Dominion Diamond Files Updated Technical Report for the Diavik Diamond Mine

31 March 2017

YELLOWKNIFE, Northwest Territories--(BUSINESS WIRE)--Mar. 31, 2017-- Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) today filed an updated technical report under National Instrument 43-101 for the Diavik Diamond Mine (“Diavik mine”) with an effective date of January 31, 2017. The report, entitled “Diavik Diamond Mine, Northwest Territories, Canada, NI 43-101 Technical Report” (“2017 Technical Report”), was prepared by the operator of the Diavik mine, Diavik Diamond Mines (2012) Inc. (“DDMI”), a subsidiary of Rio Tinto plc, and may be found under the Company’s profile on SEDAR and on the Company’s website at www.ddcorp.ca. The report includes an updated mineral reserves and mineral resources statement and an updated “reserves-only” life of mine plan. The Company has a 40% interest in the Diavik mine; Rio Tinto plc has a 60% interest and operates the mine through DDMI. Unless otherwise noted, all financial information is presented in real Canadian dollars, on a 100% basis, and references to years are to calendar years. An exchange rate of 1.33 CAD/USD was used for costs denominated in US dollars.

Highlights

• Mine life has been extended to 2025 from 2023.
• After-tax net present value of approximately $2.6 billion at a 7% discount rate, based on the assumptions and analysis contained in the 2017 Technical Report.
• 46.0 million carats recovered between 2017 and 2025, an increase of 6.3 million carats or 16%, from the previous estimate for the comparable period.
• Forecast total revenue of approximately $9.0 billion and total operating cash flow of approximately $3.7 billion between 2017 and 2025, an increase of 22% and 32%, respectively, from the previous estimates for the comparable period.
• Total operating costs between 2017 and 2025 are consistent with the previous estimate for the comparable period, as the impact of cost escalation and the increase in mine life and reclamation are offset by efficiency improvements.
• Total capital expenditures between 2017 and 2025 are consistent with the previous estimate for the comparable period, as lower expected capital expenditures at the A-21 pipe are offset by higher sustaining capital expenditures related to cost escalation and the increase in mine life.

“The updated life of mine plan for Diavik extends the mine life, increases carat production, and grows future revenues and cash flows, while maintaining operating costs and capital expenditures at levels that are consistent with earlier forecasts,” said Jim Gowans, Chairman of the Board of Directors. “The focus on cost efficiency improvements and development of the A-21 pipe, which underpins the mine life extension, is consistent with our goal of increasing net asset value per share.”

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