News Bureau

January 12, 2018

Stornoway Q4 produces 398,267 carats!

Stornoway Announces Q4 and 2017 Production and Sales Results, and 2018 Production and Sales Guidance at the Renard Diamond Mine for the quarter and year ended December 31, 2017. Fourth Quarter diamond production of 398,267 carats produced from the processing of 518,817 tonnes of ore with an attributable grade of 77 carats per hundred tonnes, compared to a plan of 415,940 carats from 540,000 tonnes at 77 cpht.

Fourth Quarter sales of 453,646 carats sold in two tenders for gross proceeds 1 of $49.1 million 2, at an average price of US$86 per carat. FY 2017 diamond sales of 1.7 mn carats sold in nine tenders and three out of tender sales for gross proceeds 1 of $186.2 million 3, at an average price of US$85 per carat.

In addition, Stornoway is providing production, sales and cost guidance for FY 2018 focuses approximately 1.6 mn carats to be produced from the processing of 2.5 mn tonnes of ore at an average grade 65 cpht. Of the 1.6 mn carats produced, approximately 1.1 mn carats are expected to be larger than +7 DTC sieve size (+3mm) with average pricing between US$125 and US$165 per carat.

Matt Manson, President & CEO commented: “We are pleased that in our first year of production at the Renard Mine we are reporting carats, tonnes and grade results broadly in line with guidance. This is a strong testament to the dedication of our operating team and the quality of our Mineral Resource estimates.

We continue to see a lower price environment for our diamond sales, in part due to what has been a challenging rough diamond market for a new producer, and in part due to the lower than expected quality and size attributes of our initial production as we process its recovery.

For the Stornoway team, 2018 will be a year of process improvement in diamond recovery, as well as focus on the initiation and ramp-up of our underground mine. It will also be a year with renewed focus on the future at Renard, with opportunities evident to us in processing expansion, resource conversion, and new exploration.

Most importantly, we will seek to continue the excellent EH&S performance that we achieved in 2017, with no lost time injuries amongst Stornoway personnel or environmental derogations against permits recorded during the course of the year.”