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Dominion Diamond Corporation Reports Fiscal 2013 Fourth Quarter and Year-End Results

 Dominion Diamond Corporation Reports Fiscal 2013 Fourth Quarter and Year-End
                                   Results

PR Newswire

TORONTO, April 3, 2013

TORONTO, April 3, 2013 /PRNewswire/ - Dominion Diamond Corporation  (TSX:DDC), 
(NYSE:DDC) (the "Company")  today announced  its fourth  quarter and  year-end 
results for the period ending January 31, 2013.

Robert Gannicott, Chairman and Chief Executive Officer stated:"The last year,
and this first  quarter, has  been a  time of  great positive  change for  the 
Company,  including   changing  its   very  identity   to  "Dominion   Diamond 
Corporation". This change  reflects a  focus on the  production, sorting  and 
sale of diamonds from  Northern Canada, a region  that we know and  understand 
well. The acquisition of the Ekati  Mine, and its operating team, is  expected 
to close next week giving us operational control of both a producing mine  and 
development opportunities in the large scale resources on the Ekati  property. 
Together with  our  exploration  acreage  adjacent to  the  Ekati  and  Diavik 
properties, this positions us from grass-roots exploration through development
opportunities. We also become the  largest supplier of Canadian diamonds  sold 
through an expert sorting and marketing  chain that we have perfected  through 
the years of Diavik production."

Fourth Quarter Highlights:

Corporate

  *The sale of the Company's Luxury Brand Segment, Harry Winston, Inc., to
    The Swatch Group Ltd. was completed on March 26, 2013. As part of the
    closing of the transaction, the Company's name was changed to Dominion
    Diamond Corporation, and its common shares now trade on both the Toronto
    and New York stock exchanges under the symbol DDC. As a result, the
    Company's consolidated results from continuing operations relate solely to
    its mining operations, which include the production, sorting and sale of
    rough diamonds. The results of the Luxury Brand Segment are treated as
    discontinued operations for accounting and reporting purposes and current
    and prior period results have been adjusted accordingly.

  *During the quarter, the Company entered into share purchase agreements
    with BHP Billiton 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,
    Canada, and Antwerp, Belgium for an agreed purchase price of $500 million.
    The transaction is currently expected to close on or about April 10,
    2013. In connection with this acquisition, the Company has also arranged 
    new secured credit facilities consisting of a $400 million term loan, a
    $100 million revolving credit facility (of which $50 million will be
    available for purposes of funding the Ekati acquisition) and a $140
    million letter of credit facility (expandable to $265 million in
    aggregate). These new facilities would replace the Company's current $125
    million facility with Standard Chartered Bank.

Diamond Market

  *During the fourth quarter of fiscal 2013, the retail jewelry market
    improved in almost all areas, led by Diwali and the wedding season in
    India, followed closely by a positive US year-end holiday season and
    improved consumer demand in China, which regained momentum in advance of
    the Lunar New Year. Rough diamond supply was impacted by delivery problems
    at certain diamond mines combined with lower than expected Russian rough
    diamond supply. The tight supply coupled with a more active polished
    market helped improve rough prices during the quarter.

Q4 Results Highlights

  *Consolidated sales from continuing operations increased 8% to $110.1
    million for the fourth quarter compared to $102.2 million for the
    comparable quarter of the prior year. The increase in sales resulted from
    an 11% increase in achieved rough diamond prices due to an improved sales
    mix, partially offset by a 3% decrease in volume of carats sold during the
    quarter.

  *Operating profit from continuing operations decreased 12% to $21.0 million
    compared to an operating profit of $24.0 million in the comparable quarter
    of the prior year. Consolidated EBITDA from continuing operations
    decreased 6% to $45.3 million compared to $48.3 million in the comparable
    quarter of the prior year.

  *Rough diamond production during the fourth calendar quarter increased 19%
    to 1.9 million carats, compared to 1.6 million carats for the fourth
    calendar quarter of last year (on a 100% basis). The increase was
    primarily due to improved grades in each of the kimberlite pipes.

  *The Company had 0.5 million carats of rough diamond inventory with an
    estimated current market value of approximately $65 million at January 31,
    2013, of which approximately $25 million represents rough diamond
    inventory available for sale, with the remaining $40 million currently
    being sorted.

  *The Company recorded a consolidated net profit attributable to
    shareholders of $14.9 million or $0.18 per share for the quarter, compared
    to a net profit attributable to shareholders of $16.6 million or $0.20 per
    share in the fourth quarter of the prior year. Net profit from continuing
    operations attributable to shareholders (which now represents the "mining
    operations") was $12.1 million or $0.14 per share compared to $12.7
    million or $0.15 per share in the comparable quarter of the prior year.
    Continuing operations includes all costs related to the Company's mining
    operations, including those previously reported as part of the corporate
    segment.

Annual Results Highlights:

  *Consolidated sales from continuing operations for the full financial year
    increased 19% to $345.4 million, compared to $290.1 million for the prior
    year. The increase in sales resulted from a 49% increase in volume of
    carats sold during the year, offset by a 20% decrease in achieved rough
    diamond prices.

       *Rough diamond production for the calendar year 2012 increased 8% to
         7.2 million carats compared to 6.7 million carats in the prior
         calendar year (on a 100% basis). The increase was due primarily to
         improved grades in each of the kimberlite pipes.

       *The 49% increase in the quantity of carats sold was primarily the
         result of the decision by the Company to hold back some lower priced
         goods at October 31, 2011 due to an oversupply in the market at that
         time and the subsequent sale of almost all of these lower priced
         carryover goods during fiscal 2013.

       *The 20% decrease in the Company's achieved average rough diamond
         prices during the fiscal year resulted from a combination of two
         factors: first, the sale of the lower priced goods originally held
         back in inventory by the Company at October 31, 2011; and second, a
         decrease in the market price for rough diamonds from the peak
         achieved in the prior year.

  *Operating profit increased 27% to $47.7 million compared to an operating
    profit of $37.6 million in the prior year. Included in the operating
    profit for the prior year was a $13.0 million ($8.4 million after tax)
    non-cash charge related to the de-recognition of certain assets associated
    with paste production at the Diavik Diamond Mine, which were no longer
    expected to be required for underground mining. Consolidated EBITDA from
    continuing operations rose 10% to $127.9 million compared to $116.3
    million in the prior year.

  *The Company recorded a consolidated net profit attributable to
    shareholders of $34.7 million or $0.41 per share for the year, compared to
    a net profit attributable to shareholders of $25.5 million or $0.30 per
    share in the prior year. Net profit from continuing operations
    attributable to shareholders was $22.3 million or $0.26 per share compared
    to $17.3 million or $0.20 per share in the prior year. Continuing
    operations includes all costs related to the Company's mining operations,
    including those previously reported as part of the corporate segment.

Fourth Quarter and Fiscal 2013 Financial Summary from Continuing Operations
(US$ in millions except Earnings per Share amounts)

                       Three months  Three months  Twelve months    Twelve
                            ended         ended         ended        months
                        Jan. 31, 2013 Jan. 31, 2012   Jan. 31,      ended
                                                        2013        Jan. 31,
                                                                      2012
Sales                       110.1         102.2         345.4        290.1
Operating Profit            21.0          24.0          47.7          37.6
Net Profit attributable     12.1          12.7          22.3          17.3
to
shareholders
Earnings per share          $0.14         $0.15         $0.26        $0.20

Outlook
A new mine plan and  budget for calendar 2013 has  been approved by Rio  Tinto 
plc and the Company. The plan  for calendar 2013 foresees Diavik Diamond  Mine 
production of approximately 6 million carats from the mining and processing of
approximately 1.6 million  tonnes of  ore with  a further  0.2 million  tonnes 
processed  from  stockpile   ore.  Mining  activities   will  be   exclusively 
underground with approximately 0.7 million tonnes expected to be sourced  from 
A-154  North,  approximately   0.5  million  tonnes   from  A-154  South   and 
approximately 0.4 million tonnes from A-418 kimberlite pipes. Included in the
estimated production for  calendar 2013  is approximately  0.6 million  carats 
from RPR and 0.1 million carats  from the improved recovery process for  small 
diamonds. These  RPR and  small diamond  recoveries are  not included  in  the 
Company's reserves and  resource statement  and are  therefore incremental  to 
production.

The development of  A-21, the  last of  the Diavik  Diamond Mine's  kimberlite 
pipes in the original  mine plan, has  been deferred due  both to the  current 
diamond market conditions and the  decreased urgency of development  following 
the identification  of  extensions  to  the  existing  pipes.  Although  these 
extension areas cannot be categorized as ore at this time due to  insufficient 
definition work, the Company expects the life of the existing developed  pipes 
will be extended, thereby deferring the need for production from A-21 to  keep 
the processing  plant full.  The A-21  pre-feasibility study  currently  being 
undertaken assumes that the A-21 pipe will be mined with the open pit  methods 
used for the other pipes. A dike would be constructed similar to the two other
pits but smaller in size. Detailed plans are still being refined and optimized
although no underground mining is currently envisaged.

Conference Call and Webcast
Beginning at  8:30AM (ET)  on Thursday,  April 4th,  the Company  will host  a 
conference  call  for  analysts,  investors  and  other  interested   parties. 
Listeners may access a live broadcast of the conference call on the  Company's 
investor relations web site at www.ddcorp.ca or by dialing 800-299-8538 within
North America  or  617-786-2902  from  international  locations  and  entering 
passcode 80556554.

An online  archive  of  the  broadcast will  be  available  by  accessing  the 
Company's investor relations web site  at www.ddcorp.ca A telephone replay  of 
the call  will be  available one  hour after  the call  through 11:00PM  (ET), 
Thursday, April 18th,  2013 by  dialing 888-286-8010 within  North America  or 
617-801-6888 from international locations and entering passcode 39398597.

About Dominion Diamond Corporation
Dominion Diamond Corporation is focused on  the mining and marketing of  rough 
diamonds to  the global  market  from attractive  operating mine  assets  that 
present low  political  risk. Our  business  encompasses 40%  of  the  Diavik 
Diamond Mine in Canada's Northwest  Territories and rough diamond sorting  and 
sales operations in Canada, Belgium and  India. The Company is in the  process 
of purchasing an 80% interest in the  Ekati Diamond Mine, also located in  the 
Northwest Territories of Canada, as well as a control interest in  surrounding 
areas containing significant prospective  resources. The Company expects  the 
closing of the transaction will occur on or about April 10, 2013.

For more information, please visit www.ddcorp.ca

FOURTH QUARTER RESULTS
During the quarter, Dominion Diamond Corporation (the "Company") announced
that it had entered into an agreement to sell its luxury brand diamond jewelry
and timepiece division, Harry Winston, Inc. (the "Luxury Brand Segment") to
The Swatch Group Ltd. ("Swatch Group"). The sale transaction was completed on
March 26, 2013. As a result of the sale, the Company's corporate group
underwent name changes to remove references to "Harry Winston". The Company's
name has now been changed to "Dominion Diamond Corporation" and its common
shares trade on both the Toronto and New York stock exchanges under the symbol
"DDC". See "Discontinued Operations". Accordingly, the Company's consolidated
results are supported from continuing operations, which no longer include the
operations of the Luxury Brand Segment and the results of this segment are now
treated as discontinued operations for reporting purposes. Current and prior
period results have been restated to reflect this change.

The Company recorded a consolidated net profit attributable to shareholders of
$14.9 million or $0.18  per share for  the quarter, compared  to a net  profit 
attributable to shareholders of $16.6 million or $0.20 per share in the fourth
quarter of the prior year. Net profit from continuing operations  attributable 
to shareholders  (which  now represents  the  "mining operations")  was  $12.1 
million or $0.14 per share compared to $12.7 million or $0.15 per share in the
comparable quarter of the prior year. Continuing operations includes all costs
related  to  the  Company's  mining  operations,  including  those  previously 
reported as part of the corporate segment.

Consolidated sales  from continuing  operations were  $110.1 million  for  the 
fourth quarter compared to  $102.2 million for the  comparable quarter of  the 
prior year, resulting in an operating  profit of $21.0 million compared to  an 
operating profit of $24.0 million in the comparable quarter of the prior year.
Gross margin  increased  6%  to  $31.1  million  from  $29.5  million  in  the 
comparable quarter  of the  prior year.  Consolidated EBITDA  from  continuing 
operations was  $45.3 million  compared  to $48.3  million in  the  comparable 
quarter of the prior year.

The increase in sales resulted from an 11% increase in achieved rough  diamond 
prices, partially offset by a 3% decrease in volume of carats sold during  the 
quarter. Rough diamond production during  the fourth calendar quarter was  19% 
higher than the  comparable quarter  of the prior  year. The  Company had  0.5 
million carats of  rough diamond  inventory with an  estimated current  market 
value of approximately $65 million at January 31, 2013, of which approximately
$25 million represents rough  diamond inventory available  for sale, with  the 
remaining $40 million currently being sorted.

The net earnings from  discontinued operations of  $2.8 million are  presented 
separately in the consolidated income statements, and comparative periods have
been adjusted accordingly.

ANNUAL RESULTS
The Company recorded a consolidated net profit attributable to shareholders of
$34.7 million  or $0.41  per share  for the  year, compared  to a  net  profit 
attributable to shareholders of $25.5 million or $0.30 per share in the  prior 
year. Net profit from continuing  operations attributable to shareholders  was 
$22.3 million or $0.26 per share compared to $17.3 million or $0.20 per  share 
in the prior  year. Continuing operations  includes all costs  related to  the 
Company's mining operations,  including those previously  reported as part  of 
the corporate segment.

Consolidated sales from continuing operations were $345.4 million for the year
compared to  $290.1 million  for the  prior year,  resulting in  an  operating 
profit of $47.7 million  compared to an operating  profit of $37.6 million  in 
the prior year. Gross margin increased 25% to $77.8 million from $62.2 million
in the prior year. Consolidated  EBITDA from continuing operations was  $127.9 
million compared to $116.3 million in the prior year.

The increase in sales resulted  from a 49% increase  in volume of carats  sold 
during the year, offset  by a 20% decrease  in achieved rough diamond  prices. 
The 49% increase in the quantity of carats sold was primarily the result of  a 
decision by the Company to  hold back some lower  priced goods at October  31, 
2011 due to an oversupply in the  market at that time and the subsequent  sale 
of almost all of these lower priced carryover goods during fiscal 2013.  Rough 
diamond production during  the year  was 8% higher  than the  prior year.  The 
Company recorded a consolidated operating profit from continuing operations of
$47.7 million compared  to $37.6 million  in the prior  year. Included in  the 
operating profit for the  prior year was a  $13.0 million ($8.4 million  after 
tax)  non-cash  charge  related  to  the  de-recognition  of  certain   assets 
associated with paste  production at the  Diavik Diamond Mine,  which were  no 
longer expected to be required for underground mining.

The net earnings from discontinued  operations of $12.4 million are  presented 
separately in the consolidated income statements, and comparative periods have
been adjusted accordingly.

                     Management's Discussion and Analysis

    (ALL FIGURES ARE IN UNITED STATES DOLLARS UNLESS OTHERWISE INDICATED)

On March  26, 2013,  Harry Winston  Diamond Corporation  changed its  name  to 
Dominion  Diamond   Corporation  ("Dominion   Diamond  Corporation"   or   the 
"Company"). The following is management's discussion and analysis ("MD&A")  of 
the results of operations for Dominion Diamond Corporation for the year  ended 
January 31, 2013, andits financial position as at January 31, 2013. This MD&A
is based  on  the  Company's consolidated  financial  statements  prepared  in 
accordance with  International  Financial  Reporting  Standards  ("IFRS")  and 
should be read in conjunction  with the consolidated financial statements  and 
related notes.  Unless  otherwise  specified,  all  financial  information  is 
presented in United States dollars. Unless otherwise indicated, all references
to "year" refer to the fiscal year ended January 31, 2013.

Certain information  included  in  this MD&A  may  constitute  forward-looking 
information within the meaning of Canadian and United States securities  laws. 
In some cases,  forward-looking information can  be identified by  the use  of 
terms  such  as  "may",  "will",  "should",  "expect",  "plan",  "anticipate", 
"foresee", "appears", "believe", "intend", "estimate", "predict", "potential",
"continue",  "objective",  "modeled",  "hope"  or  other  similar  expressions 
concerning matters that are not historical facts. Forward-looking  information 
may relate to management's future  outlook and anticipated events or  results, 
and may  include  statements or  information  regarding plans,  timelines  and 
targets for  construction,  mining, development,  production  and  exploration 
activities at the  Diavik Diamond Mine,  future mining and  processing at  the 
Diavik Diamond  Mine,  projected  capital  expenditure  requirements  and  the 
funding thereof,  liquidity  and  working capital  requirements  and  sources, 
estimated reserves and resources at,  and production from, the Diavik  Diamond 
Mine, the number and  timing of expected rough  diamond sales, the demand  for 
rough diamonds,  expected  diamond  prices  and  expectations  concerning  the 
diamond industry, expected  cost of  sales and  gross margin  trends, and  the 
ability to complete the  Ekati Diamond Mine  Acquisition (as defined  herein). 
Actual results may vary from  the forward-looking information. See "Risks  and 
Uncertainties" on page 15  for material risk factors  that could cause  actual 
results to differ materially from the forward-looking information.

Forward-looking information  is  based  on  certain  factors  and  assumptions 
regarding,  among   other  things,   mining,  production,   construction   and 
exploration activities  at the  Diavik  Diamond Mine,  world and  US  economic 
conditions, diamond supply, and the timeline for the funding and completion of
the Ekati Diamond  Mine Acquisition. In  making statements regarding  expected 
diamond prices and expectations concerning  the diamond industry, the  Company 
has made assumptions regarding, among other things, the state of world and  US 
economic conditions,  and  worldwide  diamond  production  levels.  While  the 
Company considers these assumptions to be reasonable based on the  information 
currently available to  it, they  may prove to  be incorrect.  See "Risks  and 
Uncertainties" on page 15.

Forward-looking information is subject to certain factors, including risks and
uncertainties, which could cause actual results to differ materially from what
we currently expect. These factors include, among other things, the  uncertain 
nature of  mining  activities,  including risks  associated  with  underground 
construction and  mining  operations,  risks  associated  with  joint  venture 
operations, including  risks  associated with  the  inability to  control  the 
timing and scope of future capital expenditures, the risk that the operator of
the Diavik Diamond  Mine may make  changes to  the mine plan  and other  risks 
arising because of the  nature of joint  venture activities, risks  associated 
with the remote location of and harsh climate at the Diavik Diamond Mine site,
risks resulting  from the  Eurozone financial  crisis, risks  associated  with 
regulatory requirements, fluctuations in diamond prices and changes in US  and 
world economic conditions, the risk of fluctuations in the Canadian/US  dollar 
exchange rate, cash flow  and liquidity risks, and  the risks relating to  the 
ability  to  satisfy  the  closing  conditions  of  the  Ekati  Diamond   Mine 
Acquisition and the Company's related  new credit facilities. Please see  page 
15 of this  MD&A, as well  as the Company's  current Annual Information  Form, 
available at www.sedar.com and www.sec.gov, respectively, for a discussion  of 
these and other risks and uncertainties involved in the Company's operations.

Readers are  cautioned  not  to  place  undue  importance  on  forward-looking 
information, which speaks only  as of the  date of this  MD&A, and should  not 
rely upon this information as of any other date. Due to assumptions, risks and
uncertainties, including the assumptions,  risks and uncertainties  identified 
above and elsewhere  in this MD&A,  actual events may  differ materially  from 
current expectations. The Company  uses forward-looking statements because  it 
believes such  statements  provide  useful information  with  respect  to  the 
expected future  operations  and financial  performance  of the  Company,  and 
cautions readers  that  the  information  may not  be  appropriate  for  other 
purposes. 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,  future 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 
www.sedar.com and www.sec.gov, respectively.

Summary Discussion
Dominion Diamond Corporation is focused on the mining and marketing of rough
diamonds to the global market. The Company supplies rough diamonds to the
global market from its 40% ownership interest in the Diavik Diamond Mine,
located in Canada's Northwest Territories.

The Company has an ownership interest  in the Diavik group of mineral  claims. 
The Diavik  Joint Venture  (the "Joint  Venture") is  an unincorporated  joint 
arrangement between  Diavik Diamond  Mines Inc.  ("DDMI") (60%)  and  Dominion 
Diamond Diavik Limited  Partnership (formerly known  as HarryWinston  Diamond 
Limited Partnership)  ("DDDLP")  (40%)  where DDDLP  holds  an  undivided  40% 
ownership interest  in the  assets,  liabilities and  expenses of  the  Diavik 
Diamond Mine. DDMI is the operator of the Diavik Diamond Mine. DDMI and  DDDLP 
are headquartered in Yellowknife, Canada. DDMI is a wholly owned subsidiary of
Rio Tinto plc of London, England.

On November 13, 2012, the Company 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,  Canada,   and  Antwerp,   Belgium  (the   "Ekati  Diamond   Mine 
Acquisition"). 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 $400 million for the Core Zone and $100 million for the Buffer  Zone, 
subject to adjustments  in accordance  with the  terms of  the share  purchase 
agreements. The share purchase agreements include typical closing  conditions, 
including receipt  of required  regulatory and  competition or  antitrust  law 
approvals. 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. BHP Billiton has advised the Company that  all 
of the minority joint  venture partners have agreed  to waive their rights  of 
first refusal to purchase the interests in the Buffer Zone and Core Zone  that 
they do not  own, as  applicable, pursuant to  the terms  of their  respective 
joint venture agreements.  Closing of  the Ekati Diamond  Mine Acquisition  is 
currently expected to occur  on April 10, 2013.  In connection with the  Ekati 
Diamond  Mine  Acquisition,  the  Company  has  arranged  new  secured  credit 
facilities consisting of a  $400 million term loan,  a $100 million  revolving 
credit facility  (of which  $50  million will  be  available for  purposes  of 
funding the  Ekati Diamond  Mine Acquisition)  and a  $140 million  letter  of 
credit  facility  (expandable  to  $265  million  in  aggregate).  These   new 
facilities will  replace  the Company's  current  $125 million  facility  with 
Standard Chartered Bank.

