Slide 1: Star – Orion South Diamond Project Technical Presentation
Star – Orion South Diamond Project Technical Presentation George Read P.Geo. Senior VP Exploration & Development PDAC March 6, 2017
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as "forward-looking statements"). Forward-looking statements are often, but not always, identified by the use
Slide 3: Project Highlights
Project Highlights • Revised Mineral Resource estimate: Indicated: 55.4 million carats, Inferred: 11.6 million carats • Weighted average rough diamond price: US$210 per carat • Attractive evaluation diamond parcel • Coarse diamond size frequency distribution: 49.5 ct stone from Star, 45.9 ct stone f
Slide 4: Star – Orion South Project Location
Star – Orion South Project Location H2 2016 Q2 2017 4
Slide 5: Star – Orion South Project Location
Star – Orion South Project Location H2 2016 Q2 2017 5
Slide 6: Mineral Claims & FalC Forest
Mineral Claims & FalC Forest 6
Slide 7: Star – OS Diamond Project Evaluation
Star – OS Diamond Project Evaluation Core Drilling – Delineation Underground – Bulk & Internal Structure LDD – Mini-Bulk Sampling Sampling 7
Slide 8: Star & OS Underground Bulk Sampling
Star & OS Underground Bulk Sampling Kimberlite Dry Tonnes Number of Total Grade Largest Stone Unit Processed Stones Carats (cpht) (carats) Star 75,435.68 84,211 10,966.00 14.54 49.50 Orion South 23,468.0 15,248 2,346.27 10.00 45.90 8
Slide 9: Star & OS Large Diameter Drilling
Star & OS Large Diameter Drilling Kimberlite Holes Kimberlite (m) Carats Star 96 7,702 1,416.6 Orion South 76 9,431 1,096.5 9
Slide 10: Star Core & LD Drilling
a Shore Gold Inc. —"_ owEeo 513500 514000 a Meters 600 Star Core & LD Drilling 516000 514500 514000 514500 515000 515000 515500 eee 51550! 516000 516500 2016 Geotechnical Test Hole 2016 NQ Core Hole (§ holes) Archival Core Hole 48" Large Diameter Drill hole Archival 24-36" RC Drill Hole Star Undergr
Slide 11: Orion South Core & LD Drilling
Orion South Core & LD Drilling 11
Slide 12: On-site Core Warehouse
Shore Goldin On-site Core Warehouse \) team gc
Slide 13: Star & OS Geological Models
Star & OS Geological Models 13
Slide 14: Revised Mineral Resource Estimate
Revised Mineral Resource Estimate (Peter Ravenscroft of Burgundy Resources Ltd: Independent Qualified Person) Kimberlite Resource Tonnes Grade Carats Category x1000 cpht x1000 Star Indicated 193,010 15 28,249 Orion South Indicated 200,160 14 27,153 Total Indicated 393,170 14 55,402 Star Inferred 56,
Slide 15: Improved Overburden Removal
Improved Overburden Removal • Dozer traps feeding conveyors are being investigated as a low cost ($0.70 per tonne) alternative to removing the upper sand and clay prior to the continuous mechanised mining of the till overburden • Large dozers (D10, D11) are used to push material into portable apron
Slide 16: Improved Overburden Removal
Improved Overburden Removal • The most efficient method of overburden (glacial till) removal is using continuous mechanised mining equipment feeding conveyors directly to the waste dump • Compact bucket wheel excavators provide the cheapest ($0.35 per tonne) method to efficiently remove the large vo
Slide 17: Star & Orion South Pit & Waste Designs
Star & Orion South Pit & Waste Designs • Several pit optimizations have been conducted on both Star and Orion South using 2011 FS pit designs applied to the Revised Mineral Resource estimate • Overburden stripping using dozer traps in sand and clay, followed by bucket wheel excavators in the glacial
Slide 18: Star Open Pit Plan View
Star Open Pit Plan View Metres 18
Slide 19: Orion South Open Pit Plan View
Orion South Open Pit Plan View Metres 19
Slide 20: Improved Processing Plant Design
Improved Processing Plant Design • Processing plant flow-sheet to be completely revised by consulting engineers • Investigations have been conducted using Tomra X-ray sorting equipment for the recovery of diamond sizes +4 mm • XRT equipment proven for the recovery of large diamonds without breakage
Slide 21: Tomra XRT Sorter Schematic
Tomra XRT Sorter Schematic 21
Slide 22: Attractive Diamond Population
Attractive Diamond Population Weighted average rough diamond price: US$210 World average rough diamond price 2015: US$109 “Shore diamonds give a good first impression and are likely to be considered highly desirable by diamond traders and polishers. There are no coated stones at all in the samples,
Slide 23: Diamonds: High Value Stones
Diamonds: High Value Stones Star 4.77 carat Star 5.39 carat IF $6,096/ct IF $3,190/ct US$29,100 US$17,200 Orion South 10.53 carat Fancy Yellow $8,000/ct US$84,250 Star 11.96 carat Type IIa $12,500/ct Orion South 15.88 carat US$149,500 Makeable $2,950/ct US$46,800 23 23
Slide 24: Diamond Size Frequency Distribution
Diamond Size Frequency Distribution • Diamonds are log-normally distributed in size frequency: exponentially more small stones than big stones • Letseng Kimberlite in Lesotho has coarsest SFD and has produced many large stones: Lesotho Promise 603 ct sold for US$12.37 million in 2006 • Karowe Kimber
Slide 25: Environmental Approval
Environmental Approval Final consolidated EIS document prepared for the Province in Dec, 2014 The Hon. Leona Aglukkaq, Federal Environment Minister, announced that the Project “is not likely to cause significant adverse environmental effects when the mitigation measures described in the Comprehe
Slide 26: Project Future & Upside
Project Future & Upside • Update Feasibility Study: Overburden Removal, Process Plant technology • Opportunities for significant pre-production cost reduction in Updated FS • Attractive diamond parcel: High price, coarse size frequency, Type IIa • Accessible Project site close to infrastructure, par
Slide 27: Timeline to Updated Feasibility
Timeline to Updated Feasibility Provincial EIS approval awaited, Updated Feasibility Study to be completed 27
Slide 28: Management & Technical Team
Management & Technical Team • Kenneth E. MacNeill - President, Chief Executive Officer, Director – Extensive background over 34 years experience in all aspects of natural resource exploration and development • Greg P. Shyluk – Chief Financial Officer – Chartered accountant with 17 years experience w
Slide 29: Shore Gold Inc.
Shore Gold Inc. — Per kd cy 300, 224 - 4th Avenue South 4 . Saskatoon, Saskatchewan. Canada » S7K 5M5 « Tel: (306) 664-2202 info@shoregold.com * www.shoregold.com