Dominion Diamond Corporation Provides Update

22 March 2017

  • Comments on Recent Developments and Statements in Media
  • Remarks on Consistent Efforts to Engage with Washington Corporations and Fact that No Formal Offer Has Been Made

YELLOWKNIFE, NT (March 22, 2017) – Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) today re-confirmed that while its Board of Directors remains confident in the Company’s long-term strategic plan and the opportunity it provides to enhance value for all shareholders, as it always has, the Board remains open to holding discussions with Washington Corporations (“WashCorps”) on customary terms and in a manner that protects the interests of the Company and its stakeholders. It is important to highlight to all Dominion shareholders that:

  • WashCorps has not made a formal offer to Dominion or its shareholders. Should Dominion receive a formal offer, the Board of Directors will assess it.
  • Dominion has consistently told WashCorps that it is prepared to engage in discussions on customary terms in order to allow WashCorps to improve its conditional and opportunistic indicative proposal.
  • WashCorps has insisted on terms that would give it a “free option” and present significant risks to the Company and shareholder interests.

To provide clarity, Dominion is providing the correspondence exchanged between the Company and WashCorps, which highlights the aggressive and off-market terms and conditions proposed by WashCorps in regards to its opportunistic indicative proposal, and the Company’s responses.

WashCorps’ indication of interest was disclosed by press release on March 19, 2017. All other correspondence between the parties is below:

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