On January 14, 2013, the Company  announced that it entered into an  agreement 
to  sell  the  Luxury  Brand  Segment  to  Swatch  Group  (the  "Luxury  Brand 
Divestiture"). The Luxury Brand Divestiture  was completed on March 26,  2013. 
As a result  of the Luxury  Brand Divestiture, the  Company's corporate  group 
underwent name changes to remove references to "Harry Winston". The  Company's 
name has now  been changed to  "Dominion Diamond Corporation"  and its  common 
shares trade on both the Toronto and New York stock exchanges under the symbol
"DDC".

Market Commentary
The Diamond Market
The rough and polished diamond markets continued to soften throughout the
first half of fiscal 2013 due to the macroeconomic uncertainty that negatively
impacted the second half of fiscal 2012. The retail industry had built up
diamond stocks in expectation of 2012 being a year of greater growth in
demand, and the overstocking did not clear until late 2012. Market conditions
improved in the second half of fiscal 2013 as a stronger US holiday season and
renewed activity in the retail market in China helped increase prices from the
market lows experienced in the middle of the year. In addition, the retail
markets in both India and the Middle East recovered in the second half of the
year, adding further stability to the diamond markets. The diamond market is
impacted by currency fluctuations and the dramatic fall in the Indian rupee
against the US dollar in early 2012 negatively affected the cost of diamonds
to the consumer and the credit available to the Indian diamond cutting
industry. In early 2012, industry leading banks reviewed their credit exposure
to the diamond industry, tightening liquidity and creating an additional
challenge to the difficult market conditions. This tightening of credit forced
many diamond companies to improve their operations, allowing the industry to
take full advantage of the better market conditions that were evident at the
end of fiscal 2013.

During the fourth quarter of fiscal  2013, the retail jewelry market  improved 
in almost all areas, led  by Diwali and the  wedding season in India  followed 
closely by a positive US year-end holiday season and improved consumer  demand 
in China, which  regained momentum  in advance of  the Lunar  New Year.  Rough 
diamond supply  was impacted  by delivery  problems at  certain diamond  mines 
combined with  lower than  expected Russian  rough diamond  supply. The  tight 
supply coupled with a more active polished market helped improve rough  prices 
during the quarter.

Consolidated Financial Results
On January 14, 2013, the Company  announced that it entered into an  agreement 
to sell the  Luxury Brand Segment  to Swatch Group.  The sale transaction  was 
completed on March 26, 2013. As a result of the sale, the Company's  corporate 
group underwent name  changes to  remove references to  "Harry Winston".  The 
Company's name has now been changed to "Dominion Diamond Corporation" and  its 
common shares trade on both the Toronto and New York stock exchanges under the
symbol  "DDC".  See  "Discontinued  Operations".  Accordingly,  the  Company's 
consolidated results from  continuing operations relate  solely to its  mining 
operations, which include the production, sorting and sale of rough  diamonds. 
The results of the Luxury Brand Segment are treated as discontinued operations
for accounting and  reporting purposes  and current and  prior period  results 
have been adjusted accordingly.  The following is a  summary of the  Company's 
consolidated quarterly results for the  eight quarters ended January 31,  2013 
following the basis of presentation utilized in its IFRS financial statements:

(expressed in thousands of United States dollars except per share amounts and
where otherwise noted)
(unaudited)

                                                                                                       
                         2013     2013     2013     2013     2012     2012     2012     2012     2013      2012     2011
                           Q4       Q3       Q2       Q1       Q4       Q3       Q2       Q1    Total     Total    Total
Sales                 $ 110,111 $  84,818 $  61,473 $  89,009 $ 102,232 $  36,239 $  89,608 $  62,035 $ 345,411 $  290,114 $ 279,154
Cost of sales           79,038   71,663   46,784   70,099   72,783   34,112   67,613   53,443  267,584   227,951  205,412
Gross margin            31,073   13,155   14,689   18,910   29,449    2,127   21,995    8,592   77,827    62,163   73,742
Gross margin (%)         28.2%    15.5%    23.9%    21.2%    28.8%     5.9%    24.5%    13.9%    22.5%     21.4%    26.4%
Selling, general and    10,086    7,581    5,750    6,739    5,464    5,390    5,709    8,026   30,156    24,589   19,742
administrative
expenses
Operating profit        20,987    5,574    8,939   12,171   23,985  (3,263)   16,286      566   47,671    37,574   54,000
(loss) from
continuingoperations
Finance expenses       (2,382)  (2,308)  (2,151)  (2,242)  (1,616)  (2,691)  (3,787)  (2,693)  (9,083)  (10,787)  (7,136)
Exploration costs        (306)    (673)    (568)    (254)    (177)    (600)    (781)    (212)  (1,801)   (1,770)    (666)
Finance and other          601       60       67       52       51      256       78       77      780       462      281
income
Foreign exchange gain      116    (301)    1,048    (370)      680      285      846    (977)      493       834  (1,644)
(loss)
Profit (loss) before    19,016    2,352    7,335    9,357   22,923  (6,013)   12,642  (3,239)   38,060    26,313   44,835
income taxes from
continuing operations
Income tax expense       6,977    1,583    3,386    3,330   10,281  (1,574)    4,517  (4,217)   15,276     9,007    3,345
(recovery)
Net profit (loss)     $  12,039 $     769 $   3,949 $   6,027 $  12,642 $ (4,439) $   8,125 $     978 $  22,784 $   17,306 $  41,490
from continuing
operations
Net profit (loss)        2,802    3,245      804    5,583    3,946    (292)    1,863    2,620   12,434     8,137    5,711
from discontinued
operations
Net profit (loss)     $  14,841 $   4,014 $   4,753 $  11,610 $  16,588 $ (4,731) $   9,988 $   3,598 $  35,218 $   25,443 $  47,201
Net profit (loss)                                                                                             
from continuing
operations
attributable to
Shareholders          $  12,146 $     152 $   3,951 $   6,027 $  12,654 $ (4,436) $   8,123 $     976 $  22,276 $   17,317 $  35,819
Non-controlling          (107)      617      (2)        -     (12)      (3)        2        2      508      (11)    5,671
interest
Net profit (loss)                                                                                     
attributable to
Shareholders          $  14,948 $   3,397 $   4,755 $  11,610 $  16,600 $ (4,728) $   9,986 $   3,596 $  34,710 $   25,454 $  41,530
Non-controlling          (107)      617      (2)        -     (12)      (3)       2       2      508     ( 11)    5,671
interest
Earnings (loss) per                                                                                           
share - continuing
operations
 Basic             $    0.14 $       - $    0.05 $    0.07 $    0.15 $  (0.05) $    0.10 $    0.01 $    0.26 $     0.20 $    0.45
 Diluted           $    0.14 $       - $    0.05 $    0.07 $    0.15 $  (0.05) $    0.09 $    0.01 $    0.26 $     0.20 $    0.44
Earnings (loss) per                                                                                           
share
 Basic             $    0.18 $    0.04 $    0.06 $    0.14 $    0.20 $  (0.06) $    0.12 $    0.04 $    0.41 $     0.30 $    0.52
 Diluted           $    0.18 $    0.04 $    0.06 $    0.14 $    0.19 $  (0.06) $    0.12 $    0.04 $    0.41 $     0.30 $    0.51
Cash dividends        $    0.00 $    0.00 $    0.00 $    0.00 $    0.00 $    0.00 $    0.00 $    0.00 $    0.00 $     0.00 $    0.00
declared per share
Total assets ^(i)     $   1,710 $   1,733 $   1,660 $   1,716 $   1,607 $   1,656 $   1,671 $   1,671 $   1,710 $    1,607 $   1,592
Total long-term       $     269 $     682 $     461 $     472 $     641 $     661 $     633 $     613 $     269 $      641 $     586
liabilities ^(i)
Operating profit      $  20,987 $   5,574 $   8,939 $  12,171 $  23,985 $ (3,263) $  16,286 $     566 $  47,671 $   37,574 $  54,000
(loss) from
continuing operations
Depreciation and        24,346   20,588   13,160   22,172   24,284   19,933   17,461   17,083   80,266    78,761   63,424
amortization ^(ii)
EBITDA from           $  45,333 $  26,162 $  22,099 $  34,343 $  48,269 $  16,670 $  33,747 $  17,649 $ 127,937 $  116,335 $ 117,424
continuing operations
^(iii)

(i)   Total assets and total long-term liabilities are expressed in millions
       of United States dollars.
(ii)  Depreciation and amortization included in cost of sales and selling,
       general and administrative expenses.
(iii) Earnings before interest, taxes, depreciation and amortization
       ("EBITDA"). See "Non-IFRS Measures" on page 14.

The comparability of quarter-over-quarter  results is impacted by  seasonality 
of mining operations. Dominion Diamond Corporation expects that the  quarterly 
results for its mining operations will continue to fluctuate depending on  the 
seasonality of production  at the  Diavik Diamond  Mine, the  number of  sales 
events conducted  during  the  quarter,  and  the  volume,  size  and  quality 
distribution of rough diamonds delivered from the Diavik Diamond Mine in  each 
quarter.

Three Months Ended January 31, 2013 ComparedtoThree Months Ended January 31,
2012

CONSOLIDATED NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS
The Company recorded a fourth quarter consolidated net profit attributable to
shareholders of $14.9 million or $0.18 per share compared to a net profit
attributable to shareholders of $16.6 million or $0.20 per share in the fourth
quarter of the prior year. Net profit from continuing operations attributable
to shareholders was $12.1 million or $0.14 per share compared to $12.7 million
or $0.15 per share in the comparable quarter of the prior year. Discontinued
operations represented $2.8 million of net profit or $0.04 per share compared
to $3.9 million or $0.05 per share in the fourth quarter of the prior year.

CONSOLIDATED SALES FROM CONTINUING OPERATIONS

(expressed in thousands of United States dollars)
(unaudited)

                                                                                                 
               2013     2013     2013     2013      2012     2012     2012     2012      2013       2012      2011
                 Q4       Q3       Q2       Q1        Q4       Q3       Q2       Q1     Total      Total     Total
Sales                                                                                                   
 North     $   4,604  $  7,697  $  2,269  $  7,432  $   2,727  $  8,835  $    447  $  3,009  $  22,002  $   15,018  $  10,418
  America
 Europe      84,346   57,438   50,514   54,370    78,846   21,993   80,131   50,752   246,668    231,722   247,677
 India       21,161   19,683    8,690   27,207    20,659    5,411    9,030    8,274    76,741     43,374    21,059
Total       $ 110,111  $ 84,818  $ 61,473  $ 89,009  $ 102,232  $ 36,239  $ 89,608  $ 62,035  $ 345,411  $  290,114  $ 279,154
sales

During the fourth quarter, the Company sold approximately 0.83 million  carats 
for a total of $110.1 million for an average price per carat of $133  compared 
to approximately 0.86  million carats  for a total  of $102.2  million for  an 
average price per carat of $120 in  the comparable quarter of the prior  year. 
The 11% increase in the Company's achieved average rough diamond prices during
the fourth quarter versus  the comparable quarter of  the prior year  resulted 
from an improved sales mix.

Had the Company sold only the  last production shipped in the fourth  quarter, 
the estimated  achieved price  would have  been approximately  $117 per  carat 
based on the prices achieved in the February 2013 sale.

The Company expects that  results for its mining  operations will continue  to 
fluctuate depending on  the seasonality  of production at  the Diavik  Diamond 
Mine, the number of sales events  conducted during the quarter, rough  diamond 
prices and  the  volume,  size  and quality  distribution  of  rough  diamonds 
delivered  from  the  Diavik  Diamond  Mine   and  sold  by  the  Company   in 
eachquarter.

CONSOLIDATED COST OF SALES AND GROSS MARGIN FROM CONTINUING OPERATIONS
The Company's fourth quarter consolidated cost of sales was $79.0 million
resulting in a gross margin of 28.2% compared to a cost of sales of $72.8
million and a gross margin of 28.8% in the comparable quarter of the prior
year. Cost of sales for the fourth quarter included $23.6 million of
depreciation and amortization compared to $23.5 million in the comparable
quarter of the prior year. The gross margin is anticipated to fluctuate
between quarters, resulting from variations in the specific mix of product
sold during each quarter and rough diamond prices.

A substantial portion of consolidated cost of sales is mining operating costs,
which are incurred at the Diavik Diamond Mine. During the fourth quarter,  the 
Diavik cash cost of production was $44.8 million compared to $44.2 million  in 
the comparable quarter of the prior year. Cost of sales also includes  sorting 
costs, which consists of the Company's cost of handling and sorting product in
preparation for sales to third parties, and depreciation and amortization, the
majority of  which  is  recorded  using  the  unit-of-production  method  over 
estimated proven and probable reserves.

The MD&A refers to cash cost of production, a non-IFRS performance measure, in
order to  provide  investors  with  information  about  the  measure  used  by 
management to monitor performance. This information is used to assess how well
the Diavik Diamond  Mine is  performing compared to  the mine  plan and  prior 
periods. Cash cost of  production includes mine site  operating costs such  as 
mining, processing  and  administration,  but is  exclusive  of  amortization, 
capital, and exploration and development  costs. Cash cost of production  does 
not have any standardized meaning prescribed by IFRS and differs from measures
determined in accordance with  IFRS. This performance  measure is intended  to 
provide additional information and should not be considered in isolation or as
a substitute for  measures of  performance prepared in  accordance with  IFRS. 
This measure is  not necessarily indicative  of net profit  or cash flow  from 
operations  as  determined  under  IFRS.   The  following  table  provides   a 
reconciliation of cash cost  of production to the  mining operations' cost  of 
sales disclosed for the three months ended January 31, 2013 and 2012.

                                                               
                                              Three months      Three months
(expressed in thousands of United States              ended             ended
dollars)                                   January 31, 2013  January 31, 2012
Diavik cash cost of production                 $     44,764      $      44,187
Private royalty                                      2,040             1,529
Other cash costs                                     1,272             1,074
Total cash cost of production                       48,076            46,790
Depreciation and amortization                       20,182           21,748
Total cost of production                            68,258           68,538
Adjusted for stock movements                        10,780            4,245
Total cost of sales                            $     79,038      $     72,783

CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES FROM CONTINUING
OPERATIONS
Consolidated SG&A expenses for the fourth quarter increased by $4.6 million
from the prior year primarily due to $1.6 million related to the Ekati Diamond
Mine Acquisition, $0.6 million related to the Luxury Brand Divestiture and
$0.8 million related to stock-based compensation.

CONSOLIDATED INCOME TAXES FROM CONTINUING OPERATIONS
The Company recorded a net income tax expense from continuing operations of
$7.0 million during the fourth quarter, compared to a net income tax expense
from continuing operations of $10.3 million in the comparable quarter of the
prior year. The Company's combined Canadian federal and provincial statutory
tax rate for the quarter is 26.5%. There are a number of items that can
significantly impact the Company's effective tax rate, including foreign
currency exchange rate fluctuations, the Northwest Territories mining royalty,
earnings subject to tax different than the statutory rate such as earnings in
foreign jurisdictions, and changes in the Company's view of whether deferred
tax assets are probable of being realized. As a result, the Company's
recorded tax provision can be significantly different than the expected tax
provision calculated based on the statutory tax rate.

The recorded  tax  provision  is particularly  impacted  by  foreign  currency 
exchange rate fluctuations. The Company's functional and reporting currency is
US dollars; however, the calculation of income tax expense is based on  income 
in the currency of the country of origin. As such, the Company is  continually 
subject to foreign exchange fluctuations, particularly as the Canadian  dollar 
moves against the US dollar. During  the fourth quarter, the Company  recorded 
an unrealized foreign exchange loss of $0.3 million on the revaluation of  the 
Company's Canadian  dollar denominated  deferred  income tax  liability.  This 
compares to  an  unrealized foreign  exchange  gain  of $1.2  million  in  the 
comparable quarter of the prior year. The unrealized foreign exchange loss  is 
recorded as part  of the  Company's deferred income  tax expense,  and is  not 
deductible for Canadian income tax  purposes. During the fourth quarter,  the 
Company also recognized  a deferred  income tax  expense of  $0.9 million  for 
temporary differences  arising  from  the difference  between  the  historical 
exchange rate and the  current exchange rate  translation of foreign  currency 
non-monetary items. This  compares to a  deferred income tax  expense of  $2.8 
million recognized in the comparable quarter of the prior year. The  recorded 
tax provision  during  the fourth  quarter  also  included a  net  income  tax 
recovery of  $1.1 million  relating to  foreign exchange  differences  between 
income in the  currency of  the country  of origin  and the  US dollar.  This 
compares to  a net  income tax  recovery  of $0.6  million recognized  in  the 
comparable period of the prior year.

Due to the  number of factors  that can potentially  impact the effective  tax 
rate and the sensitivity of the  tax provision to these factors, as  discussed 
above, it is expected that the Company's effective tax rate will fluctuate  in 
future periods.

CONSOLIDATED FINANCE EXPENSES FROM CONTINUING OPERATIONS
Finance expenses for the fourth quarter were $2.4 million compared to $1.6
million for the comparable quarter of the prior year. Also included in
consolidated finance expense is accretion expense of $0.6 million (2012 -
$(0.3) million) related to the Diavik Diamond Mine's future site restoration
liability.

CONSOLIDATED EXPLORATION EXPENSE FROM CONTINUING OPERATIONS
Exploration expense of $0.3 million was incurred during the fourth quarter
compared to $0.2 million in the comparable quarter of the prior year.

CONSOLIDATED FINANCE AND OTHER INCOME FROM CONTINUING OPERATIONS
Finance and other income of $0.6 million was recorded during the fourth
quarter compared to $0.1 million in the comparable quarter of the prior year.

CONSOLIDATED FOREIGN EXCHANGE FROM CONTINUING OPERATIONS
A net foreign exchange gain of $0.1 million was recognized during the fourth
quarter compared to a net foreign exchange gain of $0.7 million in the
comparable quarter of the prior year. TheCompany does not currently have any
significant foreign exchange derivative instruments outstanding.

Year Ended January 31, 2013 ComparedtoYear Ended January 31, 2012

CONSOLIDATED NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS
The Company recorded a consolidated net profit attributable to shareholders of
$34.7 million or $0.41 per share for the year ended January 31, 2013, compared
to a net profit attributable to shareholders of $25.5 million or $0.30 per
share in the prior year. Excluding the $8.4 million after-tax de-recognition
in the prior year of certain paste production assets, the Company would have
recorded a net profit attributable to shareholders of $33.8 million or $0.40
per share. Net profit from continuing operations attributable to shareholders
was $22.3 million or $0.26 per share, compared to $17.3 million or $0.20 per
share in the prior year. Excluding the $8.4 million described above, the
Company would have recorded a net profit from continuing operations
attributable to shareholders of $25.7 million or $0.30 per share in the prior
year. Discontinued operations represented $12.4 million of net profit or $0.15
per share compared to $8.1 million or $0.10 per share in the prior year.

CONSOLIDATED SALES FROM CONTINUING OPERATIONS
During the year ended January 31, 2013, the Company sold approximately 3.2
million carats for a total of $345.4 million for an average price per carat of
$109 compared to approximately 2.1 million carats for a total of $290.1
million for an average price per carat of $137 in the prior year. The 49%
increase in the quantity of carats sold was primarily the result of a decision
by the Company to hold back some lower priced goods at October 31, 2011 due to
an oversupply in the market at that time and the subsequent sale of almost all
of these lower priced carryover goods during fiscal 2013. The 20% decrease in
the Company's achieved average rough diamond prices during the fiscal year
resulted from a combination of two factors: first, the sale of the lower
priced goods originally held back in inventory by the Company at October 31,
2011; and second, a decrease in the market price for rough diamonds from the
peak achieved in the prior year.

CONSOLIDATED COST OF SALES AND GROSS MARGIN FROM CONTINUING OPERATIONS
The Company's cost of sales was $267.6 million during the year ended January
31, 2013, resulting in a gross margin of 22.5% compared to a cost of sales of
$228.0 million and a gross margin of 21.4% in the prior year. Included in the
cost of sales for the prior year was a non-cash $13.0 million charge related
to the de-recognition of certain components of the backfill plant associated
with paste production at the Diavik Diamond Mine. Cost of sales for the year
ended January 31, 2013, included $77.3 million of depreciation and
amortization compared to $76.1 million for the prior year. The gross margin is
anticipated to fluctuate between quarters, resulting from variations in the
specific mix of product sold during each quarter and rough diamond prices.

A substantial portion of  cost of sales is  mining operating costs, which  are 
incurred at the Diavik Diamond Mine.  During the year ended January 31,  2013, 
the Diavik  cash cost  of production  was $171.4  million compared  to  $167.8 
million in the prior  year. Cost of sales  also includes sorting costs,  which 
consists of the Company's cost of handling and sorting product in  preparation 
for sales to third parties, and depreciation and amortization, the majority of
which is recorded  using the unit-of-production  method over estimated  proven 
and probable reserves.

The following table provides  a reconciliation of cash  cost of production  (a 
non-IFRS performance  measure) to  cost of  sales disclosed  in the  financial 
statements for the fiscal years ended January 31, 2013 and 2012.

(expressed in thousands of United States dollars)     2013     2012 
Diavik cash cost of production                    $ 171,442  $  167,787
Private royalty                                      7,399      5,535
Other cash costs                                     4,360      4,009
Total cash cost of production                      183,201    177,331
Depreciation and amortization                       70,516     88,302
Total cost of production                           253,717    265,633
Adjusted for stock movements                        13,868   (37,682)
Total cost of sales                               $ 267,585  $  227,951

CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES FROM CONTINUING
OPERATIONS
Consolidated SG&A expenses increased by $5.6 million from the prior year
primarily due to $3.2 million related to the Ekati Diamond Mine Acquisition
and $1.0 million related to the Luxury Brand Divestiture.

