BUILDING QUÉBEC S FIRST DIAMOND MINE. Renard Updated Mine Plan and Mineral Reserve Estimate Support Materials, March 30, 2016

Transcription

1 BUILDING QUÉBEC S FIRST DIAMOND MINE Renard Updated Mine Plan and Mineral Reserve Estimate Support Materials, March 30, 2016

2 Forward-Looking Information 2 This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as forward-looking statements, are made as of the date of this presentation and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements include, among others, statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. 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 Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) assumptions relating to recovered grade, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the March 2016 Updated Renard Mine Plan and Mineral Reserve Estimate ; (iv) assumptions relating to gross revenues, operating cash flow and other revenue metrics set out in the 2016 Updated Renard Mine Plan and Mineral Reserve Estimate; (v) mine expansion potential and expected mine life; (vi) the expected time frames for the completion of construction, start of mining and commercial production at the Renard Diamond Project and the financial obligations or costs incurred by Stornoway in connection with such mine development; (vii) the expected time frames for the completion of the open pit and underground mine at the Renard Diamond Project; (viii) future market prices for rough diamonds; and (ix) future market prices for liquefied natural gas and diesel. All statements, other than statements of historical fact regarding Stornoway or the Renard Diamond Project, are forward-looking statements. 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, schedule 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 by Stornoway or its consultants 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 prospects and 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, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) required capital investment; (ii) the amount of future production over any period; (iii) assumptions relating to recovered grade, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the March 2016 Updated Renard Mine Plan and Mineral Reserve Estimate ; (iv) assumptions relating to gross revenues, operating cash flow and other revenue metrics set out in the 2016 Updated Renard Mine Plan and Mineral Reserve Estimate ; (v) estimates of net present value; (vi) anticipated timelines for completion of construction, commencement of mine production and development of an open pit and underground mine at the Renard Diamond Project, (vii) anticipated geological formations; (viii) Stornoway s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources, Mineral Reserves, and mine life; and (ix) Stornoway s ability to draw on the financing elements of the Renard Diamond Project Financing Transactions closed on July 8th, By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forwardlooking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and breakage; (iii) changes in development or mining plans due to changes in other factors or exploration results; (iv) slower increases in diamond valuations than assumed; (v) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vi) increases in the costs of proposed capital and operating expenditures; (vii) increases in financing costs or adverse changes to the terms of available financing, if any; (viii) tax rates or royalties being greater than assumed; (ix) risks relating to the receipt of regulatory approvals; and (x) the additional risks described in Stornoway's most recently filed Annual Information Form, annual and interim MD&A and Stornoway's anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time.

3 Forward-Looking Information (continued) 3 Readers are referred to the technical report dated as of March 30, 2016 entitled Updated Renard Diamond Project Mine Plan and Mineral Reserve Estimate, Québec, Canada in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate, and the technical report dated January 11, 2016 and press release dated September 24, 2015 in respect of the September 2015 Mineral Resource estimate for further details and assumptions relating to the project. The Qualified Persons that prepared the technical reports and press releases that form the basis for the presentation are listed in the Company s AIF dated March 30, Disclosure of a scientific or technical nature in this presentation was prepared under the supervision of Patrick Godin, P.Eng. (Québec), Chief Operating Officer and Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, both qualified persons under NI Darrell Farrow, PrSciNat, P.Geo.(BC), Ordre des geologues du Quebec (Special Authorisation # 332) of GeoStrat Consulting Services Inc. is the independent Qualified Person responsible for preparation of the mineral resource estimate for the Renard Diamond Project. GeoStrat Consulting Services Inc, a mineral resources consultancy, focuses on client interaction and involvement in developing resource models, and has experience in exploration, geological modeling, resource evaluation, production, resource reconciliation and accounting of diamond deposits around the globe. GeoStrat has verified the results disclosed herein with respect to the mineral resources, and has conducted appropriate verification on the underlying data, including visitations to the Renard site and the primary process laboratories. The Renard Diamond Project, December 23, 2015

4 Chronology of Renard Studies Feasibility Study (Nov NI Technical Report Dec 2011) 4 11 Year Mine Plan based on 18 million carat Mineral Reserve derived from January 2011 NI Resource. Long Term Business Plan Companion study to the Feasibility Study with an extended mine plan incorporating the project`s Inferred Mineral Resources. Basis of mine design and permitting Optimization Study (Jan NI Technical Report Mar 2013) Refined Feasibility mine design, including shaft deferral and a modified underground mining sequence. 11 Year Mine Plan based on 17.9 million carat Mineral Reserve. Mineral Resource Update (July 2013) Resource update with 14% increase in Indicated Resource contained carats LNG Feasibility Study (Oct 2013) Modified project Cap-ex and Op-ex for LNG powered gen-sets Mineral Resource Update (Sep NI Technical Report Oct 2015) Resource update with 11% increase in Indicated Resource contained carats Updated Mine Plan and Mineral Reserve Estimate (Mar NI Technical Report Mar 2016) Update based on 2013 & 2015 Mineral Resource Updates, accelerated construction schedule, and expanded processing 14 Year Mine Plan based on 22.3 million carat Mineral Reserve

