Name and Location
Renard diamond project, Quebec, Canada.

Client
Stornoway Diamonds.

Project Description
The project is located about 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau, in the James Bay region of north-central Quebec.

The project hosts probable mineral reserves, as defined under National Instrument 43-101, of 22.3-million carats. The reserves are derived from 30.2-million carats of indicated mineral resources.

The November 2011 feasibility study included ramp and shaft access to the Renard underground mine. According to the optimisation study released in January 2013, shaft sinking will be deferred until later in the mine life and access to the underground mine will be through a ramp only.

The shaft will be developed to a depth of 610 m, sufficient to extract all mineral reserves and the inferred mineral resources. It will also be enlarged to accommodate the planned production rate of 6 000 t/d of ore.

Ore will be hauled to surface by 60 t trucks, with ramp ventilation capacity and surface maintenance facilities expanded to accommodate the increased fleet. Plant capacity remains at 6 000 t/d, expandable to 7 000 t/d. Power requirements, provided through on-site diesel power generation, are expected to total 12.2 MW during operations.

The optimisation study further states that diamond production in years 1 and 2 will be derived predominantly from the Renard 2/3 openpit. Diamond production from the underground mine will start during Year 2. As indicated in the feasibility study, underground ore will be mined, with blast-hole shrinkage on the 250 m, 430 m and 610 m development levels and waste backfill from surface. The optimisation study contains a refined draw-point design and a mining sequence, incorporating a panel-retreat method to better ensure geomechanical stability and mitigate the unexpected onset of natural caving.

According to a revised mine plan and technical report, dated March 2016, Renard is expected to produce an average of 1.8-million carats a year over the first ten years of mining at an average valuation of $155/ct. The mine will produce 1.6-million carats a year for the remainder of its 14-year mine life.

Construction began on July 10, 2014, following the completion of a C$946-million project financing transaction.

Once complete, the project will be the first diamond mine in Québec, and one of only six in Canada, and will employ about 500 people.

Value
The initial capital cost estimate of the project is C$775-million and the life-of-mine capital cost estimate is C$1.05-billion.

Duration
The revised mine plan brought forward the project schedule by five months, with first ore expected in September this year and commercial production set for December 31.

Latest Developments
Ore processing has started at the Renard project in mid-July, marking the start of ramp-up to full plant capacity of 2.16-million tonnes a year at 78% utilisation within nine months.

Commercial production at Renard will be declared when ore is processed for 30 days at 60% of nameplate capacity.

By July 13, one-million tonnes of ore have been stockpiled, which the company reports is sufficient to maintain the planned ramp-up. Initial production is based on ore sourced directly from the Renard 2/3 openpit and supplemented from the stockpile.

Key Contracts and Suppliers
SNC-Lavalin (EPCM).

On Budget and on Time?
The project is on schedule.

Contact Details for Project Information
Stornoway Diamonds director of investor relations Orin Baranowsky, tel +1 416 304 1026 or email info@stornowaydiamonds.com.
SNC-Lavalin, tel +1 514 393 1000 or fax +1 514 866 0795.