Overview:

Stornoway Diamond Corporation is a leading Canadian diamond exploration and development company. In addition to maintaining a large portfolio of grassroots exploration and four advanced stage properties in Canada, Stornoway has a 50% interest in the Renard Project which received a positive preliminary economic assessment in October 2008, and has the potential to become the first diamond mine in Quebec, Canada. The 2010 winter drilling program at Renard has been completed and an Updated Preliminary Economic Assesment has been released. Highlights included a 1400% increase in the pre-tax Net Present Value (NPV) over the initial study of December 2008 raising it from C$56 million to C$885 million. Stornoway currently anticipates mine production to commence by the end of 2013.The experienced management and technical team of Stornoway have a strong track record of discovery and a history of wealth creation for shareholders.

What We Like about Stornoway:

• Great portfolio of development, advanced stage and exploration properties
• Mine production anticipated to commence in 2013
• Agnico-Eagle is largest shareholder
• High Quality Canadian Diamonds

Chief Properties:

Foxtrot (Renard)

The Renard Project, located within the Foxtrot Property, is a 50:50 JV with SOQUEM INC. (“SOQUEM”). Formed in 1996 to conduct regional reconnaissance scale diamond exploration in north-central Québec, the joint venture currently holds approximately 128,000 hectares of mineral permits in the Otish Mountains region.

The completion of 2010 Winter Drilling Program at Renard was announced on April 14, 2010 . The geological component of the winter drill program comprised three holes totaling 1,711 meters, targeted at the interpreted deep extensions of the Renard 3, Renard 4 and Renard 65 kimberlite pipes. In each case, the objective of the drilling was to test the scope of the kimberlites below the level of previous drilling, at depths where each has been previously classified as a potential mineral deposit (“PMD”).

Highlights included:

• Intersection of significant thickness of kimberlite in a previously untested location on the eastern side of Renard 3 at 373 meters vertical depth. Hole terminated in kimberlite prior to reaching the expected projection of the pipe based on previous geological mapping.
• Significant expansion of Renard 65 at its eastern extent at 383 meters vertical depth
• Significant expansion of Renard 4 at its southeastern extent. Hole terminated in kimberlite at 759 meters vertical depth.

Drilling also included 2,436 meters of geotechnical and hydro-geological drilling required for elements of the Feasiblity Study. Follow up plans for the Summer Drilling program are being discussed at the time of writing and will include further exploratory drilling.

The results of the Updated Preliminary Economic Assessment, released in March 2010, demonstrated a 1400% increase in the pre-tax NPV over the initial study of December 2008 raising it from C$56 million to C$885 million. Other highlights included an increased IRR of 24.8%, a 25 year mine life, an annual production of 1.6 million carats and a mine plan based on a 30 million carat resource.

Stornoway believes this deposit has the potential to become Québec’s first diamond mine. It is a substantial and rare resource with considerable upside potential, providing the opportunity for significant value growth in Québec’s emerging diamond story. Stornoway currently anticipates mine production to commence by the end of 2013.

Aviat

The 476,000 acre Aviat Project is a joint venture with the Hunter Exploration Group (10%) under which Stornoway holds a 90% interest in the property, is the operator, and holds 100% of the diamond marketing rights.

A total of twelve distinct, but likely related, kimberlite bodies have been identified on the Aviat Property since 2002 (AV1, AV1 West, AV267, AV2 Upper, AV3, AV4, AV5, AV8 Upper, AV8 Middle, AV8 Lower, AV9, and one currently un-named body discovered in 2008). The bodies range from small pipe-like intrusions at AV1, AV4, and AV9 to layered sheet or dyke like intrusions which characterize bodies AV1 West, and AV2 through AV8, including AV267, and reach widths of up to 16 m in the southwest. These shallowly dipping (8 to 20 degrees), macrocrystic, hypabyssal kimberlite sheets with associated zones of kimberlite breccia are thought to be part of a sequence of layered, horizontally stacked sheets separated by vertical distances of 10 to 30m.

Exploration work in 2007 and 2008 has led to a revised geological model and naming system for the Eastern Sheet Complex (“ESC”). Drilling has confirmed the AV267 body to be linked to the AV3 and AV8 Upper sheets, creating a single, 260 ha body averaging 1.7 m (reaching thickness of up to 16 m in the southwest), renamed the ES 1 kimberlite sheet. ES 2 sits in the ES1 hanging wall and ES 3 and 4 sit in the footwall (see satellite image map and cross section of bodies).