5 What has Changed? January 2013 Optimization Study to March 2016 Updated Mine Plan R65 Added to Mine Plan Resource Update additional Indicated Mineral Resources at Renard 65. R65 pit was contemplated in 2013 Optimization Study. Material will represent expansion ore to the current mine plan. R2 Reserve Extends down to 700m 2015 Resource Update added additional Indicated Mineral Resources at Renard 2 between 600m to 700m depth. Ramp will be extended down 710 meters depth to extract additional Renard 2 ore. CRB Material Added to Reserve 2015 Resource Update added additional low grade Indicated Mineral Resources from Renard 2 CRB and CRB2a material within the envelope of the Renard 2-Renard 3 open pit and the Renard 2 underground mine. Material was assumed as zero-grade waste in 2013 Optimization Study. Now represents a low grade stockpile for plant expansion and/or processing at end of mine life. Mine Life Extension and Plant Expansion Mineral Reserve based mine life from 11 years to 14 years Plant expansion from 2.16 Mt/a (6,000 tpd) to 2.52 Mt/a (7,000 tpd) starting in 2018 utilizing Renard 65 ore. Upside Elements not Included in New Mine Plan 13.4 million carats of Inferred Mineral Resources (24.5 million tonnes at 54 cpht) and 33.0 to 71.1 million carats of nonresource exploration upside (76.2 to million tonnes at grades ranging from 25 to 168 cpht). Large diamond recovery

6 Renard Diamond Project NI Mineral Resource Estimate Effective September Changes to Previous Estimate Shown in Italics 6 North East View Indicated Mineral Resources (1,2,4) Contained Carats (millions) Tonnes (millions) Grade (cpht) (3) Renard m depth Renard 4 775m depth Renard 9 775m depth Renard 2, All Units % % % Renard 2, w/o CRB-2A, CRB % % % CRB-2A % % CRB 0.90 n/a 4.28 n/a 21 n/a Renard % % % Renard % % Renard Total Indicated Mineral Resources % % % Inferred Mineral Resources (1,2) Contained Carats (millions) Tonnes (millions) Grade (cpht) (3) Indicated Mineral Resources Inferred Mineral Resources High Range TFFE Renard 2 1,250m depth Renard 3 1,250m depth Notes 1 Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. 2 Totals may not add due to rounding. 3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off. 4 Diamond valuation data utilized for the test of prospects of reasonable economic extraction are derived from a diamond valuation exercise undertaken in March 2014 (see Stornoway Annual Information Form dated July 2015). Renard 2, All Units % % % Renard 2, w/o CRB % % % CRB % % % Renard Renard % % Renard Renard Lynx Hibou Total Inferred Mineral Resources % % %

7 Renard Diamond Project Exploration Potential Effective September Changes to Previous Potential Shown in Italics 7 North East View Renard m depth Renard 4 775m depth Renard 9 775m depth Indicated Mineral Resources Inferred Mineral Resources High Range TFFE Renard 2 1,250m depth Renard 3 1,250m depth Notes Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. Area indicated in yellow represents a gap in drill coverage that may represent additional exploration potential outside of the current Mineral Resource Estimate and not included in the current Targets for Further Exploration. Notes 1 Target for Further Exploration: represents potential upside that can be reasonably assumed given the nature and grade of material within the current 2015 Mineral Resource. The Renard 2 shape has been projected 250m below the deepest kimberlite intersection at 1,000m depth. Tonnage and grade ranges are not directly applicable to potential total carats.the potential quantity and grade of any Exploration Target is conceptual in nature, there has been insufficient information to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 2 Carats per hundred tonnes. Potential at a +1 DTC sieve size cut-off. Targets for Further Exploration (1) Contained Carats (millions) Tonnes (millions) Grade (cpht) (2) Renard to to to 30 Renard 2, All Units 3.7 to to to 100 Renard to to to 168 Renard to to to 77 Renard to to to 33 Renard to to to 40 Renard to to to 68 Renard to to to 120 Lynx 3.0 to to to 120 Hibou 3.6 to to to 151 Total TFFE % to % % to % R10 R7 R1 R65 R4 R9 R2 R3

8 The Renard Diamond Project A Large, High Value Diamond Resource with a Very Long Mine Life Potential 0m 100m Renard 65 29/24cpht Renard 3 102/112cpht Millions of Tonnes 180 TFFE High Range TFFE Low Range 8 200m 300m Inferred Mineral Resource Indicated Mineral Resource 400m 500m 600m The Vision: Deposit still Open 700m m 900m 1000m Renard 4 61/52cpht Renard 9 53cpht Permitting and 2013 Long Term Plan 1100m 1200m Mineral Resource Estimate Effective September 24, 2015 (NI ) Renard 2 84/59cpht 30 mcarat Indicated Mineral Resource 13 mcarat Inferred Mineral Resource mcarat TFFE 20 0 Mine Plan: 14 years of mining on 22mcarat Mineral Reserve (33mtonnes) 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.

