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A New Force in the Canadian Diamond Industry

RBC Diamond Conference

London, May 15, 2008

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Forward Looking Information

This presentation may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Stornoway's expectations are in Stornoway documents filed

Stornoway disclaims any intention or obligation to revise or update such statements.

from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com.

from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com.

Our Vision

To create a successful growth oriented diamond company that succeeds in the practical business of mining and selling rough diamonds, and which pursues an aggressive exploration strategy to seek and develop world-class diamond mining opportunities in a market that has become increasingly under-supplied.

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Quality Diamond Assets in Canada

Ownership in Renard, one of Canada’s largest undeveloped diamond resources with potential for near term cash flow and leveraged against strong, predicted price growth

Four advanced diamond projects capable of adding reserves

One of Canada’s leading, diversified exploration portfolios with “blue-sky” potential

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Stornoway as an Investment Opportunity

Lowest Risk Canadian Portfolio With Large Exploration Upside For Investors

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Capital Market Profile

$0

$250

$500

$750

$1,000

$1,250

Hudson

Resou

rces

Indic

ator M

iner

als

Peregr

ine

Met

alex

Shear

Mine

rals

GGL

Diamond

s Nor

th

Diamond

ex

Diano

r

Sanat

ana D

iamon

ds

Storn

oway

Vaaldi

am

Mou

ntain P

rovin

ce

Mwan

aPet

ra

Shore

Gold

Harry W

insto

nGem

Mar

ket C

ap (

mill

ions

)

$1.74 billion

*as of April 30th, 2008

$1.93 billion

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Financial Platform

As of April 30, 2008

Market Capitalization:(based on average close for last 2 months)

$ 70 million

Total Shares Outstanding: 200 million

Cash Balance: $ 11 million

Fully Diluted Working Capital:  $ 22 million

Convertible Debentures:(12% per annum interest; matures March 16, 2009)

$ 20 million

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Why Canada?

9Canada’s Place in Global Diamond Exploration World Diamond Exploration Expenditures 2006

Canada

Russia

Australia

South Africa

Botswana

Democratic Republic of Congo

Namibia

Angola

Namibia $8.70

Sierra Leone $18.10

Australia $19.40

Democratic Republic of Congo $24.90

Botswana $30.10

Russia $35.80

South Africa $70.60

Angola $78.20

Canada $305.80

Sierra Leone Expenditures in Millions (Cdn)

Expenditure Information from Metals Economics Group, CorporateExploration Strategies 2006 and Courtesy of the Ontario Ministry of Northern Development and Mines

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Canadian Project Pipeline

Development-Track

Renard, Quebec

Advanced Exploration

Aviat, Nunavut

Churchill, Nunavut

Qilalugaq, Nunavut

Timiskaming, Quebec & Ontario

Early-Stage Exploration

Over 12 million acres of prospective ground in Canada over 150 kimberlites discovered to date.

DecliningRisk

Profile

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Stornoway’s Principal Properties (encompassing 155 kimberlites)

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Aviat (11)

Renard (14)

Qilalugaq (16)

Churchill (79)

Timiskaming (9)

Pikoo

Blackstone

Slave Craton (6)

Mackenzie

Coronation Gulf (10)

Wales Island (10)

Legend

Development Track Project

Advanced Stage Projects

Grass Roots Projects

Areas of Exploration Focus

Calling Lake

N. Alberta

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The Renard Kimberlites, Otish Mountains, Québec

Development Track Projects

The Foxtrot Project and Renard Kimberlites-

Renard” 1-10 kimberlite pipes and “Lynx-Hibou” kimberlite dyke system within “Foxtrot” property

50/50 Joint Venture between Ashton (a subsidiary of Stornoway) and SOQUEM

Discovered 2001-2003

Québec is routinely assessed as one of the top mining jurisdictions in the world

Agnico-Eagle Mines Ltd. is Stornoway’s largest shareholder and a leading mine developer in Québec .

MontrealCalgary Winnipeg

Toronto

Aviat

Renard

Qilalugaq

Churchill

Timiskaming

Pikoo

Blackstone

Slave Craton

Mackenzie

Coronation Gulf

Wales Island

Legend

Development Track Project

Advanced Stage Projects

Grass Roots Projects

Areas of Exploration Focus

Calling Lake

N. Alberta

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Renard Kimberlite Bodies

Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

Foxtrot Property

Strateco

Eastmain MineWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

Legend

Stornoway/Soquem JV Properties

HydroQuebec Facility

Renard Kimberlites

Kimberlitic Dyke

Kimberlitic Pebbles & Boulders

Diamond in Till

Anomaly Outline

HydroQuebec Powerlines

Winter Road

Road

N

Ice

Direct

ion

R7R1

Southea

st A

nomal

y

North

Ano

mal

y

South A

nomal

y

2 km

Renard Core Area

North Dyke Discovery

SE Dyke Discovery

R10

R7

R1Hibou

Lynx

The Renard Kimberlites are Complicated and have Variable Grades(Renard 2 Geological Model, February 2008)

Plan View Plan View

Halo

Oblique View (no Halo) Oblique View (no Halo)

Brown(kimb2b)

Blue (kimb2a)

HK

CRB

West View

The Renard Kimberlites are Complicated and have Variable Grades(Renard 3 Geological Model, February 2008)

Looking North Looking North Looking North (No Halo) Looking North (No Halo)

Blue (kimb3b)

Brown (kimb3f)

Green(kimb3i)

CRB+HK

Grey(kimb3g)

?