Stornoway engaged SRK Consulting (Canada) Inc. (“SRK”), an independent consultant, to provide a conceptual resource study on the Eastern Sheet Complex. The results of which were announced on October 7, 2008, and outlined the potential for 24.1 to 40.3 million carats of diamonds in 12.4 to 16.0 million tonnes of kimberlite using a diamond content of 235 cpht +/- 30 cpht based on existing diamond data. A mini-bulk sample of 202 wet tonnes was extracted from the ES 1 in 2008 for DMS processing for the purpose of providing additional insight into the grade, diamond value and overall economic potential of this large scale, and growing, diamond camp.

Management:

Matt Manson – President, Chief Executive Officer and Director
Matt Manson has over 14 years of experience in diamond exploration, development and production. He was appointed President of Stornoway in March 2007 following the acquisition of Ashton Mining of Canada and Contact Diamond Corporation, and subsequently President & CEO in January 2009. Between 1999 and 2005 he was employed by Aber Diamond Corporation (now Harry Winston Diamond Corporation) as VP Marketing and subsequently VP Technical Services & Control, during which time he participated in the US$230m project financing for the Diavik Diamond Project and oversaw Aber’s technical and marketing operations. Matt is a director of Karmin Exploration Inc., and a graduate of the University of Edinburgh (BSc Geophysics, 1987) and the University of Toronto (PhD Geology, 1996).

Eira Thomas – Executive Chairman and Director.
Ms. Thomas is a respected Canadian geologist who brings extensive experience to her role with Stornoway. She served as a geologist with Aber Resources Ltd. (now Harry Winston Diamond Corporation) from 1992 to 1997, leading the field exploration team that discovered the Diavik Diamond Project pipes in the Northwest Territories in 1994. She was promoted to Vice-President Exploration for Aber in 1997, a post she held for two years. She served as a director of Aber Diamond Corporation from April 1998 to August 2006.

Catherine McLeod-Seltzer – Lead Director
Catherine McLeod-Seltzer is the Chairman of Bear Creek Mining Corporation and a recognized leader in the minerals industry for her ability to create growth-focused companies that generate significant shareholder value. Catherine partners with successful geological teams and has been instrumental in helping build a number of successful mineral companies in the past 20 years, including Arequipa Resources, Francisco Gold, Miramar Mining, Bear Creek Mining, Stornoway Diamonds and Peru Copper Inc. Catherine was named Mining Man of the Year by The Northern Miner in 1999 and in 1997 she was given the “Award for Performance” by the Association of Women in Finance. She has also held a position on the Financial Post’s “Power 50″ since 2002.

Robin Hopkins – Vice-President, Exploration
Robin Hopkins, P.Geol. (NT/NU), has held this position since January 2006 and was Chief Technical Officer for the predecessor company, Stornoway Ventures Ltd., since 2003. Mr. Hopkins was Vice-President, Exploration, for Navigator Exploration Corporation between 2000 and 2004, and prior to that a key member of the Aber Resources Ltd. exploration team that discovered the Diavik Diamond Project pipes in the Northwest Territories in 1994. With more than 20 years exploration experience throughout Canada, Greenland and southern Africa since graduating from the University of Waterloo (HBASc, Earth Sciences), Mr. Hopkins is a Qualified Person under NI 43-101, and the Company’s diamond exploration programs are conducted under his direction.

Zara Boldt – Vice-President Finance, and Chief Financial Officer
Zara Boldt has held progressive positions with several mineral exploration companies, in addition to working for a national brokerage firm for several years. Her most recent resource industry roles include CFO for Sherwood Copper Corporation from May 2006 to May 2007 and Controller for the Northair Group of Companies between May 2004 and April 2007. Ms. Boldt is a Certified General Accountant and a graduate of the University of Puget Sound in Tacoma, Washington. Beyond her role at Stornoway, Ms. Boldt currently serves as a Corporate Secretary for Strongbow Exploration Inc. and North Arrow Minerals Inc. and is a Director of Troon Ventures Ltd.

Dave Skelton – Vice-President, Project Development
Mr. Skelton brings more than 21 years experience as a geologist including 15 years in diamond exploration and advanced evaluation. For the last 6 years, Mr. Skelton has managed the Renard Diamond Project, recently the subject of a positive Preliminary Assessment study released on October 28, 2008. Renard is Stornoway’s most advanced project and remains on track to be developed as Quebec’s first diamond mine.

