BMO Global Metals and Mining ConferenceFebruary 25-28, 2018

Forward Looking Information

2

This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as “forward-looking statements”, are made as ofthe date of this presentation and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Capitalized terms in these FLS nototherwise defined in this presentation have the meaning attributed thereto in the most recently filed AIF of the Corporation.

These forward-looking statements include, among others, statements with respect to Stornoway’s objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals,as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. Although management considers these assumptions to be reasonable based on informationcurrently available to it, they may prove to be incorrect.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amountof Mineral Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating torecovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage;(v) assumptions relating to gross revenues, cost of sales, cash cost of production, gross margins estimates, planned and projected capital expenditure, liquidity and working capital requirements; (vi) mine expansionpotential and expected mine life; (vii) the expected time frames for the ramp-up and achievement of plant nameplate capacity of the Renard Diamond Mine (viii) the expected financial obligations or costs incurred byStornoway in connection with the ongoing development of the Renard Diamond Mine; (ix) future market prices for rough diamonds; (x) sources of and anticipated financing requirements; (xi) the effectiveness, funding oravailability, as the case may require, of the Senior Secured Loan and the remaining Equipment Facility and the use of proceeds therefrom; (xii) the Corporation’s ability to meet its Subject Diamonds Interest deliveryobligations under the Purchase and Sale Agreement; and (xiii) the foreign exchange rate between the US dollar and the Canadian dollar. Any statements that express or involve discussions with respect to predictions,expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements ofStornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding presentand future business prospects and strategies and the environment in which Stornoway will operate in the future, including the recovered grade, size distribution and quality of diamonds, average ore recovery, internaldilution, and levels of diamond breakage, the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, anticipated financial performance. Although management considers its assumptions on suchmatters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, butare not limited to: (i) required capital investment (ii) estimates of net present value and internal rates of return; (iii) recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution,mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage, (iv) anticipated timelines for ramp-up and achievement of nameplate capacity at the RenardDiamond Mine, (v) anticipated timelines for the development of an open pit and underground mine at the Renard Diamond Mine; (vi) anticipated geological formations; (vii) market prices for rough diamonds and theirpotential impact on the Renard Diamond Mine; and (viii) the satisfaction or waiver of all conditions under the Senior Secured Loan and the remaining Equipment Facility to allow the Corporation to draw on the fundingavailable under those financing elements.

Forward Looking Information (continued)

3

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not beachieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomesto differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as therisk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include,without limitation: (i) risks relating to variations in the grade, size distribution and quality of diamonds, kimberlite lithologies and country rock content within the material identified as Mineral Resources from thatpredicted; (ii) variations in rates of recovery and diamond breakage; (iii) slower increases in diamond valuations than assumed; (iv) risks relating to fluctuations in the Canadian dollar and other currencies relative to theUS dollar; (v) increases in the costs of proposed capital, operating and sustainable capital expenditures; (vi) operational and infrastructure risks; (vii) execution risk relating to the development of an operating mine at theRenard Diamond Mine; (viii) failure to satisfy the conditions to the funding or availability, as the case may require, of the Senior Secured Loan and the Equipment Facility; ( ix) developments in world diamond markets; and(x) all other risks described in Stornoway’s most recently filed AIF and its other disclosure documents available under the Corporation’s profile at www.sedar.com. Stornoway cautions that the foregoing list of factors thatmay affect future results is not exhaustive and new, unforeseeable factors and risks may arise from time to time.

Qualified Persons

The Qualified Persons that prepared the technical reports and press releases that form the basis for the presentation are listed in the Company’s AIF dated February 23, 2017. Disclosure of a scientific or technical naturein this presentation was prepared under the supervision of M. Patrick Godin, P.Eng. (Québec), Chief Operating Officer. Stornoway’s exploration programs are supervised by Robin Hopkins, P.Geol. (NT/NU), Vice President,Exploration. Each of M. Godin and Mr. Hopkins are “qualified persons” under NI 43-101.

Non-IFRS Financial Measures

This presentation refers to certain financial measures, such Adjusted EBITDA, Adjusted EBITDA margin, Average diamond price achieved, Cash Operating Cost per Tonne of Ore Processed, Cash Operating Cost per CaratRecovered, Capital Expenditures and Available Liquidity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS.

“Adjusted EBITDA” and “Adjusted EBITDA Margin” are used by management and investors to assess and measure the underlying pre-tax operating performance of the Corporation and are generally regarded by management as better measures to evaluate performance trends. “Adjusted EBITDA” is defined as net income (loss) before depreciation, interest and other financial (income) expenses, and income tax, adjusted for impairment charges, unrealized gains and losses related to the changes in fair value of U.S. Denominated debt and other non-recurring or unusual items that are not reflective of the Corporation’s underlying operating performance and/or unlikely to occur on a regular basis. “Adjusted EBITDA Margin” is the calculation of Adjusted EBITDA divided by total revenues. “Average diamond price achieved” is a measure used by the Corporation to measure the value of diamonds sold into the market in the period, prior to adjustments to reflect the impact of the stream. This measure is used by management and investors as it reflects the average diamond price achieved during the period and is more comparable to the average diamond price achieved by to other diamond producers. Average diamond price achieved is calculated based on reported revenues adjusted for the amortization of deferred stream revenue, and remittances made to/from stream participants and gains or losses from revenue hedging activities divided by the number of carats sold in the period. “Cash Operating Cost per Tonne Processed” and “Cash Operating Cost per Carat Recovered” are used by management and investors to measure the mine’s cash operating cost based on per tonne of ore processed or per carat recovered. Cash Operating Cost Per Tonne Processed is calculated based on reported operating expenses adjusted for the impact of inventory variation, excluding depreciation, divided by tonnes of ore processed for the period. Cash Operating Cost per Carat Recovered is the total cash operating cost divided by carats recovered. “Capital Expenditure” is the term used by the Corporation and investors to describe capital expenditures incurred during the period. This measure is used by management and investors to measure the amount of capital spent by the corporation on sustaining, margin improvement, and/or growth capital projects in the period. “Available Liquidity” comprises cash and cash equivalents, short-term investments and available credit facilities (less related upfront fees) and is used by the management and investors to measure the amount of cash resources available to the Corporation, over and above the cash generated from operations, to support the operating and capital requirements of the business.