9 Renard 2 Mineral Resource Update Effective September Changes to Previous Estimate Shown in Italics 9 North View Depth Below Surface 0m Pipe shape at surface (1.89ha) Kimberlite outline at surface (0.75ha) Renard 2 NI Mineral Resource Estimate Indicated Mineral Resources (1,2,4) Contained Carats (millions) Tonnes (millions) Grade (cpht) (3) Renard 2, All Units % % % Renard 2, w/o CRB- 2A, CRB % % % CRB-2A % % CRB 0.90 n/a 4.28 n/a 21 n/a INDICATED Inferred Mineral Resources (1,2) Contained Carats (millions) Tonnes (millions) Grade (cpht) (3) Renard 2, All Units % % % 600m: Base of Previous Indicated Mineral Resources 700m INFERRED 850m TFFE Base of New Indicated Resources (1.55ha) Pinch in model in area lacking drill coverage Renard 2, w/o CRB % % % CRB % % % Notes 1 Reserve and Resource categories were completed in accordance with the "CIM Definition Standards on Mineral Resources and Reserves". Mineral resources that are not mineral reserves do not have demonstrated economic viability. 2 Totals may not add due to rounding. 3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off. 4 Diamond valuation data utilized for the test of prospects of reasonable economic extraction are derived from a diamond valuation exercise undertaken in March 2014 (see Stornoway Annual Information Form dated July 2015). Renard 2 Targets for Further Exploration Target for Further Exploration (1) 1250m Contained Carats (millions) Tonnes (millions) Grade (cpht) (2) Renard 2, All Units 3.7 to to to 100 Low TFFE at 1,250m (0.62ha) High TFFE at 1,250m (1.38ha) Notes 1 Represents potential upside that can be reasonably assumed given the nature and grade of material within the current 2015 Mineral Resource. The potential quantity and grade of any Exploration Target is conceptual in nature, there has been insufficient information to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. 2 Carats per hundred tonnes. Potential at a +1 DTC sieve size cut-off.

10 Renard 2 Geological Model and Unit Grades Effective September Changes to Previous Estimate Shown in Italics 10 North View Depth Below Surface 0m Renard 2 Average Mineral Resource Grades, by Geological Unit Within the Indicated Mineral Resources Average Grade (cpht) (1) Average Dilution (%) (2) Kimb 2a ( Blue ) % % Kimb 2b ( Brown ) % % Kimb 2c (HK) % % CRB-2a CRB 21 n/a 96 n/a INDICATED 600m: Base of Previous Indicated Mineral Resources 700m INFERRED 850m Pinch in model in area lacking drill coverage Within the Inferred Mineral Resources Average Grade (cpht) (1) Average Dilution (%) (2) Kimb 2a ( Blue ) % % Kimb 2b ( Brown ) % % Kimb 2c (HK) % % CRB % Notes 1 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off. 2 Represents the average amount of non-diamond bearing country rock estimated within each geological unit. 3 The Kimb 2c (Hypabyssal Kimberlite, or HK ) unit is a constituent component of each of the Kimb2a, Kimb2b, CRB and CRB-2a units. West View TFFE Kimb2b ( Brown ) Kimb2a ( Blue ) CRB CRB-2a Kimb2c (HK) 1250m Photographs of geological units from the 2007 Renard underground bulk sample program Contact

11 Renard 2 Geological Model and Renard 2-Renard 3 Convergence Effective September Surface View, Looking Down North East View Renard 2 Renard 3 Depth Below Surface 0m R3 INDICATED Pipe shape at surface (1.89ha) Kimberlite outline at surface (0.75ha) Surface View, Looking Down Kimb2a ( Blue ) Kimb2b ( Brown ) CRB-2a CRB R2 INDICATED R3 TFFE: >500m potential between drill intersections 700m R2 INFERRED R3 INFERRED R3 TFFE 850m Renard 2 R2 TFFE Renard m 126.6m R3 intersection in DDH R2-81J (in red) starting 942.2m downhole: 47m true width. Resource categories were completed in accordance 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, there has been insufficient information to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

