Dominion Diamond Corporation Issues Updated Mine Plans for the Ekati and Diavik Diamond Mines

   Dominion Diamond Corporation Issues Updated Mine Plans for the Ekati and                              Diavik Diamond Mines  PR Newswire  TORONTO, Feb. 3, 2014  TORONTO, Feb. 3,  2014 /PRNewswire/ -  Dominion Diamond Corporation  (TSX:DDC,  NYSE:DDC) (the "Company") is pleased  to release an updated life-of-mine  plan  for each of the  Ekati and Diavik Diamond  Mines, including current  estimates  for anticipated annual production by pipe, with associated operating costs and capital costs.  Highlights:    *Both mines are performing well; Diavik as an all underground mine and     Ekati as a combination open pit-underground mine.   *The operating cost forecasts in the updated Diavik mine plan demonstrate     substantial savings compared with the previously published mine plan     (2012), whilst mining and processing an increased amount of ore.   *The new Ekati Mine Plan includes the first detailed production forecast     based on reserves only to the Dominion Diamond fiscal year end (January     31st) with production currently forecast to run through to fiscal 2020.   *The synergies, cost savings and efficiencies brought about by the     integration of the Ekati and Diavik sales and sorting processes and     resources are already demonstrating benefits.  Unless otherwise specified, all financial information is presented in Canadian dollars, on a 100% basis, and references to years are to calendar years unless otherwise stated. The Company has an 80% interest in the Ekati Diamond Mine as well as a 58.8% interest in the  surrounding areas, and a 40% interest in  the  Diavik Diamond Mine.  About Dominion Diamond Corporation  Dominion Diamond  Corporation  is  a  Canadian  diamond  mining  company  with  ownership interests in two  of the world's highest  rock value diamond  mines.  Both mines are located in the low political risk environment of the  Northwest  Territories of Canada. The Company is  the fourth largest diamond producer  by  value  globally   and   the  largest   diamond   mining  company   by   market  capitalization, listed on the Toronto and New York Stock Exchanges.  The Company operates the Ekati Diamond Mine through its 80% ownership as  well  as  a  58.8%  ownership  in   the  surrounding  areas  containing   additional  resources. It  also sells  diamonds  from its  40%  ownership in  the  Diavik  Diamond Mine.  For more information, please visit www.ddcorp.ca  Forward-Looking Information  Information  included  herein  that  is  not  current  or  historical  factual  information, including information about estimated  mine life and other  plans  regarding mining activities at the Ekati Diamond Mine and Diavik Diamond Mine, estimated reserves and resources  at, and production  from, the Ekati  Diamond  Mine and  Diavik Diamond  Mine,  projected capital  and operating  costs,  and  future diamond prices,  constitute forward-looking  information or  statements  within the meaning of applicable securities laws. Forward-looking  information  can generally  be  identified by  the  use of  terms  such as  "may",  "will",  "should",  "could",  "expect",  "plan",  "anticipate",  "foresee",  "appears",  "believe",   "intend",   "estimate",   "predict",   "potential",   "continue",  "objective",  "modeled",  "hope",  "forecast"  or  other  similar  expressions  concerning matters that are not historical facts. Forward-looking  information  is based on  certain factors  and assumptions including,  among other  things,  mining, production, construction and  exploration activities at the  Company's  mineral  properties;  mining  methods;   currency  exchange  rates;   required  operating and capital  costs; labour  and fuel  costs; world  and US  economic  conditions;  future  diamond  prices;  and  the  level  of  worldwide  diamond  production. While the  Company considers  these assumptions  to be  reasonable  based on  the information  currently available  to it,  they may  prove to  be  incorrect.  Forward-looking  information  is   subject  to  certain   factors,  including risks and uncertainties which  could cause actual results to  differ  materially from what  the Company  currently expects.  These factors  include,  among other things, the uncertain nature of mining activities, 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 Company's  mineral  property  sites, risks  resulting  from  the  Eurozone  financial crisis, risks associated with  regulatory requirements, the risk  of  fluctuations  in  diamond  prices  and  changes  in  US  and  world   economic  conditions, the risk of fluctuations  in the Canadian/US dollar exchange  rate  and  cash  flow  and  liquidity  risks.  