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Dominion Diamond Corporation Reports Fiscal 2015 First Quarter Results

TORONTO, June 11, 2014  – Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company”) today announced its fiscal 2015 first quarter results for the period ended April 30, 2014.

Robert Gannicott, Chairman and Chief Executive Officer stated: “A year on from our purchase of the Ekati operation, we continue to improve ore production and recoveries as we develop new ore sources. The receipt of full operating permits for the Lynx open pit development in less than a year from application speaks better than words about the determination of a newly empowered Government of the Northwest Territories to effectively manage through this transition and to support well planned resource development.”

Diamond Market
Sentiment at the very important JCK Las Vegas show in June reflected the optimism of the US retail market. Demand continues to be steady from China and is picking up from India.

First Quarter Highlights
The first quarter of fiscal 2015 marks the anniversary of the divestiture of the Company’s luxury business and the acquisition of the Ekati Diamond Mine. The Company is now focused on delivering enhanced value from its world class diamond mines: an 80% interest in the Ekati Diamond Mine and a 40% interest in the Diavik Diamond Mine. The Company is well-funded and has a strong balance sheet.

During the first quarter, both the Ekati Diamond Mine and the Diavik Diamond Mine performed well. Production at both mines was substantially ahead of expectations.

An improved plan has been developed for mining the Jay kimberlite, the largest diamondiferous resource in North America.

A total of $163 million of capital expenditure remains to be spent on the Misery push-back before bringing the Misery Main Pipe, which at 4 carats a tonne is one of the richest ore bodies in the world, into full production at the beginning of calendar 2016.

The Company has received the amended Ekati Water License to now incorporate the Lynx development.

A decision on the development of the A-21 pipe at the Diavik Diamond Mine is expected later this year.

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