7936567 Canada Inc SWYDF

Metals & Mining Industrial Metals & Minerals

Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.

GREY:SWYDF - Post by User

7936567 Canada Inc

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Post by Smacraon Jul 14, 2010 4:28pm

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Post# 17269563

Paradigm Capital - update July 14

? Results of updated diamond content modeling indicate the potential for the Renard 65 pipe to add future mineable

resources to the Renard project. This most recent resource modeling suggests the size and diamond content at Renard 65 may have been understated in previous historical sampling.

? Renard 65 is not part of the current mine plan and has no mineral reserve estimate. The development plan for Renard

remains unchanged, however consideration will be made within the ongoing mine design for future development at

Renard 65.

? Our NAV declines marginally to
.95 from $1.06 after incorporating minor revisions to our model to reflect the

updated mine development plan (March 2010), and to account for the June 29 closing of a $5M flow-through financing. We continue to expect Stornoway to be in position to make a production decision for Renard by the end of 2011, with production potentially commencing in late 2013. Our revised target price is $1.00 representing approximately 1.0x our NAV8% and we maintain our Speculative Buy recommendation.