Dominion Diamond Corporation Completes Acquisition of the Ekati Diamond Mine

 Dominion Diamond Corporation Completes Acquisition of the Ekati Diamond Mine

  PR Newswire

  YELLOWKNIFE, Canada, April 10, 2013

YELLOWKNIFE, Canada, April 10, 2013 /PRNewswire/ --

Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the "Company") announced
today that it has completed the previously announced acquisition of the
interests of BHP Billiton Canada Inc. and its various affiliates 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 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 Chairman and Chief Executive Officer of Dominion Diamond Corporation,
Robert A. Gannicott, said, " We are very pleased to be able to bring our
northern mining background, and diamond marketing skills, to bear on a project
that is well constructed, well operated and well-endowed with resources that
represent a promising future for shareholders, employees and northern
stakeholders."

The terms of the purchase are summarized in the Company's news release dated
November 13, 2012. The purchase price was US$500 million plus purchase price
adjustments of US$53 million for a total amount paid of US$553 million. The
purchase price adjustments include US$13.4 million interest on the purchase
since July 1, 2012, and the remaining sum comprises taxes, capital
expenditures and other items funded by BHP Billiton since July 1, 2012. On the
date of closing Ekati had cash on hand of approximately US$65 million and two
sales cycles (10 weeks) of diamond inventory either in the process of being
sorted and valued or available for sale. This inventory will be valued against
Dominion Diamond's rough diamond sales assortments immediately following the
acquisition. The Company also provided letters of credit to the Government of
Canada of approximately Cdn$127 million, in support of reclamation obligations
for the Core Zone. The purchase price and the letters of credit were satisfied
from or secured by cash on hand.

It is the Company's intention to issue a detailed Mine Plan for the Ekati Mine
on or before April 24, 2013.

Cautionary Statement on Forward-Looking Information

This news release contains statements that constitute "forward-looking
statements" and/or "forward-looking information" within the meaning of
Canadian and United States securities laws (the "forward-looking information")
relating to the proposed acquisition of the Ekati diamond mine. Such
forward-looking information is subject to important risks ,  uncertainties
and assumptions ,  including risks relating to the timing of closing of such
acquisition. The results or events predicted in forward-looking information
may differ materially from actual results or events. As a result ,  readers
are cautioned not to place undue reliance on forward-looking information , 
which speaks only as of the date of this disclosure ,  and should not rely
upon this information as of any other date. While the Company may elect to , 
it is under no obligation and does not undertake to ,  update or revise any
forward-looking information ,  whether as a result of new information , 
further events or otherwise at any particular time ,  except as required by
law. Additional information concerning factors that may cause actual results
to materially differ from those in such forward-looking statements is
contained in the Company's filings with Canadian and United States securities
regulatory authorities and can be found at  http://www.sedar.com  and 
http://www.sec.gov ,  respectively.

About 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 80% of the Ekati Diamond
Mine and 40% of the Diavik Diamond Mine ,  both located in Canada'sNorthwest
Territories ,  and rough diamond sorting and sales operations in Canada , 
Belgium and India.

For more information ,  please visit http://www.ddcorp.ca .

For further information:

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

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