Actual  results  may  vary  from  the  forward-looking  information.  Readers  are  cautioned  not  to  place   undue  importance on forward-looking information, which speaks only as of the date of this disclosure, and  should not rely  upon this information  as of any  other  date. Due to assumptions, risks and uncertainties, including the  assumptions,  risks and uncertainties  identified above  and elsewhere  in this  disclosure,  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  currently 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.  2014 Mine Plan for Ekati and Diavik Diamond Mines  Introduction  Dominion Diamond  Corporation (the  "Company") is  a Canadian  diamond  mining  company with ownership  interests in  two of  the world's  highest rock  value  diamond mines.  The Company supplies rough diamonds to the global market  from  its controlling interest  in the  Ekati Diamond  Mine, and  its 40%  ownership  interest in  the  Diavik  Diamond  Mine, both  located  approximately  300  km  northeast of Yellowknife in the Canada's Northwest Territories.  The Diavik Diamond Mine  is an unincorporated  joint arrangement (the  "Diavik  Joint Venture") between Diavik  Diamond Mines (2012)  Inc. ("DDMI") (60%)  and  Dominion Diamond Diavik 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 ("Rio Tinto") of London, England.  The Ekati Diamond Mine was acquired by the Company from BHP Billiton on  April  10, 2013. 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 Core  Zone Joint Venture  is held  80% by  the  Company and  10%  each  by Dr.  Charles  Fipke  and Dr.  Stewart  Blusson.  It  encompasses 176  mining leases,  totalling  173,024 ha,  and hosts  111  known  kimberlite occurrences including the Koala, Koala North, Fox, Misery,  Pigeon,  and Sable kimberlite  pipes. The  Buffer Joint Venture  is held  58.8% by  the  Company, 10%  by Dr.  Charles Fipke,  and  31.2% by  Archon Minerals  Ltd.  It  contains 106 mining leases covering 89,151.6 ha, and hosts 39 known kimberlite occurrences including  the Jay  and Lynx  kimberlite pipes.  Dominion  Diamond  Ekati Corporation, a wholly-owned subsidiary  of the Company, is the  operator  of the Ekati Diamond Mine.  Given that  each  mine  has different  ownership  structures,  operators,  and  operational year ends, the mine plans are each presented separately, on a 100% basis. Other economic factors that are  directly related to the Company,  such  as marketing  costs,  diamond prices,  and  private royalties,  are  discussed  separately at  the  end of  this  document. Unless  otherwise  specified,  all  financial information is presented in Canadian  dollars, on a 100% basis,  and  references to years are to calendar years.  Diavik Diamond Mine - Production  This updated  plan is  derived from  DDMI's estimates,  based on  the  current  reserve and  resources as  of December  31, 2012.  The reserve  and  resource  information that is  the basis  for this  plan was  prepared by  or under  the  supervision of Calvin G.  Yip, P. Eng.,  an employee of  DDMI and a  Qualified  Person within the meaning of National Instrument 43-101. All other scientific and technical information  set out  in this updated  plan was  prepared by  or  under the supervision of Mats Heimersson, P. Eng., an employee of the  Company  and a Qualified Person within the meaning of National Instrument 43-101. With DDMI's support, the Company  is preparing an updated  technical report on  the  mineral resources and mineral reserves at the Diavik Diamond Mine. The Company expects to file this technical report in the third quarter of calendar 2014.  The Diavik Diamond  Mine has been  in production since  2003. To December  31,  2013, the mine has produced approximately  84 million carats of diamonds  from  the processing  of  approximately 22  million  tonnes of  kimberlite  and  has  transitioned from an open pit operation to a fully underground mine.  Early planning of the underground mining at the Diavik Diamond Mine identified a number of possible mining methods. Since September 2012, Diavik has been  an  entirely underground  operation.  