CONSOLIDATED INCOME TAXES FROM CONTINUING OPERATIONS
The Company recorded a net income tax expense from continuing operations of
$15.3 million during the year ended January 31, 2013, compared to a net income
tax expense from continuing operations of $9.0 million in the prior year. The
Company's combined Canadian federal and provincial statutory tax rate for the
period is 26.5%. There are a number of items that can significantly impact the
Company's effective tax rate, including foreign currency exchange rate
fluctuations, the Northwest Territories mining royalty, earnings subject to
tax different than the statutory rate, such as earnings in foreign
jurisdictions, and changes in the Company's view of whether deferred tax
assets are probable of being realized. As a result, the Company's recorded
tax provision can be significantly different than the expected tax provision
calculated based on the statutory tax rate.

The recorded  tax  provision  is particularly  impacted  by  foreign  currency 
exchange rate fluctuations.The Company's functional and reporting currency is
US dollars; however, the calculation of income tax expense is based on  income 
in the currency of the country of origin. As such, the Company is  continually 
subject to foreign exchange fluctuations, particularly as the Canadian  dollar 
moves against  the US  dollar. During  the year  ended January  31, 2013,  the 
Company recorded an unrealized  foreign exchange loss of  $1.1 million on  the 
revaluation of the Company's Canadian  dollar denominated deferred income  tax 
liability. This  compares  to an  unrealized  foreign exchange  loss  of  $0.5 
million in the prior year. The unrealized foreign exchange loss is recorded as
part of the Company's deferred income tax recovery, and is not deductible  for 
Canadian income tax  purposes. During the  year ended January  31, 2013,  the 
Company also recognized  a deferred  income tax  expense of  $4.4 million  for 
temporary differences  arising  from  the difference  between  the  historical 
exchange rate and the  current exchange rate  translation of foreign  currency 
non-monetary items. This  compares to a  deferred income tax  expense of  $5.6 
million recognized in the prior year.  The recorded tax provision during  the 
year ended January 31, 2013  also included a net  income tax recovery of  $5.2 
million relating  to  foreign  exchange  differences  between  income  in  the 
currency of the country of  origin and the US dollar.  This compares to a  net 
income tax recovery of $4.4 million recognized in the prior year.

Due to the  number of factors  that can potentially  impact the effective  tax 
rate and the sensitivity of the  tax provision to these factors, as  discussed 
above, it is expected that the Company's effective tax rate will fluctuate  in 
future periods.

CONSOLIDATED FINANCE EXPENSES FROM CONTINUING OPERATIONS
Finance expenses for the year ended January 31, 2013 were $9.1 million
compared to $10.8 million in the prior year. Also included in finance expense
is accretion expense of $2.4 million (2012 - $2.0 million) related to the
Diavik Diamond Mine's future site restoration liability.

CONSOLIDATED EXPLORATION EXPENSE FROM CONTINUING OPERATIONS
Exploration expense of $1.8 million was incurred during the year ended January
31, 2013, consistent with the prior year.

CONSOLIDATED FINANCE AND OTHER INCOME FROM CONTINUING OPERATIONS
Finance and other income of $0.8 million was recorded during the year ended
January 31, 2013, compared to $0.5 million in the prior year.

CONSOLIDATED FOREIGN EXCHANGE FROM CONTINUING OPERATIONS
A net foreign exchange gain of $0.5 million was recognized during the year
ended January 31, 2013, compared to $0.8 million in the prior year.
TheCompany does not currently have any significant foreign exchange
derivative instruments outstanding.

OPERATIONAL UPDATE
Production for calendar year 2012 at the Diavik Diamond Mine was 7.2 million
carats consisting of 4.3 million carats produced from 1.2 million tonnes of
ore from the A-418 kimberlite pipe, 1.9 million carats produced from 0.4
million tonnes of ore from the A-154 South kimberlite pipe, and 0.9 million
carats produced from 0.4 million tonnes of ore from the A-154 North kimberlite
pipe. Also included in production for the 2012 calendar year was an estimated
0.1 million carats from reprocessed plant rejects ("RPR"). These RPR are not
included in the Company's reserves and resource statement and are therefore
incremental to production. Rough diamond production was 8% higher than the
prior calendar year due primarily to improved grades in each of the kimberlite
pipes.

Production in the fourth calendar quarter was 1.9 million carats consisting of
0.8 million carats  produced from  0.2 million tonnes  of ore  from the  A-418 
kimberlite pipe, 0.7 million  carats produced from 0.2  million tonnes of  ore 
from the A-154  South kimberlite pipe,  0.3 million carats  produced from  0.1 
million tonnes of ore  from the A-154 North  kimberlite pipe and 0.04  million 
carats from RPR. Average grade increased to 4.1 carats per tonne in the fourth
calendar quarter from 2.9  carats per tonne in  the comparable quarter of  the 
prior year. The 19% increase in carats recovered in the quarter was  primarily 
due to improved grades  in each of the  kimberlite pipes, partially offset  by 
the 16% decline in ore processed in the quarter, which was due to a  reduction 
in processing plant throughput  that resulted from  changes in the  geological 
composition of the ore. Open pit mining of the A-418 kimberlite pipe concluded
in September  2012,  although  processing  of open  pit  ore  from  the  A-418 
kimberlite pipe will continue into calendar 2013.

DOMINION DIAMOND DIAVIK LIMITED PARTNERSHIP'S 40% SHARE OF DIAVIK DIAMOND MINE
PRODUCTION
(reported on a one-month lag)

                                                              
                               Three months     Three    Twelve    Twelve
                                        ended     months     months     months
                                 December 31,      ended      ended      ended
                                         2012   December   December   December
                                                     31,        31,        31,
                                                    2011       2012       2011
Diamonds recovered (000s                 760       641     2,892     2,670
carats)
Grade (carats/tonne)                    4.08      2.88      3.52      2.99

During the fiscal year, the Company expanded its Mumbai, India, office to  the 
Bharat Diamond  Bourse in  Bandra,  India. The  new  office will  continue  to 
support the Company's rough sorting and sales expansion in India.

Mining Operations Outlook

PRODUCTION
A new mine plan and budget for calendar 2013 has been approved by Rio Tinto
plc and the Company. The plan for calendar 2013 foresees Diavik Diamond Mine
production of approximately 6 million carats from the mining and processing of
approximately 1.6 million tonnes of ore with a further 0.2 million tonnes
processed from stockpile ore. Mining activities will be exclusively
underground with approximately 0.7 million tonnes expected to be sourced from
A-154 North, approximately 0.5 million tonnes from A-154 South and
approximately 0.4 million tonnes from A-418 kimberlite pipes. Included in the
estimated production for calendar 2013 is approximately 0.6 million carats
from RPR and 0.1 million carats from the improved recovery process for small
diamonds. These RPR and small diamond recoveries are not included in the
Company's reserves and resource statement and are therefore incremental to
production.

The development of  A-21, the  last of  the Diavik  Diamond Mine's  kimberlite 
pipes in the original  mine plan, has  been deferred due  both to the  current 
diamond market conditions and the  decreased urgency of development  following 
the identification  of  extensions  to  the  existing  pipes.  Although  these 
extension areas cannot be categorized as ore at this time due to  insufficient 
definition work, the Company expects the life of the existing developed  pipes 
will be extended, thereby deferring the need for production from A-21 to  keep 
the processing  plant full.  The A-21  pre-feasibility study  currently  being 
undertaken assumes that the A-21 pipe will be mined with the open pit  methods 
used for the other pipes. A dike would be constructed similar to the two other
pits but smaller in size. Detailed plans are still being refined and optimized
although no underground mining is currently envisaged.

PRICING
Based on prices from the Company's rough diamond sales during the fourth
quarter and the current diamond recovery profile of the Diavik processing
plant, the Company has modeled the current approximate rough diamond price per
carat for each of the Diavik ore types in the table that follows:

                  February 2013
                average price per
                            carat
Ore type          (in US dollars)
A-154 South  $               135
A-154 North                 170
A-418                        95
RPR                          45

COST OF SALES AND CASH COST OF PRODUCTION
The Company currently expects cost of sales in fiscal 2014 to be approximately
$255 million (including depreciation and amortization of approximately $70
million). The Company's share of the cash cost of production at the Diavik
Diamond Mine for calendar 2013 is expected to be approximately $170 million at
an assumed average Canadian/US dollar exchange rate of $1.00.

CAPITAL EXPENDITURES
During fiscal 2013 and the fourth quarter, DDDLP's 40% share of capital
expenditures at the Diavik Diamond Mine was approximately $51.6 million and
$8.7 million, respectively. During fiscal 2014, DDDLP's 40% share of the
planned capital expenditures is expected to be approximately $28 million at an
assumed average Canadian/US dollar exchange rate of $1.00.

Discontinued Operations
On January 14, 2013, the Company announced that it entered into an agreement
to sell the Luxury Brand Segment to Swatch Group. The sale transaction was
completed on March 26, 2013 and the Company's corporate group underwent name
changes to remove references to "Harry Winston". The Company's name has now
been changed to "Dominion Diamond Corporation" and its common shares trade on
both the Toronto and New York stock exchanges under the symbol "DDC". As a
result of the Luxury Brand Divestiture, the Company's consolidated results no
longer include the operations of the Luxury Brand Segment and the results of
the Luxury Brand Segment are now treated as discontinued operations for
reporting purposes. Current and prior period results have been restated to
reflect this change.

Liquidity and Capital Resources
Working Capital
As at January 31, 2013, the Company had unrestricted cash and cash equivalents
of $104.3million compared to $78.1million at January 31, 2012. During the
year ended January 31, 2013, the Company reported cash from operations of
$105.1million compared to $59.0 million in the prior year. The increase
resulted primarily from the Company's decision to hold rough diamond inventory
due to market conditions in the prior year. At January 31, 2013, the Company
had 0.5 million carats of rough diamond inventory with an estimated current
market value of approximately $65 million, of which approximately $25 million
represents inventory available for sale, with the remaining $40 million
currently being sorted. At January 31, 2012, the Company had 0.8 million
carats of rough diamond inventory with an estimated market value of
approximately $80 million, of which approximately $50 million represented
inventory available for sale, with the remaining $30 million being sorted.

Working  capital  decreased  to  $361.5million  at  January  31,  2013   from 
$439.0million at January  31, 2012.  During the year,  the Company  increased 
accounts receivable  from continuing  operations  by $1.7  million,  decreased 
other current assets  from continuing  operations by  $0.1 million,  decreased 
inventory and supplies from  continuing operations by $9.0million,  increased 
trade and  other  payables  from continuing  operations  by  $0.1million  and 
increased employee benefit plans from continuing operations by $1.4 million.

The  Company's  liquidity  requirements  fluctuate  from  quarter  to  quarter 
depending on, among other factors, the seasonality of production at the Diavik
Diamond Mine,  seasonality of  mine  operating expenses,  capital  expenditure 
programs, the  number  of rough  diamond  sales events  conducted  during  the 
quarter, and  the volume,  size  and quality  distribution of  rough  diamonds 
delivered from  the  Diavik Diamond  Mine  and sold  by  the Company  in  each 
quarter.

The Company assesses liquidity and capital resources on a consolidated  basis. 
The Company's requirements are for  cash operating expenses, working  capital, 
contractual debt requirements and  capital expenditures. The Company  believes 
that  it  will   generate  sufficient  liquidity   to  meet  its   anticipated 
requirements for the next twelve months.

Financing Activities
The Company maintains a senior secured revolving credit facility with Standard
Chartered Bank. At January 31, 2013, $50.0 million was outstanding.

On November 13, 2012, the Company entered into share purchase agreements  with 
respect to the Ekati  Diamond Mine Acquisition. In  connection with the  Ekati 
Diamond  Mine  Acquisition,  the  Company  has  arranged  new  secured  credit 
facilities  with  The  Royal  Bank  of  Canada  and  Standard  Chartered  Bank 
consisting of  a $400  million  term loan,  a  $100 million  revolving  credit 
facility (of which $50 million will  be available for purposes of funding  the 
Ekati Diamond Mine Acquisition) and a  $140 million letter of credit  facility 
(expandable to $265 million in aggregate). These new facilities will  replace 
the Company's  current $125  million facility  with Standard  Chartered  Bank. 
These new facilities include customary covenants, including certain  reporting 
and financial covenants, and bear interest at market rates. The term loan will
require principal  repayments beginning  30 months  following closing  of  the 
Ekati Diamond Mine Acquisition and a final bullet payment of 50 percent of the
principal amount being due on the date that is five years after the closing of
the Ekati Diamond Mine Acquisition. The $100 million portion of the  revolving 
facility will be due five years  after closing. The letter of credit  facility 
expires 364 days  after the  closing of  the Ekati  Diamond Mine  Acquisition. 
These new facilities  are 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.

As at  January 31,  2013, $nil  and  $1.1 million  was outstanding  under  the 
Company's revolving  financing facility  relating to  its Belgian  subsidiary, 
Dominion Diamond International  NV (formerly  known as  Harry Winston  Diamond 
International NV), and its Indian subsidiary, Dominion Diamond (India) Private
Limited (formerly  known as  HarryWinston Diamond  (India) Private  Limited), 
respectively, compared to $nil and $4.3 million at January 31, 2012.

Investing Activities
During the fiscal year, the Company purchased property, plant and equipment of
$56.5million for its continuing operations.

Contractual Obligations
The Company has contractual payment obligations with respect to
interest-bearing loans and borrowings and, through its participation in the
JointVenture, future site restoration costs at the Diavik Diamond Mine level.
Additionally, at the Joint Venture level, contractual obligations exist with
respect to operating purchase obligations, as administered by DDMI, the
operator of the mine. In order to maintain its 40% ownership interest in the
Diavik Diamond Mine, DDDLP is obligated to fund 40% of the Joint Venture's
total expenditures on a monthly basis. Not reflected in the table below are
capital expenditures for the calendar years 2013 to 2017 of approximately
$70million assuming a Canadian/US average exchange rate of $1.00 for each of
the fiveyears relating to DDDLP's current projected share of the planned
capital expenditures (excluding the A-21 pipe) at the Diavik Diamond Mine.
Also not included is the potential impact of the Ekati Diamond Mine
Acquisition. The most significant contractual obligations for the ensuing
five-year period can be summarized as follows:

CONTRACTUAL                      Less than    Year    Year    After
OBLIGATIONS
(expressed in             Total      1 year     2-3     4-5        5
thousands of United                                                      years
States dollars)
Interest-bearing       $  58,938  $    53,191  $ 2,463  $ 2,463  $    821
loans and borrowings
(a)(b)
Environmental and        92,725      83,195   4,817       -    4,713
participation
agreements
incremental
commitments (c)
Total contractual      $ 151,663  $   136,386  $ 7,280  $ 2,463  $  5,534
obligations

(a) (i) Interest-bearing loans and borrowings presented in the foregoing
     table include current and long-term portions. The Company maintains a
     senior secured revolving credit facility with Standard Chartered Bank for
     $125.0 million. The facility has an initial maturity date of June 24,
     2013, with two one-year extensions at the Company's option.There are no
     scheduled repayments required before maturity. At January 31, 2013, $50.0
     million was outstanding.
    
    (ii) The Company has available a $45.0million revolving financing
     facility (utilization in either US dollars or Euros) with Antwerp Diamond
     Bank for inventory and receivables funding in connection with marketing
     activities through its Belgian subsidiary, Dominion Diamond International
     NV, and its Indian subsidiary, Dominion Diamond (India) Private Limited.
     Borrowings under the Belgian facility bear interest at the bank's base
     rate plus 1.5%. Borrowings under the Indian facility bear an interest
     rate of 13.5%. At January 31, 2013, $nil and $1.1 million were
     outstanding under this facility relating to Dominion Diamond
     International NV and Dominion Diamond (India) Private Limited,
     respectively. The facility is guaranteed by Dominion Diamond Corporation.
    
    (iii) The Company's first mortgageon real property has scheduled
     principal payments of approximately $0.2 million quarterly, may be
     prepaid at any time, and matures on September 1, 2018. On January 31,
     2013, $5.6 million was outstanding on the mortgage payable.
    
(b)  Interest on loans and borrowings is calculated at various fixed and
     floating rates. Projected interest payments on the current debt
     outstanding were based on interest rates in effect at January 31, 2013,
     and have been included under interest-bearing loans and borrowings in the
     table above. Interest payments for the next twelve months are
     approximated to be $1.2million.
    
(c) The Joint Venture, under environmental and other agreements, must provide
     funding for the Environmental Monitoring Advisory Board. These agreements
     also state that the Joint Venture must provide security deposits for the
     performance by the Joint Venture of its reclamation and abandonment
     obligations under all environmental laws and regulations. Theoperator of
     the Joint Venture has fulfilled such obligations for the security
     deposits by posting letters of credit, of which DDDLP's share as at
     January 31, 2013 was $82.0million based on its 40% ownership interest in
     the Diavik Diamond Mine. There can be no assurance that the operator will
     continue its practice of posting letters of credit in fulfillment of this
     obligation, in which event DDDLP would be required to post its
     proportionate share of such security directly, which would result in
     additional constraints on liquidity. The requirement to post security for
     the reclamation and abandonment obligations may be reduced to the extent
     of amounts spent by the Joint Venture on those activities. The Joint
     Venture has also signed participation agreements with various native
     groups. These agreements are expected to contribute to the social,
     economic and cultural well-being of area Aboriginal bands. The actual
     cash outlay for the Joint Venture's obligations under these agreements is
     not anticipated to occur until later in the life of the DiavikDiamond
     Mine.

Non-IFRS Measures
In addition to discussing earnings measures in accordance with IFRS, the  MD&A 
provides the following non-IFRS measures, which are also used by management to
monitor and evaluate the performance of the Company.

Cash Cost of Production
The MD&A refers to cash cost of production, a non-IFRS performance measure, in
order to provide investors with information about the measure used by
management to monitor performance. This information is used to assess how well
the Diavik Diamond Mine is performing compared to the mine plan and prior
periods. Cash cost of production includes mine site operating costs such as
mining, processing and administration, but is exclusive of amortization,
capital, and exploration and development costs. Cash cost of production does
not have any standardized meaning prescribed by IFRS and differs from measures
determined in accordance with IFRS. This performance measure is intended to
provide additional information and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with IFRS.
This measure is not necessarily indicative of net profit or cash flow from
operations as determined under IFRS.

EBITDA
The term EBITDA (earnings before interest, taxes, depreciation and
amortization) does not have a standardized meaning according to IFRS and
therefore may not be comparable to similar measures presented by other
issuers. The Company defines EBITDA as sales minus cost of sales and selling,
general and administrative expenses, meaning it represents operating profit
before depreciation and amortization.

EBITDA is  a  measure commonly  reported  and  widely used  by  investors  and 
analysts as an indicator of the Company's operating performance and ability to
incur and service debt and as a valuation metric. EBITDA margin is defined  as 
the ratio obtained by dividing EBITDA by sales.

(expressed in thousands of United States dollars)
(unaudited)

                                                                                                 
                2013     2013     2013     2013     2012      2012     2012     2012      2013      2012      2011
                  Q4       Q3       Q2       Q1       Q4        Q3       Q2       Q1     Total     Total     Total
Operating     $ 20,987  $  5,574  $  8,939  $ 12,171  $ 23,985  $ (3,263)  $ 16,286  $    566  $  47,671  $  37,574  $  54,000
profit
(loss) from
continuing
operations
Depreciation   24,346   20,588   13,160   22,172   24,284    19,933   17,461   17,083    80,266    78,761    63,424
and
amortization
EBITDA from   $ 45,333  $ 26,162  $ 22,099  $ 34,343  $ 48,269  $  16,670  $ 33,747  $ 17,649  $ 127,937  $ 116,335  $ 117,424
continuing
operations

Risks and Uncertainties
Dominion Diamond Corporation is subject to a number of risks and uncertainties
as a result of its operations. Inaddition to the other information contained
in this MD&A and the Company's other publicly filed disclosure documents,
readers should give careful consideration to the following risks, each of
which could have a material adverse effect on the Company's business prospects
or financial condition.

Nature of Mining
The operation of the Diavik Diamond Mine is subject to risks inherent in the
mining industry, including variations in grade and other geological
differences, unexpected problems associated with required water retention
dikes, water quality, surface and underground conditions, processing problems,
equipment performance, accidents, labour disputes, risks relating to the
physical security of the diamonds, force majeure risks and natural disasters.
Particularly with underground mining operations, inherent risks include
variations in rock structure and strength as it impacts on mining method
selection and performance, de-watering and water handling requirements,
achieving the required crushed rock-fill strengths, and unexpected local
ground conditions. Hazards, such as unusual or unexpected rock formations,
rock bursts, pressures, collapses, flooding or other conditions, may be
encountered during mining. Such risks could result in personal injury or
fatality; damage to or destruction of mining properties, processing facilities
or equipment; environmental damage; delays, suspensions or permanent
reductions in mining production; monetary losses; and possible legal
liability.

The Diavik Diamond Mine,  because of its remote  northern location and  access 
only  by  winter  road  or  by   air,  is  subject  to  special  climate   and 
transportation risks.  These risks  include  the inability  to operate  or  to 
operate efficiently  during periods  of extreme  cold, the  unavailability  of 
materials and equipment, and  increased transportation costs  due to the  late 
opening and/or early closure of the winter  road. Such factors can add to  the 
cost of mine  development, production and  operation and/or impair  production 
and mining activities, thereby affecting the Company's profitability.

