Harry Winston Diamond Corporation Announces Agreement to Purchase Ekati Diamond Mine

   Harry Winston Diamond Corporation Announces Agreement to Purchase Ekati
                                 Diamond Mine

  PR Newswire

  TORONTO, November 13, 2012

TORONTO, November 13, 2012 /PRNewswire/ --

Harry Winston Diamond Corporation (TSX:HW, NYSE:HWD) ("Harry Winston" or the
"Company") is pleased to announce that it has entered into share purchase
agreements with BHP Billiton Canada Inc., and various affiliates to purchase
all of BHP Billiton's diamond assets, including its controlling interest in
the Ekati Diamond Mine as well as the associated diamond sorting and sales
facilities in Yellowknife, Northwest Territories and Antwerp, Belgium. The
Ekati Diamond Mine consists of the Core Zone, which includes the current
operating mine and other permitted kimberlite pipes, as well as the Buffer
Zone, an adjacent area hosting kimberlite pipes having both development and
exploration potential. The agreed purchase price, payable in cash, is US$400
million for the Core Zone interest and US$100 million for the Buffer Zone
interest, subject to adjustments in accordance with the terms of the share
purchase agreements.

The Chairman and Chief Executive Officer of Harry Winston Diamond Corporation,
Robert A. Gannicott, said, "Completion of this acquisition will bring the
opportunity to marry our Canadian diamond sorting and marketing skills with an
experienced mine operating and development team, a world class operating
asset, and future growth potential. Together with our existing mining
business, these assets will serve as our platform for sustained, disciplined
growth in the upstream diamond sector."

The Ekati Diamond Mine, which is located approximately 310 kilometers
northeast of Yellowknife in the Northwest Territories of Canada, includes both
open pit and underground operations and is Canada's first, and largest,
diamond producer, having begun production in 1998. It is located near the
Diavik Diamond Mine in which the Company holds a 40% interest. The Ekati
Diamond Mine has produced an average of approximately three quarters of a
billion US dollars of rough diamonds per year over the last five years. Over
that period sales from the Core Zone represented approximately 6% of world
rough diamond supply by value. The current phase of production at the Ekati
Diamond Mine includes ore sourced primarily from the lower grade, but high
carat value, Fox open pit supplemented by underground production from the
lower portion of the Koala kimberlite pipe and from the Koala North pipe.
Although production in the next two years is forecast to be lower than the
average achieved over the last five years, it is expected to return to higher
levels as the mine transitions to higher grade, but lower carat value, ore
from the Misery and Pigeon open pits. The current Ekati mine plan calls for a
further seven years of production, but there are additional resources which
could become economic with increased diamond prices.

Each of the Core Zone and the Buffer Zone is subject to a separate joint
venture agreement. BHP Billiton holds an 80% interest in the Core Zone and a
58.8% interest in the Buffer Zone, with the remainder held by the Ekati
minority joint venture parties. Harry Winston has agreed to purchase BHP
Billiton's interests in each of the Core and Buffer Zones. Pursuant to the
joint venture agreements, BHP Billiton will first separately offer to the
joint venture parties its interest in each of the Core and Buffer Zones on the
same terms as those agreed to by Harry Winston. The joint venture parties will
then have 60 days to elect to acquire either or both of those interests. Any
interests that the joint venture parties do not elect to acquire within that
time period can then be transferred to the Company in the following 60 days.

The share purchase agreements include typical closing conditions, including
receipt of required regulatory and Competition Act approvals. If the Core
Zone transaction is not completed because the minority joint venture parties
exercise their pre-emptive rights, the Company will be entitled to be paid a
termination fee of US$30 million by BHP Billiton. Closing of the transactions
is currently expected to occur before the end of March, 2013.

The purchase price for the acquisitions will be satisfied from cash resources
on hand and from new debt financing that has been arranged with The Royal Bank
of Canada and Standard Chartered Bank. The new facilities will comprise a
US$400 million term loan, a US$100 million revolving credit facility (of which
US$50 million will be available for purposes of funding the Ekati acquisition)
and a US$140 million letter of credit facility in support of the Core Zone
environmental reclamation bond.