12 March 2016 Updated Mine Plan A Combined Open Pit and Underground Mine 12 Combined open pit and underground mining Open pit mining R2-R to 2018, processing from 2016 Open pit mining R to 2029, processing from 2018 Four production levels in R2 underground mine, one in R4 and one in R3. Underground mining R to 2027 (steps 1-4) using blasthole shrink stoppage with panel retreat. Underground mining R3 and R (steps 5 and 6) using longhole stoping and blasthole stoppage respectively. Stopes Ore t/m Tonnes of ore per meter of development. Main ramp excluded 1 R R R R R R

13 March 2016 Updated Mine Plan A Combined Open Pit and Underground Mine 13 Renard 2-Renard 3 Open Pit ( ) 2.58 Mcarats (4.33 Mtonnes at 59cpht) 15.5 Mtonnes moved Stripping ratio (Waste to Ore): 2.54 Depth 130m March 2016 October 2016 December 2016 August 2017 December 2017 End of April Mcarats (4.58 Mtonnes at 30cpht) Renard 65 Open Pit ( ) 14.0 Mtonnes moved Stripping ratio (Waste to Ore): 2.11 Depth 155m March 2018 End 2018 End 2019 End 2021 End 2024 End 2027

14 NI Probable Mineral Reserves March 30, Probable Mineral Reserve (1,2,4) (Changes from January 2013 Probable Mineral Reserve estimate shown in italics) Carats (millions) Tonnes (millions) Grade (cpht) (3) Mining Recovery Factors Utilized in the Reserve Calculation Mining Dilution (5) Internal Dilution (6) Mining Recovery Open Pit Renard 2, All Units % % % 2.9% 0.0% 98% Renard % % % 1.7% 0.0% 98% CRB-2A 0.15 n/a 0.47 n/a 31.4 n/a 1.8% 0.0% 98% CRB 0.32 n/a 1.58 n/a 20.2 n/a 4.3% 0.0% 98% Renard % % % 11.4% 0.0% 98% Renard 4 -- n/a -- n/a -- n/a Renard n/a 4.58 n/a 30.1 n/a 3.5% 0.0% 98% OP Probable Mineral Reserves % % % 3.9% 0.0% 98% Underground Renard % % % 20.2% 6.4% 82% Renard % % % 14.0% 29.8% 85% Renard % % % 14.0% 2.2% 78% Renard n/a -- n/a -- n/a UG Probable Mineral Reserves % % % 18.9% 6.7% 82% Stockpile Stockpile 0.11 n/a 0.15 n/a 73.9 n/a Total Probable Mineral Reserves % % % 14.8% 4.9% 86% Notes 1 Reserve categories follow the CIM Standards for Mineral Resources and Mineral Reserves. 2 Totals may not add due to rounding. 3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off. 4 Diamond valuation data utilized for the test of prospects of reasonable economic extraction are derived from a diamond valuation exercise undertaken in March 2014 (see Stornoway Annual Information Form dated March 2016). 5 Represents the proportion of waste rock expected to be extracted during mining. Mining dilution is assumed to have zero grade. 6 Represents planned dilution of waste rock through stope design in the underground mine. 7 Represents mine and stockpiled ore as of December 31, 2015

15 NI Probable Mineral Reserves March 30, Open-Pit Probable Mineral Reserves Carats Tonnes CRB-2A 5% Renard 65 35% Renard 3 18% Renard 2, All Units 47% Kimb2a/ Kimb2b 35% CRB 8% CRB-2A 4% Renard 65 51% Renard 3 9% Renard 2, All Units 40% Kimb2a/ Kimb2b 17% CRB 18% Underground Probable Mineral Reserves Carats Tonnes Renard 2 86% Renard 2 81% Renard 4 9% Renard 3 5% Reserve categories are compliant with the "CIM Definition Standards on Mineral Resources and Reserves". Renard 4 14% Renard 3 5%

16 Mine Production Profile Mineral Reserve Case. Not Including Inferred Mineral Resources or Non-Resource Upside 16 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Tonnes UG R3 UG R4 UG R2 OP R65 OP R2/R3 2,500,000 Carats 2,000,000 1,500,000 1,000, , R65 R4 R3 CRB CRB2A R2

17 Mine Production Profile Mineral Reserve Case. Not Including Inferred Mineral Resources or Non-Resource Upside 17 2,500 Carat Sales (000s) 2,000 1,500 1, Renard 65 Renard 4 Renard 3 Renard 2 0 $ Gross Revenue (C$ millions) $600 $500 $400 $300 $200 Renard 65 Renard 4 Renard 3 Renard 2 $100 $ Notes: Gross Revenue expressed in real terms.

