 , 76%
R3, 7%
R4, 16%
Tonnage
R2 , 84%
R3, 8%
R4, 8%
Revenue
Reserves and Resources Renard Mineral Reserve Estimate, Announced November 16th, 2011
43Reserves and Resources Renard Mineral Resource Estimate, Announced January 24th, 2011
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.
Kimberlite Grade(cpht)
Tonnes(millions)
Contained Carats(Millions)
Renard 2 103 17.63 18.09Renard 3 106 1.75 1.85Renard 4 53 7.25 3.81Renard 9 -- -- --Lynx Dyke -- -- --Hibou Dyke -- -- --
Total Indicated 89 26.63 23.76
Renard 2 118 5.21 6.14Renard 3 118 0.54 0.64Renard 4 44 4.76 2.09Renard 9 47 5.70 2.69Renard 65 29 12.94 3.72Lynx Dyke 107 1.80 1.92Hibou Dyke 144 0.18 0.26
Total Inferred 56 31.12 17.45
44
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 kimberlitevolumes 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.
Kimberlite Grade(cpht)
Tonnes(millions)
Contained Carats(Millions)
Renard 2 103 to 188 4.0 to 4.6 4.1 to 8.6Renard 3 107 to 168 0.8 to 1.6 0.8 to 2.8Renard 4 38 to 79 11.1 to 15.3 4.2 to 12.1Renard 9 45 to 50 3.9 to 6.3 1.7 to 3.2Renard 65 23 to 33 29.5 to 41.6 6.8 to 13.7Lynx Dyke 96 to 120 3.1 to 3.2 3.0 to 3.8Hibou Dyke 104 to 151 2.7 to 2.9 2.9 to 4.3Total ExplorationUpside 55.1 to 75.5 23.5 to 48.5
Reserves and ResourcesRenard Exploration Upside, Announced January 24th, 2011
45
Processed Kimberlite Containment
PKC site selection was based on acomprehensive evaluation of 5 sites.
Geochemical characterisation of Processed Kimberlite (“PK”) and country rock waste indicates minimal metal leach potential and no acid generation.
PKC facility will be a dry stacked facility with no requirement for a liner.
PKC facility can accommodate all current Indicated and Inferred Resources (44.3 Mt).
Waste rock can be used as construction aggregate.
PK will be de-watered by centrifuge and trucked to the PKC site. PKC is an engineered facility requiring compaction of berms and placement of erosion barriers. The PK deposition plan allows for progressive rehabilitation and re-vegetation.
No fish habitat will be impacted by PK disposal.
Characterisation
PKC Facility in 2026
Dewatered PK
46
Water Management
PKC
R65Waste Rock
R2/R3 Overburden
Ore
Process Plant
Waster Water Management Schematic
Mine wastewatertreatment plant
Wastewater Treatment Plant
Collection Ditches
Pump Station
All water in contact with mining materials will be collected and treated prior to release. Treated water willmeet standards defined by Québec MDDEP Directive 019, Québec environmental effluent objectives forthe protection of aquatic life, and the Canadian Metal Mining Effluent Regulation.
Single watershed impacted by all mining activities.
Water recycling for process plant.
Water management system includes a network of collection ditches, apumping network, a catch basin sump at Renard 65, a watertreatment plant, and submerged discharge within Lake Lagopede
47
Closure Plan
Before
After
Stornoway acknowledges that it is only a temporaryuser of land that will be returned to its traditionalusers at the end of mine life. In this context, projectdesign has prioritized minimal environmentalfootprint and progressive rehabilitation.
Buildings have been designed and materialsselected to facilitate dismantling, recycling and sitere-vegetation at the end of the mine life.
Mine planning ensures that all waste rock will beused for construction, backfill of the undergroundmine. Open-pits will be flooded to create new fishhabitats.
PKC facility has been designed to ensureprogressive re-vegetation and ease of maintenanceduring operations.
Benches will be progressively rehabilitated.
Airstrip will either be rehabilitated or vested toauthorities to become a regional infrastructure.
Post-closure environmental monitoring program willbe implemented.
48Project ComparablesRecent Canadian Diamond Mines Compared as of the Date of each BFS
Source: Company Reports and Stornoway Estimates. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators. Assumes similar diamond recovery and mining dilution parameters.
Ekati (1998)BHPB, As BuiltEstimates
Diavik (1999)Rio-Tinto, As Built Estimates
Victor (2008)De Beers, As Built Estimates
Renard FS (2011)
Resource ParametersResource (m carats) 161 133 No data 41Resource (US$) $10B $6.7B No data $7.2BResource Grade (cpht) 110 360 No data 72Average Resource Diamond Price $60 $50 No data $175Resource Mine Life 25 25 No data n/a
Reserve ParametersReserve (carats) 72 102 6 18Reserve (dollars) $6B $5.5B $2.4B (est) $3.2BReserve Grade (cpht) 109 400 20 78Average Reserve Diamond Price $84 $55 $400 $180 Average Reserve Ore Value (US$) $92 $220 $80 $140Reserve Mine Life 17 19 12 11
Production ParametersAnnual Production (mCarats) Up to 3.6 Up to 7 0.5 Up to 2.1Annual Revenue (US$m) $302 $385 $215 $364LOM Op‐ex (Cdn$/tonne) $100 to $60 $100 No data $55LOM Op‐ex (Cdn$/carat) $92 to $55 $25 No data $70Canadian‐US Dollar c.$0.75 $0.67 c.$1.00 $1.00
Pre‐Production Cap‐ex (Cdn$) $900m $1.3B $982m $802m
49Project ComparablesRecent Canadian Diamond Development Projects Compared as of the Date of each BFS
Gahcho Kué FS (2010) Mountain Province
Star-Orion FS (2011) Shore Gold
Renard FS (2011)
Resource ParametersResource (m carats) 61 43 41Resource (US$) $5.1B $11B $7.2BResource 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 ParametersReserve (carats) 49 34 18Reserve (dollars) $3.7B $8.2B $3.2BReserve Grade (cpht) 157 12 78Average Reserve Diamond Price $75 $242 $180 Average Reserve Ore Value (US$) $118 $30 $140Reserve Mine Life 11 20 11
Production ParametersAnnual Production (mCarats) 4.5 1.7 Up to 2.1Annual Revenue (US$m) $338 $411 $364LOM Op‐ex (Cdn$/tonne) $49 $14 $55LOM Op‐ex (Cdn$/carat) $31 $114 $70Canadian‐US Dollar 0.96 0.945 1.00
Pre‐Production Cap‐ex (Cdn$) $550m ($800m De Beers Dec 11) $1.9B $802m
Source: Company Reports. Excludes resource and diamond price upside from both projects. Excludes diamond price escalators. Assumes similar diamond recovery and mining dilution parameters.