The new facilities will be secured and will replace the Company mining
segment's current US$125 million facility with Standard Chartered Bank, which
will be repaid and terminated on closing. The new facilities will include
customary covenants, including certain reporting and financial covenants, and
will bear interest at market rates. The term loan will be an amortizing
facility, with principal repayments beginning 30 months following closing and
a final bullet payment of 50% of the principal amount being due on the date
that is five (5) years after closing. The US$100 million portion of the
revolving facility will be due five (5) years after closing. The letter of
credit facility will expire 364 days after closing. The facilities will be
subject to customary closing conditions, including closing of the Core Zone
acquisition . If the Core Zone acquisition is not completed but the Buffer
Zone acquisition is completed, then the Company expects to finance the
acquisition of the Buffer Zone using other cash resources available to it.

Harry Winston Diamond Corporation has been involved in the Canadian diamond
industry since the discovery of the Diavik Diamond Mine in 1994. Its
experience and understanding of the operating environment and the market place
for the diamond products, together with its well-established relationships
with local communities and regional aboriginal organizations, are expected to
serve the Company well when it assumes operatorship of Ekati. Harry Winston is
enthusiastic about the opportunity to expand and strengthen these partnerships
with a view to extending Ekati's mine life and building long lasting and
sustainable opportunities and benefits for the people of the Northwest
Territories.

Rothschild has acted as lead financial advisor and, RBC Capital Markets and
Standard Chartered Bank have acted as co-advisors to Harry Winston in
connection with this Transaction.

Forward-Looking Information

Information included herein that is not current or historical factual
information may constitute forward-looking information or statements within
the meaning of applicable securities laws.  Forward-looking information is
based on certain factors and assumptions regarding, among other things,
diamond prices, mining and production activities, general business and
economic conditions, the ability to obtain the necessary regulatory approvals
to complete the Ekati transactions and the timeframe required to do so, and
the ability to satisfy the conditions to closing of the Ekati transactions and
the mining segment's proposed new financing facilities. Actual results may
vary from the forward-looking information. While the Company considers these
assumptions to be reasonable based on the information currently available to
it, they may prove to be incorrect.

Forward-looking information is subject to known and unknown factors, including
risks and uncertainties which could cause actual results to differ materially
from what the Company currently expects. These factors include, among other
things, the uncertain nature of mining activities, fluctuations in diamond
prices and changes in US and world economic conditions, financing risks, risks
relating to the timing of and ability to obtain necessary regulatory
approvals, and risks relating to the satisfaction of the conditions to closing
of the contemplated Ekati transactions and the mining segment's proposed new
financing facilities. Readers are cautioned not to place undue importance on
forward-looking information, which speaks only as of the date of this
disclosure, and should not rely upon this information as of any other date.
While the Company may elect to, it is under no obligation and does not
undertake to, update or revise any forward-looking information, whether as a
result of new information, further events or otherwise at any particular time,
except as required by law. Additional information concerning factors that may
cause actual results to materially differ from those in such forward-looking
statements is contained in the Company's filings with Canadian and United
States securities regulatory authorities and can be found at 
http://www.sedar.com  and  http://www.sec.gov ,  respectively.

About Harry Winston Diamond Corporation

Harry Winston Diamond Corporation is a diamond enterprise with premium assets
in the mining and retail segments of the diamond industry. Harry Winston
supplies rough diamonds to the global market from its 40 percent ownership
interest in the Diavik Diamond Mine.  The Company's luxury brand segment is a
premier diamond jeweler and luxury timepiece retailer with salons in key
locations, including New York, Paris, London, Beijing, Shanghai, Hong Kong,
Singapore, Tokyo and Beverly Hills.

The Company focuses on the two most profitable segments of the diamond
industry, mining and retailing, in which its expertise creates shareholder
value. This unique business model provides key competitive advantages; rough
diamond sales and polished diamond purchases provide market intelligence that
enhances the Company's overall performance.

For further information:

Please visit  http://www.harrywinston.com  or for investor information,
visit  http://investor.harrywinston.com

Contacts:

Mr. Richard Chetwode, Vice President, Corporate Development -
+44(0)7720-970-762 or  rchetwode@harrywinston.com

Ms . Laura Kiernan, Director, Investor Relations - +1(212)315-7934 or 
lkiernan@harrywinston.com

Ms . Kelley Stamm, Manager, Investor Relations - +1(416)205-4380 or 
kstamm@harrywinston.com
 
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