Plan View Plan View

Halo

Renard Bulk Sample Program (2006-2007)

Extraction and processing of 10,000 tonne bulk sample from Renard kimberlites 2, 3 and 4.

Combination of underground decline and surface trenching

On-site treatment by DMS of 6,000 tonnes.

Valuation of 6,500 carat sample October 2007, revised March 2008.

Underground SamplingSurface Sample Renard 4Underground Sample Renard 2 & 3

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Renard 2 Renard 3 Renard 4 (Northern Complex

Zone)

Lynx Hibou

Tonnes Treated 2,448 1,929 2,099 494 31

Carats Recovered 1,602 2,681 2,723 529 40

Largest Diamond Recovered (carats)

15.46 10.15 5.92 21.53 1.01

Diamond Recovery Range (cpht)1

26 to144 78 to 223 80 to184 n/a n/a

Average Diamond Recovery (cpht)1

65 139 130 108 126

Valuation, with sensitivities: WWW March 08

US$121 ($108 to $136)

US$121 ($108 to $136)

US$79 ($71 to

$87)

US$66 ($56 to $97)

US$66

Bulk Sample Rock Value ($/tonne)

$79 $168 $103 $71 $83

2007 Bulk Sample Results

1The estimated diamond content, expressed as carats per hundred tonnes, may not be representative of the overall diamond content of the body due to a number of factors, including location and size of the samples

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Agnico-Eagle will author the main pre-feasibility report with support and contributions from AMEC Americas Ltd.

Four Study Modules Module 1: Resource (AMEC) Module 2: Mine (AEM) Module 3: Plant (AMEC) Module 4: Cap-ex, Op-ex and

Financial Model (AEM)

Pre-Feasibility Study

June 2007 : Pre-feasibility Phase 1 Commences

November 2007: Pre-feasibility Phase 2 Commences. First results beginning Q2 2008.

10.15 carat10.15 carat

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A Renard Diamond Resource

Renard 3 Bulk Sample

Diamonds

Renard 3 Bulk Sample

Diamonds

10.15ct

4.94ct4.26ct

6.36ct

4.89ct

Lynx Mini-Bulk 5.7ct

Renard 3 Mini-Bulk 4.3ct

The Renard Kimberlites are Small

Grades are Variable, but Good by World Standards

The Renard Diamonds are High Quality with:

Good crystal shapes

Colours of White to Brown

No “Boart” or Industrial Grade diamonds

A potential for large “Special” diamonds

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

+5ct

2.5-4ct

8gr

3-6gr

+7-3gr

Gem

Near-Gem

Bottom

40% 50% 60% 70% 80% 90% 100%

+5ct

2.5-4ct

8gr

3-6gr

+7-3gr

Gem

Near-Gem

Bottom

By weight...

By value…

Renard Diamonds: Value Upside with Large Gems21

At Renard, Quality Improves with Size!

SWY Internal Analysis of 6,500 carat sample

Conceptual Site Layout(Working Draft)

Lynx

1 000 m

Winter road

Processed Kimberlite and Strip Rock

Overburden Storage

Open PitR2 & R3

Water Treatment

Open Pit R4 & R9

Hibou

Permanent Road

Plant and Accommodation

Conceptual Mine Plan: Combined Open Pit and Underground Mining(Working Draft)

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Renard 2Renard 2

Renard 3Renard 3

Renard 9Renard 9Renard 4Renard 4

Portal

Level 540Drilling

Level

Level 530Mucking

Level

130 m

100 m

Level 525 (Drilling Level)

Level 515 (Mucking Level)

Level 504 (Drilling Level)

Level 494 (Mucking Level)

Elev 500

Elev 0

Plant and Production Rate

Investigating 3,500 and 5,000 tonnes per day options

1.3m to 1.8m tonnes/year or 1m to 1.5m carats/year

Recovery of large diamonds a priority for flow sheet design

Proven technology on diamond recovery

Investigating onsite Genset against powerline and cheap hydro: Cap-ex/Op-Ex trade off

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Renard Development: An Optimistic Schedule25

20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 2013201319991999

20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 2013201319991999

Grassroots ExplorationGrassroots Exploration

DiscoveryDiscovery

Staged Mini-Bulk SamplingStaged Mini-Bulk Sampling

Bulk Sampling

Bulk Sampling

Pre-FeasPre-Feas

Feas./ Permitting

Feas./ Permitting

ConstructionConstruction

Prod.Prod.

The Timing and Nature of Infrastructure Development is Key

?

?