18 Mine Production Profile Mineral Reserve Case. Not Including Inferred Mineral Resources or Non-Resource Upside 18 Annual Plant Feed Tonnage and Recovered Grade 3,000, ,500, ,000,000 1,500,000 1,000, Grade (CPHT) R65 R4 R3 CRB CRB2A R2 Grade ,

19 19 Diamond Processing Plant Nameplate capacity of 6,000 tpd (2.16 Mt/a) based on 78% plant utilization. 60% of nameplate scheduled for December 31, 2016 (commercial production) and 100% for June Expansion to 7000 tpd (2.52 MT/a) is scheduled for 2018 based on 83.5% utilization and +2% throughput. Large Diamond Recovery ( LDR ) through TOMRA XRT. Flow sheet: Primary jaw crushing to < 230mm Twin DMS circuits at +1mm -19mm LDR circuit at +19mm -45mm, scalable to -60mm Oversize +45mm to secondary cone crusher LDR and DMS tails +6mm -19mm to tertiary High Pressure Grinding Rolls Thickening and centrifugal treatment of fines and tails to create a truckable product for dry-stack disposal.

20 Ramp Up Schedule 20 Process Plant Ramp Up 200, , , , , , , , , , , , % Nameplate Capacity MILL FEED (T) 120, ,000 80,000 82, ,000 60,000 40,000 35,154 20,000 - M M M M M M M M M M M Commercial Production 60% Nameplate Capacity for 30 days

21 Key Assumptions and Valuation 21 Mining Parameters Cost Parameters Revenue Parameters 4 Diamond Price Parameters Schedule Parameters Jan 2013 Opt. Study, before Stream 1, Mine Plan Update, after Stream 1,2 Reserve Carats (M) Tonnes Processed (M) Recovered Grade (cpht) Average Ore Recovery (%) 83% 86% Average Mining Dilution (%) 18% 15% Processing Rate (Mtonnes/annum) to 2.5 Mine Life (years) Initial Cap-ex (C$M) 3 $793 ($811) 6 $775 LOM Cap-ex (C$M) 3 $1,013 $1,045 Diesel Price (C$/litre) $1.14 $1.00 LOM Op-ex (C$/tonne) 4 $57.63 $56.20 LOM Op-ex (C$/carat) 4 $76.63 $84.37 Gross Revenue (C$M) $4,268 $5,565 Net Revenue (C$M) $4,069 $4,555 Marketing Costs 2.70% 1.80% DIAQUEM Royalty 2.00% 2.00% Cash Operating Margin (C$M) $2,693 $2,677 % Operating Margin 67% 59% Cash Operating Margin (C$/carat) $151 $120 Income Tax and Mining Duties (C$M) $625 $698 After Tax Net Cash Flow (C$M) $1,084 $1,105 Average Price of Reserve (US$/carat) 5 $180 $155 Diamond Price Escalation 2.50% 2.50% Exchange rate 1C$=1US$ 1.35C$=1US$ Effective Date for NPV Calculation Jan Jan Plant Commissioning Commences Dec Oct Commercial Production Declared June Dec Notes 1. March 2016 study shown net of the July 2014 Renard Streaming Agreement, Diaquem royalty and marketing costs in terms of net revenue, Cash Operating Margin and NPV. For further information on the Renard Streaming Agreement see the Stornoway Annual Information Form dated March 30, January 2013 Optimization expressed in October 2012 terms. March 2016 Updated Mine Plan expressed in December 2015 terms. 3. Expressed in nominal terms, and excluding Renard Mine Road capital of $69.4 million. 4. Expressed in real terms. 5. Represents the average price per carat of the Mineral Reserve before escalation, comprising Renards 2,3 & 4 expressed in May 2011 terms in the case of the January 2013 Optimization Study, and Renards 2, 3, 4 & 65 expressed in March 2016 terms in the case of the March 2016 Mine Plan Update. 6. Initial Capital Cost in the January 2013 Optimization Study was estimated at $793 million based on $752 million of cost and contingency plus $41 million escalation allowance. In April 2014, prior to the commencement of construction, Initial Capital was estimated at $811 million based on $754 million of cost and contingency plus $57 million of escalation. The estimate of $775 million of Initial Capital in the March 2016 Updated Mine Plan includes all costs, contingencies and escalation allowances and represents a reduction of $36 million on the April 2014 estimate. 7. Net-present valuations are presented net of all royalties, costs incurred under the Mecheshoo Agreement and, in the case of the March 2016 Updated Mine Plan, the effective revenue impairment associated with the Renard diamond streaming agreement, and on an un-levered basis. Valuation Parameters (C$) 7 Jan 2013 Opt. Study, before Stream 1,2 Pre-Tax After Tax 2016 Mine Plan Update, after Stream 1,2 Pre-Tax After Tax NPV 5% $894 $537 $1,558 $1,113 NPV 7% $683 $391 $1,349 $974