Nature of Interest in DDMI
DDDLP holds an undivided 40% interest in the assets, liabilities and expenses
of the Diavik Diamond Mine and the Diavik group of mineral claims. The Diavik
Diamond Mine and the exploration and development of the Diavik group of
mineral claims is a joint arrangement between DDMI (60%) and DDDLP (40%), and
is subject to the risks normally associated with the conduct of joint ventures
and similar joint arrangements. These risks include the inability to exert
influence over strategic decisions made in respect of the Diavik Diamond Mine
and the Diavik group of mineral claims, including the inability to control the
timing and scope of capital expenditures, and risks that DDMI may decide not
to proceed with mining of the A-21 pipe or may otherwise change the mine plan.
Byvirtue of DDMI's 60% interest in the Diavik Diamond Mine, it has a
controlling vote in virtually all Joint Venture management decisions
respecting the development and operation of the Diavik Diamond Mine and the
development of the Diavik group of mineral claims. Accordingly, DDMI is able
to determine the timing and scope of future project capital expenditures, and
therefore is able to impose capital expenditure requirements on DDDLP that the
Company may not have sufficient cash to meet. A failure to meet capital
expenditure requirements imposed by DDMI could result in DDDLP's interest in
the Diavik Diamond Mine and the Diavik group of mineral claims being diluted.
Rio Tinto plc, the parent of DDMI, announced a review of its diamond
operations in early 2012.

Diamond Prices and Demand for Diamonds
The profitability of the Company is dependent upon production from the Diavik
Diamond Mine, which is dependent on the worldwide demand for and price of
diamonds. Diamond prices fluctuate and are affected by numerous factors beyond
the control of the Company, including worldwide economic trends, particularly
in the US, Japan, China and India, worldwide levels of diamond discovery and
production, and the level of demand for, and discretionary spending on, luxury
goods such as diamonds. Low or negative growth in the worldwide economy,
renewed or additional credit market disruptions, natural disasters or the
occurrence of terrorist attacks or similar activities creating disruptions in
economic growth could result in decreased demand for luxury goods such as
diamonds, thereby negatively affecting the price of diamonds. Similarly, a
substantial increase in the worldwide level of diamond production or the
release of stocks held back during recent periods of low demand could also
negatively affect the price of diamonds. In each case, such developments could
have a material adverse effect on the Company's results of operations.

Cash Flow and Liquidity
The Company's liquidity requirements fluctuate from quarter to quarter and
year to year depending on, among other factors, the seasonality of production
at the Diavik Diamond Mine, the seasonality of mine operating expenses,
exploration expenses, capital expenditure programs, the number of rough
diamond sales events conducted during the quarter, and the volume, size and
quality distribution of rough diamonds delivered from the Diavik Diamond Mine
and sold by the Company in each quarter. The Company's principal working
capital needs include investments in inventory, prepaid expenses and other
current assets, and accounts payable and income taxes payable. There can be no
assurance that the Company will be able to meet each or all of its liquidity
requirements. A failure by the Company to meet its liquidity requirements
could result in the Company failing to meet its planned development
objectives, or in the Company being in default of a contractual obligation,
each of which could have a material adverse effect on the Company's business
prospects or financial condition.

Economic Environment
The Company's financial results are tied to the global economic conditions and
their impact on levels of consumer confidence and consumer spending. The
global markets have experienced the impact of a significant US and
international economic downturn since autumn 2008. This has restricted the
Company's growth opportunities both domestically and internationally, and a
return to a recession or weak recovery, due to recent disruptions in financial
markets in the US, the Eurozone or elsewhere, budget policy issues in the US
and political upheavals in the Middle East, could cause the Company to
experience revenue declines due to deteriorated consumer confidence and
spending, and a decrease in the availability of credit, which could have a
material adverse effect on the Company's business prospects or financial
condition. The credit facilities essential to the diamond polishing industry
are largely underwritten by European banks that are currently under stress
with the European sovereign debt issue. The withdrawal or reduction of such
facilities could also have a material adverse effect on the Company's business
prospects or financial condition. The Company monitors economic developments
in the markets in which it operates and uses this information in its
continuous strategic and operational planning in an effort to adjust its
business in response to changing economic conditions.

Currency Risk
Currency fluctuations may affect the Company's financial performance. Diamonds
are sold throughout the world based principally on the USdollar price, and
although the Company reports its financial results in US dollars, a majority
of the costs and expenses of the DiavikDiamond Mine are incurred in Canadian
dollars. Further, the Company has a significant deferred income tax liability
that has been incurred and will be payable in Canadian dollars. The Company's
currency exposure relates to expenses and obligations incurred by it in
Canadian dollars. The appreciation of the Canadian dollar against the US
dollar, therefore, will increase the expenses of the Diavik Diamond Mine and
the amount of the Company's Canadian dollar liabilities relative to the
revenue theCompany will receive from diamond sales. Fromtime to time, the
Company may use a limited number of derivative financial instruments to manage
its foreign currencyexposure.

Licences and Permits
The operation of the Diavik Diamond Mine and exploration on the Diavik
property requires licences and permits from the Canadian government. The
Diavik Diamond Mine Type "A" Water Licence was renewed by the regional
Wek'eezhii Land and Water Board to October31, 2015. While the Company
anticipates that DDMI, the operator of the Diavik Diamond Mine, will be able
to renew this licence and other necessary permits in the future, there can be
no guarantee that DDMI will be able to do so or obtain or maintain all other
necessary licences and permits that may be required to maintain the operation
of the Diavik Diamond Mine or to further explore and develop the
Diavikproperty.

Regulatory and Environmental Risks
The operation of the Diavik Diamond Mine and exploration activities at the
Diavik property are subject to various laws and regulations governing the
protection of the environment, exploration, development, production, taxes,
labour standards, occupational health, waste disposal, mine safety,
manufacturing safety and other matters. New laws and regulations, amendments
to existing laws and regulations, or more stringent implementation or changes
in enforcement policies under existing laws and regulations could have a
material adverse effect on the Company by increasing costs and/or causing a
reduction in levels of production from the DiavikDiamond Mine.

Mining and  manufacturing  are  subject to  potential  risks  and  liabilities 
associated with  pollution  of  the  environment and  the  disposal  of  waste 
products occurring as a result of mining and manufacturing operations. To  the 
extent that the  Company's operations are  subject to uninsured  environmental 
liabilities, the payment  of such  liabilities could have  a material  adverse 
effect on the Company.

Climate Change
The Canadian government has established a number of policy measures in
response to concerns relating to climate change. While the impact of these
measures cannot be quantified at this time, the likely effect will be to
increase costs for fossil fuels, electricity and transportation; restrict
industrial emission levels; impose added costs for emissions in excess of
permitted levels; and increase costs for monitoring and reporting. Compliance
with these initiatives could have a material adverse effect on the Company's
results of operations.

Resource and Reserve Estimates
The Company's figures for mineral resources and ore reserves on the Diavik
group of mineral claims are estimates, and no assurance can be given that the
anticipated carats will be recovered. The estimation of reserves is a
subjective process. Forecasts are based on engineering data, projected future
rates of production and the timing of future expenditures, all of which are
subject to numerous uncertainties and various interpretations. The Company
expects that its estimates of reserves will change to reflect updated
information as well as to reflect depletion due to production. Reserve
estimates may be revised upward or downward based on the results of current
and future drilling, testing or production levels, and on changes in mine
design. In addition, market fluctuations in the price of diamonds or increases
in the costs to recover diamonds from the Diavik Diamond Mine may render the
mining of ore reserves uneconomical.

Mineral resources  that are  not  mineral reserves  do not  have  demonstrated 
economic viability. Due to the uncertainty that may attach to inferred mineral
resources, there is no assurance that mineral resources at the Diavik property
will be upgraded to proven and probable ore reserves.

Insurance
The Company's business is subject to a number of risks and hazards, including
adverse environmental conditions, industrial accidents, labour disputes,
unusual or unexpected geological conditions, risks relating to the physical
security of diamonds held as inventory or in transit, changes in the
regulatory environment, and natural phenomena such as inclement weather
conditions. Such occurrences could result in damage to the Diavik Diamond
Mine, personal injury or death, environmental damage to the Diavik property,
delays in mining, monetary losses and possible legal liability. Although
insurance is maintained to protect against certain risks in connection with
the Diavik Diamond Mine and the Company's operations, the insurance in place
will not cover all potential risks. It may not be possible to maintain
insurance to cover insurable risks at economically feasible premiums.

Fuel Costs
The Diavik Diamond Mine's expected fuel needs are purchased periodically
during the year for storage, and transportedto the mine site by way of the
winter road. These costs will increase if transportation by air freight is
required due to a shortened "winter road season" or unexpected high fuel
usage.

Thecost of  the fuelpurchased  is  based on  the then  prevailingprice  and 
expensed into  operating  costs  ona usage  basis.  TheDiavik  Diamond  Mine 
currently has no hedges for its future anticipated fuel consumption.

Reliance on Skilled Employees
Production at the Diavik Diamond Mine is dependent upon the efforts of certain
skilled employees of DDMI. The loss of these employees or the inability of
DDMI to attract and retain additional skilled employees may adversely affect
the level of diamond production from the DiavikDiamond Mine.

The Company's success in marketing rough diamonds is dependent on the services
of key executives  and skilled employees,  as well as  the continuance of  key 
relationships with certain third  parties, such as  diamantaires. The loss  of 
these persons  or the  Company's inability  to attract  and retain  additional 
skilled employees or  to establish  and maintain  relationships with  required 
third parties  may adversely  affect  its business  and future  operations  in 
marketing diamonds.

Cybersecurity
The Company and certain of its third-party vendors receive and store personal
information in connection with human resources operations and other aspects of
the business. Despite the Company's implementation of security measures, its
IT systems are vulnerable to damage from computer viruses, natural disasters,
unauthorized access, cyber attack and other similar disruptions. Any system
failure, accident or security breach could result in disruptions to the
Company's operations. A material network breach in the security of the IT
systems could include the theft of intellectual property or trade secrets. To
the extent that any disruption or security breach results in a loss or damage
to the Company's data, or in inappropriate disclosure of confidential
information or financial data, such disruption or breach could cause
significant damage to the Company's reputation, affect its relationships with
its customers, lead to claims against the Company and ultimately harm its
business. In addition, the Company may be required to incur significant costs
to protect against damage caused by these disruptions or security breaches in
the future. Although the Company believes that it has robust information
security procedures and other safeguards in place, as cyber threats continue
to evolve, the Company may be required to expend additional resources to
continue to enhance its information security measures and/or to investigate
and remediate any information security vulnerabilities.

Risks relating to the Ekati Diamond Mine Acquisition
On November 13, 2012, the Company entered into share purchase agreements with
respect to the Ekati Diamond Mine Acquisition. The closing of the Ekati
Diamond Mine Acquisition is subject to the satisfaction of typical closing
conditions, including the receipt of competition and antitrust law approvals
and other regulatory approvals required in connection with the transfer of
operatorship and ownership of the Core Zone and the Buffer Zone interests of
the Ekati Diamond Mine. In connection with the Ekati Diamond Mine Acquisition,
the Company has arranged new secured credit facilities with The Royal Bank of
Canada and Standard Chartered Bank. These new facilities are subject to
customary closing conditions, including closing of the Core Zone acquisition.
There can be no assurances that all of the closing conditions to the Core Zone
acquisition will be satisfied and accordingly, that the new facilities become
available to the Company, and there can be no assurances that all of the
closing conditions to the Ekati Diamond Mine Acquisition will be satisfied.

Completion of the Ekati  Diamond Mine Acquisition and  the integration of  the 
Ekati Diamond  Mine into  the Company's  operations will  require  significant 
management time and resources.

Disclosure Controls and Procedures
The Company has designed a system of disclosure controls and procedures to
provide reasonable assurance that material information relating to Dominion
Diamond Corporation, including its consolidated subsidiaries, is made known to
the management of the Company by others within those entities, particularly
during the period in which the Company's annual filings are being prepared. In
designing and evaluating the disclosure controls and procedures, the
management of the Company recognized that any controls and procedures, no
matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives. The management of Dominion
Diamond Corporation was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures. Theresult of
the inherent limitations in all control systems means no evaluation of
controls can provide absolute assurance that all control issues and instances
of fraud, if any, have been detected.

The management of Dominion Diamond Corporation has evaluated the effectiveness
of the design and  operation of its disclosure  controls and procedures as  of 
the end of the period covered by the Annual Report. Based on that  evaluation, 
management has concluded  that these  disclosure controls  and procedures,  as 
defined  in  Canada  by  Multilateral  Instrument  52-109,  Certification   of 
Disclosure in Issuers' Annual and Interim Filings, and in the United States by
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"),
are effective as of January 31,  2013, to ensure that information required  to 
be disclosed in reports  that the Company will  file or submit under  Canadian 
securities legislation and the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in those rules and forms.

Internal Control over Financial Reporting
The certifying officers of the Company have designed a system of internal
control over financial reporting to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financialstatements
in accordance with IFRS and the requirements of the US Securities and Exchange
Commission, as applicable. Management is responsible for establishing and
maintaining adequate internal control over financial reporting for the
Company, including its consolidated subsidiaries.

Management has evaluated the effectiveness of internal control over  financial 
reporting using the framework and criteria established in the Internal Control
- Integrated Framework, issued by the Committee of Sponsoring Organizations of
the Treadway Commission.  Based on this  evaluation, management has  concluded 
that internal control over financial reporting was effective as of January 31,
2013.

Changes in Internal Control over FinancialReporting
During the fourth quarter of fiscal 2013, there were no changes in the
Company's disclosure controls and procedures or internal control over
financial reporting that materially affected, or are reasonably likely to
materially affect, the Company's disclosure controls and procedures or
internal control over financial reporting.

Critical Accounting Estimates
Management is often required to make judgments, assumptions and estimates in
the application of IFRS that have a significant impact on the financial
results of the Company. Certain policies are more significant than others and
are, therefore, considered critical accounting policies. Accounting policies
are considered critical if they rely on a substantial amount of judgment (use
of estimates) in their application, or if they result from a choice between
accounting alternatives and that choice has a material impact on the Company's
financial performanceor financial position. The following discussion outlines
the accounting policies and practices that are critical to determining
Dominion Diamond Corporation's financial results.

Significant Judgments, Estimates and Assumptions
The preparation of the consolidated financial statements in conformity with
IFRS requires management to make judgments, estimates and assumptions that
affect the application of accounting policies and reported amounts of assets
and liabilities and contingent liabilities at the date of the consolidated
financialstatements, and the reported amounts of sales and expenses during
the reporting period. Estimates and assumptions are continually evaluated and
are based on management's experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances.
However, actual outcomes can differ from these estimates. Revisions to
accounting estimates are recognized in the period in which the estimates are
revised and in any future periods affected. Information about significant
areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in
the consolidated financial statements is as follows:

a.Significant Judgments in Applying Accounting Policies

Recovery of deferred tax assets
Judgment is required in determining whether deferred tax assets are recognized
in the  consolidated  balance  sheet. Deferred  tax  assets,  including  those 
arising  from  un-utilized  tax  losses,  require  management  to  assess  the 
likelihood that the Company will  generate taxable earnings in future  periods 
in order  to  utilize recognized  deferred  tax assets.  Estimates  of  future 
taxable income  are  based  on  forecasted  income  from  operations  and  the 
application of existing  tax laws  in each  jurisdiction. To  the extent  that 
future taxable income differs significantly from estimates, the ability of the
Company to  realize  the deferred  tax  assets recorded  at  the  consolidated 
balance sheet date could be impacted. Additionally, future changes in tax laws
in the jurisdictions in which the Company operates could limit the ability  of 
the Company to obtain tax deductions in future periods.

Commitments and contingencies
The Company has conducted its operations in the ordinary course of business in
accordance  with  its  understanding  and  interpretation  of  applicable  tax 
legislation in the countries  where the Company  has operations. The  relevant 
tax authorities could have a different  interpretation of those tax laws  that 
could lead to  contingencies or  additional liabilities for  the Company.  The 
Company believes that its  tax filing positions as  at the balance sheet  date 
are appropriate and supportable. Should the ultimate tax liability  materially 
differ from the provision, the Company's effective tax rate and its profit  or 
loss could be  affected positively or  negatively in the  period in which  the 
matters are resolved.

b.Significant Estimates and Assumptions in Applying Accounting Policies

Mineral reserves, mineral properties and exploration costs
The estimation  of  mineral reserves  is  a subjective  process.  The  Company 
estimates  its  mineral   reserves  based  on   information  compiled  by   an 
appropriately qualified  person.  Forecasts  are based  on  engineering  data, 
projected future rates of  production and the  timing of future  expenditures, 
all  of   which   are   subject  to   numerous   uncertainties   and   various 
interpretations. The  Company  expects that  its  estimates of  reserves  will 
change to reflect updated information. Reserve estimates can be revised upward
or downward based  on the results  of future drilling,  testing or  production 
levels, anddiamond  prices.  Changes  in reserve  estimates  may  impact  the 
carrying value  of  exploration  and evaluation  assets,  mineral  properties, 
property, plant  and  equipment,  mine  rehabilitation  and  site  restoration 
provision, recognition  of  deferred  tax assets,  and  depreciation  charges. 
Estimates and assumptions about future events and circumstances are also  used 
to determine  whether economically  viable  reserves exist  that can  lead  to 
commercial development of an ore body.

Estimated mineral  reserves  are  used  in  determining  the  depreciation  of 
mine-specific assets. This  results in a  depreciation charge proportional  to 
the depletion  of  the  anticipated  remaining  life  of  mine  production.  A 
units-of-production depreciation  method  is  applied, and  depending  on  the 
asset, is based on carats of diamonds recovered during the period relative  to 
the estimated proven and probable reserves  of the ore deposit being mined  or 
to  the  total   ore  deposit.   Changes  in  estimates   are  accounted   for 
prospectively.

Impairment of long-lived assets
The Company assesses each cash-generating unit at least annually to  determine 
whether any indication of impairment exists. Where an indicator of  impairment 
exists, a  formal  estimate  of  the recoverable  amount  is  made,  which  is 
considered to be the higher of the fair  value of an asset less costs to  sell 
and its  value in  use. These  assessments require  the use  of estimates  and 
assumptions such as long-term commodity prices, discount rates, future capital
requirements,  exploration  potential  and  operating  performance.  Financial 
results as determined by actual events could differ from those estimated.

Mine rehabilitation and site restoration provision
The mine rehabilitation and  site restoration provision  has been provided  by 
management of the  Diavik Diamond  Mine and  is based  on internal  estimates. 
Assumptions, based on the current  economic environment, have been made  which 
DDMI management believes  are a reasonable  basis upon which  to estimate  the 
future liability. These estimates are reviewed regularly by management of  the 
Diavik Diamond  Mine  to  take  into  account  any  material  changes  to  the 
assumptions. However, actual rehabilitation costs will ultimately depend  upon 
future costs  for  the necessary  decommissioning  work required,  which  will 
reflect market conditions  at the  relevant time. Furthermore,  the timing  of 
rehabilitation is likely to depend on  when the Diavik Diamond Mine ceases  to 
produce at economically viable rates. This, in turn, will depend upon a number
of factors including future diamond prices, which are inherently uncertain.

Changes in Accounting Policies
The International Accounting Standards Board ("IASB") has issued a new
standard, IFRS 9, "Financial Instruments" ("IFRS 9"), which will ultimately
replace IAS 39, "Financial Instruments: Recognition and Measurement" ("IAS
39"). IFRS 9 provides guidance on the classification and measurement of
financial assets and financial liabilities. This standard becomes effective
for the Company's fiscal year end beginning February 1, 2015. The Company is
currently assessing the impact of the new standard on its financial
statements.

IFRS 10, "Consolidated Financial  Statements" ("IFRS 10"),  was issued by  the 
IASB on  May  12,  2011,  and  will  replace  the  consolidation  requirements 
inSIC-12,  "Consolidation   -  Special   Purpose   Entities"  and   IAS   27, 
"Consolidated and Separate Financial Statements". The new standard establishes
control as the basis  for determining which entities  are consolidated in  the 
consolidated financial  statements  and provides  guidance  to assist  in  the 
determination of control where it is difficult to assess. IFRS 10 is effective
for the  Company's fiscal  year end  beginning February  1, 2013,  with  early 
adoption permitted. The Company is currently  assessing the impact of IFRS  10 
on its consolidated financial statements.

IFRS 11, "Joint Arrangements" ("IFRS 11"), was  issued by the IASB on May  12, 
2011 and will replace IAS 31,  "Interest in Joint Ventures". The new  standard 
will apply to the accounting for  interests in joint arrangements where  there 
is joint control. Under IFRS 11,  joint arrangements are classified as  either 
joint ventures or  joint operations.  The structure of  the joint  arrangement 
will no longer be the most  significant factor in determining whether a  joint 
arrangement is  either a  joint venture  or  a joint  operation. For  a  joint 
venture, proportionate consolidation  will no  longer be allowed  and will  be 
replaced by equity accounting. IFRS 11  is effective for the Company's  fiscal 
year end  beginning  February 1,  2013,  with early  adoption  permitted.  The 
Company is  currently  assessing the  impact  of IFRS  11  on its  results  of 
operations and financial position.

IFRS 13, "Fair Value Measurement" ("IFRS 13"), was also issued by the IASB  on 
May 12, 2011. The new standard generally makes IFRS consistent with  generally 
accepted accounting principles in the  United States ("US GAAP") on  measuring 
fair value and  related fair  value disclosures.  The new  standard creates  a 
single source of guidance  for fair value measurements.  IFRS 13 is  effective 
for the  Company's fiscal  year end  beginning February  1, 2013,  with  early 
adoption permitted. The Company is currently  assessing the impact of IFRS  13 
on its consolidated financial statements.

The International  Financial  Reporting  Interpretations  Committee  ("IFRIC") 
issued IFRIC 20, "Stripping Costs in  the Production Phase of a Surface  Mine" 
("IFRIC 20"), on  October 19, 2011.  IFRIC 20 clarifies  the requirements  for 
accounting for  stripping  costs  associated with  waste  removal  in  surface 
mining, including when production stripping  costs should be recognized as  an 
asset, how  the asset  is initially  recognized, and  subsequent  measurement. 
IFRIC 20 is effective for the Company's fiscal year end beginning February  1, 
2013. The  Company  is currently  assessing  the impact  of  IFRIC 20  on  its 
consolidated financial statements.

