The Star Orion South The Star-Orion South Diamond Project

May 25, 2011

Safe Harbour StatementCertain statements contained in this presentation relate to future events or the Corporation's future performance,b i t t iti d tit t f d l ki t t t ithi th i f t ibusiness prospects or opportunities and constitute forward-looking statements within the meaning of certainsecurities laws, including the “safe harbour” provisions of Canadian securities legislation and the United StatesPrivate Securities Litigation Reform Act of 1995. All statements other than statements of historical fact may beforward-looking statements, which are often, but not always, identified by the use of words such as "seek","anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting","intend" "could" "might" "should" "believe" and similar expressions Forward-looking statements in thisintend , could , might , should , believe and similar expressions. Forward looking statements in thispresentation include, but are not limited to, statements regarding the anticipated production rate, projectfootprint, location of infrastructure, timing of completion of the final feasibility study, the diamond and depositvalue, and the likelihood of the presence of large stones in future production.

These statements involve known and unknown risks, uncertainties and other factors such as results of explorationactivities, the Corporation's limited experience with development-stage mining operations, uninsured risks,regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals,changes in commodity and particularly diamond prices, changes in the Canadian/US. exchange rate, actualperformance of facilities, equipment and processes relative to specifications and expectations, assumptions maderegarding the project schedule, assumptions made regarding provincial taxation, unanticipated environmentalimpacts on operations and other key assumptions utilized in the preparation of a feasibility study any of which mayimpacts on operations, and other key assumptions utilized in the preparation of a feasibility study, any of which maycause actual results or events to differ materially from those anticipated in such forward-looking statements. Otheradditional factors that could cause actual results to differ materially include, but are not limited to, the risk factorsdescribed in the Corporation’s Annual Information Form dated March 24, 2010 and its annual and interimMD&A. The Corporation cautions that the foregoing list of factors that may affect future results is not exhaustive.Actual results may differ materially from those expressed or implied by such forward-looking statements.Actual results may differ materially from those expressed or implied by such forward looking statements.

The Corporation believes that the expectations reflected in its forward-looking statements are reasonable, but noassurance can be given that these expectations will prove to be correct and such forward-looking statements shouldnot be unduly relied upon. These statements speak only as of the date specified. The Corporation does not intend,and does not assume any obligation, to update these forward-looking statements unless required to do so pursuantto applicable securities legislation.

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Diamond Mines and Evaluation Projects

Star – Orion South Diamond Project is located in a mining friendlyjurisdiction. Saskatchewan produces potash, uranium, gold, coal and other

natural resources. Anticipated diamond production date - 2016 3

Project Location

Orion South

Star

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Future Project Footprint

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Project Highlights

St O i S th Di d P j tStar – Orion South Diamond Project• Positive Prefeasibility Study (Feb 2010)

35 Mct Reserve at US$192 per carat & 35 Mct Reserve at US$192 per carat & 15 Mct Inferred Resources

Life of Mine 20 years

NPV $1 3 billi (b f t d NPV $1.3 billion (before taxes and royalties, 7% discount rate), IRR 16%

• High Value Diamonds Star: 11 96 carat $15 000 per carat Star: 11.96 carat $15,000 per carat Significant proportion Type IIa diamonds

• Project close to infrastructure: road accessible, future grid powerroad accessible, future grid power

• EIS submitted December 2010

• Final Feasibility anticipated June 2011

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• $15.6 million cash yearend 2010

Environment ‐ Community ‐ Permitting

• Star – Orion South Diamond Project Proposal submitted Nov 3, 2008

• Regular dialogue with communities g gthrough Diamond Development Advisory Committee

• Community Open House meetings F b 2009 d J 2010February 2009 and June 2010

• Five information gathering agreements signed with six First Nation groups and two Metis Nation groups and two Metis regions, and MOUs with two Metis regions and one First Nation

• Environment Impact Study (EIS) p y ( )submitted in December 2010

• Provincial and Federal environmental assessment process

d

7

underway

Star & Orion South Kimberlites

Orion South

Star Star

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Star Pit: PFS Final Phase• Pit depth 350 metres below surface p