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Road and power access are critical determinants for the economic viability of the Renard Project.

Stornoway has conducted scoping-level studies for a 4-season forestry grade road from both the north (154km) and the south (238km).

Stornoway lends full support to a Provincial and Federal Government, Community and Industry partnership created to facilitate a permanent “Route Monts Otish”.

Infrastructure: Access Routes and Powerlines

Stornoway/Soquem JV Properties

HydroQuebec Facility

Kimberlitic Pebbles & Boulders

HydroQuebec Powerlines

Road

Renard

LG3LG2LG4

Laforge 1

Laforge 2

Brisay

StratecoStratecoEastmainEastmainWestern TroyWestern Troy

Troilus Mine

Eleonore

Temiscamie

Mistissini

ChibougamauMatagami

Wemindji

Potential Powerlines

Potential Road

Canadian Diamond Project Resources and Cap-Ex

0

20

40

60

80

100

120

140

160

180

200

Diavik Ekati Jericho Victor Snap Lake Ghacho Kue Star (FalC) Renard

cara

ts (

mill

ions

)

0

200

400

600

800

1000

1200

1400

1600

US

$ (m

illio

ns)

Capex (US$M) Resource

Mines Development Projects Development-Track Projects

Source: 2005 Mine Estimates and 2006 Project Forecasts

Renard: Opportunities and Challenges

The Opportunities

Renard has the potential to become Quebec’s first diamond mine.

A producer of large, high value gems

200-300 jobs during construction, 150-200 jobs during operation

Potentially 1m to 1.5m carats/year for more than 10 years

Local purchasing, employment, and capacity development

The Challenges

The Project is modest in scope and requires careful, cost-conscious management.

Government and community support for infrastructure development is key.

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Exploration

Advanced Stage Projects

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Stornoway’s Property Portfolio

(as at July 02, 2007) 12.88 million acres total (in 34 active projects)

0.40 million acres ‘development’ stage (Renard)

5.04 million in ‘advanced’ stage projects (Aviat, Churchill, Qilalugaq and Timiskaming)

7.44 million acres in ‘early stage’ projects (Pikoo, Botswana, Blackstone, Itza, etc.)

3131

Aviat (11)

Legend

Development Track Project

Advanced Stage Projects

Grass Roots Projects

Areas of Exploration Focus

Churchill (79)

Qilalugaq (16)

Timiskaming (9)

Stornoway’s Advanced Stage Exploration Properties (encompassing 155 kimberlites)

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Aviat (11)

Aviat (90%)Budget for 2008 is $3.1 million

Legend

Development Track Project

Advanced Stage Projects

Grass Roots Projects

Areas of Exploration Focus

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Aviat – Ongoing Exploration

11 kimberlites to date (8 dyke-like)

good grades from those tested to date (average 75-100 cpht in early stage sampling; 162 cpht from 20.6 tonne sample of AV267)

diamonds derived from similar source

best 2007 intersection: 7.0 m (dykes), 87.0 m (AV9 pipe)

AV9 came back significantly diamondiferous; 2008 focus

Press Releases of January 21st and 29th 2008

162 cpht and 3.64

Carat Diamond

Recovered from

AV267 Kimberlite

6.2 t80 cpht

20.6 t162 cpht

2.1 t

48.9 t89 cpht

Sch

emat

ic C

ross

Sec

tion

Aviat 2007 Exploration SummaryAviat 2007 Exploration Summary

20.6 t162 cpht

6.2 t80 cpht

AV9

AV267

AV2 Upper

150 m

?

? ?? ?

?

?

S N

Aviat’s Eastern Sheet Complex: area of focus

preliminary resource model currently being formulated for AV267 body; larger sample planned for 2008

AV9 body, discovered late in 2007, will be focus of spring drilling program commencing in April, 2008

dimensions not currently known of AV9; larger sample required to understand diamond carrying capacity.

36Advanced Exploration Projects2007 Budget ~ $7.0 million

Project % Interest KimberlitesGrades

cphtTonnagePotential

Bulk Sampling

Diamond Quality

Aviat 74.10% 11 75-142 High 85 tonnes pending

Qilalugaq 50-60% 16 30 High 42 tonnes pending

Churchill 41.86% 70+ 40-200 Medium 400 tonnes pending

Timiskaming 100% 9 15 Medium 600 tonnes High

Evaluation Work Completed to Date

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Exploration

Grass Roots Projects

38Grass Roots Exploration Budget 2007 = $3.0 million

Blackstone

Slave Craton

Mackenzie

Legend

Areas of Grass Roots

Exploration Focus

Foxtrot

Timiskaming

Itza

Calling Lake

N. Alberta

8 drill ready projects8 drill ready projects

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Conclusion

Stornoway Offers:

A new and unique diamond investment opportunity at the right time

Strong, experienced management

One of Canada’s leading technical teams with a track record of discovery

Diversified project pipeline including grass roots and development track assets

Future cash flow potential

A company well positioned for growth

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A New Force in the Canadian Diamond Industry

www.stornowaydiamonds.com