Amendments to IAS 19, "Employee Benefits"  ("IAS 19"), was issued by the  IASB 
on June 11,  2011. The  amended standard eliminates  the option  to defer  the 
recognition of actuarial  gains and  losses through  the "corridor"  approach, 
revises the presentation  of changes  in assets and  liabilities arising  from 
defined benefit  plans  and  enhances  the  disclosures  for  defined  benefit 
plans.IAS 19  is  effective  for  the Company's  fiscal  year  end  beginning 
February 1,  2013, with  early adoption  permitted. The  Company is  currently 
assessing the impact of IAS 19 on its consolidated financial statements.

Outstanding Share Information

As at March 31, 2013             
Authorized                        Unlimited
Issued and outstanding shares    84,883,031
Options outstanding               2,362,175
Fully diluted                    87,245,206

Additional Information
Additional information relating to the Company, including the Company's most
recently filed Annual Information Form,can be found on SEDAR at
www.sedar.com, and is also available on the Company's website at
www.ddcorp.ca.

                         Consolidated Balance Sheets
        (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS) (UNAUDITED)
                                             January 31,    January 31,
                                                         2012             2011
                                 January 31,        (Recast -        (Recast -
                                        2013         note 25)         note 25)
ASSETS                                                               
Current assets                                                       
    Cash and cash             $     104,313  $       78,116  $      108,693
    equivalents (note 4)
    Accounts receivable              3,705         26,910         22,788
    (note 5)
    Inventory and supplies         115,627        457,827        403,212
    (note 6)
    Other current assets            29,486         45,494         41,317
    (note 7)
    Assets held for sale           718,804              -              -
    (note 8)
                                  971,935        608,347        576,010
Property, plant and                727,489        734,146        764,093
equipment - Mining (note 9)
Property, plant and                      -         69,781         61,019
equipment - Luxury brand
(note 9)
Intangible assets, net                   -        127,337        127,894
Other non-current assets             6,937         14,165         14,521
(note 11)
Deferred income tax assets           4,095         53,485         48,563
(note 14)
Total assets                  $   1,710,456  $    1,607,261  $    1,592,100
                                                                    
LIABILITIES AND EQUITY                                               
Current liabilities                                                  
    Trade and other payables  $      39,053  $      104,681  $      139,551
    (note 12)
    Employee benefit plans           2,634          6,026          4,317
    (note 13)
    Income taxes payable            32,977         29,450          6,660
    (note 14)
 Promissory note                      -              -         70,000
    Current portion of              51,508         29,238         24,215
    interest-bearing loans
    and borrowings (note 15)
    Liabilities held for           484,252              -              -
    sale (note 8)
                                  610,424        169,395        244,743
Interest-bearing loans and           4,799        270,485        235,516
borrowings (note 15)
Deferred income tax                181,427        295,565        292,598
liabilities (note 14)
Employee benefit plans (note         3,499          9,463          7,287
13)
Provisions (note 16)                79,055         65,245         50,130
Total liabilities                  879,204        810,153        830,274
Equity                                                               
    Share capital (note 17)        508,007        507,975        502,129
    Contributed surplus             20,387         17,764         16,233
    Retained earnings              295,738        261,028        235,574
    Accumulated other                6,357         10,086          7,624
    comprehensive income
    Total shareholders'            830,489        796,853        761,560
    equity
    Non-controlling interest           763            255            266
Total equity                       831,252        797,108        761,826
Total liabilities and equity  $   1,710,456  $    1,607,261  $    1,592,100
Subsequent events (note 1)                                           
The accompanying notes are an integral part of these consolidated financial
statements.

                        Consolidated Income Statements
 (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
                               (UNAUDITED)  
                                      
                                                     2013         2012
Sales                                          $    345,411  $    290,114
Cost of sales                                      267,584      227,951
Gross margin                                        77,827       62,163
Selling, general and administrative                 30,156       24,589
expenses
Operating profit (note 18)                          47,671       37,574
Finance expenses                                   (9,083)     (10,787)
Exploration costs                                  (1,801)      (1,770)
Finance and other income                               780          462
Foreign exchange gain                                  493          834
Profit before income taxes                          38,060       26,313
Income tax expense (note 14)                        15,276        9,007
Net profit from continuing operations               22,784       17,306
Net profit from discontinued operations             12,434        8,137
(note 8)
Net profit                                     $     35,218  $     25,443
Net profit (loss) from continuing                                    
operations attributable to
              Shareholders                   $     22,276  $     17,317
              Non-controlling interest               508         (11)
Net profit (loss) attributable to                                    
              Shareholders                   $     34,710       25,454
              Non-controlling interest               508  $      ( 11)
Earnings per share - continuing operations                           
                Basic                          $       0.26  $       0.20
              Diluted                              0.26         0.20
Earnings per share                                                 
                Basic                                 0.41         0.30
              Diluted                              0.41         0.30
Weighted average number of shares               84,875,789   84,660,796
outstanding (note 19)
The accompanying notes are an integral part of these consolidated financial
statements.

               Consolidated Statements ofComprehensiveIncome
       (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS) (UNAUDITED)
                                      
                                                2013             2012
Net profit                                   $  35,218  $         25,443
Other comprehensive income                                          
   Net gain (loss) on translation of net      (2,883)    3,634
   foreign operations (net of tax of
   nil)
   Actuarial loss on employee benefit
   plans (net of tax of $0.1 million for
   the year ended January 31, 2013; 2012
   - $0.6 million)                              (846)          (1,172)
Other comprehensive income, net of tax        (3,729)            2,462
Total comprehensive income                   $  31,489  $         27,905
 Comprehensive income from continuing      $  22,778  $         17,319
   operations
 Comprehensive income from                    8,711           10,586
   discontinued operations
Net comprehensive income (loss)                                     
attributable to
 Shareholders                              $  30,981  $         27,916
 Non-controlling interest                       508             (11)
The accompanying notes are an integral part of these consolidated financial
statements.

                 Consolidated Statements ofChangesinEquity
        (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS) (UNAUDITED)
                                                            2013        2012
Common shares:                                                          
Balance at beginning of period                          $ 507,975  $ 502,129
Issued during the period                                      32     5,286
Transfer from contributed surplus on exercise of               -       560
options
Balance at end of period                                 508,007   507,975
Contributed surplus:                                                    
Balance at beginning of period                            17,764    16,233
Stock-based compensation expense                           2,623     2,091
Transfer from contributed surplus on exercise of               -     (560)
options
Balance at end of period                                  20,387    17,764
Retained earnings:                                                      
Balance at beginning of period (Recast - note 25)        261,028   235,574
Net profit attributable to common shareholders            34,710    25,454
Balance at end of period                                 295,738   261,028
Accumulated other comprehensive income:                                 
Balance at beginning of period                            10,086     7,624
Other comprehensive income                                              
   Net gain (loss) on translation of net foreign         (2,883)     3,634
   operations (net of tax of nil)
   Actuarial loss on employee benefit plans (net of               
   tax of $0.1 million for the year ended
   January 31, 2013; 2012 - $0.6 million)                    (846)     (1,172)
Balance at end of period                                   6,357    10,086
Non-controlling interest:                                               
Balance at beginning of period                               255       266
Non-controlling interest ^                                   508      (11)
Balance at end of period                                     763       255
Total equity                                            $ 831,252  $ 797,108
The accompanying notes are an integral part of these consolidated financial
statements.

                    Consolidated Statements of Cash Flows
        (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS) (UNAUDITED)
                                              2013                  2012
Cash provided by (used in)                                            
OPERATING                                          
Net profit (loss)            $                22,784    $            17,306
       Depreciation and                      80,266                78,761
       amortization
       Deferred income tax                  (9,752)               (2,290)
       recovery
       Current income tax                    25,028                11,297
       expense
       Finance expenses                       9,083                10,787
       Stock-based                            2,623                 2,091
       compensation
     Other non-cash items                 (1,761)      303
       Foreign exchange                        (45)               (2,619)
       gain
       Gain on disposition                    (330)                     -
       of assets
Change in non-cash              8,871              (27,691)
operating working capital,
excluding taxes and finance
expenses
Cash provided by (used in)                  136,767                87,945
operating activities
     Interest paid                        (5,318)              (8,922)
       Income and mining                   (15,987)                12,422
       taxes paid
Cash provided by (used in)                  115,462                91,445
operating activities -
continuing operations
Cash provided by (used in)                 (10,339)              (32,454)
operating activities -
discontinued operations
Net cash from (used in)                     105,123                58,991
operating activities
FINANCING                                                              
Decrease in                                 (5,359)                 (709)
interest-bearing loans and
borrowings
Increase in revolving                        38,765                60,166
credit
Decrease in revolving                      (41,898)              (56,118)
credit
Repayment of promissory                           -              (70,000)
note
Issue of common shares, net    32                 5,286
of issue costs
Contributed capital             (8,000)              (10,000)
Cash provided from                         (16,460)              (71,375)
financing activities -
continuing operations
Cash provided from                           39,880                46,045
financing activities -
discontinued operations
Cash provided from                           23,420              (25,330)
financing activities
Investing                                                              
Property, plant and                        (56,478)              (45,165)
equipment
Net proceeds from sale of                     2,619              -
property, plant and
equipment
Other non-current assets                         50         (652)
Cash provided in investing                 (53,809)              (45,817)
activities - continuing
operations
Cash provided in investing                 (25,023)              (20,918)
activities - discontinued
operations
Cash used in investing                     (78,832)              (66,735)
activities
Foreign exchange effect on                    (378)                 2,497
cash balances
Increase (decrease) in cash                  49,333               (30,577)
and cash equivalents
Cash and cash equivalents,                   78,116               108,693
beginning of period
Cash and equivalents, end                   127,449                78,116
of period
Less cash and equivalents                    23,136                19,815
of discontinued operations,
end of period
Cash and cash equivalents    $               104,313    $            58,301
of continuing operations,
end of period
Change in non-cash                                                     
operating working capital,
excluding taxes and finance
expenses
Accounts receivable                         (1,747)                   669
Inventory and supplies                        8,994        (21,718)
Other current assets                            148               (4,491)
Trade and other payables                         72         (3,725)
Employee benefit plans                        1,404                 1,574
                            $                 8,871    $          (27,691)
The accompanying notes are an integral part of these consolidated financial
statements

.

                  Notes to Consolidated Financial Statements

            JANUARY 31, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES
 (TABULAR AMOUNTS IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT AS OTHERWISE
                                    NOTED)

Note 1:
Nature of Operations and Subsequent Events

Effective March 26, 2013, Harry  Winston Diamond Corporation changed its  name 
to  Dominion  Diamond  Corporation  ("Dominion  Diamond  Corporation"  or  the 
"Company") and its common shares  now trade on both  the Toronto and New  York 
stock exchanges  under  the  symbol "DDC".  Dominion  Diamond  Corporation  is 
focused on the mining and marketing of rough diamonds to the global market.

The Company  is  incorporated and  domiciled  in  Canada and  its  shares  are 
publicly traded on the Toronto Stock Exchange and the New York Stock Exchange.
The address of its registered office is Toronto, Ontario.

The Company's mining  asset is an  ownership interest in  the Diavik group  of 
mineral  claims.  The  Diavik  Joint  Venture  (the  "Joint  Venture")  is  an 
unincorporated joint arrangement  between Diavik Diamond  Mines Inc.  ("DDMI") 
(60%) and  Dominion  Diamond Diavik  Limited  Partnership (formerly  known  as 
HarryWinston Diamond Limited Partnership)  ("DDDLP") (40%) where DDDLP  holds 
an undivided 40% ownership interest in the assets, liabilities and expenses of
the Diavik Diamond Mine. DDMI is the operator of the Diavik Diamond Mine. DDMI
and DDDLP are  headquartered in Yellowknife,  Canada. DDMI is  a wholly  owned 
subsidiary of Rio Tinto plc  of London, England, and  DDDLP is a wholly  owned 
subsidiary of Dominion Diamond Corporation of Toronto, Canada.

On November 13, 2012, the Company 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,  Canada,   and  Antwerp,   Belgium  (the   "Ekati  Diamond   Mine 
Acquisition"). 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 $400  million for the  Core Zone  interest and $100  million for  the 
Buffer Zone interest, subject to adjustments  in accordance with the terms  of 
the share purchase agreements. The  share purchase agreements include  typical 
closing conditions. 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. BHP Billiton has advised the Company
that all of  the minority joint  venture partners have  agreed to waive  their 
rights of first refusal to purchase the interests in the Buffer Zone and  Core 
Zone that they  do not  own, as  applicable, pursuant  to the  terms of  their 
respective joint  venture  agreements.  Closing  of  the  Ekati  Diamond  Mine 
Acquisition is currently expected  to occur on April  10, 2013. In  connection 
with the Ekati Diamond Mine Acquisition, the Company has arranged new  secured 
credit facilities  consisting of  a $400  million term  loan, a  $100  million 
revolving credit facility (of which $50 million will be available for purposes
of funding the Ekati  Diamond Mine Acquisition) and  a $140 million letter  of 
credit  facility  (expandable  to  $265  million  in  aggregate).  These   new 
facilities will be secured and will replace the Company's current $125 million
facility with Standard Chartered Bank.

On March 26, 2013, the Company completed the sale of the Luxury Brand  Segment 
to Swatch Group (the "Luxury Brand Divestiture"). As a result of the sale, the
Company's corporate  group  underwent name  changes  to remove  references  to 
"Harry Winston".

Note 2:
Basis of Preparation

(a) Statement of compliance
    These consolidated financial statements have been prepared in accordance
   with International Financial Reporting Standards ("IFRS") as issued by the
    International Accounting Standards Board ("IASB").
(b) Basis of measurement
   These consolidated financial statements have been prepared on the
    historical cost basis except for the following:

  *financial instruments held for trading are measured at fair value through
    profit and loss
  *liabilities for Restricted Share Unit and Deferred Share Unit plans are
    measured at fair value

(c) Currency of presentation
    These consolidated financial statements are expressed in United States
   dollars, which is the functional currency of the Company. All financial
    information presented in United States dollars has been rounded to the
    nearest thousand.

Note 3:
Significant Accounting Policies

The accounting policies set  out below have been  applied consistently to  all 
periods presented in  these consolidated financial  statements, and have  been 
applied consistently by Company entities.

(a) Basis of consolidation
     The consolidated financial statements comprise the financial statements
     of the Company and its subsidiaries as at January 31, 2013. Subsidiaries
     are fully consolidated from the date of acquisition or creation, being
     the date on which the Company obtains control, and continue to be
     consolidated until the date that such control ceases. The financial
    statements of the subsidiaries are prepared for the same reporting period
     as the parent company, using consistent accounting policies. All
     intercompany balances, income and expenses, and unrealized gains and
     losses resulting from intercompany transactions are eliminated in full.
     For partly owned subsidiaries, the net assets and net earnings
     attributable to minority shareholders are presented as non-controlling
     interests on the consolidated balance sheet.
    Interest in Diavik Joint Venture
     DDDLP has an undivided 40% ownership interest in the assets, liabilities
     and expenses of the Joint Venture. The Company records its interest in
    the assets, liabilities and expenses of the Joint Venture in its
     consolidated financial statements with a one-month lag. The accounting
     policies described below include those of the Joint Venture.
(b) Revenue
     Sales of rough diamonds are recognized when significant risks and rewards
     of ownership are transferred to the customer, the amount of sales can be
    measured reliably and the receipt of future economic benefits are
     probable. Sales are measured at the fair value of the consideration
     received or receivable and after eliminating sales within the Company.
(c)  Cash and Cash Equivalents
     Cash and cash equivalents consist of cash on hand, balances with banks
    and short-term money market instruments (with a maturity on acquisition
     of less than 90 days), and are carried at fair value.
(d) Trade Accounts Receivable
     Trade accounts receivable are recorded at the invoiced amount and
    generally do not bear interest. Account balances are written off against
     the allowance after all means of collection have been exhausted and the
     potential for recovery is considered remote.
(e) Inventory and supplies
     Mining rough diamond inventory is recorded at the lower of cost or net
    realizable value. Cost is determined on an average cost basis including
     production costs and value-added processing activity.
     Mining supplies inventory is recorded at the lower of cost or net
    realizable value. Supplies inventory includes consumables and spare parts
     maintained at the Diavik Diamond Mine site and at the Company's sorting
     and distribution facility locations.
     Net realizable value is the estimated selling price in the ordinary
     course of business, less estimated costs of completion and costs of
     selling the final product. In order to determine net realizable value,
    the carrying amount of obsolete and slow moving items is written down on
     a basis of an estimate of their future use or realization. A provision
     for obsolescence is made when the carrying amount is higher than net
     realizable value.
(f) Assets held for sale and discontinued operations
     A discontinued operation represents a separate major line of business
     that either has been disposed of or is classified as held for sale.
     Classification as held for sale applies when an asset's carrying value
     will be recovered principally through a sale transaction rather than
    through continuing use, it is available for immediate sale in its present
     condition and its sale is highly probable. Results for assets held for
     sale are disclosed separately as net profit from discontinued operations
     in the consolidated income statements and comparative periods are
     reclassified accordingly.
(g) Exploration, evaluation and development expenditures
     Exploration and evaluation activities include: acquisition of rights to
     explore; topographical, geological, geochemical and geophysical studies;
     exploratory drilling; trenching and sampling; and activities involved in
     evaluating the technical feasibility and commercial viability of
     extracting mineral resources. Capitalized exploration and evaluation
     expenditures are recorded as a component of property, plant and
    equipment. Exploration and evaluation assets are no longer classified as
     such when the technical feasibility and commercial viability of
     extracting a mineral resource are demonstrable. Before reclassification,
     exploration and evaluation assets are assessed for impairment. Recognized
     exploration and evaluation assets will be assessed for impairment when
     the facts and circumstances suggest that the carrying amount may exceed
     its recoverable amount.
     Drilling and related costs are capitalized for an ore body where proven
     and probable reserves exist and the activities are directed at either (a)
     obtaining additional information on the ore body that is classified
    within proven and probable reserves, or (b) converting non-reserve
     mineralization to proven and probable reserves and the benefit is
     expected to be realized over an extended period of time. All other
     drilling and related costs are expensed as incurred.
(h) Property, plant and equipment
     Items of property, plant and equipment are measured at cost, less
     accumulated depreciation and accumulated impairment losses. The initial
     cost of an asset comprises its purchase price and construction cost, any
     costs directly attributable to bringing the asset into operation,
    including stripping costs incurred in open pit mining before production
     commences, the initial estimate of the rehabilitation obligation, and for
     qualifying assets, borrowing costs. The purchase price or construction
     cost is the aggregate amount paid and the fair value of any other
     consideration given to acquire the asset.
     When parts of an item of property, plant and equipment have different
    useful lives, the parts are accounted for as separate items (major
     components) of property, plant and equipment.
     Gains and losses on disposal of an item of property, plant and equipment
    are determined by comparing the proceeds from the disposal with the
     carrying amount of property, plant and equipment and are recognized
     within cost of sales or selling, general and administrative expenses.
    (i)         DEPRECIATION
                  Depreciation commences when the asset is available for use.
                  Depreciation is charged so as to write off the depreciable
                amount of the asset to its residual value over its estimated
                  useful life, using a method that reflects the pattern in
                  which the asset's future economic benefits are expected to
                  be consumed by the Company.
                  The unit-of-production method is applied to a substantial
                  portion of Diavik Diamond Mine property, plant and
                  equipment, and, depending on the asset, is based on carats
                  of diamonds recovered during the period relative to the
                  estimated proven and probable ore reserves of the ore
                deposit being mined, or to the total ore deposit. The
                  Company does not include estimates of measured, indicated or
                  inferred resources in its calculation of ore reserves. Other
                  plant, property and equipment are depreciated using the
                  straight-line method over the estimated useful lives of the
                  related assets, for the current and comparative periods,
                  which are as follows:

                                          
      Asset                                       Estimated useful life
                                                                       (years)
      Buildings                                                   10-40
      Machinery and mobile equipment                               3-10
      Computer equipment and software                                 3
      Furniture, fixtures and equipment                            2-10
      Leasehold and building improvements                      Up to 20

              Amortization for mine related assets was charged to mineral
                properties during the pre-commercial production stage.
                Upon the disposition of an asset, the accumulated
              depreciation and accumulated impairment losses are deducted
                from the original cost, and any gain or loss is reflected in
                current net profit or loss.
                Depreciation methods, useful lives and residual values are
              reviewed at each financial year end and adjusted if
                appropriate. The impact of changes to the estimated useful
                lives or residual values is accounted for prospectively.
    (ii)      STRIPPING COSTS
                Mining costs associated with stripping activities in an open
                pit mine are expensed unless the stripping activity can be
                shown to represent a betterment to the mineral property, in
                which case the stripping costs would be capitalized and
              included in deferred mineral property costs within mining
                assets. Stripping costs incurred during the production phase
                of an open pit mine are variable production costs that are
                included as a component of inventory to be recognized as a
                component of cost of sales in the same period as the sale of
                inventory.
    (iii)     MAJOR MAINTENANCE AND REPAIRS
                Expenditure on major maintenance refits or repairs comprises
                the cost of replacement assets or parts of assets and
                overhaul costs. When an asset, or part of an asset that was
                separately depreciated, is replaced and it is probable that
                future economic benefits associated with the new asset will
                flow to the Company through an extended life, the
              expenditure is capitalized. The unamortized value of the
                existing asset or part of the existing asset that is being
                replaced is expensed. Where part of the existing asset was
                not separately considered as a component, the replacement
                value is used to estimate the carrying amount of the
                replaced assets, which is immediately written off. All other
                day-to-day maintenance costs are expensed as incurred.
(i) Other non-current assets
    Other non-current assets include depreciable assets amortized over a
     period not exceeding ten years.
(j) Financial instruments
     From time to time, the Company may use a limited number of derivative
     financial instruments to manage its foreign currency and interest rate
     exposure. For a derivative to qualify as a hedge at inception and
     throughout the hedged period, the Company formally documents the nature
     and relationships between the hedging instruments and hedgeditems, as
    well as its risk-management objectives, strategies for undertaking the
     various hedge transactions andmethod of assessing hedge effectiveness.
     Financial instruments qualifying for hedge accounting must maintain a
     specified levelof effectiveness between the hedge instrument and the
     item being hedged, both at inception and throughout the hedged period.
     Gains and losses resulting from any ineffectiveness in a hedging
     relationship are recognized immediately in net profit or loss.
(k) Provisions
     Provisions represent obligations to the Company for which the amount or
     timing is uncertain. Provisions are recognized when (a) the Company has
     a present obligation (legal or constructive) as a result of a past
     event, (b) it is probable that an outflow of resources embodying
     economic benefits will be required to settle the obligation, and (c) a
    reliable estimate can be made of the amount of the obligation. The
     expense relating to any provision is included in net profit or loss. If
     the effect of the time value of money is material, provisions are
     discounted using a current pre-tax rate that reflects, where
     appropriate, the risks specific to the obligation. Where discounting is
     used, the increase in the provision due to the passage of time is
     recognized as a finance cost in net profit or loss.
    