22 22 Life of Mine Operating Parameters Jan 2013 Opt. Study, before Stream 1, Mine Plan Update, after Stream 1,2 Total Operating Cost (C$M) 3 $1,352 $1,878 Ore Production (Mt) Diamond Production (Mct) Production Cost Notes C$57.63/t C$76.63/ct C$56.20/t C$84.37/ct Total Gross Revenue (C$M) $4,268 $5,565 Total Net Revenue (C$M) $4,069 $4,555 Marketing Costs (%) 2.7% 1.8% DIAQUEM Royalty (%) 2.0% 2.0% Cash Operating Margin (C$M) $2,693 $2,677 % Operating Margin 67% 59% Operating Margin (C$/ct) $ $ March 2016 study shown net of the July 2014 Renard Streaming Agreement, Diaquem royalty and marketing costs in terms of net revenue, Cash Operating Margin and NPV. For further information on the Renard Streaming Agreement see the Stornoway Annual Information Form dated March 30, January 2013 Optimization expressed in October 2012 terms. March 2016 Updated Mine Plan expressed in December 2015 terms. 3. Expressed in December 2015 real terms. $600, 32% $200 $150 $100 $50 $0 Operating Expenses (C$M and % of OPEX) $568, 30% $97, 5% $613, 33% Operating Expenses (C$M) Open Pit Mine Underground Mine Concentrator G&A and Infrastructure G&A and Infrastructure Concentrator Underground Mine Open Pit Mine

23 Operating Cost Estimate Waterfall From November 2011 Feasibility Study to March 2016 Updated Mine Plan 23 Cash Operating Cost/Tonne (C$) Cash Operating Cost/Ct (C$) $60 $50 $40 $54.71 $2.92 -$3.79 $2.36 $56.20 $90 $80 $70 $60 $70.27 $6.36 $5.04 $12.78 $84.37 $30 $20 $50 $40 $30 $10 $20 $10 $0 FS Nov 2011 OS Jan 2013 LNG FS Oct 2013 Updated Mine Plan Mar 2016 Current Mar 2016 $0 FS Nov 2011 OS Jan 2013 LNG FS Oct 2013 Updated Mine Plan Mar 2016 Current Mar 2016 Notes: Expressed in December 2015 real terms

24 Capital Expenditures Project Costs of $548.5 million Committed or Incurred to Dec Initial Capital Site Preparation & General $ 45.1 Mining $ 57.1 Mineral processing plant $ Onsite utilitiesand infrastructures $ Network and Distribution $ 15.9 Offsite utilities and infrastructures $ 0.3 Pre-production and Ramp-up $ 88.5 Project indirect costs $ Professional Services $ 44.6 Construction indirect costs $ 38.5 Contingency $ 57.5 Escalation $ 25.3 Total Initial Capital $ Sustaining and Deferred Capital Open Pit $ 16.1 Underground $ Process Plant $ 12.5 Admin. & Infrastructure $ 3.7 Power Plant and Airport $ 13.7 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 Sustaining and Deferred Capital Costs (C$M and %) Open pit Capital Costs, 2016 to 2030 (C$M) 2016 Initial Capital equals $282 million Process plant Adm. & Infra. Power Plant & Airport Underground Initial Capital Underground Open pit Power Plant & Airport Adm. & Infra. Total Sustaining/Deferred Capital $ Total LOM Capital $ 1,045 $ Process plant Notes: expressed in December 2015 nominal terms and excluding Renard Mine Road capital of $69.4 million. Totals may not add up due to rounding.

25 Initial Capital Cost Estimate Waterfall From November 2011 Feasibility Study to March 2016 Updated Mine Plan 25 Renard LOM Capex (C$ millions) Including Contingencies and Escalation Renard Initial Capex (C $millions) Including Contingencies and Escalation $1,100 $1,000 $900 $800 $994.4 $18.5 $2.9 $35.0 $1,045.0 $900 $850 $800 $750 $700 $859.1 $61.9 $1.9 $11.9 $35.6 $775.4 $700 $600 $650 $600 $550 $500 FS Nov 2011 OS Jan 2013 LNG FS Oct 2013 Updated Mine Plan Mar 2016 Current Mar 2016 $500 FS Nov 2011 OS Jan 2013 LNG FS Oct 2013 Execution Plan Apr 2014 Updated Mine Plan Mar 2016 Current Mar Year Mine Life 14 Year Mine Life Notes: Expressed in December 2015 nominal terms and excluding Renard Mine Road capital of $69.4 million. Totals may not add up due to rounding.

