Dominion Diamond Corporation to Increase Interest in the Ekati Diamond Mine

 Dominion Diamond Corporation to Increase Interest in the Ekati Diamond Mine

PR Newswire

YELLOWKNIFE, NW, July 9, 2014

YELLOWKNIFE, NW,  July 9,  2014 /PRNewswire/  - Dominion  Diamond  Corporation 
(TSX:DDC, NYSE:DDC) (the "Company") announced  today that it has entered  into 
an agreement with C. Fipke Holdings Ltd. ("FipkeCo") to acquire FipkeCo's  10% 
participating interests in the Ekati Diamond Mine at a price equivalent to the
price paid to BHP Billiton in 2013 for its interests.

The Chairman  and Chief  Executive Officer  of Dominion  Diamond  Corporation, 
Robert A. Gannicott, said, "Although the  sale by Chuck Fipke of his  interest 
in the  Ekati  Project ends  his  financial involvement  with  Canada's  first 
diamond mine, his contribution to its  discovery and success goes well  beyond 
that. The history of Canadian mining is  full of stories of accidents of  fate 
leading to discoveries but the discovery  of diamonds in the Slave  Geological 
Province is a  story of years  of dedicated  technical work led  by a  focused 
technical expert with unwavering belief in the outcome."

The Ekati Mine property 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 with  both development  and 
exploration potential.  The  Company  currently holds  an  80%  participating 
interest in the Core Zone, with  FipkeCo holding a 10% participating  interest 
and Dr. Stewart Blusson holding the remaining 10% participating interest. The
Company holds a 58.8% participating interest in the Buffer Zone, with  FipkeCo 
holding a 10%  participating interest and  Archon Minerals Limited  ("Archon") 
holding a 31.2% participating interest.

FipkeCo will sell its 10% interest in the Core Zone for US$50 million, subject
to adjustments to reflect joint venture contributions and distributions  since 
June 30, 2012, as well  as interest from that  date. The base purchase  price 
would be payable in instalments over 31 months, and the Company would have the
right, but not the  obligation, to satisfy one  or more instalments in  common 
shares of the Company.

FipkeCo will  sell its  10% interest  in the  Buffer Zone  for US$17  million, 
subject  to   adjustments  to   reflect   joint  venture   contributions   and 
distributions since June 30,  2012, as well as  interest from that date.  The 
purchase price would be payable in cash on closing.

The joint venture agreements  governing each of the  Core Zone and the  Buffer 
Zone contain a right of first refusal  in favour of each joint venture  party, 
which rights are exercisable for 60  days. If Dr. Blusson exercises his  right 
in respect of FipkeCo's Core Zone interest, the Company would acquire an 8.89%
participating interest from FipkeCo,  rather than a  10% interest. If  Archon 
exercises its right in respect of FipkeCo's Buffer Zone interest, the  Company 
would acquire a 6.53% participating interest  from FipkeCo, rather than a  10% 
interest.

It  is  anticipated  that  completion  of  the  transactions  would  occur  in 
September, 2014.

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 www.sedar.com and www.sec.gov, respectively.

About Dominion Diamond Corporation
Dominion  Diamond  Corporation  isa  Canadian  diamond  mining  company  with 
ownership interests  in twomajor  producing diamond  mines. Both  mines  are 
located in the low political risk environment of the Northwest Territories  in 
Canada. 

The Company operates the Ekati Diamond Mine through its 80% ownership as  well 
as a 58.8% ownership in the surrounding areas containingadditional resources,
and also owns 40% of  the Diavik Diamond Mine.  It supplies rough diamonds  to 
the global  market  through its  sorting  and selling  operations  in  Canada, 
Belgium and India and is the world's third largest producer of rough  diamonds 
by value.

For more information, please visit www.ddcorp.ca

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
 
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