Presently  Blast Hole  Stoping  ("BHS")  is  employed in the A-154  North pipe with lower  cost Cemented Rock Fill  ("CRF")  being used rather than the more  expensive cemented paste that was  originally  planned. As a result of the increasing understanding of the ground  conditions  as the underground operations were  developed, the optimal mining  methodology  for the A-154 South pipe and the A-418  pipe resulted in the use of Sub  Level  Retreat ("SLR"). This  mine plan is  based on the  current mining method,  and  this may change in the future  as DDMI is continually looking at  improvements  in mining methods, material handling, and cost reduction in general.  Table 1 shows the planned  mining tonnage for each ore  body, and Table 2  the  corresponding carat  estimates.  The data  is  shown on  an  annualised  basis  starting in calendar  2013 and does  not include rough  diamond stocks at  the  mine at the opening  of the year.  In addition, the plan  does not take  into  account any  rough  diamond inventory  available  for sale  that  the  Company  currently holds. In 2013, Diavik processed an additional 0.15 million  tonnes  of stockpiled ore that produced 0.44 million carats, and in 2014 Diavik  plans  to process 0.20 million tonnes of stockpiled ore that is estimated to  produce  0.54 million carats.  Table 1: Tonnage Mined - Diavik Diamond Mine (100% Basis)                      Reserves (Tonnes Millions)        Year     A154S   A154N   A418 Total 2013       0.54     0.72    0.69    1.95 2014       0.42     0.70    0.79    1.91 2015       0.40     0.70    0.80    1.90 2016       0.31     0.77    0.86    1.94 2017       0.32     0.82    0.74    1.88 2018       0.31     0.67    0.69    1.67 2019       0.32     0.77    0.73    1.82 2020       0.09     0.76    0.60    1.45 2021          -     0.82    0.53    1.35 2022          -     0.87    0.48    1.35 2023          -     0.61    0.34    0.95 Total      2.71     8.22    7.25   18.18 Figures may not add up due to rounding.  Table 2: Carats from mined ore - Diavik Diamond Mine (100% Basis)                                             Reserves (Carat Millions)        Year    A154S   A154N   A418 Total  2013      2.41     1.50    2.48   6.39  2014      1.64     1.47    2.85   5.97  2015      1.40     1.46    3.22   6.08  2016      1.07     1.75    3.23   6.05  2017      1.15     1.92    2.89   5.96  2018      1.15     1.50    2.56   5.22  2019      1.20     1.67    2.54   5.42  2020      0.36     1.57    1.97   3.90  2021         -     1.68    1.59   3.27  2022         -     1.76    1.29   3.05  2023         -     1.19    0.95   2.14 Total     10.40    17.48   25.57  53.45 Figures may not add up due to rounding.  The current reserve base supports mining  operations at Diavik up to 2023.  In  addition to the  current reserves, there  are 2.6 million  tonnes of  inferred  resources (in the  aggregate) distributed amoung  the lower parts  of each  of  A-154 South, A-418 and most significantly, A-154 North, that could potentially further expand operations. DDMI currently expects to process this material  as  part of its mining  operations as they  reach the lower  levels of each  pipe.  However,  inferred   mineral  resources   are  considered   too   geologically  speculative to have  the economic  considerations applied to  them that  would  enable them to be categorized as  mineral reserves, and there is no  certainty  that they will be mined.  They have therefore not  been included in the  above  mine plan.  Mineral  resources that  are  not  mineral reserves  do  not  have  demonstrated economic viability. The three pipes currently in production  also  extend below  the  current  inferred  resource  horizons  although  additional  economic ore may be limited in volume and might not add longevity to the  mine  life. DDMI has an ongoing drilling  and sampling program intended to  support  the mining of the inferred material and, potentially, beyond. In addition, if a decision is taken to develop the  A-21 pipe this would be additional ore  at  the end of the life of the mine.  The Diavik processing plant has a potential capacity to process over 2 million tonnes a year. To supplement mined  ore, Diavik plans to continue  processing  old coarse  ore  rejects material  ("COR").  The  grade of  this  material  is  variable but is  generally high as  shown by the  results from COR  production  from 2012 and 2013  contained in Table 3.  Based on these historical  recovery  rates, the tonnage of  this material which is  planned to be processed  during  calendar 2014 would have produced 0.6 million carats from COR. The  remaining  60,000 tonnes of target COR material that could be processed in later years is not anticipated to be of the same high grade.  