100% Owned Renard Diamond Mine – Québec, CanadaThe Canadian Diamond Mine Connected by Permanent Road Access

4

EKATISNAP LAKE

DIAVIKGAHCHO KUE

VICTOR

MONTREAL (800km)

TEMISCAMIE (240 km)MISTISSINI (360 km)

CHIBOUGAMAU (420 km)

Route 167 ExtensionRenard Mine Road

RENARD

Project Completed Ahead of Schedule and Below BudgetFirst ore in plant in July 2016; commercial production declared on January 1, 2017; construction completed C$37M below budget1

Production Ramp Up and First Operating Year CompletedFY2017 Production targets in line with guidance; lower pricing at sale than expected and processing upgrade underway

Low Cost, Long Mine Life Asset with UpsideLowest cost diamond producer in Canada; Life of Mine Plan to FY2030; Upside on mine life, processing capacity and pricing

Strong Social License and Institutional SupportPartnered with the Crees of Eeyou Istchee; Investissement Québec, CDPQ (la Caisse), Orion and Osisko as investors, lenders and/or streamers

Strong Balance SheetAs of September 30, 2017, cash, cash equivalents and short term investments of $52.6 million. Available liquidity2, of $157.8 million.

1. C$771.2 million to December 31, 2016 and $2.8 million of costs deferred to 2017 compared to a starting budget of C$811M (July 2014)2. See Note on “Non-IFRS Financial Measures”; includes cash, cash equivalents and available credit facilities

Renard Mine Site

5

Crusher

R2 & R3 Pit

Ore Stockpiles

R65 Pit Power Plant

Process Plant

Maintenance Shop

Admin/DryAccommodation

December 2017

UG Mine Development, October 2017

R2-R3 Pit, June 2017

UG Mine Portal

PKC Facility

Ore-Waste Sorting

Mine PlanBusiness Case, Including 13Mcarat Inferred Mineral Resources, March 30, 2016

Combined open pit and underground mining

2015-2018 Open pit R2, R3

2014-2029 Open pit R65

2018-2035 Underground R2, blasthole shrink stoppage with panel retreat

2029-2035 Underground R3, R4 (longhole stoping and blasthole stoppage respectively)

All pipes open at depth.

6

7

9

10

11

R3 OPEN PITR2 OPEN PITR65 OPEN PIT

RETURN AIR RAISE FRESH AIR

RAISE

PORTAL

BACKFILL RAISES IN CROWN PILLAR

410L

270L

710L

590L

470L

290L

400L

250L

860L

VENTILATION RAISE

MAIN RAMP

5

1

4

2

3

86

Reserve and Resource categories are compliant withthe "CIM Definition Standards on Mineral Resourcesand Reserves". Mineral resources that are not mineralreserves do not have demonstrated economicviability. The potential quantity and grade of anyExploration Target (previously referred to as a“Potential Mineral Deposit”) is conceptual in nature,and it is uncertain if further exploration will result inthe target being delineated as a mineral resource.

RENARD 65

RENARD 4

RENARD 9

RENARD 2

RENARD 3

Operating and Financial ResultsAs of December 31, 2017 (Operating) and September 30, 2017 (Financial)

7

FY2017 Production and Sales ResultsAt December 31, 2017. All quoted figures in CAD$ unless noted

Processing

1.64 Mcarats recovered from 1.96 Mtonnes at 84 cpht (97%,

98% and 99% compared to plan, respectively)

Ramp-up achieved on schedule. Q4 average processing rate

of 6,014 tonnes per day (nameplate 6,000 tpd)

Sales

Diamond Sales of 1.7 mcarats for gross proceeds1 of $186.2

million at an average price of US$85/ct ($109/ct2,3)

Health, Safety & Environment

On December 15, 2017, Stornoway’s employees achieved 1

year without lost time incident for a total of 1.15 million

hours worked.