26 26 Financial Analysis Methodology & Assumptions The Financial Analysis of the Updated Renard Mine Plan is based on the following assumptions: Commercial production January 1 st, 2017, 14 year Mineral Reserve Based life of mine; Spot diamond pricing based on the March 2014 WWW base case diamond price models for Renard 2, 3, 4 and 65 adjusted based on an estimated -19% world average rough diamond price decrease between March 2014 and March 2016; Diamond price escalation of 2.5% per annum from March 2016 until the end of Flat C$/US$ exchange rate of C$1.35 per US$; 15 week cycle between production and sales, 10 sales per year; and Real terms operating costs, revenue and cash flow, nominal terms capex. NPV 7% is C$974 million after-tax, C$1,349 million Pre-Tax. Effective date is January 1, NPV is calculated after the Diaquem Royalty, the effective revenue impairment of the Renard Streaming Agreement, and costs associated with the Mecheshoo Agreement, and on an unlevered basis. Given that much of the capital cost is now sunk, current estimates of internal rate of return (IRR) and payback period are not considered meaningful. Not considered in the Financial Analysis: 13.4 mcarats of Inferred Mineral Resources (24.5 mtonnes at 54 cpht) and 33.0 to 71.1 mcarats of non-resource exploration upside (76.2 to mtonnes at grades ranging from 25 to 168 cpht). Large diamond recovery. Additional plant utilization above 83.5% (achieved at 7,000 tpd or 2.52 Mtonnes/a).

27 27 Diamond Price Assumptions Body March 2014 Diamond Price Model 1 (US$/carat) Estimated Market Price Adjustment March 2014 to March 2016 Adjusted Price Estimates March 2016: Spot Price Models 2 (US$/carat) Renard 2 $197 (High $222, Min $178) $160 (High $181, Min $145) Renard 3 Renard 4 $157 (High $192, Min $146) $106 ($155) 3 (High $174, Min $100) -19% $128 (High $156, Min $119) $86 ($126) 3 (High $141, Min $81) Renard 65 $187 (High $190, Min $160) $152 (High $155, Min $130) Notes 1. As determined WWW International Diamond Consultants Ltd. at a +1 DTC sieve size cut off. 2. As determined by applying the world average rough price index of roughrices.com to the March 2014 price models, at a +1 DTC sieve size cut-off. 3. Should the Renard 4 diamond population prove to have a size distribution equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model of US$155 per carat would apply based on March 2014 pricing, equivalent to US$126 per carat on a market price adjusted basis to March Average life-of-mine pricing is US$185/ct or C$250/ct, or US$159/ct or C$214/ct after stream. The Financial Analysis assumes a 2.5% real terms diamond price escalation between 2016 abnd 2028 The Renard Streaming Agreement includes a payment of US$56 per carat on 20% of ROM production from Renards 2,3,4,9 and 65, Life-of-mine, escalating at 1% per annum after the 3 rd anniversary of production, inclusive of marketing costs. The weighted average price of the March 2016 Probable Mineral Reserve is US$155/ct, or C$209/ct, in March 2016 terms

28 Revenue Waterfall From January 2013 Optimization Study to March 2016 Updated Mine Plan 28 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $4,069 OS Jan 2013 $800 $773 Stream Impact Spot Diamond Pricing Net Revenue (C$ millions) $260 $574 $1,225 $4,555 Addition of R65 Addition of R2 Exchange Rate Updated Mine to 710m Depth Plan Mar 2016 Notes: Revenue is net of royalties, marketing costs, and (for the March 2016 Updated Mine Plan) the July 2014 Renard Streaming Agreement

29 Financial Analysis Cash Flow 29 $200 $150 $100 $50 $0 ($50) Net Free Cash Flow (C$ millions) $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 ($200) Net FCF Cumulative Net FCF Notes: Expressed in real terms. Payables and cash as of December 31, 2015 are included in 2016 Net FCF

30 Financial Analysis Valuation Sensitivities 30 $1,400 $2,500 After Tax NPV 7% (C$ Million) $1,200 $1,000 $800 $600 $400 $200 Pre Tax NPV 7% (C$ Million) $2,000 $1,500 $1,000 $500 $0 80% 90% 100% 110% 120% Revenue $621 $799 $974 $1,144 $1,313 Operating Cost $1,104 $1,038 $974 $906 $837 Capital Cost $1,037 $1,004 $974 $941 $909 Revenue Operating Cost Capital Cost $0 80% 90% 100% 110% 120% Revenue $784 $1,065 $1,349 $1,629 $1,913 Operating Cost $1,572 $1,459 $1,349 $1,236 $1,123 Capital Cost $1,440 $1,392 $1,349 $1,302 $1,255 Revenue Operating Cost Capital Cost