    Mine rehabilitation and site restoration provision:
     The Company records the present value of estimated costs of legal and
     constructive obligations required to restore operating locations in the
     period in which the obligation is incurred. The nature of these
    restoration activities includes dismantling and removing structures,
     rehabilitating mines and tailings dams, dismantling operating
     facilities, closure of plant and waste sites, and restoration,
     reclamation and re-vegetation of affected areas.
     The obligations generally arise when the asset is installed or the
     ground/environment is disturbed at the production location. When the
     liability is initially recognized, the present value of the estimated
     cost is capitalized by increasing the carrying amount of the related
     assets. Over time, the discounted liability is increased/decreased for
    the change in present value based on the discount rates that reflect
     current market assessments and the risks specific to the liability.
     Additional disturbances or changes in rehabilitation costs, including
     re-measurement from changes in the discount rate, are recognized as
     additions or charges to the corresponding assets and rehabilitation
     liability when they occur. The periodic unwinding of the discount is
     recognized in net profit or loss as a finance cost.
(l) Foreign currency
    Foreign currency translation
     Monetary assets and liabilities denominated in foreign currencies are
     translated to US dollars at exchange rates in effect at the balance
     sheet date, and non-monetary assets and liabilities are translated at
    rates of exchange in effect when the assets were acquired or
     obligations incurred. Revenues and expenses are translated at rates in
     effect at the time of the transactions. Foreign exchange gains and
     losses are included in net profit or loss.
     For certain subsidiaries of the Company where the functional currency
     is not the US dollar, the assets and liabilities of these subsidiaries
     are translated at the rate of exchange in effect at the reporting date.
     Sales and expenses are translated at the rate of exchange in effect at
    the time of the transactions. Foreign exchange gains and losses are
     accumulated in other comprehensive income within shareholders' equity.
     When a foreign operation is disposed of, in part or in full, the
     relevant amount in the foreign exchange reserve account is reclassified
     to net profit or loss as part of profit or loss on disposal.
(m)  Income taxes
    Current and deferred taxes
     Income tax expense comprises current and deferred tax and is recognized
    in net profit or loss except to the extent that it relates to items
     recognized directly in equity, in which case it is recognized in equity
     or in other comprehensive income.
     Current tax expense is the expected tax payable on the taxable income
     for the year, using tax rates enacted or substantively enacted at the
     reporting date, and any adjustment to tax payable in respect of
     previous years. Deferred tax expense is recognized in respect of
    temporary differences between the carrying amounts of assets and
     liabilities for financial reporting purposes and the amounts used for
     taxation purposes. Deferred tax expense is measured at the tax rates
     that are expected to be applied to temporary differences when they
     reverse, based on the laws that have been enacted or substantively
     enacted by the reporting date.
     A deferred tax asset is recognized to the extent that it is probable
     that future taxable profits will be available against which the
    temporary difference can be utilized. Deferred tax assets are reviewed
     at each reporting date and are reduced to the extent that it is
     probable that the related tax benefit will not be realized.
     Deferred income and mining tax assets and deferred income and mining
     tax liabilities are offset, if a legally enforceable right exists to
    offset current tax assets against current income tax liabilities and
     the deferred income taxes relate to the same taxable entity and the
     same taxation authority.
     The Company classifies exchange differences on deferred tax assets or
    liabilities in jurisdictions where the functional currency is different
     from the currency used for tax purposes as income tax expense.
    
(n) Stock-based payment transactions
    Stock-based compensation
     The Company applies the fair value method to all grants of stock
     options. The fair value of options granted is estimated at the date of
     grant using a Black-Scholes option pricing model incorporating
     assumptions regarding risk-free interest rates, dividend yield,
     volatility factor of the expected market price of the Company's stock,
    and a weighted average expected life of the options. When option awards
     vest in installments over the vesting period, each installment is
     accounted for as a separate arrangement. The estimated fair value of
     the options is recorded as an expense with an offsetting credit to
     shareholders' equity. Any consideration received on amounts
     attributable to stock options is credited to share capital.
    Restricted and Deferred Share UnitPlans
     The Restricted and Deferred Share Unit ("RSU" and "DSU") Plans are full
     value phantom shares that mirror the value of Dominion Diamond
     Corporation's publicly traded common shares. Grants under the RSU Plan
     are on a discretionary basis to employees of the Company subject to
     Board of Directors approval. Under the prior RSU Plan, each RSU grant
     vests on the third anniversary of the grant date. Under the 2010 RSU
     Plan, each RSU grant vests equally over a three-year period. Vesting
     under both RSU Plans is subject to special rules for death, disability
    and change in control. Grants under the DSU Plan are awarded to
     non-executive directors of the Company. Each DSU grant vests
     immediately on the grant date. The expenses related to the RSUs and
     DSUs are accrued based on fair value. When a share-based payment award
     vests in installments over the vesting period, each installment is
     accounted for as a separate arrangement. These awards are accounted for
     as liabilities with the value of these liabilities being re-measured at
     each reporting date based on changes in the fair value of the awards,
     and at settlement date. Any changes in the fair value of the liability
     are recognized as employee benefit plan expense in net profit or loss.
(o) Employee benefit plans
    Contributions to defined contribution pension plans are expensed as
     incurred.
(p) Operating leases
     Minimum rent payments under operating leases, including any rent-free
    periodsand/or construction allowances, are recognized on a
     straight-line basis over the term of the lease and included in net
     profit or loss.
(q) Impairment of non-financial assets
     The carrying amounts of the Company's non-financial assets other than
    inventory and deferred taxes are reviewed at each reporting date to
     determine whether there is any indication of impairment. If any such
     indication exists, then the asset's recoverable amount is estimated.
     The recoverable amount of an asset is the greater of its fair value
     less costs to sell and its value in use. In the absence of a binding
     sales agreement, fair value is estimated on the basis of values
     obtained from an active market or from recent transactions or on the
     basis of the best information available that reflects the amount that
     the Company could obtain from the disposal of the asset. Value in use
    is defined as the present value of future pre-tax cash flows expected
     to be derived from the use of an asset, using a pre-tax discount rate
     that reflects current market assessments of the time value of money and
     the risks specific to the asset. For the purpose of impairment testing,
     assets are grouped together into the smallest group of assets that
     generates cash inflows from continuing use that are largely independent
     of the cash inflows of other assets or groups of assets (the
     "cash-generating unit").
     An impairment loss is recognized if the carrying amount of an asset or
     its cash-generating unit exceeds its estimated recoverable amount.
     Impairment losses are recognized in the consolidated statement of
    income in those expense categories consistent with the function of the
     impaired asset. Impairment losses recognized in respect of
     cash-generating units would be allocated to reduce the carrying amounts
     of the assets in the unit (group of units) on a pro rata basis.
     For property, plant and equipment, an assessment is made at each
     reporting date as to whether there is any indication that previously
     recognized impairment losses may no longer exist or may have decreased.
     If such indication exists, the Company makes an estimate of the
     recoverable amount. A previously recognized impairment loss is reversed
     only if there has been a change in the estimates used to determine the
    asset's recoverable amount since the last impairment loss was
     recognized. If this is the case, the carrying amount of the asset is
     increased to its recoverable amount. The increased amount cannot exceed
     the carrying amount that would have been determined, net of
     depreciation, had no impairment loss been recognized for the asset in
     prior years. Such reversal is recognized in the consolidated statement
     of income.
    
(r) Basic and diluted earnings per share
     Basic earnings per share are calculated by dividing net profit or loss
     by the weighted average number of shares outstanding during the period.
     Diluted earnings per share are determined using the treasury stock
     method to calculate the dilutive effect of options and warrants. The
    treasury stock method assumes that the exercise of any "in-the-money"
     options with the option proceeds would be used to purchase common
     shares at the average market value for the period. Options with an
     exercise price higher than the average market value for the period are
     not included in the calculation of diluted earnings per share as such
     options are not dilutive.
(s) Use of estimates, judgments and assumptions
     The preparation of the consolidated financial statements in conformity
     with IFRS requires management to make judgments, estimates and
     assumptions that affect the application of accounting policies and
     reported amounts of assets and liabilities and contingent liabilities
     at the date of the consolidated financialstatements, and the reported
     amounts of sales and expenses during the reporting period. Estimates
     and assumptions are continually evaluated and are based on management's
    experience and other factors, including expectations of future events
     that are believed to be reasonable under the circumstances. However,
     actual outcomes can differ from these estimates. Revisions to
     accounting estimates are recognized in the period in which the
     estimates are revised and in any future periods affected. Information
     about significant areas of estimation uncertainty and critical
     judgments in applying accounting policies that have the most
     significant effect on the amounts recognized in the consolidated
     financial statements is as follows:
              a.         Significant Judgments in Applying Accounting
                               Policies
                             Recovery of deferred tax assets
                               Judgment is required in determining whether
                               deferred tax assets are recognized in the
                               consolidated balance sheet. Deferred tax
                               assets, including those arising from
                               un-utilized tax losses, require management to
                               assess the likelihood that the Company will
                               generate taxable earnings in future periods
                               in order to utilize recognized deferred tax
                               assets. Estimates of future taxable income
                               are based on forecasted income from
                             operations and the application of existing
                               tax laws in each jurisdiction. To the extent
                               that future taxable income differs
                               significantly from estimates, the ability of
                               the Company to realize the deferred tax
                               assets recorded at the consolidated balance
                               sheet date could be impacted. Additionally,
                               future changes in tax laws in the
                               jurisdictions in which the Company operates
                               could limit the ability of the Company to
                               obtain tax deductions in future periods.
                             Commitments and contingencies
                               The Company has conducted its operations in
                               the ordinary course of business in accordance
                               with its understanding and interpretation of
                               applicable tax legislation in the countries
                               where the Company has operations. The
                               relevant tax authorities could have a
                               different interpretation of those tax laws
                               that could lead to contingencies or
                             additional liabilities for the Company. The
                               Company believes that its tax filing
                               positions as at the balance sheet date are
                               appropriate and supportable. Should the
                               ultimate tax liability materially differ from
                               the provision, the Company's effective tax
                               rate and its profit or loss could be affected
                               positively or negatively in the period in
                               which the matters are resolved.
              b.        Significant Estimates and Assumptions in
                               Applying Accounting Policies
                             Mineral reserves, mineral properties and
                               exploration costs
                               The estimation of mineral reserves is a
                               subjective process. The Company estimates its
                               mineral reserves based on information
                               compiled by an appropriately qualified
                               person. Forecasts are based on engineering
                               data, projected future rates of production
                               and the timing of future expenditures, all of
                               which are subject to numerous uncertainties
                               and various interpretations. The Company
                               expects that its estimates of reserves will
                               change to reflect updated information.
                               Reserve estimates can be revised upward or
                             downward based on the results of future
                               drilling, testing or production levels,
                               anddiamond prices. Changes in reserve
                               estimates may impact the carrying value of
                               exploration and evaluation assets, mineral
                               properties, property, plant and equipment,
                               mine rehabilitation and site restoration
                               provision, recognition of deferred tax
                               assets, and depreciation charges. Estimates
                               and assumptions about future events and
                               circumstances are also used to determine
                               whether economically viable reserves exist
                               that can lead to commercial development of an
                               ore body.
                               Estimated mineral reserves are used in
                               determining the depreciation of mine-specific
                               assets. This results in a depreciation charge
                               proportional to the depletion of the
                               anticipated remaining life of mine
                               production. A units-of-production
                             depreciation method is applied, and depending
                               on the asset, is based on carats of diamonds
                               recovered during the period relative to the
                               estimated proven and probable reserves of the
                               ore deposit being mined or to the total ore
                               deposit. Changes in estimates are accounted
                               for prospectively.
                             Impairment of long-lived assets
                               The Company assesses each cash-generating
                               unit at least annually to determine whether
                               any indication of impairment exists. Where an
                               indicator of impairment exists, a formal
                               estimate of the recoverable amount is made,
                               which is considered to be the higher of the
                             fair value of an asset less costs to sell and
                               its value in use. These assessments require
                               the use of estimates and assumptions such as
                               long-term commodity prices, discount rates,
                               future capital requirements, exploration
                               potential and operating performance.
                               Financial results as determined by actual
                               events could differ from those estimated.
                             Mine rehabilitation and site restoration
                               provision
                               The mine rehabilitation and site restoration
                               provision has been provided by management of
                               the Diavik Diamond Mine and is based on
                               internal estimates. Assumptions, based on the
                               current economic environment, have been made
                               which DDMI management believes are a
                               reasonable basis upon which to estimate the
                               future liability. These estimates are
                               reviewed regularly by management of the
                               Diavik Diamond Mine to take into account any
                             material changes to the assumptions. However,
                               actual rehabilitation costs will ultimately
                               depend upon future costs for the necessary
                               decommissioning work required, which will
                               reflect market conditions at the relevant
                               time. Furthermore, the timing of
                               rehabilitation is likely to depend on when
                               the Diavik Diamond Mine ceases to produce at
                               economically viable rates. This, in turn,
                               will depend upon a number of factors
                               including future diamond prices, which are
                               inherently uncertain.
(t) Standards issued but not yet effective 
     The following standards and interpretations have been issued but are
    not yet effective and have not been early adopted in these financial
     statements.
     The International Accounting Standards Board ("IASB") has issued a new
     standard, IFRS 9, "Financial Instruments" ("IFRS 9"), which will
     ultimately replace IAS 39, "Financial Instruments: Recognition and
    Measurement" ("IAS 39"). IFRS 9 provides guidance on the classification
     and measurement of financial assets and financial liabilities. This
     standard becomes effective for the Company's fiscal year end beginning
     February 1, 2015. The Company is currently assessing the impact of the
     new standard on its financial statements.
     IFRS 10, "Consolidated Financial Statements" ("IFRS 10"), was issued by
     the IASB on May 12, 2011, and will replace the consolidation
     requirements inSIC-12, "Consolidation - Special Purpose Entities" and
     IAS 27, "Consolidated and Separate Financial Statements". The new
     standard establishes control as the basis for determining which
    entities are consolidated in the consolidated financial statements and
     provides guidance to assist in the determination of control where it is
     difficult to assess. IFRS 10 is effective for the Company's fiscal year
     end beginning February 1, 2013, with early adoption permitted. The
     Company is currently assessing the impact of IFRS 10 on its
     consolidated financial statements.
     IFRS 11, "Joint Arrangements" ("IFRS 11"), was issued by the IASB on
     May 12, 2011 and will replace IAS 31, "Interest in Joint Ventures". The
     new standard will apply to the accounting for interests in joint
     arrangements where there is joint control. Under IFRS 11, joint
     arrangements are classified as either joint ventures or joint
     operations. The structure of the joint arrangement will no longer be
    the most significant factor in determining whether a joint arrangement
     is either a joint venture or a joint operation. For a joint venture,
     proportionate consolidation will no longer be allowed and will be
     replaced by equity accounting. IFRS 11 is effective for the Company's
     fiscal year end beginning February 1, 2013, with early adoption
     permitted. The Company is currently assessing the impact of IFRS 11 on
     its results of operations and financial position.
     IFRS 13, "Fair Value Measurement" ("IFRS 13"), was also issued by the
     IASB on May 12, 2011. The new standard generally makes IFRS consistent
     with generally accepted accounting principles in the United States ("US
     GAAP") on measuring fair value and related fair value disclosures. The
    new standard creates a single source of guidance for fair value
     measurements. IFRS 13 is effective for the Company's fiscal year end
     beginning February 1, 2013, with early adoption permitted. The Company
     is currently assessing the impact of IFRS 13 on its consolidated
     financial statements.
     The International Financial Reporting Interpretations Committee
     ("IFRIC") issued IFRIC 20, "Stripping Costs in the Production Phase of
     a Surface Mine" ("IFRIC 20"), on October 19, 2011. IFRIC 20 clarifies
     the requirements for accounting for stripping costs associated with
    waste removal in surface mining, including when production stripping
     costs should be recognized as an asset, how the asset is initially
     recognized, and subsequent measurement. IFRIC 20 is effective for the
     Company's fiscal year end beginning February 1, 2013. The Company is
     currently assessing the impact of IFRIC 20 on its consolidated
     financial statements.
     Amendments to IAS 19, "Employee Benefits" ("IAS 19"), was issued by the
     IASB on June 11, 2011. The amended standard eliminates the option to
     defer the recognition of actuarial gains and losses through the
     "corridor" approach, revises the presentation of changes in assets and
    liabilities arising from defined benefit plans and enhances the
     disclosures for defined benefit plans.IAS 19 is effective for the
     Company's fiscal year end beginning February 1, 2013, with early
     adoption permitted. The Company is currently assessing the impact of
     IAS 19 on its consolidated financial statements.

Note 4:
Cash and Cash Equivalents

                                         2013    2012
Cash on hand and balances with banks  $ 104,313  $ 76,030
Short-term investments                       -    2,086
Total cash and cash equivalents       $ 104,313  $ 78,116

Short-term investments  are  held  in  overnight  deposits  and  money  market 
instruments with a maturity of 30 days.

Note 5:
Accounts Receivable

                                               2013     2012
Mining receivables                            $ 3,705  $  1,923
Luxury brand trade receivables                     -   25,828
Luxury brand allowance for doubtful accounts       -    (841)
Total accounts receivable                     $ 3,705  $ 26,910

The Company's exposure to interest rate risk and sensitivity analysis is
disclosed in Note 22.

Note 6:
Inventory and Supplies

                                       2013      2012
Mining rough diamonds               $  45,467  $  62,472
Mining supplies inventory             70,160    68,916
Luxury brand raw materials                 -    62,188
Luxury brand work-in-progress              -    45,407
Luxury brand merchandise inventory         -   218,844
Total inventory and supplies        $ 115,627  $ 457,827

Total inventory and supplies  is net of a  provision for obsolescence of  $0.4 
million ($3.1 million  at January  31, 2012).  Cost of  sales from  continuing 
operations includes inventory of $262.7 million  sold during the year (2012  - 
$207.3 million), with another  $4.9 million of  non-inventoried costs (2012  - 
$20.6 million).

Note 7:
Other Current Assets

                                     2013     2012
Mining prepaid assets              $ 29,486  $ 28,148
Luxury brand other current assets        -    7,082
Luxury brand prepaid assets              -   10,264
Total other current assets         $ 29,486  $ 45,494

Note 8:
Assets Held for Sale (Discontinued Operations)
On March 26, 2013, the Company completed the sale of the Luxury Brand Segment
to Swatch Group (the "Luxury Brand Divestiture"). As a result of the sale, the
Company's corporate group underwent name changes to remove references to
"Harry Winston". The Company's name has now been changed to "Dominion Diamond
Corporation" and its common shares trade on both the Toronto and New York
stock exchanges under the symbol "DDC".

The major classes  of assets  and liabilities of  the discontinued  operations 
were as follows:

                                                      January 31,
                                                                2013
ASSETS                                                           
Cash and cash equivalents                             $      23,136
Accounts receivable and other current assets                51,674
Inventory and supplies                                     373,957
Property, plant and equipment                               78,176
Intangible assets, net                                     126,779
Other non-current assets                                    11,452
Deferred income tax assets                                  53,630
Total assets related to discontinued operations       $     718,804
                                                                
LIABILITIES                                                      
Trade and other payables                              $      93,495
Income taxes payable                                         2,547
Interest-bearing loans and borrowings                      273,175
Deferred income tax liabilities                            106,614
Other long-term liabilities                                  8,421
Total liabilities related to discontinued operations  $     484,252

Results of the discontinued operations are presented separately as net  profit 
from discontinued  operations  in  the  consolidated  income  statements,  and 
comparative periods have been adjusted accordingly.