Zero environmental derogations against permits

8Notes1. See Note on “Non-IFRS Financial Measures” 2. Based on an average C$: US$ conversion rate of $1.2916

3. Before stream and royalty

Renard Project Progress Operating KPIs

9

KPIs Project to Date as at December 31, 2017

Actual Plan % Variance

Ore Tonnes Processed 2.35m 2.22m +6%

Carats Recovered 2.09m 1.91m +9%

Grade (cpht) 89 86 +3%

Monthly Carats Recovered

--

50

100

150

200

250

Tho

usa

nd

Car

ats

R65 Ore

R3 Carats

R2 Carats

Commercial Production Declared

Monthly Ore Milled

--

50

100

150

200

250

Tho

usa

nd

To

nn

es

R65 Ore

R3 Ore

R2 Ore

NameplateThroughput(tpd)

Commercial Production Declared

$58$77

$92

$167

Renard Gahcho Kue Ekati Diavik

Lowest-Cost Canadian Diamond MineCanadian Diamond Mine Cash Operating CostsC$ per Tonne Processed 2017

10

Renard has the lowest cash operating costs per tonne among Canadian diamond mines

Logistics: the Route 167 Extension makes Renard the only Canadian diamond mine accessible by permanent road

First Canadian mine powered by LNG; trucked to site daily from primary distributer in Montreal. Low carbon footprint and lower cost profile than diesel

Renard benefits from a dynamic mining market in Québec for personnel, contractors, suppliers and equipment. All available on just-in-time basis

1,2 3,5 3,6

1. Q3 cash operating costs per tonne processed during the year ended December 31, 2017. 2. See Note on “Non-IFRS Financial Measures”3. Information derived from public filings of companies. Cash operating costs per tonne is not defined under IFRS

and therefore may not be comparable to similar measures presented by other issuers. Companies calculate non-IFRS measures differently and as such a comparison of this measure among different companies may not be reliable

3,4

4. Based on cash operating costs per tonne processed, net of capitalized stripping, during the first three quarters of 2017, based on publicly available data5. In respect of Ekati, based on last reported cash cost per tonne processed prior to acquisition by Washington Corp.; converted from US$ to C$ using the average Bank of Canada closing rate for the corresponding six months ended July 31, 2017 of 0.75396. In respect of Diavik, based on last reported cash cost per tonne processed prior to acquisition by Washington Corp.; converted from US$ to C$ using the average Bank of Canada closing rate for the corresponding six months ended June 30, 2017 of 0.7494

Route 167 Extension

Underground Mine Development

11

Principal ore production at Renard will be sourced from the Renard 2 underground mine starting Q2 2018, with supplementary ore feed derived from the Renard 65 open pit

First production level at 290m well advanced

26 of 32 drawpoints required for FY2018 production completed

Production drilling inventory of 436,424 tonnes of drilled ore established

First production blast on December 15, 2017 completed successfully and on schedule

KPIs Project to Date to December 31, 2017

Actual Plan %

UG Development Meters 8,485 8,115 +5%

100.0

111.7109.9

113.9 115.4119.2 119.0

110.1 111.1113.5

120.0

90.0

100.0

110.0

120.0

130.0

Ind

ex

(No

v 2

01

6=1

00

)

Diamond Sales

12

Renard Diamond Price Movements, Real Terms1

1. Sale by sale basis, normalized for variations in quality and size distribution

2. Before stream and royalty

November 2016, Base =100 January 2018, 120

Q1 20173 Q2 2017 Q3 20174 Q4 20174 FY2017

Q1 2018

Sales to

Date

Number of Sales 3 2 2 2 9 1

Carats Sold 459,126 350,159 438,632 453,646 1,701,561 138,687

Gross Proceeds ($M)2 44.5 40.9 51.6 49.1 186.2 18.0 (est)

Average Price per Carat (US$/ct) 73 87 94 86 85 104

Average Price per Carat ($/ct) 97 117 118 108 109 130 (est)

Average Exchange Rate ($:US$) 1.3242 1.3453 1.2520 1.2636 1.2916 1.25 (est)

3. Includes 52,681 carats of smaller and lower quality goods carried over from Stornoway’s first sale in November 2016. Excluding these goods, on a run-of-mine basis, 406,446 carats were sold in the first quarter for gross proceeds of $43.8 million, at an average price of US$81 per carat ($108 per carat)

Pricing achieved at sale is highly dependent on product mix and the prevailing rough diamond market

First sale in November 2016 resulted in positive customer experience and word of mouth, resulting in a 12% price increase for the second sale in January 2017 and a 19% increase by July 2017

In real terms, pricing for Renard diamonds has increased +20% between the first sale in November 2016 and January 20181

The outlook for rough diamond pricing in the first half of 2018 is positive, owing to good holiday sales in the principal diamond jewellery retail markets and a flat supply outlook

At the first sale of 2018, 138,687 carats were sold for gross proceeds of US$14.4 million2 at an average price of US$104 per carat. This was the highest price achieved to date and 22% above the average price achieved in FY2017 (US$85 per carat)

4. Third quarter results include 32,989 carats sold during the third quarter’s last tender sale, but for which revenues was realized in the fourth quarter. Results for the fourth quarter exclude these goods

13

Diamond Price ReconciliationBased on Mixed Renard 2-Renard 3 Production Sold to Date

Diamond Price Timeline – Renard 2&3 (US$/ct)

November 2011 – Feasibility Study: WWW1 base case model valuation for combined R2-R3 diamond sample based on an average of 5 independent valuators.