5050
Appendix 3: Management Biographies
51
Appendix: Management Biographies
PRESIDENT, CHIEF EXECUTIVEOFFICER AND DIRECTOR
STORNOWAYDIAMOND COPRORATION
36 TORONTO STREET, SUITE 1000
TORONTO, ONT, M5C2C5
TEL. : (416) 304-1026
www.stornowaydiamonds.com TSX:SWY
Matt Manson, PhD.
Matt Manson was appointed President of Stornoway DiamondCorporation in March 2007 following the acquisition of AshtonMining of Canada and Contact Diamond Corporation, andsubsequently President & CEO in January 2009.
As President & CEO, Mr. Manson is responsible for themanagement of the company as a whole, playing a leadership rolein all key business units including finance and budgets, exploration,human resources, investor relations and advanced projectdevelopment including the Renard Diamond Project.
Between 1999 and 2005 he was employed by Aber DiamondCorporation (now Harry Winston Diamond Corporation) as VPMarketing and subsequently VP Technical Services & Control,during which time he participated in the US$230m project financingfor the Diavik Diamond Project and oversaw Aber's technical andmarketing operations during the feasibility, construction and earlyproduction phases of Diavik. Between 2005 and 2007 he wasemployed by Contact Diamond Corporation, formerly SudburyContact Mines and a 40% owned subsidiary of Agnico-Eagle MinesLimited, as President & COO and subsequently President & CEO.
Mr. Manson is a graduate of the University of Edinburgh (BScGeophysics, 1987) and the University of Toronto (MSc Geology 1989and PhD Geology, 1996), and has over 17 years of experience indiamond exploration, development and production.
52
CHIEF OPERATING OFFICERAND DIRECTOR
LES DIAMANTS STORNOWAY (CANADA) INC.
1111 RUE ST. CHARLES
LONGUEUIL, QUÉBEC J4K 4G4
TEL. : (450) 616-5555
www.stornowaydiamonds.com TSX:SWY
Patrick Godin, Eng., Asc.
Pat Godin joined Stornoway as Chief Operating Officer in May 2010 andwas appointed to the Board of Directors in October 2011. He isresponsible 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 developmentof mining projects in the Americas and West Africa, and was responsiblefor the developed of the Essakane Mine in Burkina Faso under contract toIAMGOLD.
He was previously Vice President of Operations for Canadian Royalties,specifically heading the development of their nickel project in NorthernQuébec. He was also President and General Manager of CBJ-CAIMANS.A.S., a French subsidiary of Cambior / IAMGOLD, holder of the CampCaïman gold mining project located in French Guiana. For many years, hewas involved in Cambior’s various Canadian properties in Abitibi-Témiscamingue, through progressive management positions in projectdevelopment and mine management.
He holds a bachelor’s degree in mining engineering from Université Lavalin Québec. Mr. Godin is a member of the “Ordre des Ingénieurs duQuébec”, of the Certified Directors College and of The Canadian Instituteof Mining, Metallurgy and Petroleum (CIM). He is the Chairman of theBoard of Orbit-Garant Drilling and is a member of the Technical AdvisoryCommittee for CANMET, known for its technical excellence in mining andmineral processing.
Appendix: Management Biographies
53
Appendix: Management Biographies
VICE PRESIDENT, FINANCE ANDCFO
STORNOWAYDIAMOND COPRORATION
980 W FIRST STREET, #116
NORTH VANCOUVER, BC V7P 3N4
TEL. : (604) 983-7750
www.stornowaydiamonds.com TSX:SWY
Zara Boldt, B.A., CGA
Zara Boldt was appointed Vice President, Finance with Stornowayin May 2007, after serving as Stornoway’s Controller between 2004and 2007, and Chief Financial Officer in March 2010.
As Vice President Finance and CFO, Ms. Boldt is responsible for themanagement of the corporate and financial affairs of thecorporation, and for the oversight of its regulatory reportingrequirements.
Ms. Boldt has held positions of progressive responsibility withseveral mineral exploration companies, in addition to severeal yearsof experience with a national investment dealer. Her most recentresource industry roles include CFO for Sherwood CopperCorporation from May 2006 to May 2007 and Controller for theNorthair Group of Companies between May 2004 and April 2007.
Ms. Boldt is a Certified General Accountant and a graduate of theUniversity of Puget Sound in Tacoma, Washington. She is a directorof Troon Ventures Ltd., where she serves as Chair of the AuditCommittee.