Table 3: Coarse Ore Rejects tonnes and carats - Diavik Diamond Mine (100% Basis)                             COR     Tonnes   Grade Carats Production  000's Cts per  000's                     Tonne    2012       5.3    26.1  139.0    2013      14.4    26.9  388.0  Improvements to the recovery process for small diamonds is expected to  result  in a 3% increase in carat yield beyond the stated reserve and resource grade. It should  be noted  that the  average  size of  diamonds recovered  from  COR  material and the improvements in diamond recovery are significantly below  the  run-of-mine from the main  ore bodies, and this  is reflected in the  modelled  price per carat. The  diamonds recovered from COR  and improved small  diamond  recovery are not  currently included  in the Company's  reserves and  resource  statement.  This mine  plan does  not include  any  production from  the A-21  pipe.  The  development of the A-21 pipe continues to be under review but no decision  has  been made  to develop  this pipe  at  this time  since the  identification  of  extensions to the existing pipes has  decreased the urgency to bring the  pipe  into the mine plan in the short term. As with the other pipes at Diavik, A-21 is located below the  water of Lac de  Gras. A pre-feasibility study  proposes  mining approximately 3.6 million tonnes of ore on an open pit basis, which  is  expected to yield approximately 10 million carats. The Company estimates  the  quality of  the  diamonds  to be  similar  to  those from  A-154  South.  DDMI  continues to  refine the  project with  a focus  on reducing  capital  costs.  Mineral resources  that are  not  mineral reserves  do not  have  demonstrated  economic viability.  Diavik Diamond Mine - Capital and Operating Costs  The initial capital to  build the Diavik Diamond  Mine was spent between  late  1999 and  early 2003.  Construction  was completed  on  budget and  ahead  of  schedule. From  2004  to  the  end of  2012,  capital  expenditures  were  for  sustaining the  operation and  for carrying  out planned  mine  developments.  Sustaining capital  included scheduled  processed kimberlite  containment  dam  raises, improvements to the  processing plant, planned  additions to the  mine  equipment fleet, rotating  replacements of light  vehicles, geology  drilling,  purchase of critical spares, and general improvements across the  operations.  Mine development capital included  the A-418 dike,  A-154 & A-418  underground  decline, the  A-21  decline, underground  test  mining and  bulk  sampling  of  kimberlite, a number  of studies leading  up to the  present mine  development  plan, and some pre-works construction for the new developments and underground construction.  The capital, reclamation  and operating costs  for this latest  reserves-based  plan are  based  on  DDMI's  estimates.  Table  4  shows  currently  estimated  sustaining capital:  with the  completion of  the underground  development  in  2013, no  further  development  capital  is required  under  this  plan  going  forward. The costs  shown include estimated  contingencies where  applicable,  but do not include any escalation  or risk contingency amounts for  unforeseen  events. In addition to ongoing equipment replacements and general  operational  upgrades, sustaining  capital  will  include  certain  categories  of  ongoing  underground excavation to maintain mining advances to increasing depths.  Table 4  also  shows  currently  estimated operating  costs  based  on  DDMI's  operating experience, adjusted to present-day dollar terms. Given the  remote  location of  the  Diavik  Diamond  Mine, a  large  portion  of  the  operating  expenditure is  relatively  fixed,  with  the major  cost  items  being  human  resources and fuel (for both  power and equipment). Not  shown in Table 4  are  marketing costs or private royalties as these factors are discussed separately at the end of this document.  Table 4: Operating and Capital Costs - Diavik Diamond Mine (100% Basis)                                    Calendar        CAPITAL COSTS        OPERATING COSTS   Year                              Direct and          Developing Sustaining Total    Indirect            C$m        C$m      C$m        C$m   2013            7         55    62             415   2014           -         52    52             408   2015           -         46    46             392   2016           -         40    40             392   2017           -         32    32             384   2018           -         38    38             372   2019           -         27    27             398   2020           -         10    10             373   2021           -          2     2             375   2022           -          2     2             380   2023           -          2     2             315  Totals          7        306   313           4,203    Under this  mine  plan  Diavik  will  cease  mining  operation  in  2023.  