March 2016 – Mine Plan: Mine Plan

price revised based on published

rough price indices

December 2017: Project to date

Opportunity for Increased Pricing:From plant optimization adjustments

From improving market dynamics

$139

$87

($15)

($28)

($9)

$60

$70

$80

$90

$100

$110

$120

$130

$140

($15) ($28) ($9)Mar-16 Dec-17 Project to Date

$/ct

Price Reconciliation 2016 - 2017 Breakdown (US$/ct)

Price factors: Diamond Market and recovered diamond

quality)

Size Distribution factors: higher smalls

production and lower large recovery

attributable to breakage)

Short Term FY2017 Market

factors, eg Indian demonetization)

MarketPhysical diamond attributes (Size and Quality) influenced by Plant

US$/ct

$182

$139

$87

1. WWW International Diamond Consultants

Q1-Q3 2017 Financial ResultsAt September 30, 2017, unaudited. All quoted figures in CAD$ unless noted

Adjusted EBITDA1, EBITDA Margin1 and Income

Balance Sheet

Cash, cash equivalents and short term investments of $52.6 million

Total liquiditynote 3, comprising cash, cash equivalents and available credit facilities of $157.8 million1,2

14Notes1. See Note on “Non-IFRS Financial Measures”2. Includes cash, cash equivalents and available credit facilities

$15.0 $15.1 $15.0

35.9% 35.6%

30.0%

0%

10%

20%

30%

40%

50%

60%

-$10

$0

$10

$20

$30

$40

$50

$60

Q1 Q2 Q3

$M

Gross Revenue ($m)

Adj. EBITDA

Income

EBITDA Margin

Cash Costs1: FY2017 Guidance $60/t and $70/ct processed

$57.9$54.1

$58.0

$63.0$66.4 $66.4

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

Q1 Q2 Q3

$ Op-Ex perTonne

Op-Ex perCarat

$17.1

$24.0 $22.7

$0

$10

$20

$30

Q1 Q2 Q3

$M

Cap-Ex

Capital Costs1: FY2017 Guidance $79M

OutlookAs of December 31, 2017

15

High Risk for Breakage

Diamond between liner and waste

Low Risk for Breakage

Diamond within kimberlite

Outlook: Diamond Value Improvement at Renard

Since processing began at Renard, a higher than expected level of diamond breakage has been observed. Diamond breakage occurs in all diamond process plants. It is measurable, and can be mitigated.

The high level of breakage at Renard appears related to the high proportion of hard, internal dilution within the Renard ore producing an abrasive environment within the process plant’s crushers

Stornoway has approved an extraordinary capital budget of $22 million for certain plant improvements, including a new ore-waste sorting circuit designed remove a large proportion of the abrasive dilution from the crushing circuits and improve the quality and quantity of diamond recoveries.

The new circuit will be rated at 7,000tpd and expandable, and will be added to the Renard process plant after the primary jaw crusher and before the secondary cone crusher. Project op-ex will increase by an estimated $1/tonne.

Construction is well advanced, with commissioning scheduled for end of Q1 2018.

16

Ore-Waste Sorting Circuit Construction, February 2018

Outlook: Mine Life Extension and Production Growth Potential Opportunity to accelerate high-grade ore and expand processing capabilities

17

R3 OPEN PITR2 OPEN PITR65 OPEN PIT

RETURN AIR RAISE FRESH AIR

RAISE

PORTAL

BACKFILL RAISES IN CROWN PILLAR

410L

270L

710L

590L

470L

290L

400L

250L

860L

VENTILATION RAISE

MAIN RAMP

RENARD 65

RENARD 4

RENARD 9

RENARD 2

RENARD 3

1. Acceleration of high grade R3 Underground Resources to production in 2019

3. Resource expansion in R3 below 250m depth

2. Potential open pit at Renard 4-9

Construction in 2020 and production in 2021

Processing expansion in 2021 to 8,000-9,000tpd on blended 6,000tpd underground and 2,000-3,000tpd open pit

Will require incremental capital in 2020, adjustments to MPKC capital plan in 2024-2026 and potential modification to closure plan and project permitting

4. Convergence of R2-R3 at depth indicated by 2015 drilling. Open at depth.

Development below 700m will require shaft access

Outlook: Renard “100 Target” Brownfield Exploration Program$3m Budget Approved for 2018

100 Target 2018 drill program using light RC rigs

Based on geophysical and geochemical compilation and untested anonmalies

Approach last used successfully at AdamantinProject, 100km south of Renard

Only c.40 targets at Renardtested before exploration ended in 2007/08

Delineation drilling and microdiamond assessment will follow upon any discovery made

18

Renard pipesHibou dyke

Priority 1 (red) and 2 (orange) Targets anomalies

Route 167

property outline

Undrilled EM anomalies (examples)

Renard pipes

FY2018 GuidanceTracking the March 2016 Mine Plan

191. Before Stream and Royalty2. See Note on “Non-IFRS Financial Measures”

Production

Approximately 1.6 mcarats to be produced from the processing of 2.5 mtonnes of ore at an average grade 65 cpht.

Sales

Approximately 1.6 mcarats to be sold in 9 tender sales, to be operated by Stornoway’s sales agent Bonas Couzyn in Antwerp, Belgium.

Pricing

Of the 1.6 mcarats produced:

Approximately 1.1 mcarats are expected to be larger than +7 DTC sieve size (+3mm) with average pricing between US$125 and US$165 per carat1.

Approximately 0.5 mcarats are expected to be smaller than +7 DTC sieve size (-3mm) with average pricing of between US$15 and US$19 per carat1.

Costs

Cash operating costs per tonne processed2 of $56 to $60 per tonne ($87 to $92 per carat) and capital expenditures2 of $82 million.