• Pit diameter approx 2 km

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Star-Orion South Waste Removal & Mining• Grid power supply enables extensive use of electric equipment• Agreement signed & payment made to SaskPower for site power in 2013 • IPCC: Integrated In Pit Crusher Conveyor System• Waste removed at 20,000 tonnes per hourp• Ore mined at 40,000 tonnes per day• Small (10) truck fleet used between shovel and crusher for mining ore

Shovel Mobile Mining Sizer/Crusher

Conveyors Spreader/

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Processing Plant & Ore Stockpile

215,000 tonne kimberlite stockpile 40,000 tonnes per day40,000 tonnes per day

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Star – Orion South Processing Plant• Front end autogenous mills (AG)

S i l l ifi fi• Spiral classifiers remove fines• Size fraction 1- 45 mm (recover stones up to 800 carats)• Dense Media Separation, X-ray Sortex, Grease • Final diamond sorting & cleaning in Saskatoon

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Consultants and VendorsFeasibility Study Consultants

P&E Mining Consultants IncMetsoAECOMSRKClifton Associates

Mining, geological modeling, mine equipment selectionProcess and plant designInfrastructure design, capital estimatingKimberlite geotechnical & groundwater modelingOverburden geotechnical and foundation designsClifton Associates

Klohn Crippen BergerOverburden geotechnical and foundation designsProcessed kimberlite (tailings) design

AMEC Earth & Environmentalh

Lead EIS authorh d b l

Consultants used for EIS

CanNorthEcoDynamicsGolder Associates

Fisheries and aquatics baseline & assessmentFlora, fauna, riparian habitat baselinesHeritage Assessments

Primary Vendors used for Feasibility Study Cost Estimatingy y y gCaterpillar, P&H, Bucyrus Erie, Hitachi, Komatsu, Sandvik, Metso, Takraf, TNT, Micromine

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Diamond ValuationStar Kimberlite Unit Carats

Parcel Price Model Price Minimum Price High PriceStar Kimberlite Unit Carats

($/carat) ($/carat) ($/carat) ($/carat)

Cantuar 1,667.96 $287 $355  $281 $499Pense 1,410.47 $133 $175  $131 $224 EJF 7,124.74 $162 $225  $176  $296 MJF‐LJF 91.28 $193 $198  $106 $290OS Kimberlite Unit

EJF $ $ $ $EJF 1,400.01 $149 $192 $149 $258Pense 581.47 $73 $129 $94 $177

• February 2011 diamond price book applied to Star-Orion South diamondsDi d i i f ti f tt ti d T II di d d • Diamond price is function of attractive goods, Type IIa diamonds and course size frequency distribution (SFD)

• Project economics particularly sensitive to diamond price

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High Value Diamonds and Type IIa• Star diamond population has coarse SFD and

11.96 carat E colour

p psignificant proportion Type IIa: 26 percent of diamonds >2.7 carats: similar to Letseng

• Type IIa’s contain no N or B impurities and $15,000/carat$179,325Type IIa

• Type IIa’s contain no N or B impurities and top 10 largest are Type IIa: 726 ct Jonker to 3,106 ct Cullinan

5 37 t li h d

• +100 carat goods anticipated in future production

5.37 carat polished$10,000/carat$53,700Type IIayp

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Coarse Diamond Size Frequency• Star EJF & Cantuar diamond

SFD’s compared to Argyle and Letseng

• Letseng has the coarsest SFD of • Letseng has the coarsest SFD of all diamond bearing kimberlites

• Diamond SFD data is restricted and not usually published

• Present information suggests Star EJF & Cantuar SFDs second Star EJF & Cantuar SFDs second only to Letseng

• +100 carat goods anticipated from both EJF & Cantuar

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Final Feasibility Study• Feb 2011 diamond prices: re-optimization of Star & Orion South open pits and

revised estimation of the Mineral Reserve

• Processing plant designed specifically for Star-Orion South diamond population

• Capital and operating costs are being rigorously analyzed

• Well constrained (+/-15%) cost estimates for the financial model

• Completion of Final Feasibility Study (FFS) anticipated in June 2011

• FFS will provide the technical and financial details for production decisionp p

