Cim Standards for Mineral Resource Reporting

CIM Standards for Mineral Resource Reporting

On May 5, 2010 the NI 43-101 technical report for the Updated Preliminary Assessment of the Renard Diamnd Project a 50:50 joint venture with SOQUEM INC. ("SOQUEM"), was completed and posted on SEDAR.

Link to NI 43-101 technical report for the Renard Updated Preliminary Assessment filed May 05, 2010

The highlights of the report were initially press released March 22, 2010 .

The study comprises a conceptual mine plan, capital and operating cost estimates, and cash flow model prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA"), a diamond processing plant design, with capital and operating cost estimates, prepared by AMEC Americas Limited ("AMEC"), and social, environmental and permitting aspects contributed by Stantec Experts-conseil limitée ("Stantec"). The conceptual mine plan is based upon a National Instrument ("NI") 43-101 compliant mineral resource estimate prepared by Golder Associates Ltd. and reported previously by Stornoway on December 8th, 2009.

Highlights of the study, on a 100% project basis, are as follows:

* Base case estimates of pre-tax Net Present Value ("NPV") and Internal Rate of Return ("IRR") at C$885 million (at an 8% discount rate) and 24.8% respectively using a September 2009 diamond valuation of US$117/carat and a US dollar exchange rate of C$1.11.

* A conceptual mine life of 25 years based on a production rate of 1.8 million tonnes per year and a total diamond production of 30 million carats.

* Pre-production capital cost of C$450 million, including contingencies, which increases to a total capital cost of C$511 million after sustaining capital and closure cost.

* Average life of mine operating cost of C$39.45/tonne in a conceptual mine plan utilizing both open pit and underground mining.

* Estimates of pre-tax NPV and IRR at C$1,173 million (at an 8% discount rate) and 29.7% respectively using current market assumptions for rough diamond pricing and the current US dollar exchange rate.

Inititial Preliminary Economic Assessment of 2008

On October 28, 2008, Stornoway announced the receipt of the initial economic study for Renard. The study comprised the initial December 2008 National Instrument ("NI") 43-101 compliant resource estimate and a diamond processing plant design prepared by AMEC Americas Limited ("AMEC"), and a mine plan, capital and operating cost estimate, and an economic assessment prepared by Agnico-Eagle Mines Limited ("Agnico"). AMEC's