Balance Sheet (as of September 30, 2017, un-audited)

Cash and Equivalents C$52.6 million

Total Debtnote 4 C$241.3 million

Undrawn Financing Commitmentsnote 5 C$105.2 million

Available Liquiditynote 6 C$157.8 million

Market Cap (Feb 21, 2018) C$451 million

Notes1. See Note on “Non-IFRS Financial Measures”2. Before stream and royalty3. Based on an average C$: US$ conversion rate of $1.25.4. Renard Mine Road facility, convertible debentures, senior secured loan and unsecured debt facilities5. Includes availability under senior secured debt facility and equipment leasing facility.6. Cash, cash equivalents and undrawn financing commitments.

The Future: Diamond Mine Depletion, 2018-2025

The largest individual diamond mine (Argyle) and the two largest Canadian mines are expected to be depleted starting in 2021

20

Forecasted Rough-Diamond Production of Depleting Mines, Mcts, Optimistic Scenario

Argyle Mine, Australia

Source: Bain & Company “The Global Diamond Industry 2017: The Enduring Story in a Changing World”

Victor De Beers

Komsomolskaya ALROSA

Argyle Rio Tinto

Voorspoed De Beers

Koffiefontein Petra

Diavik Rio Tinto / Washington Corp

Sable, Pigeon, Lynx,Misery Main, Koala (Ekati)

Washington Corp

30

25

20

15

0

35

2016 2017F 2018F 2019F 2020F 2021F

10

5

2022F 2023F 2024F 2025F

Diavik Mine, Canada

Victor De Beers

Komsomolskaya ALROSA

Argyle Rio Tinto

Voorspoed De Beers

Koffiefontein Petra

Diavik Rio Tinto / Washington Corp

Sable, Pigeon, Lynx,Misery Main, Koala (Ekati)

Washington Corp

30

25

20

15

0

35

2016 2017F 2018F 2019F 2020F 2021F

10

5

2022F 2023F 2024F 2025F

Several mines that currently supply 29 million carats a year are expected to be fully depleted by 2030

High depletion rates from existing mines such as Rio Tinto’s Argyle mine which is expected to close within the next few years

Even under the most optimistic supply scenario, multiple new mines are required to replace existing supply

Limited number of economically viable projects due to expensive diamond exploration

Forecasted Rough-Diamond Production of Depleting Mines, Mcts, Optimistic Scenario

The Future: Diamond Supply Outlook

Forecasted Rough-Diamond Production of New Mines, Mcts, Optimistic Scenario

Source: Bain & Company “The Global Diamond Industry 2017: The Enduring Story in a Changing World” 21

Washington Corp

Endiama/ALROSA

Shore Gold

Stornoway

De Beers /Mountain Province

ALROSA

Namakwa Diamonds

Gem Diamonds

DiamondCorp

Koidu Holdings

Lucara

Firestone Diamonds

Otkritie

Jay (Ekati)

Luaxe

Star-Orion South

Renard

Gahcho Kué

Karpinsky-1

Kao

Ghaghoo

Lace

Koidu

Karowe,ex “AK6”

Liqhobong

Grib

30

25

20

15

0

35

2013 2015 2017F 2019F 2021F 2023F

10

5

2025F 2027F 2029F 2030F

Forecasted growth in supply fromrecently developed mines and new mines (+26 Mcts)

Recently developedmines (+7 Mcts)

22

Head Office:

1111 Rue St. Charles Ouest,

Longueuil, Québec J4K 4G4

Tel: +1 (450) 616-5555

IR Contact:

Orin Baranowsky, Chief Financial Officer

obaranowsky@stornowaydiamonds.com

Tel: +1 (416) 304-1026 x2103

www.stornowaydiamonds.com

Info@stornowaydiamonds.com

Stornoway Diamond Corporation TSX:SWY, TSX:SWY.DB.U

Appendix

23

Health, Safety, Environment, CommunitiesFY2017 as at December 31, 2017

24

Health and Safety

Lost Time Incidents

0 for Stornoway Employees (1,000,151 hours worked)

1 for Contractors (466,512 hours worked)

Reported Incident1 Frequency:

2.2 for Stornoway Employees

3.0 for Contractors

Environment

Incidents of Environmental Derogation

SWY employees: 0

Contractors: 0

Employment

Total On-site Employment at December 31, 2017: 437

12% Crees of Eeyou Istchee, 26% Chibougamau/Chapais, 62% from Outside Region

1. Incidents requiring medical aid, temporary re-assignment, or lost time

Mine PlanBusiness Case, Including 13Mcarat Inferred Mineral Resources, March 30, 2016

Extension of UG at Renard 2 to 860L (stope 5)

Deferral of UG at Renard 3 (stope 6) and its extension to 400L (stope 7)

Deferral of UG at Renard 4 (stope 8) and its extension to 410L (stope 9)

New UG at Renard 9 to 410L (stopes 10 and 11)

Does not include non-resource exploration upside. All pipes open at depth.

Does not include mining of Inferred Mineral Resources at Renard 65 below open pit pending confirmation of Renard 65 ROM $/carat.

25

7

9

10

11

R3 OPEN PITR2 OPEN PITR65 OPEN PIT

RETURN AIR RAISE FRESH AIR

RAISE

PORTAL

BACKFILL RAISES IN CROWN PILLAR

410L

270L

710L

590L

470L

290L

400L

250L

860L

VENTILATION RAISE

MAIN RAMP

5

1

4

2

3

86

Reserve and Resource categories are compliant withthe "CIM Definition Standards on Mineral Resourcesand Reserves". Mineral resources that are not mineralreserves do not have demonstrated economicviability. The potential quantity and grade of anyExploration Target (previously referred to as a“Potential Mineral Deposit”) is conceptual in nature,and it is uncertain if further exploration will result inthe target being delineated as a mineral resource.