31 Financial Analysis After Tax Valuation Sensitivities: Diamond Price Assumptions 31 Real C$ 000, After Tax Diamond Price Scenarios 2 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% WWW High $1,902 $1,526 $1,329 $1,166 $1,095 $970 WWW Base $1,604 $1,281 $1,113 $974 $913 $806 WWW Low $1,324 $1,058 $919 $803 $753 $664 March 2014 No Escalation 3 $1,672 $1,357 $1,191 $1,052 $991 $884 Real C$ 000, After Tax Diamond Price Escalation Rate 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% 0.00% $1,207 $974 $851 $749 $704 $ % $1,398 $1,122 $978 $858 $805 $ % $1,604 $1,281 $1,113 $974 $913 $ % $1,825 $1,452 $1,258 $1,098 $1,028 $ % $2,070 $1,641 $1,418 $1,234 $1,154 $1,014 Notes 1. Grey shading presents base case assumption 2. Represents High and Minimum sensitivities based on alternate interpretations of diamond quality and potential value when estimating a Base diamond price model. High, Base and Minimum models are from the March 2014 WWW diamond pricing exercise, adjusted by -19% by Stornoway applying the world average rough price movement between March 2014 and March 2016 (as published by Roughprices.com which is based, in large part, on WWW market assortments) to the March 2014 diamond price models (Table 19-3). The choice of Minimum and High to describe the sensitivity limits is deliberate: in the view of WWW International Diamond Consultants it is highly unlikely that an actual diamond price achieved for each kimberlite ore 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. 3. Represents the March 2014 WWW base case diamond price models, with no diamond price escalation.

32 Financial Analysis After Tax Valuation Sensitivities: F/X and Energy Costs 32 Real C$ 000, After Tax Exchange Rate $1.35 C$/US$ 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% $ % $1,889 $1,518 $1,324 $1,162 $1,092 $969 $ % $1,738 $1,393 $1,213 $1,063 $998 $883 $ % $1,604 $1,281 $1,113 $974 $913 $806 $ % $1,480 $1,179 $1,022 $891 $835 $735 $ % $1,366 $1,084 $937 $815 $762 $669 Real C$ 000, After Tax Energy 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% 80% $1,647 $1,318 $1,146 $1,004 $942 $833 90% $1,625 $1,300 $1,130 $989 $927 $ % $1,604 $1,281 $1,113 $974 $913 $ % $1,580 $1,261 $1,095 $957 $897 $ % $1,557 $1,242 $1,077 $941 $882 $777 Notes 1. Grey shading presents base case assumption

33 Financial Analysis After Tax Valuation Sensitivities: OPEX, CAPEX 33 Real C$ 000, After Tax OPEX 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% -20% $1,801 $1,445 $1,259 $1,104 $1,037 $918-10% $1,701 $1,362 $1,185 $1,038 $974 $862 0% $1,604 $1,281 $1,113 $974 $913 $806 10% $1,502 $1,197 $1,038 $906 $849 $748 20% $1,397 $1,111 $961 $837 $783 $689 Real C$ 000, After Tax CAPEX 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% -20% $1,663 $1,343 $1,176 $1,037 $976 $870-10% $1,631 $1,310 $1,143 $1,004 $943 $837 0% $1,604 $1,281 $1,113 $974 $913 $806 10% $1,573 $1,249 $1,081 $941 $880 $773 20% $1,542 $1,218 $1,049 $909 $848 $741 Notes 1. Grey shading presents base case assumption. OPEX in December 2015 real terms. CAPEX in December 2015 nominal terms

34 Financial Analysis After Tax Valuation Sensitivities: Gross Revenue and Grade 34 Real C$ 000, After Tax Gross Revenue 2 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% -20% $1,067 $838 $719 $621 $578 $503-10% $1,336 $1,061 $917 $799 $747 $656 0% $1,604 $1,281 $1,113 $974 $913 $806 10% $1,865 $1,496 $1,304 $1,144 $1,074 $951 20% $2,128 $1,712 $1,494 $1,313 $1,234 $1,095 Real C$ 000, After Tax Grade 0.0% 3.0% 5.0% 7.0% 8.0% 10.0% -20% $1,119 $880 $756 $654 $609 $532-10% $1,363 $1,082 $937 $816 $763 $671 0% $1,604 $1,281 $1,113 $974 $913 $806 10% $1,840 $1,476 $1,286 $1,127 $1,058 $937 20% $2,079 $1,671 $1,458 $1,281 $1,204 $1,067 Notes 1. Grey shading presents base case assumption. 2. Gross Revenue represents the potential of Large Diamond Recovery resulting in an achieved $/carat sales result above plan. NPV (7%) valuations are after tax, after stream, and unlevered.