The  reclamation costs are estimated at $188  million based on a DDMI closure  cost  model that is  considered to be  equal to or  better than others  used in  the  industry. The majority  of these closure  costs are expected  to be spent  in  2022 to 2025  although the  full reclamation plan  will only  be completed  in  2030.  Ekati Diamond Mine - Production  This updated  plan is  derived  from the  Company's  estimates, based  on  the  current reserve  and resources  as  of December  31,  2012. The  reserve  and  resource information set  out in  this life-of-mine  plan was  prepared by  or  under the supervision of Mats Heimersson, P. Eng., an employee of the  Company  and a Qualified Person within the  meaning of National Instrument 43-101.  For  more information  see  the  Company's Technical  Report  regarding  the  Ekati  Diamond Mine  dated May  24, 2013,  filed on  SEDAR. Following  this  winter's  drilling program the Company will be preparing an updated technical report  on  the mineral resources  and mineral  reserves at  the Ekati  Diamond Mine.  The  Company expects to file this technical report in the third quarter of calendar 2014.  This current mine plan  assumes production from Fox,  Misery, Pigeon and  Lynx  open pits, and the Koala and Koala North underground operations. Koala  North  is currently in production as a sub level retreat underground operation and is scheduled to finish later  this year. Koala is  currently in production as  a  sublevel / inclined cave underground operation  and is scheduled to finish  in  calendar 2019. Fox is currently in operation as an open pit and is  scheduled  to finish  in  calendar  2014.  Stripping of  waste  material  and  satellite  kimberlite is  in  progress  at  Misery  open  pit  with  expected  full  year  production from the Misery Main Pipe in calendar 2016 and completion of mining in calendar  2018.  Stripping of  waste  material  from Pigeon  open  pit  is  scheduled to commence in calendar 2014 with mining of kimberlite commencing in calendar 2015 and finishing in calendar 2019.  Table 5 shows the planned mining tonnage for each ore body. The data is  given  on a full financial year basis from Fiscal 2015, with Fiscal 2014 representing the period  since the  Company's acquisition  of Ekati  on April  10, 2013  to  January 31, 2014. These  figures do not include  rough diamond stocks held  at  the mine at the opening of each year, nor does the model take into account any rough diamond inventory available for sale that the Company currently holds.  In addition  to probable  reserves,  this plan  includes the  development  and  mining of the  Lynx pipe that  is currently an  indicated resource. Also  as  part of the mining of the Koala deposit a small portion of inferred  resources  is extracted along  with the reserves:  this material is  not included in  the  mine plan estimates but will be processed along with the reserve ore. Mineral resources that  are not  mineral reserves  do not  have demonstrated  economic  viability.  Table 5: Tonnage Mined - Ekati Diamond Mine (100% Basis)                                                                                Reserves (Tonnes Millions)                          Additional                                                                    Resources  Fiscal                                 Koala                    (Tonnes   Year     Fox    Misery    Pigeon    North  Koala  Total  Millions)                                                                    Lynx *   2014       3.50          -          -    0.33    0.40    4.23             2015       0.52          -          -      -     0.87    1.40          -   2016         -       0.02       0.83      -     1.03    1.88          -   2017         -       1.34       1.80      -     1.05    4.19       0.13   2018         -       1.67       0.18      -     0.98    2.82       0.96   2019         -          -       2.87      -     0.67    3.55          -   2020         -          -       1.60      -     0.44    2.04          -    Total      4.02       3.03       7.29   0.33     5.44   20.11       1.09 * Lynx is part of the Buffer Zone. All other deposits are part of the Core Zone. Figures may not add up due to rounding.  