Dominion Diamond Corporation Restarts Ekati Process Plant Ahead of Schedule and Announces Sale of an Exceptional Diamond

YELLOWKNIFE, Northwest Territories — Sep. 22, 2016– Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) is pleased to announce the restart of the Ekati process plant and the sale of an exceptional diamond recovered at the Ekati Diamond mine earlier this year.

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Process Plant Restart

The Ekati process plant resumed operations at full capacity on September 21. Plant operations had been suspended since a fire that occurred at the Ekati process plant on June 23, 2016. During this time, the Company implemented an active management strategy designed to mitigate the impact of the fire on production and cash flow for the current fiscal year. As part of this strategy, the Company reduced operating and capital costs by deferring mining activities at the Lynx and Pigeon open pits, while continuing to mine and stockpile higher value ore from the Misery Main open pit and Koala underground. The ore blend for the remainder of the current fiscal year is expected to be a blend of the higher value Misery Main and Koala ore of which approximately 750,000 tonnes was available in stock-pile when the plant resumed operations. The total cost of the process plant repairs is approximately US$15 million.

“We are very pleased the process plant repairs have been substantially completed ahead of schedule and below our original cost estimate,” said Brendan Bell, Chief Executive Officer. “This is a testament to the outstanding skills and determined efforts of our team at Ekati. Their contributions were instrumental in the development and implementation of our active management strategy which is expected to help minimize the impact of the fire on production and cash flows for this fiscal year.”

Sale of Exceptional Stone

A 186 carat gem quality diamond was sold for US$2.8 million at the Company’s most recent sale in September. The Company recovered the stone in early June during the processing of feed from the Pigeon kimberlite. The stone was the largest gem quality diamond ever recovered at the Ekati mine.

“The Ekati mine is world-renowned for its premium gem quality diamonds,” said Mr. Bell. “We are particularly encouraged that this exceptional stone was recovered during the processing of ore mined from the early benches of the Pigeon open pit. The recovery of a gem quality stone of this size is a reminder that there continues to be upside potential to the modelled prices used for our Ekati ore bodies.”

For more information, please visit www.ddcorp.ca

Dominion Diamond Corporation
Contacts:
Investor Relations
Ms. Kelley Stamm, 416-205-4380
Manager, Investor Relations
kstamm@ddcorp.ca
or
Media Relations
Ms. Laura Worsley-Brown, 867-669-6105
Senior Advisor, External Relations
laura.worsley-brown@ekati.ddcorp.ca

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