RENARD 65

RENARD 4

RENARD 9

RENARD 2

RENARD 3

RENARD 65

RENARD 4

RENARD 9

RENARD 2

RENARD 3

RETURN AIR RAISE FRESH AIR

RAISE

PORTAL

BACKFILL RAISES IN CROWN PILLAR

410L

270L

710L

590L

470L

290L

400L

250L

860L

VENTILATION RAISE

MAIN RAMP

Mine Plan22Mcarat Mineral Reserve Case, March 30, 2016

Combined open pit and underground mining

2015-2018 Open pit R2, R3

2014-2029 Open pit R65

2018-2027 Underground R2, blasthole shrink stoppage with panel retreat

2026-2029 Underground R3, R4, longhole stoping and blastholestoppage respectively

26

1

4

2

3

65

R3 OPEN PITR2 OPEN PITR65 OPEN PIT

Reserve and Resource categories are compliant withthe "CIM Definition Standards on Mineral Resourcesand Reserves". Mineral resources that are not mineralreserves do not have demonstrated economicviability. The potential quantity and grade of anyExploration Target (previously referred to as a“Potential Mineral Deposit”) is conceptual in nature,and it is uncertain if further exploration will result inthe target being delineated as a mineral resource.

Mineral ReservesEffective December 31, 2016

27

Notes1 Reserve categories follow the CIM Standardsfor Mineral Resources and Mineral Reserves.2 Totals may not add due to rounding.3 Represents mine and stockpiled ore as ofDecember 31, 20164 Carats per hundred tonnes. Estimated at a +1DTC sieve size cut-off.5 Changes from March 2016 Mineral Reserveestimate shown in italics

PROVEN MINERAL RESERVES(1,2) Stockpile(3) Carats (millions) Tonnes (millions) Grade (cpht)(4)

Renard 2, All Units 0.55 1.31 42Renard 2 0.29 0.29 98

CRB-2A 0.03 0.11 33

CRB 0.23 0.91 25

Renard 3 0.23 0.28 81

Renard 65 0.09 0.25 35

Reload 0.003 0.004 76

Renard 2 UG 0.004 0.007 52

Total Stockpile Proven Mineral Reserves 0.87 1.85 47

PROBABLE MINERAL RESERVES(1,2) Open Pit Carats (millions) Tonnes (millions) Grade (cpht)(3)

Renard 2, All Units 1.06 1.93 55Renard 2 0.82 0.90 91

CRB-2A 0.10 0.33 32

CRB 0.14 0.69 20

Renard 3 0.56 0.58 97

Renard 65 1.28 4.30 30

Total OP Probable Mineral Reserves 2.90 6.80 43

PROBABLE MINERAL RESERVES(1,2) Underground Carats (millions) Tonnes (millions) Grade (cpht)(3)

Renard 2 15.65 19.67 80

Renard 3 0.86 1.22 70

Renard 4 1.67 3.46 48

Total UG Probable Mineral Reserves 18.18 24.35 75

Total Proven and Probable Mineral Reserves(5) 21.95 (-0.31) 33.00 (-0.42) 67 (--)

Mineral ResourcesEffective December 31, 2016, Exclusive of the Mineral Reserves

28

INDICATED MINERAL RESOURCES(1,2) Carats (millions) Tonnes (millions) Grade (cpht)(3)

Renard 2 -- -- --

Renard 3 -- -- --

Renard 4 1.99 2.93 68

Renard 65 0.90 3.37 27

Total Indicated Mineral Resources 2.89 6.30 46

INFERRED MINERAL RESOURCES(1,2) Carats (millions) Tonnes (millions) Grade (cpht)(3)

Renard 2, All Units 3.88 6.59 59Renard 2, w/o CRB 3.36 4.08 82

CRB 0.53 2.51 21

Renard 3 0.61 0.54 112

Renard 4 2.46 4.75 52

Renard 65 1.18 4.93 24

Renard 9 3.04 5.70 53

Lynx 1.92 1.80 107

Hibou 0.26 0.18 144

Total Inferred Mineral Resources 13.35 24.49 54

Notes1 Resource categories were completed in accordance with the "CIMDefinition Standards on Mineral Resources and Reserves". Mineralresources that are not mineral reserves do not have demonstratedeconomic viability.2 Totals may not add due to rounding.3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size cut-off.

Inferred Mineral Resources

Indicated Mineral Resources and/or Reserves

High Range TFFE

Renard 65775m depth

Renard 4775m depth Renard 9

775m depth

Renard 21,250m depth

Renard 31,250m depth

North East View

Notes1 Target for Further Exploration: represents potential upsidethat can be reasonably assumed given the nature and grade ofmaterial within the current 2015 Mineral Resource. The Renard2 shape has been projected 250m below the deepest kimberliteintersection at 1,000m depth. Tonnage and grade ranges arenot directly applicable to potential total carats.The potentialquantity and grade of any Exploration Target is conceptual innature, there has been insufficient information to define amineral resource, and it is uncertain if further exploration willresult in the target being delineated as a mineral resource.2 Carats per hundred tonnes. Potential at a +1 DTC sieve sizecut-off.

