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The procedures at each of the above laboratories are largely similar. The detailed procedure at each laboratory is described below.

SGS Saskatoon Procedure

The sample was received, the security seals and shipping weight checked, and the chain of custody was completed and faxed back to Shore. Under secure conditions the shipping box and the sample containers were weighed and opened. The x-ray concentrate sample was transferred to drying trays and placed in a drying oven at approximately 140o C until dry. SGS Saskatoon removed all visible larger diamonds and placed these in vials for reporting. The dry sample was removed, weighed and sized for observation and diamond selection. SGS Saskatoon sieved to +6 mm, -6 +3 mm, -3 +0.85 mm and -0.85 mm fractions. All size fractions were weighed, and were bagged and labelled. The +6 mm fraction was ready for sorting, and the -0.85 mm fraction was retained but not sorted. If sufficient sample was present in the middle fractions, these were subject to magnetic separation using rare earth magnets in a permroll belt separator. SGS Saskatoon used an Inprosys permroll, which provided three products – a non-magnetic fraction (that contains the majority of the diamonds), a para-magnetic fraction (this was re-run a second time) and the magnetic fraction. The machines were regularly calibrated and cleaned. The magnetic and size fractions were all weighed, labelled, documented and delivered to the sorting lab.

The grease table concentrate sample, which was generally quite small, was scraped from the sample container for degreasing. At SGS Saskatoon, this was melted in a water bath, which separated the grease in a screen by using boiling water and degreasing detergent. The processes resulted in a sufficiently clean concentrate for sorting. The resultant degreased product was then dried, weighed, labelled, documented and delivered to the sorting lab. As the product was generally quite small, it was not sieved or magnetically separated.

The samples were received and logged in the sorting room. Trained mineral observers sort each fraction for diamond selection. The non-magnetic fractions of each size were picked under a binocular microscope and diamonds were removed for verification and later classification. Each of the non-magnetic fractions was then re-sorted by another observer for quality control. The para-magnetic fraction was similarly sorted, but not all received a QC second sort. Generally the magnetic fractions were not sorted, but some percentage was sorted for QC purposes. The majority of the diamonds were recovered from the first sort of the non-magnetic fractions. The grease concentrate was sorted, and re-sorted for QC, as a single fraction. However there were often intermediate stages to separate rubbish material (plastic, metal, etc) from the concentrate grains.

All diamonds were verified, counted and weighed individually and were preliminarily described as requested by Shore. The diamonds were classified by size fractions using both square mesh Tyler sieves and round hole DTC sieves. For each sieve type, each size fraction was counted and weighed and reported.

Mineral Services Canada Procedure

The sample was received, the security seals and shipping weight checked, and the chain of custody was completed and faxed back to Shore. Under secure conditions the shipping box and the sample containers were weighed and opened. The x-ray concentrate sample was transferred

P&E Mining Consultants Inc. NI 43-101 Technical Report No 159 Shore Gold Inc. - Star Diamond Project Resource Estimate Update

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