Because of timing differences and blending choices the ore that is planned to be processed each fiscal year differs, sometimes significantly, from the ore mined in that fiscal year. Table 6 shows the planned ore to be processed by fiscal year and source and Table 7 the corresponding estimated carats produced.  Table 6: Ore Processed - Ekati Diamond Mine (100% Basis)                                                                                        Reserves Processed (Tonnes Millions)          Additional                                                                  Resources   Fiscal                               Koala                     (Tonnes    Year     Fox   Misery   Pigeon   North   Koala  Total  Millions)                                                                   Lynx *    2014      2.42         -         -     0.31     0.40    3.13           -    2015      1.70         -         -       -     0.87    2.58           -    2016       -      0.02      0.41       -     1.03    1.46           -    2017        -      0.75      1.30       -     1.05    3.09        0.02    2018        -      0.87      0.99       -     0.98    2.84        0.87    2019        -      1.07      2.30       -     0.67    4.04        0.20    2020        -      0.33      2.28       -     0.44    3.05           -    Total      4.12      3.03      7.29    0.31     5.44   20.19        1.09 * Lynx is part of the Buffer Zone. All other deposits are part of the  Core  Zone. Figures may not add up due to rounding.    Table 7: Carats Produced - Ekati Diamond Mine (100% Basis)                                                                                          Reserves (Carat Millions)                    Additional                                                                    Resources  Fiscal    Fox  Misery  Pigeon  Koala  Koala Total (Carat Millions)   Year                              North                       Lynx *   2014      0.72        -        -    0.20    0.30    1.22                -   2015      0.36        -        -      -    0.51    0.87                -   2016         -     0.07     0.16     -    0.48    0.71                -   2017         -     2.90     0.57      -    0.53    4.00             0.02   2018         -     3.67     0.41      -    0.57    4.65             0.69   2019         -     4.55     0.92      -    0.45    5.92             0.15   2020         -     1.39     1.09      -    0.27    2.75                -    Total     1.08    12.58     3.15   0.20    3.11   20.12             0.85 * Lynx is part of the Buffer Zone. All other deposits are part of the  Core  Zone. Figures may not add up due to rounding.    The Ekati processing  plant has the  capacity to process  up to  approximately  4.35 million tonnes a year. In addition to the tonnages presented in Table  6,  Ekati currently plans  to process  all remaining available  Koala North  mined  kimberlite in fiscal 2015, the majority of which is 150,000 tonnes of inferred resources. More significantly,  Ekati currently plans  to process the  Misery  South and Southwest Extension kimberlite that is made available as the  Misery  reserves are  accessed.  Additionally,  coarse  ore  rejects  (not  currently  classified as resources) will be incrementally processed.  Table 8  shows the  Misery satellite  pipe material  that is  scheduled to  be  excavated during the pre-stripping operations for Misery Main Pipe.  Estimates  of tonnage and grade for  the Misery satellite pipes  have been made based  on  bulk samples  collected during  exploration programs,  and confirmed  by  more  recent production tests. The total tonnage range of this material is estimated to be between  2.7 million tonnes  and 4.5 million  tonnes, and the  satellite  pipes grade is estimated to range from 1.0 carats per tonne to 1.7 carats  per  tonne. In  fiscal  2014,  approximately  340,000  carats  were  produced  from  processing 291,000 tonnes  of Misery  Satellite material.  The diamonds  that  have been recovered to date  display similar characteristics to diamonds  from  the Misery Main pipe. Dominion cautions that the potential quantity and  grade  remains conceptual in nature as there has been insufficient exploration and/or study to define this material  as a Mineral Resources  and it is uncertain  if  additional exploration will result in the exploration target being  delineated  as a mineral resource. Additional drilling is being planned for mid- 2014 with the objective  of gathering  sufficient data  to promote  this material  to  a  mineral resource.  