                                                      2013        2012
Sales                                            $   435,835  $   411,929
Cost of sales                                     (208,574)   (224,009)
Other expenses                                    (212,562)   (174,862)
Other income and foreign exchange gains               1,888         293
Net income tax expense                             (4,153)     (5,214)
Net profit from discontinued operations          $    12,434  $     8,137
Earnings per share - discontinued operations                         
 Basic                                           $      0.15  $      0.10
 Diluted                                            0.15        0.10

Note 9:
Property, Plant and Equipment

MINING OPERATIONS                                                                                                                                
                                                            Diavik                                    Real                                    Mine
                                                         equipment          Furniture,          property -              Assets      rehabilitation
                                       Mineral                 and           equipment            land and               under            and site
                             properties^(a)    leaseholds^(b)     and other^(c)      building^(d)      construction   restoration^(e)             Total
Cost:                                                                                                                                            
Balance at February 1,      $    249,527  $         855,213  $    9,306  $       37,577  $   23,174  $    53,471  $       1,228,268
2012
Additions                                327                2,509             2,460            51,181            11,368            67,845
                                                                 -
Disposals                              (14,805)             (151)                   (14,956)
                                             -                                                           -                   -                   -
Foreign exchange                                  157                     157
differences                                  -                   -                   -                                       -                   -
Transfers and other                    (134)            59,187                (59,053)      
movements                                                                            -                                            -                   -
                                                                                                         -
Balance at January 31,      $         249,720  $         899,595  $          11,664  $          40,194  $          15,302  $          64,839  $       1,281,314
2013
Accumulated                                                                                                                                      
depreciation/amortization:
Balance at February 1,      $     162,068  $         297,245  $    6,028  $       9,335  $     -  $          19,446  $         494,122
2012
Depreciation and                      11,425            54,502               904             1,578                3,882            72,291
amortization for the year                                                                                                    -
Disposals                              (12,403)             (151)                   (12,554)
                                             -                                                           -                   -                   -
Foreign exchange                                 (34)                    (34)
differences                                  -                   -                   -                                       -                   -
Balance at January 31,      $         173,493  $         339,344  $           6,781  $          10,879  $               -  $          23,328  $         553,825
2013
Net book value at January   $          76,227  $         560,251  $   4,883  $          29,315  $          15,302  $          41,511  $         727,489
31, 2013

                                                                                                                              
                                                         Diavik                                 Real                                Mine 
                                                        equipment           Furniture,        property -            Assets      rehabilitation
                                       Mineral                and            equipment          land and             under            and site
                              properties^(a)    leaseholds^(b)       and other^(c)     building^(d)     construction    restoration^(e)        Total
Cost:                                                                                                                                  
Balance at February 1,      $         250,047  $        768,515  $            7,927  $        35,227  $        82,135  $     40,291  $ 1,184,142
2011
Additions                                  -                -              1,379           2,450          41,352            13,180      58,361
Disposals                                (942)              -     
                                             -                                       -                 -                 -                             (942)
Impairments for the year              (13,193)             -          
                                             -                                       -                 -                 -                          (13,193)
Foreign exchange                           -                -                  -           (100)                    -       (100)
differences                                                                                                              -
Transfers and other                    (520)          100,833                  -               -       (100,313)                 -           -
movements
Balance at January 31,      $         249,527  $        855,213  $            9,306  $        37,577  $        23,174  $          53,471  $ 1,228,268
2012
Accumulated                                                                                                                            
depreciation/amortization:
Balance at February 1,      $     149,814  $        239,883  $     5,677  $     8,062  $  -  $          16,613  $   420,049
2011
Depreciation and                12,254           58,304      351       1,293    -            2,833     75,035
amortization for the year
Disposals                      -            (942)           -        -    -        -      
                                                                                                                                                     (942)
Foreign exchange               -                -           -            (20)    -                 -     
differences                                                                                                                                           (20)
Balance at January 31,      $         162,068  $        297,245  $            6,028  $         9,335  $             -  $          19,446  $   494,122
2012
Net book value at January   $          87,459  $        557,968  $    3,278  $      28,242  $        23,174  $          34,025  $   734,146
31, 2012

LUXURY BRAND SEGMENT                                                           
                                   Furniture,             Real
                                    equipment       property -
                                          and         land and     Assets under
                               other^(c)   building^(d)   construction       Total
Cost:                                                                          
Balance at February 1,        $     43,024  $       87,828  $       9,961  $   140,813
2012
Additions                          13,957          7,218          2,579      23,754
Disposals                           (216)          (376)              -       (592)
Foreign exchange                  (1,446)        (3,206)           (23)     (4,675)
differences
Reclassification to assets       (55,319)       (91,464)       (12,517)   (159,300)
held for sale
Balance at January 31,        $          -  $            -  $            -  $         -
2013
Accumulated                                                                    
depreciation/amortization:
Balance at February 1,        $     29,460  $       41,572  $            -  $    71,032
2012
Depreciation and                    5,284          8,861              -      14,145
amortization for the year
Disposals                           (219)          (410)              -       (629)
Foreign exchange                  (1,161)        (2,263)              -     (3,424)
differences
Reclassification to assets       (33,364)       (47,760)              -    (81,124)
held for sale
Balance at January 31,        $          -  $            -  $            -  $         -
2013
Net book value at January     $          -  $            -  $            -  $         -
31, 2013

                                                                      
                                   Furniture,            Real                 
                                    equipment       property -
                                          and         land and     Assets under
                               other^(c)    building^(d)    construction      Total
Cost:                                                                        
Balance at February 1,        $     34,866  $       85,430  $           63  $ 120,359
2011
Additions                           8,196          1,587          9,898    19,681
Disposals                           (765)        (1,366)              -   (2,131)
Foreign exchange                      727          2,177              -     2,904
differences
Balance at January 31,        $     43,024  $       87,828  $       9,961  $ 140,813
2012
Accumulated                                                                  
depreciation/amortization:
Balance at February 1,        $     23,879  $       35,461  $            -  $  59,340
2011
Depreciation and                    5,835          6,487              -    12,322
amortization for the year
Disposals                           (763)        (1,358)              -   (2,121)
Foreign exchange                      509            982              -     1,491
differences
Balance at January 31,        $     29,460  $       41,572  $            -  $  71,032
2012
Net book value at January     $     13,564  $       46,256  $        9,961  $  69,781
31, 2012

^(a) The Company holds a 40% ownership interest in the Diavik group of
      mineral claims, which contains commercially mineable diamond reserves.
      DDMI, a subsidiary of Rio Tinto plc, is the operator of the Joint
      Venture and holds the remaining 60%interest. The claims are subject to
      private royalties, which are in the aggregate 2% of the value of
      production.
^(b) Diavik equipment and leaseholds are project related assets at the Joint
      Venture level.
^(c) Furniture, equipment and other includes equipment located at the
      Company's diamond sorting facility and at HarryWinston Inc. salons.
^(d) Real property is comprised of land and a building that houses the
      corporate activities of the Company, and various leasehold improvements
      to HarryWinston Inc. salons and corporate offices.
^(e) The Joint Venture has an obligation under various agreements (note 22)
      to reclaim and restore the lands disturbed by its mining operations.

Depreciation expense  for continuing  operations  for 2013  was  $72.3million 
(2012 - $75.0million).

Note 10:
Diavik Joint Venture
The following represents DDDLP's 40% proportionate interest in the Joint
Venture as at December 31, 2012 and December 31, 2011:

                                                        2012      2011
Current assets                                       $ 102,299 $  101,454
Non-current assets                                    677,808   685,590
Current liabilities                                    30,517    31,745
Non-current liabilities and participant's             749,590   755,298
account

                                            2012                  2011
Expenses net of interest income of     $   243,796  $             257,807
$0.1 million (2011 - $0.1 million)
^ ^(a)
Cash flows used in operating            (164,645)    (166,854)
activities
Cash flows resulting from                 214,061    214,834
financing activities
Cash flows used in investing             (50,925)              (43,499)
activities

^(a) The Joint Venture only earns interest income.

DDDLP is contingently  liable for  DDMI's portion  of the  liabilities of  the 
Joint Venture, and to the extent DDDLP's participating interest has  increased 
because of the  failure of  DDMI to make  a cash  contribution when  required, 
DDDLP would have access  to an increased  portion of the  assets of the  Joint 
Venture to settle these liabilities. Additional information on commitments and
contingencies related to the Diavik Joint Venture is found in Note 22.

During fiscal 2012, the Company recognized a non-cash $13.0 million charge  in 
cost of  sales related  to the  de-recognition of  certain components  of  the 
backfill plant (the  "Paste Plant")  associated with paste  production at  the 
Diavik Diamond Mine. The  original mine plan envisioned  the use of  blasthole 
stoping and underhand cut and fill  underground mining methods for the  Diavik 
ore bodies using paste to preserve  underground stability. It is now  expected 
that the higher velocity and lower cost sub-level retreat mining method, which
does not  require paste,  will be  used for  both the  A-154 South  and  A-418 
underground ore bodies.  As a result,  certain components of  the Paste  Plant 
necessary for  the  production  of  paste  will  no  longer  be  required  and 
accordingly were de-recognized during the year.

Note 11:
Other Non-Current Assets

                                                         2013     2012
Prepaid pricing discount^(a), net of accumulated        $   240  $  1,680
amortization of $11.7million (2012 -
$10.3million)
Other assets                                             6,279    3,276
Refundable security deposits                               418    9,209
                                                       $ 6,937  $ 14,165

^(a) Prepaid pricing discount represents funds paid to Tiffany & Co. by the
      Company to amend its rough diamond supply agreement. The amendment
      eliminated all pricing discounts on future sales. The payment has been
      deferred and is being amortized on a straight-line basis over the
      remaining life of the contract.

Note 12:
Trade and Other Payables

                                                        2013      2012
Trade and other payables                              $  1,105  $  41,031
Accrued expenses                                        6,647    17,835
Customer deposits                                         784    14,070
Payables and accruals at the Diavik Joint Venture      30,517    31,745
                                                     $ 39,053  $ 104,681

Note 13:
Employee Benefit Plans
The employee benefit obligation reflected in the consolidated balance sheet is
as follows:

                                                    2013      2012  
Post-retirement benefit plan - Diavik Diamond      $   699   $    289  
Mine (b)
RSU and DSU plans (note 17)                         5,434     3,731  
Defined benefit plan obligation - Harry                 -    11,381  
Winston luxury brand segment
Defined contribution plan obligation - Harry            -        88  
Winston luxury brand segment
Total employee benefit plan obligation             $ 6,133   $ 15,489  
                                                                 
                                                    2013      2012   
Non-current                                        $ 3,499   $  9,463 
Current                                             2,634     6,026 
Total employee benefit plan obligation             $ 6,133   $ 15,489 

The amounts  recognized in  the consolidated  income statement  in respect  of 
employee benefit plans are as follows:

                                                          2013    2012
Defined contribution plan - the Company's mining         $   251  $   207
head office (a)
Defined contribution plan - Diavik Diamond Mine (a)       2,258   2,081
Post-retirement benefit plan - Diavik Diamond Mine           51     299
(b)
RSU and DSU plans (note 17)                               3,380   2,169
                                                        $ 5,940  $ 4,756
Share-based payments                                      2,623   2,091
Total employee benefit plan expense                      $ 8,563  $ 6,847

Employee benefit plan  expense has  been included in  the consolidated  income 
statement as follows:

                                                 2013    2012
Cost of sales                                   $ 2,309  $ 2,380
Selling, general and administrative expenses     6,254   4,467
                                               $ 8,563  $ 6,847

(a) Defined contribution plan
    The Joint Venture sponsors a defined contribution plan whereby
     theemployer contributes 6% of the employee's salary.
    
     Dominion Diamond Corporation sponsors a defined contribution plan for
     Canadian employees whereby the employer contributes to a maximum of 6% of
    the employee's salary to the maximum contribution limit under Canada's
     Income Tax Act. The total defined contribution plan liability at January
     31, 2013 was $nil ($0.1 million at January 31, 2012).
    
(b) Post-retirement benefit plan
     The Joint Venture provides non-pension post-retirement benefits to
    retired employees. The post-retirement benefit plan liability was $0.7
     million at January 31, 2013 ($0.3 million at January 31, 2012).

Note 14:
Income Taxes

The deferred income tax asset of the Company is $4.1 million. Included in  the 
deferred tax asset  is $0.3 million  that has been  recorded to recognize  the 
benefit of $1.2 million of net operating losses that the Company has available
for carry  forward to  shelter  income taxes  for  future years.  Certain  net 
operating losses are scheduled to expire between 2027 and 2031.

The deferred  income tax  liability  of the  Company  is $181.4  million.  The 
Company's deferred income  tax asset  and liability accounts  are revalued  to 
take into consideration  the change  in the  Canadian dollar  compared to  the 
USdollar and the unrealized foreign exchange gain or loss is recorded as part
of deferred tax expenses for each year.

(a)The income tax provision consists of the following:

                                                        2013      2012
CURRENT TAX EXPENSE FROM CONTINUING OPERATIONS                       
Current period                                       $  25,172  $  14,317
Adjustment for prior periods                            (144)   (3,020)
Total current tax expense                              25,028    11,297
DEFERRED TAX EXPENSE FROM CONTINUING OPERATIONS                      
Origination and reversal of temporary                 (9,718)   (1,779)
differences
Change in unrecognized deductible temporary              (36)     (525)
differences
Current year losses for which no deferred tax               2        14
asset was recognized
Total deferred tax expense                            (9,752)   (2,290)
Total income tax expense from continuing             $  15,276  $   9,007
operations

Tax expense from continuing operations excludes tax expense from  discontinued 
operations of $4.2 million (2012 - $5.2 million).

(b) The tax  effects of temporary  differences that give  rise to  significant 
portions of the deferred  tax assets and liabilities  at January 31, 2013  and 
2012 are as follows:

                                                      2013        2012
DEFERRED INCOME TAX ASSETS:                                          
Net operating loss carryforwards                 $       331  $    36,935
Property, plant and equipment                           116       4,625
Future site restoration costs                        13,329      11,083
Luxury brand inventory                                    -       6,211
Deferred mineral property costs                         240         251
Other deferred income tax assets                     12,861      11,772
                                                    26,877      70,877
Reclassification to deferred income tax            (22,782)    (17,392)
liabilities (a)
Deferred income tax assets                            4,095      53,485
DEFERRED INCOME TAX LIABILITIES:                                     
Deferred mineral property costs                    (27,459)    (29,339)
Property, plant and equipment                     (157,683)   (160,616)
Luxury brand inventory                                    -    (47,927)
Intangible assets                                         -    (52,081)
Other deferred income tax liabilities              (19,067)    (22,994)
                                                 (204,209)   (312,957)
Reclassification to deferred income tax              22,782      17,392
assets (a)
Deferred income tax liabilities                   (181,427)   (295,565)
Deferred income tax liabilities, net             $ (177,332)  $ (242,080)

(a)There was an out-of-period reclassification in the prior year of  deferred 
income tax assets to  deferred income tax  liabilities, including future  site 
restoration  costs,  related  to   income  taxes  levied   by  the  same   tax 
jurisdiction.

Movement in net deferred tax liabilities:

                                                      2013        2012
Balance at the beginning of the year             $ (242,080)  $ (244,035)
Reclassification to assets held for sale             50,181       (335)
Recognized in profit (loss)                           9,752       2,290
Reclassification to current income taxes              4,815           -
payable
Balance at the end of the year                   $ (177,332)  $ (242,080)

(c)Unrecognized deferred tax assets and liabilities:

Deferred tax  assets have  not been  recognized in  respect of  the  following 
items:

                                     2013    2012
Tax losses                           $  548  $ 6,460
Deductible temporary differences       265     166
Total                                $  813  $ 6,626

The tax losses not recognized expire as per the amount and years noted  below. 
The  deductible  temporary  differences  do  not  expire  under  current   tax 
legislation. Deferred tax assets have not been recognized in respect of  these 
items because it is not probable that future taxable profit will be  available 
against which the Company can utilize the benefits therefrom.

The following table summarizes the Company's non-capital losses as at  January 
31, 2013 that may be applied against future taxable profit:

Jurisdiction                     Type      Amount   Expiry Date
Luxembourg       Net operating losses   $    1,903     No expiry
                                                 

The  deductible   temporary  differences   associated  with   investments   in 
subsidiaries and joint ventures, for which  a deferred tax asset has not  been 
recognized, aggregate to $60.0 million (2012 - $67.2 million).

(d)The difference between the amount of the reported consolidated income  tax 
provision and the amount  computed by multiplying  the earnings (loss)  before 
income taxes by the statutory  tax rate of 26.5% (2012  - 28%) is a result  of 
the following:

                                                        2013      2012
Expected income tax expense from continuing          $  10,080  $   7,368
operations
Non-deductible (non-taxable) items                      1,208       592
Impact of foreign exchange                                659     1,153
Northwest Territories mining royalty (net of            4,637     3,242
income tax relief)
Earnings subject to tax different than statutory           70     (726)
rate
Assessments and adjustments                           (1,386)   (2,622)
Current year losses for which no deferred tax               2        14
asset was recognized
Change in unrecognized temporary differences             (36)     (525)
Other                                                      42       511
Recorded income tax expense from continuing          $  15,276  $   9,007
operations

e) The mining operations  have net operating  loss carryforwards for  Canadian 
income tax purposes of approximately  $1.2million and $1.9 million for  other 
foreign jurisdictions' tax purposes.

Note 15:
Interest-Bearing Loans and Borrowings

                                                    2013       2012
Mining operations credit facilities             $   49,560  $   48,460
First mortgage on real property                     5,619      6,342
Bank advances                                       1,128     27,850
Harry Winston Inc. credit facilities                    -    217,071
Total interest-bearing loans and borrowings        56,307    299,723
Less current portion                             (51,508)   (29,238)
                                               $    4,799  $  270,485

                                            Carrying     Face
                        Nominal            amount at value at
                       interest   Date of    January  January
             Currency     rate  maturity    31,2013 31, 2013         Borrower
Secured bank        US    3.70%  June 24,      $49.6    $50.0 Dominion Diamond
loan (a)(i)                          2013    million  million  Corporation and
                                                        Dominion Diamond
                                                                 Holdings Ltd.
First              CDN    7.98% September       $5.6     $5.6   6019838 Canada
mortgage on                       1, 2018    million  million             Inc.
real property
(a)(ii)
Secured bank        US   13.50%    Due on       $1.1     $1.1 Dominion Diamond
advance (c)                        demand    million  million  (India) Private
                                                                       Limited

(a) Credit facilities
    (i)  The mining operation maintains a senior secured revolving credit
           facility with Standard Chartered Bank for $125.0 million. The
           facility has an initial maturity date of June 24, 2013, with two
           one-year extensions at the Company's option.There are no scheduled
           repayments required before maturity. The facility is available to
           the Company and Dominion Diamond Holdings Ltd. (formerly known as
           Harry Winston Diamond Mines Ltd.) for general corporate purposes.
           Borrowings bear an interest margin of 3.5% above the higher of
           LIBOR or lender cost of funds. The Company is required to comply
           with financial covenants at the mining operation level customary
           for a financing of this nature, with change in control provisions
           at the Company and Diavik Diamond Mines level. These provisions
           include consolidated minimum tangible net worth, maximum mining
           operation debt to equity ratio, maximum mining operation debt to
           EBITDA ratio and minimum interest coverage ratio. The Company has
           met all of its financial covenants as at January 31, 2013. At
           January 31, 2013, the Company had $50.0 million outstanding on its
           mining senior secured revolving credit facility.
    
    (ii) The Company's first mortgage on real property has scheduled
           principal payments of approximately $0.2million quarterly, and may
           be prepaid at any time.

(b) Required principal repayments      
   2014                               $ 51,948
   2015                                   886
   2016                                   958
   2017                                 1,036
   2018                                 1,121
   Thereafter                             797

(c) Bank advances
     The Company has available a $45.0million (utilization in either US
     dollars or Euros) revolving financing facility for inventory and
     receivables funding in connection with marketing activities through its
     Belgian subsidiary, Dominion Diamond International NV (formerly known as
     HarryWinston Diamond International NV), and its Indian subsidiary,
     Dominion Diamond (India) Private Limited (formerly known as HarryWinston
    Diamond (India) Private Limited). Borrowings under the Belgian facility
     bear interest at the bank's base rate plus 1.5%. Borrowings under the
     Indian facility bear an interest rate of 13.5%. At January 31, 2013, $1.1
     million was drawn under the Company's revolving financing facility
     relating to Dominion Diamond (India) Private Limited and $nil was drawn
     by Dominion Diamond International NV. The facility is guaranteed by
     Dominion Diamond Corporation.

Note 16:
Provisions

(a)Future site restoration costs

                                     2013     2012
At February 1, 2012 and 2011       $ 65,245  $ 50,130
Revision of previous estimates      11,369   13,179
Accretion of provision               2,441    1,936
At January 31, 2013 and 2012       $ 79,055  $ 65,245

The Joint Venture  has an  obligation under  various agreements  (Note 22)  to 
reclaim and restore the lands disturbed by its mining operations.

The Company's share of the total undiscounted amount of the future cash  flows 
that will be required to settle the obligation incurred at January31,2013 is
estimated  to  be  $87.6million,  of  which  approximately  $49.1million  is 
expected to  occur at  the end  of the  mine life.  The revision  of  previous 
estimates in  fiscal  2012  and  2013 is  based  on  revised  expectations  of 
reclamation activity  costs and  changes in  estimated reclamation  timelines. 
Theanticipated cash  flows relating  to the  obligation at  the time  of  the 
obligation have been discounted at an annualized rate of 2.65% (2012 - 1.5%).

(b)Provisions for litigation claims
By their nature, contingencies will only be resolved when one or more future
events occur or fail to occur. The assessment of contingencies inherently
involves the exercise of significant judgment and estimates of the outcome of
future events. The Company is subject to various litigation actions, whose
outcome could have an impact on the Company's results should it be required to
make payments to the plaintiffs. Legal advisors assess the potential outcome
of the litigation and the Company establishes provisions for future
disbursements as required. At January 31, 2013, the Company does not have any
material provisions for litigation claims.

Note 17:
Share Capital

(a)Authorized
Unlimited common shares without par value.

(b)Issued

                              Number of shares     Amount
Balance, January 31, 2011            84,159,851  $  502,129
SHARES ISSUED FOR:                                      
Exercise of options                     714,930      5,846
Balance, January 31, 2012            84,874,781    507,975
SHARES ISSUED FOR:                                      
Exercise of options                       8,250         32
Balance, January 31, 2013            84,883,031  $  508,007

(c)Stock options
Under the Employee Stock Option Plan, amended and approved by the shareholders
on June 4, 2008, the Company may grant options for up to 6,000,000 shares of
common stock. Options may be granted to any director, officer, employee or
consultant of the Company or any of its affiliates. Options granted to
directors vest immediately and options granted to officers, employees or
consultants vestover three to four years. The maximum term of an option is
ten years. Thenumber of shares reserved for issuance to any one optionee
pursuant to options cannot exceed 2% of the issued and outstanding common
shares of the Company at the date of grant of such options.

The exercise price of each option cannot be less than the fair market value of
the shares on the last trading day preceding the date of grant.