Ghislain Poirier – Vice-President, Public Affairs
Ghislain Poirier is a geological engineer with more than 20 years of experience in the mining exploration industry. He is a graduate of Université Laval in 1984 and he obtained a masters degree in economic geology from Université du Québec à Montréal (UQAM) in 1987. From 1988 to 1991, he was involved as a consultant for several junior companies. From 1991 to 2005 he was employed by SOQUEM, a Quebec crown corporation involved in the mineral exploration industry. During this period he was involved in the discovery of the Renard diamond deposit as the joint venture partner of Ashton Mining of Canada inc. He joined Ashton in 2006 as Manager Environment and Public Affairs, a position that he is still responsible for with Stornoway Diamond Corporation. He is member of the Ordre des Ingénieurs du Québec (OIQ) and he has been a board member of the Association de l’Exploration Minière du Québec (AEMQ) for 10 years. In January 2009, he was appointed president of AEMQ for a 2 years mandate.

Patrick Godin – COO
Mr. Godin is a professional mining engineer with more than 20 years of experience in all aspects of mine development, construction and operation. Prior to joining Stornoway, Mr. Godin held the position of Vice President, Project Development, for G Mining Services Inc. of Montreal, with responsibility for the successful development of the Essakane Project in Burkina Faso under contract to IAMGOLD Corporation. Between 2007 and 2008 he oversaw the development of the Nunavik Nickel Project as Vice President Operations for Canadian Royalties Inc. Between 1991 and 2007 he held successively senior positions with Cambior Inc. and its affiliate companies, with experience in the development and management of several mining operations in the Abitibi-Témiscamingue region of Québec, and culminating in the role of President and General Manager of CBJ-CAIMAN S.A.S., the Cambior, and subsequently IAMGOLD, subsidiary in French Guiana.

Mr. Godin is a member of the Ordre des Ingénieurs du Québec, a director of Orbit Garant Drilling Inc. (TSX-OGD), and a member of the Technical Advisory Committee of the Canada Centre for Mineral and Energy Technology (“CANMET”).

Peter Nixon – Director
Mr. Nixon brings to the Stornoway board over 30 years of experience in research and institutional equity sales, largely focused on the mining industry. In 1989, Mr. Nixon helped to found Goepel Shields & Partners where the primary focus was to assist in the creation and building of a new independent investment firm specializing in the provision of investment advice to institutional investors as well as raising capital for companies in the natural resource industries in Canada. As an independent member of Stornoway’s board of Directors, Mr. Nixon brings strength in corporate governance and environmental stewardship.

Anthony Walsh – Director
Mr. Walsh graduated from Queen’s University (Canada) in 1973 and became a member of The Canadian Institute of Chartered Accountants in 1976. Mr. Walsh has over 20 years experience in the field of exploration, mining and development and is currently the President and CEO of Sabina Silver Corporation. Prior to joining Sabina, Mr. Walsh was President and CEO of Miramar Mining Corporation (1995-2007), was the Senior Vice-President and CFO of a computer leasing company (1993-1995) and the CFO and Senior Vice-President, Finance of International Corona Mines Ltd., a major North American gold producer (1989-1992). From 1985 to 1989 he was Vice-President, Finance of International Corona Mines Ltd., and from 1973 to 1985 Mr. Walsh held various positions at Deloitte, Haskins & Sells, a firm of Chartered Accountants.

David Garofalo – Director
Mr. Garofalo is currently the Vice-President, Finance and Chief Financial Officer of Agnico-Eagle Mines Ltd., an international mining company focused on gold. He has held this position since January, 1999. Before joining Agnico-Eagle, Mr. Garofalo served as Treasurer of Inmet Mining Corporation. Mr. Garofalo also serves on the Board of Directors and Audit Committee of Tiberon Minerals Ltd. Mr. Garofalo is a Chartered Accountant and a graduate of the University of Toronto (B.Comm.).

Yves Harvey – Director
Yves Harvey obtained a Ph.D. in economic geology from Université Laval, Quebec, in 1984. He also holds a Master’s degree in geological engineering, which he obtained from Ecole Polytechnique, Montreal, in 1975. He joined SOQUEM in 1978 as senior geologist, exploration. He left SOQUEM in 1984 to work for Roche ltée, Groupe-Conseil until 1989, after which he returned to SOQUEM as executive vice-president. He was appointed president and executive director of SOQUEM in 1991 and served in this capacity until 2006.

Serge Vézina – Director
Dr. Vézina is a consultant and engineer with over 40 years experience in the mining industry. Between 1988 and June 2006, he was employed by Cambior Inc., most recently as Vice President of Industrial Engineering and Environment. Mr. Vézina is a member of the Order of Engineers of Québec, a former chairman of the board of the Québec Mining Association, a former chairman of the board of COREM, and a member of numerous advisory panels and professional bodies within the Québec Mining Industry. Dr. Vézina is currently an adjunct professor at McGill University in Montreal and Laval University in Québec City, and a director of Osisko Mining Corporation. He is a graduate of Laval University (B.Sc. in Mining, 1966 and Ph.D. in Metallurgical Sciences, 1972).