Table 8: Misery Satellite Material to be Excavated - Ekati Diamond Mine (100% Basis)                                                             Misery Satellite Material Mined (Tonnes Millions) Fiscal   Misery SW      Misery South         Total  Year    Extension  2014             0.04                 0.20         0.24  2015             0.64                 0.61         1.25  2016             0.95                 0.36         1.31  2017             1.42                 0.08         1.50  2018             0.29                    -         0.29  2019                -                    -            -  Total             3.34                 1.25         4.58    Coarse ore rejects have been stockpiled at Ekati since the start of production in 1998 to present.  Several production periods  have been identified  during  which high grade  feed sources were  blended through the  process plant  using  larger aperture de-grit screens (1.6 mm  slot) compared to the current 1.2  mm  configuration. In addition, the re-crush circuit was not utilised during these periods. The coarse ore  rejects from the production  periods of interest  are  estimated at 3.5  milion tonnes  to 4.5 million  tonnes. Based  on stone  size  distributions and recovered  grade data,  this material has  an overall  grade  ranging from 0.2 to 0.6 carats  per tonne. While the historic recoveries  and  valuations may  not  necessarily be  indicative  of recoveries  or  valuations  within the current coarse ore  rejects stockpiles, treatment of this  material  represents an attractive  opportunity to  supplement mill feed.  A number  of  production test  runs  were  successfully  completed  last  year  and  a  full  assessment of the results will be finalised later this year. Dominion cautions that the potential quantity  and grade remains conceptual  in nature as  there  has been insufficient exploration  and/or study to define  this material as  a  Mineral Resources and it is uncertain if additional exploration will result in the exploration target being delineated as a mineral resource.  Mineral resources that are not included in the current mine plan include  Jay,  Sable and Fox deep. Jay is  considered the most significant prospect due  its  large size and high grade (36.2 million tonnes of Indicated Mineral  Resources  at an average grade  of 2.2 carats  per tonne, 1 mm  slot screen cut-off)  and  represents upside potential for the  operation. An extensive drilling  program  is being conducted  over the  winter period  in support  of a  pre-feasibility  study for Jay.  The program  has also targeted  the Cardinal  pipe which  is  located approximately 5 km southeast of the Jay pipe.  The Jay, Sable  and Fox  deep Mineral  Resources represent  future plant  feed  upside potential, and some  or all of  this mineralization may  be able to  be  incorporated in the life-of-mine plan once sufficient additional work has been undertaken to support  estimation of higher-confidence  Mineral Resources  and  eventual conversion to  Mineral Reserves.  There is also  potential to  treat  low-grade stockpiles,  primarily  derived from  open  pit mining  at  the  Fox  kimberlite, if  the  grades  in  the stockpiles  can  be  demonstrated  to  be  economic.  Ekati - Capital and Operating Costs  The capital  and  operating  costs for  this  latest  plan are  based  on  the  Company's estimates. The  costs shown include  estimated contingencies  where  applicable, but do not include any escalation or risk contingency amounts  for  unforeseen events. In addition to  ongoing equipment replacements and  general  operational upgrades, sustaining  capital will include  certain categories  of  ongoing underground  excavation  to  maintain mining  advances  to  increasing  depths.  Table 9 shows  currently estimated  sustaining and  mine development  capital,  along with  operating costs  from  Fiscal 2014  onward. These  capital  costs  include costs associated with the development of the Misery and Pigeon pipes. The total current estimated capital cost of developing the Misery pipe is $405 million, consisting largely  of mining costs  to achieve ore  release, and  of  which $201  million  will  be spent  by  end  of January  2014.  The  current  estimated cost for developing the Pigeon project is $85 million, and the  Lynx  project $30  million: both  of  these estimates  include the  construction  of  access roads,  and pre-stripping  of waste  material to  prepare the  pit  for  production and contingency.  