Stornoway’s new diamond valuation results

Stornoway Diamond Corporation provides new diamond valuation results from the Renard 2, 3 and 4 kimberlite pipes, and Lynx and Hibou kimberlite dykes, located at the Foxtrot Property in North Central Québec.

The Foxtrot Property is a 50:50 joint venture with SOQUEM INC. (SOQUEM). The new valuations have been obtained to provide current diamond price data in support of the ongoing Renard Pre-Feasibility study, the results of which are expected shortly. Three new diamond valuation parcels from Renard 4, Lynx and Hibou were presented for valuation in Antwerp, Belgium under the supervision of WWW International Diamond Consultants Ltd. (WWW), an internationally recognized diamond valuation and consulting company. In addition, WWW updated valuations previously obtained on bulk sample diamond parcels from Renard 2, 3 and 4.

Highlights

Revised “base case” diamond price model for both Renard 2 and 3 of US$121 per carat, an increase of 11%
Revised “base case” diamond price model for Renard 4 (Northern Complex Zone) of US$79 per carat, an increase of 14%
Newly determined “base case” diamond price model for the Lynx kimberlite dyke of US$66 per carat
Renard Pre-Feasibility study nearing completion

CEO Eira Thomas said, the increases in the modeled diamond prices for Renard 2, 3 and 4 reflect the strengthening of the diamond market since the original valuation exercise in September 2007, particularly in the type of large, high value gems that are well represented at Renard. The diamond price estimate obtained for Lynx, while lower than that of the Renard kimberlite pipes, confirms the potential of the Lynx-Hibou system of kimberlite dykes to form economically viable ore given their high diamond content and accessibility for surface trenching.

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