The Company's shares are primarily traded on a Canadian dollar based exchange,
and accordingly stock  option information  is presented  in Canadian  dollars, 
with conversion to US dollars at the average exchange rate for the year.

Compensation expense for stock options was $2.6million for fiscal 2013  (2012 
- $2.1million) and  is presented as  a component  of both cost  of sales  and 
selling, general and  administrative expenses.  The amount  credited to  share 
capital for the exercise of  the options is the sum  of (a) the cash  proceeds 
received and (b) the  amount debited to contributed  surplus upon exercise  of 
stock options by optionees (2013 - $nil; 2012 - $0.6million).

Changes in share options outstanding are as follows:

                                       2013                    2012
                                   Weighted                Weighted
                     Options         average  Options         average
                                         exercise                     exercise
                                            price                        price
                        000s  CDN $      US $     000s  CDN $      US $
Outstanding,            2,401  14.21     14.34    2,868 $ 12.58 $    12.26
beginning of year
Granted                   350  14.00     14.14      350  16.70     17.44
Forfeited                (26)  26.64     26.54        -      -         -
Exercised (a)             (8)   3.78      3.82    (715)   7.26      7.43
Expired                 (355)  24.39     24.48    (102)  25.54     26.14
Outstanding, end of     2,362  12.56     12.68    2,401 $ 14.21 $    14.34
year

(a) The  weighted average  share price  at the  date of  exercise for  options 
exercised during the year was CDN $14.05.

The following  summarizes  information  about  stock  options  outstanding  at 
January 31, 2013:

                                           Options                   Options
                                                outstanding                exercisable
                                     Weighted
                                     average                              
                                   remaining    Weighted                  Weighted
   Range of                      contractual      average                   average
   exercise             Number      life in     exercise       Number     exercise
     prices     outstanding        years       price  exercisable       price
CDN $                  000s                   CDN $         000s       CDN $
3.78                  1,007          6.2  $      3.78        1,007   $     3.78
12.35-16.70           1.000          5.4       14.45          317       13.95
26.45                   219          0.2       26.45          219       26.45
41.45                   136          1.2       41.45          136       41.45
                     2,362              $     12.56        1,679   $    11.70

(d)Stock-based compensation
The Company applies the fair value method to all grants of stock options.

The fair value of options granted during the years ended January 31, 2013  and 
2012 was  estimated  using  a  Black-Scholes option  pricing  model  with  the 
following weighted average assumptions:

                                            2013        2012
Risk-free interest rate                     1.17%       2.41%
Dividend yield                              0.00%       0.00%
Volatility factor                          50.00%      50.00%
Expected life of the options            3.5 years   3.5 years
Average fair value per option, CDN     $      5.17  $      6.51
Average fair value per option, US      $      5.18  $      6.80

Expected volatility is estimated by  considering historic average share  price 
volatility based on the average expected life of the options.

(e)RSU and DSU Plans

RSU                                       Number of units
Balance, January 31, 2011                         155,946
Awards and payouts during the year (net)                
                RSU awards                         66,991
                RSU payouts                      (46,963)
Balance, January 31, 2012                         175,974
Awards and payouts during the year (net)                
                RSU awards                        175,200
                RSU payouts                      (74,148)
Balance, January 31, 2013                         277,026
                                                       
                                         
                                         
DSU                                       Number of units
Balance, January 31, 2011                         193,214
Awards and payouts during the year (net)                
                DSU awards                         38,781
                DSU payouts                      (17,127)
Balance, January 31, 2012                         214,868
Awards and payouts during the year (net)                
                DSU awards                         27,078
                DSU payouts                      (52,261)
Balance, January 31, 2013                         189,685

During the fiscal year, the Company granted 175,200 RSUs (net of  forfeitures) 
and 27,078 DSUs under an employee and director incentive compensation program,
respectively. The RSU and DSU Plans are full value phantom shares that  mirror 
the value of Dominion Diamond Corporation's publicly traded common shares.

Grants under the RSU  Plan are on  a discretionary basis  to employees of  the 
Company and its subsidiaries subject to Board of Directors approval. The  RSUs 
granted  vest  one-third  on  March  31  and  one-third  on  each  anniversary 
thereafter. The vesting of grants  of RSUs is subject  to special rules for  a 
change in control, death and disability. The Company shall pay out cash on the
respective vesting dates of RSUs and redemption dates of DSUs.

Only non-executive directors of the Company are eligible for grants under  the 
DSU Plan. Each DSU grant vests immediately on the grant date.

The expenses related to  the RSUs and  DSUs are accrued  based on fair  value. 
This expense is recognized on a straight-line basis over each vesting  period. 
The Company recognized an expense of  $3.4million for the year ended  January 
31, 2013 (2012 - $2.2million). The  total carrying amount of liabilities  for 
cash settled share-based  payment arrangements  is $5.4 million  (2012 -  $3.7 
million). The amounts for obligations and expense (recovery) for cash  settled 
share-based payment arrangements have been grouped with Employee Benefit Plans
in Note 13 for presentation purposes.

Note 18:
Expenses by Nature

Operating profit  (loss) from  continuing  operations includes  the  following 
items of expense:

                                    2013     2012
Research and development          $  3,651  $  4,147
Operating lease                       382      317
Employee compensation expense      60,265   47,062
Depreciation and amortization      80,266   78,761

Note 19:
Earnings per Share
The following table presents the calculation of diluted earnings per share:

                                                         2013     2012
NUMERATOR                                                            
Net earnings for the year attributable to              $ 34,710  $ 25,454
shareholders
DENOMINATOR (000S SHARES)                                            
Weighted average number of shares outstanding           84,876   84,661
Dilutive effect of employee stock options (a)              620      871
                                                       85,496   85,532

(a)A total of 1.2 million options were excluded from the dilution calculation
(2012 - 1.3 million) as they are anti-dilutive.

Note 20:
Related Party Disclosure

(a)Operational information

The Company  had  the following  investments  in significant  subsidiaries  at 
January 31, 2013:

Name of company                           Effective         Country of
                                               interest          incorporation
Dominion Diamond Holdings Ltd.                 100%             Canada
Dominion Diamond Diavik Limited                100%             Canada
Partnership
Dominion Diamond (India) Private               100%              India
Limited
Dominion Diamond International NV              100%            Belgium
Dominion Diamond Technical Services            100%             Canada
Inc.
6019838 Canada Inc.                            100%             Canada
Harry Winston Inc.^1                           100%                 US
Harry Winston SARL^1                           100%             France
Harry Winston Japan, K.K.^1                    100%              Japan
Harry Winston (UK) Limited^1                   100%                 UK
Harry Winston Inc. Taiwan Branch^1             100%             Taiwan
Harry Winston S.A.^1                           100%        Switzerland
Harry Winston (Hong Kong) Limited^1            100%          Hong Kong
Harry Winston Commercial (Beijing)             100%              China
Co., Ltd^1
Harry Winston N.A. Pte Ltd.^1                  100%          Singapore
                                                   

^1These subsidiaries have  been classified  as discontinued  operations as  at 
January 31, 2013.

Note 21:
Segmented Information
The Company's continuing operations has activities in three geographical areas
for the years ended January 31, 2013 and 2012.

                      2013      2012
Sales                              
North America      $  22,002  $  15,018
Europe              246,668   231,722
India                76,741    43,374
                  $ 345,411  $ 290,114

                      2013
Assets                    
North America      $ 966,014
Europe               15,407
India                10,231
                  $ 991,652

Note 22:
Commitments and Guarantees

(a) Environmental agreements
     Through negotiations of environmental and other agreements, the Joint
     Venture must provide funding for the Environmental Monitoring Advisory
     Board. Further funding will be required in future years; however,
     specific amounts have not yet been determined. These agreements also
     state that the Joint Venture must provide security deposits for the
    performance by the Joint Venture of its reclamation and abandonment
     obligations under all environmental laws and regulations. DDDLP's share
     of the letters of credit outstanding posted by the operator of the Joint
     Venture with respect to the environmental agreements as at January 31,
     2013, was $82.0 million. The agreement specifically provides that these
     funding requirements will be reduced by amounts incurred by the Joint
     Venture on reclamation and abandonment activities.
    
(b) Participation agreements
     The Joint Venture has signed participation agreements with various native
     groups. These agreements are expected to contribute to the social,
     economic and cultural well-being of the Aboriginal bands. The agreements
     are each for an initial term of twelve years and shall be automatically
    renewed on terms to be agreed upon for successive periods of six years
     thereafter until termination. The agreements terminate in the event that
     the mine permanently ceases to operate. Dominion Diamond Corporation's
     share of the Joint Venture's participation agreements as at January 31,
     2013 was $1.2 million.

Note 23:
Financial Risk Management Objectives and Policies
The Company is exposed, in varying degrees, to a variety of
financial-instrument-related risks by virtue of its activities. TheCompany's
overall financial risk-management program focuses on the preservation of
capital and protecting current and future Company assets and cash flows by
minimizing exposure to risks posed by the uncertainties and volatilities of
financialmarkets.

The Company's  Audit  Committee  has  responsibility  to  review  and  discuss 
significant financial risks or  exposures and to  assess the steps  management 
has taken to monitor, control, report and mitigate such risks to the Company.

Financial risk  management is  carried out  by the  Finance department,  which 
identifies  and  evaluates  financial  risks  and  establishes  controls   and 
procedures to ensure financial risks are mitigated.

The types of risk exposure and the way in which such exposures are managed are
as follows:

(i)Currency risk

The Company's  sales  are predominantly  denominated  in US  dollars.  As  the 
Company operates  in  an  international environment,  some  of  the  Company's 
financial instruments  and transactions  are denominated  in currencies  other 
than the USdollar.  The results of  the Company's operations  are subject  to 
currency transaction risk and currency translation risk. The operating results
and financial  position of  the Company  are  reported in  US dollars  in  the 
Company's consolidated financial statements.
The Company's  primary  foreign  exchange exposure  impacting  pre-tax  profit 
arises from the following sources:

    Net Canadian dollar denominated monetary assets and liabilities
        The Company's functional and reporting currency is US dollars;
        however, many of the mining operation's monetary assets and
        liabilities are in Canadian dollars. As such, the Company is
    continually subject to foreign exchange fluctuations, particularly as
        the Canadian dollar moves against the US dollar. The
        weakening/strengthening of the Canadian dollar versus the US dollar
        results in an unrealized foreign exchange gain/loss on the revaluation
        of the Canadian dollar denominated monetary assets and liabilities.
    
    Committed or anticipated foreign currency denominated transactions
    Primarily Canadian dollar costs at the Diavik DiamondMine.

Based on the  Company's net exposure  to Canadian dollar  monetary assets  and 
liabilities at January 31, 2013, a one-cent change in the exchange rate  would 
have impacted  pre-tax  profit for  the  year  by $0.5million  (2012  -  $0.5 
million).

(ii)Interest rate risk
Interest rate risk is the risk borne by an interest-bearing asset or liability
as a result of fluctuations in interest rates. Financial assets and financial
liabilities with variable interest rates expose the Company to cash flow
interest rate risk. TheCompany's most significant interest rate risk arises
from its various credit facilities, which bear variable interest based
onLIBOR. Based on the Company's LIBOR-based credit facilities at January 31,
2013, a 100 basis point change in LIBOR would have impacted pre-tax net profit
for the year by $0.5 million (2012 - $2.3 million).

(iii)Concentration of credit risk
Credit risk is the risk of a financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual
obligation.

The Company's exposure to credit risk in the mining operations is minimized by
its sales policy,  which requires  receipt of cash  prior to  the delivery  of 
rough diamonds to its customers.

The Company  manages credit  risk, in  respect of  short-term investments,  by 
maintaining bank  accounts  with Tier  1  banks  and investing  only  in  term 
deposits or banker's acceptances with highly rated financial institutions that
are capable  of  prompt liquidation.  The  Company monitors  and  manages  its 
concentration of counterparty credit risk on an ongoing basis.

At January  31,  2013,  the Company's  maximum  counterparty  credit  exposure 
consists of the  carrying amount  of cash  and cash  equivalents and  accounts 
receivable, which approximates fair value.

(iv)Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they fall due.

The Company manages its liquidity by ensuring that there is sufficient capital
to meet  short-term and  long-term business  requirements, after  taking  into 
account cash flows from operations and the Company's holdings of cash and cash
equivalents.  The  Company  also  strives  to  maintain  sufficient  financial 
liquidity at all times in order to participate in investment opportunities  as 
they arise,  as  well as  to  withstand  sudden adverse  changes  in  economic 
circumstances. The  Company  assesses liquidity  and  capital resources  on  a 
consolidated basis.  Management  forecasts  cash flows  for  its  current  and 
subsequent fiscal  years  to  predict future  financing  requirements.  Future 
financing requirements  are  met through  a  combination of  committed  credit 
facilities and access to capital markets.

At January  31,  2013,  the  Company  had  $104.3million  of  cash  and  cash 
equivalents and $75.0 million available under credit facilities.

The  following   table  summarizes   the  aggregate   amount  of   contractual 
undiscounted future cash outflows for the Company's financial liabilities:

                                  Less    Year     Year   After
                            Total       than      2-3       4-5        5
                                         1 year                          years
Trade and other        $ 39,053  $  39,053  $     -   $     -  $     -
payables
Income taxes            32,977    32,977       -        -       -
payable
Interest-bearing        58,938    53,191   2,463    2,463     821
loans and
borrowings^(a)
Environmental and      92,725    83,195   4,817       -   4,713
participation
agreement
incremental
commitments

^(a) Includes projected interest payments on the current debt outstanding
based on interest rates in effect at January 31, 2013.

(v)Capital management
The Company's capital includes cash and cash equivalents, current and
non-current interest-bearing loans and borrowings and equity, which includes
issued common shares, contributed surplus and retained earnings.

The Company's primary objective with respect  to its capital management is  to 
ensure  that  it  has  sufficient  cash  resources  to  maintain  its  ongoing 
operations,  to  provide  returns  to  shareholders  and  benefits  for  other 
stakeholders, and to  pursue growth  opportunities. To meet  these needs,  the 
Company may from time to time raise additional funds through borrowing  and/or 
the issuance  of  equity or  debt  or  by securing  strategic  partners,  upon 
approval by  the  Board of  Directors.  The  Board of  Directors  reviews  and 
approves any material  transactions out  of the ordinary  course of  business, 
including  proposals   on  acquisitions   or   other  major   investments   or 
divestitures, as well as annual capital and operating budgets.

The Company assesses liquidity and capital resources on a consolidated  basis. 
The Company's requirements are for  cash operating expenses, working  capital, 
contractual debt requirements and  capital expenditures. The Company  believes 
that  it  will   generate  sufficient  liquidity   to  meet  its   anticipated 
requirements for the next twelve months.

Note 24:
Financial Instruments

The Company  has  various  financial  instruments  comprising  cash  and  cash 
equivalents,   accounts   receivable,   trade   and   other   payables,    and 
interest-bearing loans and borrowings.

Cash and cash equivalents consist of cash on hand and balances with banks  and 
short-term  investments  held  in  overnight  deposits  with  a  maturity   on 
acquisition of  less  than 90  days.  Cash  and cash  equivalents,  which  are 
designated as  held-for-trading, are  carried at  fairvalue based  on  quoted 
market prices and are  classified within Level 1  of the fair value  hierarchy 
established by the International Accounting Standards Board.

The fair value  of accounts  receivable is determined  by the  amount of  cash 
anticipated to be received in the normal course of business from the financial
asset.

The Company's  interest-bearing loans  and borrowings  are for  the most  part 
fully secured; hence the fair values of these instruments at January 31,  2013 
are considered to approximate their carrying value.

The carrying values and estimated  fair values of these financial  instruments 
are as follows:

                                January 31, 2013         January 31, 2012
                       Estimated   Carrying   Estimated   Carrying
                                  fair        value          fair        value
                                 value                      value
Financial assets                                               
  Cash and cash        $   104,313  $  104,313  $    78,116  $   78,116
  equivalents
 Accounts                  3,705      3,705      26,910     26,910
  receivable
                      $   108,018  $  108,018  $   105,026  $  105,026
Financial                                                      
liabilities
  Trade and other      $    39,053  $   39,053  $   104,681  $  104,681
  payables
  Interest-bearing         56,307     56,307     299,723    299,723
  loans and
  borrowings
                      $    95,360  $   95,360  $   404,404  $  404,404

Note 25:
Recast
During the preparation of the income tax provision for the quarter ended April
30, 2012, the Company noted a historical difference related to the accounting
for Northwest Territories mining royalty taxes in connection with the
Company's rough diamond inventory.For Northwest Territories mining royalty
tax purposes, the Company is subject to mining royalty taxes, which includes a
requirement to treat the rough diamond inventory when it comes out of the
Diavik Diamond Mine as taxable. This results in an accounting timing
difference between the mining and extraction of the diamonds and when they are
sold. The Company did not previously record the corresponding deferred tax
asset on the rough diamond inventory related to royalty taxes payable. The
Company has revised the comparative figures to correct the immaterial impact
of this item with the offset recorded in retained earnings, amounting to $5.8
million as at January 31, 2011 and 2012.

                   Diavik Diamond Mine Mineral Reserve and
                          Mineral Resource Statement
                           AS OF DECEMBER 31, 2012

Proven and Probable Reserves

                                 Proven                   Probable        Proven and Probable
Open pit and    Millions Carats Millions   Millions Carats Millions   Millions Carats Millions
underground           of    per       of           of    per       of           of    per       of
mining            tonnes  tonne   carats       tonnes  tonne   carats       tonnes  tonne   carats
A-154 South                                                                          
    Open Pit           -      -        -          -      -        -          -      -        -
    Underground      1.2    4.2      5.2        1.4    3.4      4.9        2.7    3.8     10.1
    Total A-154      1.2    4.2      5.2        1.4    3.4      4.9        2.7    3.8     10.1
    South
A-154 North                                                                          
    Open Pit           -      -        -          -      -        -          -      -        -
    Underground      4.1    2.1      8.4        4.1    2.1      8.4        8.1    2.1     16.8
    Total A-154      4.1    2.1      8.4        4.1    2.1      8.4        8.1    2.1     16.8
    North
A-418                                                                                
    Open Pit           -      -        -          -      -        -          -      -        -
    Underground      5.1    3.8     19.3        2.2    2.9      6.4        7.2    3.6     25.6
    Total A-418      5.1    3.8     19.3        2.2    2.9      6.4        7.2    3.6     25.6
Stockpile            0.3    2.9      0.9          -      -        -        0.3    2.9      0.9
Total                                                                                
    Open Pit           -      -        -          -      -        -          -      -        -
    Underground     10.3    3.2     32.9        7.7    2.6     19.6       18.0    2.9     52.5
 Stockpile        0.3    2.9      0.9          -      -        -        0.3    2.9      0.9
Total Reserves      10.7    3.2     33.8        7.7    2.6     19.6       18.3    2.9     53.5

Note: Totals may not add up due to rounding.

Additional Indicated and Inferred Resources

                  Measured Resources        Indicated Resources         Inferred Resources
Kimberlite   Millions Carats Millions   Millions Carats Millions   Millions Carats Millions
pipe                 of    per       of           of    per       of           of    per       of
                 tonnes  tonne   carats       tonnes  tonne   carats       tonnes  tonne   carats
A-154               -      -        -          -      -        -       0.04    3.6      0.2
South
A-154               -      -        -          -      -        -        2.3    2.6      5.9
North
A-418               -      -        -          -      -        -        0.3    2.4      0.7
A-21              3.6    2.8     10.0        0.4    2.6      1.0        0.8    3.0      2.3
Total             3.6    2.8     10.0        0.4    2.6      1.0        3.4    2.7      9.0

Note: Totals may not add up due to rounding.

Cautionary Note to  United States Investors  Concerning Disclosure of  Mineral 
Reserves and Resources: The  Company is organized under  the laws of  Canada. 
The mineral reserves and  resources described herein  are estimates, and  have 
been prepared in  compliance with  NI 43-101.  The definitions  of proven  and 
probable reserves used in NI 43-101 differ from the definitions in the  United 
States Securities  and  Exchange  Commission ("SEC")  Industry  Guide  7.  In 
addition,  the  terms   "mineral  resource",   "measured  mineral   resource", 
"indicated mineral resource"  and "inferred mineral  resource" are defined  in 
and required  to be  disclosed by  NI  43-101; however,  these terms  are  not 
defined terms under SEC Industry Guide 7, and normally are not permitted to be
used in reports and registration  statements filed with the SEC.  Accordingly, 
information contained in this financial report containing descriptions of  the 
Diavik Diamond  Mine's  mineral deposits  may  not be  comparable  to  similar 
information  made  public  by  US  companies  subject  to  the  reporting  and 
disclosure requirements under  the United States  federal securities laws  and 
the rules and  regulations thereunder. United  States investors are  cautioned 
not to assume that all or any part of Measured or Indicated Mineral  Resources 
will ever be  converted into  Mineral Reserves. United  States investors  are 
also cautioned not  to assume  that all  or any  part of  an Inferred  Mineral 
Resource exists, or is economically or legally mineable.

The above  mineral reserve  and  mineral resource  statement was  prepared  by 
Diavik Diamond Mines  Inc., operator  of the  Diavik Diamond  Mine, under  the 
supervision of Calvin  Yip, P.Eng., Principal  Advisor, Strategic Planning  of 
Diavik Diamond  Mines  Inc., and  aQualified  Person within  the  meaning  of 
National Instrument  43-101 of  the  Canadian Securities  Administrators.  For 
further details  and  information concerning  Dominion  Diamond  Corporation's 
Mineral Reserves  and Resources,  readers  should reference  Dominion  Diamond 
Corporation's Annual  Information  Form available  through  www.sedar.com  and 
www.ddcorp.ca.















SOURCE Dominion Diamond Corporation

Contact:

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

Ms. Kelley Stamm, Manager, Investor Relations - (416) 205-4380
orkstamm@ddcorp.ca
 
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