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IntroductionGreetings from CanadaHistorical PerspectiveThe industry todayThe futureOpportunities

DisclaimerCanadian Diamond CodeCommitteeMajescor ResourcesCanadian Diamond & JewelleryInternational Gemstone Registry

HistoryJacques Cartier 1554QuartzFirst diamond – 1863Great LakesEarly exploration 1960De Beers

HistoryFipke and Blusson 1981Ekati 1991Diavik 1994OthersSnap Lake, NWTJericho, NunavutVictor, OntarioOtish Mountains, QuebecBHP Billiton

The industry todayExplorationMiningManufacturingJewellerymanufacturingRetailCode of ConductLaboratoriesResearchSecurityOthers…

ExplorationCompanies (over 120)Ashton MiningMajescor ResourcesStornowayDe BeersBHPBillitonRio TintoOver 100 projectsOver US$240 million in2005Canada’s s geologyFUGRO

Known Cratonic AreasArchonProtonTectonSource: Adapted from Levinson et al., 1992, p.241.

Ellesmere IslandALASKAWhitehorseMelville PeninsulaCoronation GulfYellowknifeRankin InletVancouverBuffalo HillsEdmontonFort a laCorneJames BayOtish MountaUSAWawa

MiningEkati 1998Diavik 2003Jericho 2006

ALASKAWhithorseJerichoEkatiDiavikYellowknife Snap LakeCANADAEdmontonVancouverVictorUSAToronto

Ekati4.0 million carats in 2005Underground miningKoala undergroundfeasibility studyISO 14001Top 100 employersEkati

Diavik Mine8.3 million carats 2005A-418 dike under constructionUnderground feasibility underwayRecertified to ISO 14001 (Environment) / ISO 9001 (PSF)

JerichoTahera DiamondCorporationProduction early2006Potential for500K carats peryear4.7 million caratsover life of mineTahera

JERICHONorthwest TerritoriesNunavut

Snap LakeVictorFort à la CorneStar DiamondFoxtrotGahcho KuéProjects

ALASKAWhithorseSnap LakeYellowknifeGahtcho KueCANADAFoxtrotVancouverEdmontonStar ProjectFort a la CorneVictorUSAToronto

Snap LakeDe Beers Board ofDirectors approvalConstruction 2005-0606Production 2007Full Production 2008Potential for 1.5Mcarats per year27 M carats over lifeDe Beers

VictorDe BeersConstruction 2006-07Production 2008Potential for 600Kcarats per year6.3M carats over lifeof mineDe Beers

Fort à la CorneAdvanced Explorationand Evaluation Plan$25 millionJoint partnersDe BeersShore GoldCamecoCorporationUEM IncDe Beers

Star DiamondShore GoldFort à la CorneareaPre-feasibilitystudy $50 M2007

Gahcho KuéJoint partnersDe BeersMountain ProvinceDiamonds IncCamphor VenturesAdvanced Evaluation andPermitting Program$32 millionProduction 20123 M carats per year30 M carats over life of mineDe Beers

World Production 2005World production - ValueWorld production - Carats13%Canada7%Canada87%93%Source: Government of Canada

Canada’s Gem Diamond ProductionProjected Gross Revenues 1999-20092 5002 0001 5001 0005000CAN$ millionsVictorSnap LakeJerichoDiavikEkatiPercentagePercentage of world production1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009181614121086420Source: Natural Resources Canada from public sources.

Rough diamond salesRoyalty valuationYellowknifeEkatiDiavikJericho site

Rough diamond salesTorontoAntwerpBHP BillitonRio TintoDiamondsAber OverseasLaureltonDiamonds

Yellowknife, Canada’s Diamond Capital

ALASKAWhithorseYellowknifeCANADAVancouverEdmontonMataneMontrealUSAToronto

ManufacturingYellowknifeArslanian Cutting WorksCanada Dene DiamondsPolar DiamondsLaurelton Diamonds Inc.VancouverHRA InvestmentsMataneDiarough Canada

Jewellery ManufacturingSolid demandManufacturersLibmanCoronaHenry Birks &SonsHRA Investments

RetailIn CanadaSolid demandAvailabilityAbroadAttractiveness ofCanadian diamondsIncreasing demand

Areas of interestCode ofConductSecuritySerializationLaboratoriesResearchPublicationsStudiesTrendsOrganizationsGovernmentinitiatives

CodeofConduct

Code of ConductMembershipNational signatoriesInternationalsignatoriesEndorsed by theCompetition BureauEndorsed by CIBJOMinimum standards fordiamond authentication

SecurityRoyal Canadian Mounted PoliceDiamond Protection ServiceRoyal Canadian Mounted Police Forensic LaboratoryCanadian Security and Information Services ReportNo penetrationRisk is presentCanadian Diamond Security GroupRisk analysisExchange of best practicesSecurity companies

Diamond serializationInternational Gemstone Registry(IGR)R&D in CanadaSerialization in the bulkof the diamondNon-removableUndetectable with 10X loupeNo affect on value of the stoneDeterrence & recovery benefits

LaboratoriesExploration samplesSaskatchewan ResearchLaboratorySGS Lakefield ResearchCertificationGemscan International IncHarold Weinstein LtdInternational GemologicalInstituteEuropean GemmologicalLaboratory (USA)EGL

ResearchUniversitiesUniversity of AlbertaUniversity of British ColumbiaLaboratoriesSaskatchewan Research CouncilEGLDiamond fingerprintingRCMP forensic laboratoryDiamond profilingU of A

PublicationsCanadian Diamonds& Jewellery5,000InternationalThe CanadianJewellerJewellery BusinessCanadian Diamonds

StudiesGovernment of the Northwest TerritoriesDiamond TourismBenefit/Cost Analysis Of The SecondaryDiamond IndustryCanadian Diamond Council CorporationHuman Resources Industry wide Scopingand Scanning StudyIndian and Northern Affairs CanadaKnowledge Based Study of Canada’sDiamond Industry

TrendsVertical integrationAber Diamond Corporation/WinstonTiffany/Tahera Diamond CorporationBHP Billiton CanadaMarkBrandingMaple Leaf DiamondsFire of the NorthCanadiaCertification

OrganizationsProspectors and developers Association ofCanada (PDAC(PDAC)The Mining Association of Canada (MAC)Canadian Diamond ManufacturersAssociation (DMAC(DMAC)Canadian Diamond Code Committee(CDCC)Canadien Diamond Business DevelopmentCenter (CDBDC(CDBDC)Canadian Jewellers Association (CJA(CJA)

Government initiativesKimberley ProcessFounding memberChair of KP in 2004Statistics CommitteeReview Committee193 certificates (Few but largeshipments)

Government initiativesGNWT Diamond OccupationalStandardsQuébec Strategy on DiamondsNational Diamond StrategyExcise Tax on LuxuryPrevious 10%6% in 2006

Human resourcesEmploymentPrimary and secondaryindustriesTrainingPrimary and secondaryindustriesBusiness opportunities

The futureSuperb geologyCharacteristics of our diamondsExotic locationEnvironmental recordSocio-economic recordGrowing diamond demandSupplier of ChoiceIndia and ChinaWorld economy

OpportunitiesAccess to roughEarlyAntwerpManufacturing in CanadaChallengesQuebec StrategyTechnologySerialization

ConclusionRapid expansionExcellent potentialOpportunitiesRTD

Questions

ALASKAWhithorseJerichoEkatiDiavikYellowknife Snap LakeCANADAEdmontonVancouverVictorUSAToronto