Resource World Magazine

SPANISH MOUNTAIN GOLD LTD. [SPA-TSXV] NPV............................................$454 million IRR......................................................... 15% Payback Period................................4.4 years Cash Costs (Years 1-3)......................$526/oz Capital Costs..............................$756 million Shares Outstanding................... 188,319,276 STORNOWAY DIAMOND CORP. [SWY-TSX] NPV (7% Discount)....................$683 million IRR (Pre-Tax)…..........................……20.3% Payback Period…..................…..4.69 years Cash Costs….............. …$58/t or $76/carat Capital Costs……..............…..$752 million Shares Outstanding….............. 139,754,757 NOTE: Assuming US $1,462/oz Au Spanish Mountain Gold Ltd. has completed a positive Preliminary Economic Assessment of its 100%-owned Spanish Mountain Project located 70 km northeast of the City of Williams Lake, in the Cariboo region of central British Columbia. Measured resources are 29,360,000 tonnes grading 0.60 grams gold/tonne and 0.67 grams silver/tonne, for 560,000 ounces gold and 630 ounces silver. Indicated resources are 186,780,000 tonnes of 0.44 grams gold/tonne and 0.69 grams silver/tonne, for 2,620,000 ounces gold and 4,150,000 ounces silver. Inferred resources are 316,740,000 tonnes of 0.36 grams gold/tonne and 0.65 grams silver/tonne, for 3,640,000 ounces gold and 6,620,000 ounces silver. All these figures are at a 0.20 grams gold/tonne cut-off. The project is envisaged as an open pit operation with a strip ratio (waste:ore) of 1.3:1 for year 1 to 3 and 2.3:1 for life-ofmine of 14.4 years at a production rate of 40,000 tonnes per day. For the first three years of operation, the annual rate of production would be 268,000 ounces gold. Metallurgical studies have demonstrated a 90% gold recovery for years one to three and 88% for life-of-mine. British Columbia is a mining-friendly province. Agreements have been signed with three separate First Nations bands in the area. The environmental assessment process is under way. Inexpensive electric power is available at 4 cents/kWh with the power grid accessing the property as does an allweather road. The project is situated in an active mining region with the Mount Polley and Gibraltar mines nearby. Spanish Mountain Gold has about $3 million in its treasury. JUNE 2013 Stornoway Diamond Corp. completed an independent Feasibility Study at its 100%-owned Renard diamond project in November 2011, followed by an Optimization Study in January 2013. The project is in the Otish Mountains about 350 km north of Chibougamau in the James Bay region, north-central Québec. NI 43-101 compliant probable reserves are 17.9 million carats, with 17.5 million carats classified as inferred resources, and 23.5-48.5 million carats classified as non-resource exploration upside. All kimberlite bodies, the host rock of diamonds, remain open at depth. There would be a life-of-mine operating cost of CDN $57.63/tonne, giving a 67% operating margin over an initial 11-year mine life. Rate of production would be about 1.6 million carats/year with the processing plant rated at 6,000 tpd, expandable to 7,000 tpd. An all-season access road is under construction. The project is envisaged as both an open pit and an underground mine; years 1-2 would be an open pit operation with years 3-11 underground. Stornoway recently reported results of an independent valuation on the Renard 65 kimberlite bulk sample diamonds recently recovered. The valuation was done by WWW International Diamond Consultants. Highlights are: • An average price of US $250/carat on the total Renard 65 parcel of 997 carats. • A diamond price model for Renard 65 of US $180/carat • Valuations of US $8,500/carat and US $5,900/carat on the two largest stones of 9.77 carats (G colour) and 6.40 carats (F colour), respectively. The government has issued a Mining Lease. Production is set for December 2015. Cash on hand: $35.5 million. n Innovative mining equipment and technology www.miningworld.com www.resourceworld.com 13

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