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Deposit Value, Diamond Price & Resource Size(Information in public domain)

In Situ Deposit Value (billions of dollars)

$11.6  $11.0 

$6.0 $$

$8

$10

$12

$14

Value

 ($B)

In Situ Deposit Value (billions of dollars)

$4.8  $4.6  $4.2 $2.9  $2.7 

$0

$2

$4

$6

Dep

osit 

Resources (millions of carats)Diamond Price (US$/carat)

5850^ 49

41^

3140

50

60

70

Size (M

C)

Resources (millions of carats)$331* 

$231◊ $223 $194  $190* 

$200

$250 

$300 

$350 

d Price (US$/ct)

Diamond Price (US$/carat)

20.515^ 12.7^

0

10

20

30Dep

osit 

$122  $117 $86 

$50 

$100 

$150 

$200 

Diamon

d

18* Estimated ◊ April 2010 Valuation ^ Includes indicated and inferred resources

Conclusions• Accessible: road access and grid power

• Large Resource: 35 million carats indicated, 15 million carats inferred

• High value diamonds: coarse SFD, significant proportion Type IIa g g p p yp

• EIS submitted, FFS anticipated June 2011, production decision thereafter

• Star and Orion South 20 year LOM just the beginning • Star and Orion South 20 year LOM just the beginning

• Huge regional potential with Orion and Taurus cluster kimberlites

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Technical TeamStrong technical team with extensive diamond

• George Read - Senior Vice President, Geologist 26 years

Strong technical team with extensive diamondexploration and evaluation experience

• Bill van Breugel – Project Manager, Mining Engineer, 33 years in mining

• Jane Danoczi – Manager, Process Design, Physicist, Process Engineer, 21 years

• Mark Shimell - Assistant Project Manager, Geologist, 16 yearsMark Shimell Assistant Project Manager, Geologist, 16 years

• Terry Burkholder - Assistant Project Manager, Millwright, 36 years

• Shawn Harvey – Geology Manager, Geologist, 14 years

• Tony French Manager Technical Services Geologist 30 years• Tony French - Manager Technical Services, Geologist, 30 years

• Ethan Richardson – Manager, Environment, Environmental Engineer, 15 years

• Arden Sobush - Procurement Manager, 24 years

B i D S i P j G l i 6 • Brian Desgagnes - Senior Project Geologist, 6 years

• Andy Stilling - Project Geologist and Data Manager, 18 years

• Louis Fourie - Project Geologist and Modeler, 13 years

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• Dan Stevely - Chief of Security, RCMP (ret), 32 years

Management & Corporate Information• Kenneth E. MacNeill - President, Chief Executive Officer, Director, ,

– Extensive background in all aspects of natural resource exploration and development

• Harvey J. Bay - Chief Operating Officer, Chief Financial Officer, Director– 32 years experience in senior financial management of mining companies32 years experience in senior financial management of mining companies

• George H. Read - Senior Vice President of Exploration and Development– Diamond exploration geologist with 26 years of international experience.

• Eric H. Cline - Vice President Corporate Affairs– Served 16 years in the Saskatchewan Legislature. Held senior responsibilities including Minister of

Health, Minister of Finance, Minister of Industry and Resources.

• Duane D. DeRosier - Vice President Administration– Eight years of audit experience and seven years of mining experience.

CORPORATE OFFICE300 - 224 4th Avenue S, Saskatoon, SK S7K 5M5Tel: (306) 664-2202

MARKET AND FINANCIAL INFORMATION• Exchange: Symbol TSX: SGF• Shares outstanding 224 million• Shares fully diluted 235 million Tel: (306) 664 2202

Fax: (306) 664-7181Email: shoregold@shoregold.comWeb: www.shoregold.com

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• Shares fully diluted 235 million• Cash position $15.6 million