Exploration PotentialEffective December 31, 2016

29

TARGETS FOR FURTHER EXPLORATION(1) Carats (millions) Tonnes (millions) Grade (cpht)(2)

Renard 1 1.7 to 3.9 8.6 to 13.0 20 to 30

Renard 2, All Units 3.7 to 15.5 6.1 to 15.5 60 to 100

Renard 3 3.6 to 6.3 3.4 to 3.8 105 to 168

Renard 4 5.6 to 11.8 11.1 to 15.4 50 to 77

Renard 65 7.3 to 13.5 29.0 to 40.9 25 to 33

Renard 7 1.9 to 3.8 6.3 to 9.4 30 to 40

Renard 9 2.0 to 4.3 3.9 to 6.3 52 to 68

Renard 10 0.7 to 2.1 1.2 to 1.7 60 to 120

Lynx 3.0 to 3.8 3.1 to 3.2 96 to 120

Hibou 3.6 to 6.1 3.5 to 4.0 104 to 151

Total TFFE 33.0 to 71.1 76.2 To 113.2

R10 R7R1

R65

R4 R9

R2

R3

Resource ReconciliationFour Measurements in a Diamond Project

1. Reconcile actual pipe geology with geological model (example from Renard 2 & 3 on 480m level shown opposite)

2. Reconcile size distribution; understand plant recovery characteristics

3. Reconcile grade

4. Reconcile quality assortment and value

Note on Reporting: Stornoway will report production and sales data on a quarterly basis. Resource reconciliation will be measured on a 12-month rolling average.

30

Renard 2

Renard 3

Since ore processing at Renard began, diamond production has been influenced by:

Experience in First Year of Diamond Production

31

ItemImplications for:

Grade Price Revenue

1. Better than expected feed grades because of better geology

Higher n/a Higher

2. Higher levels of diamondbreakage than initially expected

Lower Lower Lower

3. Higher than expected production of small (-3mm) diamonds

Higher Lower Higher

4. Positive reaction to Renard diamonds in the rough market

n/a Higher Higher

5. Market conditions for certain diamond categories

n/aNet

LowerNet

Lower

Net Result Experienced to DateHigher than expected grades

and lower than expected pricing at sale

29.28ctSold for US$530,000 April 2017

(US$18,100/carat)

Renard 2 Kimb2b ore, 30-40% dilution, 290m level

32

2016-2017 Mining and Processing

Ore Processed, Carats Recovered, head grade

Monthly Material Mined (Ore and Waste)

Monthly Processed Ore Grade

Monthly Ore Milled

Monthly Carats Recovered

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Car

ats

per

To

nn

e

R2 Grade

R3 Grade

R65 Grade

Commercial Production Declared

--

50

100

150

200

250

Tho

usa

nd

Car

ats

R65 Ore

R3 Carats

R2 Carats

Commercial Production Declared

--

50

100

150

200

250

Tho

usa

nd

To

nn

es

R65 Ore

R3 Ore

R2 Ore

NameplateThroughput(tpd)

Commercial Production Declared

--

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Mill

ion

To

nn

es

Total WasteMined

Total OreMined

Commercial Production Declared

Process Plant

33

Successful ramp up to nameplate capacity of 6,000 tpd (2.16 Mt/a)

Based on 78% plant utilization

Average processing rate in the Fourth Quarter was 6,014 tpd

Expansion to 7,000 tpd (2.52 Mt/a) is scheduled for 2018 based on 83.5% utilization and +2% throughput.

Flow sheet:

Primary jaw crushing to < 230mm

Twin DMS circuits at +1mm -19mm

LDR circuit at +19mm -45mm, scalable to -60mm

Oversize +45mm to secondary cone crusher

LDR and DMS tails +6mm -19mm to tertiary High Pressure Grinding Rolls

Large Diamond Recovery (“LDR”) through TOMRA XRT

Ore-waste sorting module approved August 2017.

Commissioning scheduled for end Q1 FY2018

Diamond Sales

Stornoway sells 100% of the Renard diamond production by arms length tender in Antwerp with Bonas-Couzyn as sales commissionaire.

Sales are on an undivided basis:

Stornoway acts as sales agent through its commissionaire on behalf of both itself and the streamers.

Stornoway has exclusive authority over marketing strategy.

Other than under exceptional circumstances, Stornoway is a price taker and does not hold inventory outside of normal goods-in-progress.

Stornoway will support the Québec or Canadian brand identification initiatives of its clients through chain of custody certification.

The Bonas contract has a 3 year term, renewable. Bonas is responsible for GDV valuation support, sorting, tender sales, contract sale negotiation, back office support, security. Outside of the contract, SWY pays courier and transport insurance costs and out of pocket management expenses.

Total marketing costs are forecast at less than 3% of revenue, of which the streamers pay their proportional share.