The estimated operating costs in Table 9 assumes that Ekati is running at full capacity and  is based  on  the Company's  operating experience,  adjusted  to  present-day dollar  terms. Given  the remote  location of  the Ekati  Diamond  Mine, a large portion  of the operating expenditure  is fixed, with the  major  cost items being labour and fuel (for both power and equipment). Not shown  in  Table 9  are  marketing costs  and  private  royalties as  these  factors  are  discussed separately at the end of this document.  Under this mine plan,  Ekati will cease mining  operation in Fiscal 2020.  The  reclamation costs are estimated at $347 million based on Ekati's closure  cost  model that includes all  activities required by  the approved Interim  Closure  and Reclamation  Plan. If  the Jay  and Cardinal  deposits are  permitted  and  developed, the reclamation costs under the  current Mine Plan will be  reduced  further.  Table 9: Operating and Capital Costs - Ekati Diamond Mine (100% Basis)                                                   Fiscal         CAPITAL COSTS        OPERATING COSTS   Year                              Direct and          Developing Sustaining Total    Indirect            C$m        C$m      C$m        C$m   2014           90         42   132             317   2015          163         41   204             369   2016          124         42   166             361   2017           29         32    61             453   2018            -         16    16             442   2019           -         -    -             384   2020            -         -    -             379  Totals        406        173   579           2,705    Additional Economic Factors  The Company sorts  its rough diamonds  from Ekati and  Diavik in  Yellowknife,  Canada and  Toronto,  Canada  and  Mumbai,  India  and  then  distributes  the  resulting aggregated 'boxes' to its Belgian and Indian subsidiaries for  sale.  The Company's current budget for marketing 100% of the Ekati goods and 40%  of  the Diavik goods is approximately $20 million per annum.  Based on the Company's rough diamond sales during the fourth calendar  quarter  of 2013  and the  current diamond  recovery profile  of the  Diavik and  Ekati  processing plant,  the  Company  has modeled  the  current  approximate  rough  diamond price per carat for each of the deposits listed in Table 10 below.  Table 10: Modelled diamond prices by deposit                                                 Deposit               Average Price per                                   Carat $US Diavik                                          A-154 South                     $140        A-154 North                    $180        A-418                          $100        Coarse Ore Rejects               $50        Small Diamond Project             $50  Ekati                                           Koala                          $375        Koala North                    $420        Fox                            $305        Pigeon                         $195        Lynx                           $225        Misery Main                    $105        Misery South & South West     $90-110        Coarse Ore Rejects          $65-120     The Company is currently budgeting on the  basis of a US$/C$ exchange rate  of  1.045, and in  its own financial  models assumes a  real diamond price  growth  rate of 2% per annum.  Both the Ekati Diamond Mine and the  Diavik Diamond Mine pay royalties to  the  Federal Government. For each mine  the Federal Government royalty payable  is  equal to the lesser  of 13% of  the value of  the 'Output' of  the mine or  an  amount calculated based on a sliding scale of royalty rates dependent upon the value of 'Output' of  the mine, ranging  from 5% for  value of output  between  $10,000 and $5 million to 14% for value of output over $45 million.  In addition the  Company pays three  private royalties to  third parties.  At  Ekati, a royalty  is payable on  kimberlite production from  the Misery  pipes  such that  C$18.76 per  tonne mined  and  processed is  payable on  the  first  428,390 tonnes, and C$23.42  per tonne mined and  processed is payable on  the  next 544,000 tonnes. At Diavik, there  are two private royalties each  paying  1% of the value of sales revenue.    SOURCE Dominion Diamond Corporation  Contact:  Mr. Richard Chetwode, Vice President, Corporate Development - +44 (0) 7720-970-762 orrchetwode@ddcorp.ca  Ms. Kelley Stamm, Manager, Investor Relations - (416) 205-4380 orkstamm@ddcorp.ca