34

35

The “Mecheshoo” Agreement (IBA)Renard’s Social Licence

The Renard Diamond Project is situated close to the Cree Nation of Mistissini (CNM)

In March 2012 Stornoway concluded an Impacts and Benefits Agreement, the “Mecheshoo Agreement”, with the CNM and the Grand Council of the Crees (EI)

The Mecheshoo Agreement provides for employment and business opportunities for the Crees, fosters cultural, environmental and social protection, and provides for the Crees’ participation in the project’s long term financial success

“Stornoway has demonstrated an immense openness and has been willing to adapt the project in a manner that respects the Crees of Mistissini, our interests, our

values, our culture and our way of life…At this point, we can assure without a doubt that this project has a clear social acceptability from Mistissini”

- Chief Richard Shecapio, CNM, March 2012

Declaration of PartnershipCooperation Agreement with Chapais and Chibougamau

In July 2012 Stornoway concluded a “Declaration of Partnership” with the nearby communities of Chapais and Chibougamau

Chapais and Chibougamau are important regional hubs for civic and mining services

The Declaration provides for a framework to address issues of mutual interest such as communication, employment, economic diversification, and attracting people to move to the region

“The Declaration of Partnership is part of a new era of economic and social development based on respect, mutual trust and a shared understanding of the

issues of each partner”

- M. Steve Gamache , Mayor of Chapais, July 5 2012

From left: Chief Richard Shecapio, of the Cree Nationof Mistissini, Grand Chief Matthew Coon-Come, ofthe Crees of Eeyou Itschee, and Matt Manson, CEOof Stornoway, in Mistissini on March 27th, 2012, onthe occasion of the signing of the MecheshooAgreement

From left : Steve Gamache the Mayor ofChapais, Manon Cyr the Mayor ofChibougamau and Patrick Godin the COO ofStornoway on July 5th, 2012, on the occasionof the signing of the Declaration of Partnership

36

Origin of Renard’s WorkforceTargeting Local Hiring: Stornoway Employees at Mine Site

43% Northern Québec

52% Other

Québec

5% Other

Canada

58

78

22

13

49

57

48

37

17

23

0 10 20 30 40 50 60 70 80 90

Mistissini & Eeyou Istchee

Chiobougamau

Chapais

Other Communities (NQ)

Abitibi-Temiscamingue

Saguenay Lac St-Jean

Montreal

Quebec

Other Communities (QC)

Other Communities (CA)

402 Employees at Mine Site at April 30, 2017

Local Contracting and Purchasing

Stornoway Prioritizes:

Local hiring and procurement

Contracts from the Cree community of Mistissini, (Eskan and Sakhiikan) and with the families of Sydney Swallow (Kiskinshiish Camp Services) and Emerson Swallow (Swallow-Fournier)

Purchasing from Mistissini, Chibougamau and Chapais

$93 million in goods and services in 2016

estimated $12 million in payroll was added to the local economy

37

Modified Processed Kimberlite Containment Facility (MPKC)

38

Original Design for PKC Storage Modified Design for the MPKC Facility

Original PKC design concept contemplated centrifugal dewatering of PK and containment by dry-stacking

Early ore processing generated more fine particles and finer particles

Therefore:

dewatering was not feasible

material could not be used to construct a dry-stacked facility

Needed a facility to manage wetter fines

New PK management follows the same original design requirements. Closure of the site similar to the ESIA concept.

Containment berms manage deposition of dry, coarse PK and wet, fine PK

To manage quality of PK, a degrit module has been installed in the process plant and additional civil works completed at MPKC.

Reduction in containment facility height due to material quality - MPKC facility uses the same management principles as previously.

Work completed on schedule and now operational.

Capital Structure & Balance Sheet

39

Balance Sheetnote 2

Cash and Equivalents C$53 million

Total Debt C$241 million

Available Liquiditynote 3 C$158 million

Project Finance SponsorsInvestissement Québec, Orion Mine Finance, CDPQ,

Blackstone Tactical Opportunities

1. As of February 21, 2018.2. As of September 30, 2017, unaudited.3. Cash, cash equivalents, and available credit facilities. See “Non-IFRS Financial Measures”.

Capital Structure

Recent Share Price (TSX)note 1 C$0.54

52 week range C$0.50 – $0.99

Market Capitalizationnote 1 C$460 million

Shares Outstanding 835.3 million

Warrants 14.0 million

Employee Options 39.7 million

49.5%39.6%

10.9%

Project FinanceSponsors

Institutional Retail and Insiders

Share Ownershipnote 4

Institutional Shareholders

4. Fully Diluted

Pat GodinCOO & Director

Management and Board

40

Non-Executive DirectorsKey Executive Officers

Matt Manson President, CEO& Director

• 20 years in the diamond industry• President and CEO since 2009

• COO since 2010• Professional mining engineer with

20+ years of experience

Annie Torkia-LagaceVP Legal

• Over 14 years of legal experience practicing law and extensive transaction experience

Ebe ScherkusIndependent/Board Chairman

• Chairman since September 2012• President & COO/Director at

Agnico Eagle from 2005 to 2012

Hume KyleIndependent

• EVP & CFO at Dundee Precious Metals• 25+ years of private sector and public

accounting experience

John LeBoutillierIndependent/ IQ Designate

• Recently retired Chairman of Industrial Alliance Insurance and Financial Services Inc.

Gaston MorinIndependent/ IQ Designate

• Professional engineer previously employed by ArcelorMittal Mines as VP, Technology

Marie-Anne TawilIndependent/ IQ Designate

• Member of the board of directors of Hydro-Québec since 2005

Peter NixonIndependent

• 30 years of experience in research and institutional equity sales, largely focused on mining

Douglas SilverOrion Designate

• Portfolio manager at Orion Mine Finance

• 30 years of experience in the international mining industry

Orin BaranowskyCFO

• Over 15 years of finance experience• Over $1 billion of capital raisings for

mining companies

Martin BoucherVP Sustainable Development

• Over 25 years experience in HSEC roles in Quebec Mining including Falconbridge, Canadian Royalties

Ian HollVP Processing

• Over 20 years of experience with De Beers in construction, commissioning and operation of diamond process plants in Canada, Botswana and Namibia