Dominion Diamond Corporation Reports Diavik Diamond Mine Fourth Calendar Quarter Production

January 16,2017

YELLOWKNIFE, Northwest Territories—-Jan. 16, 2017–

Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) reports Diavik Diamond Mine production results for the fourth calendar quarter of 2016:

Diavik Diamond Mine Production (100% basis)

		Full Year 2016		Full Year 2015		Q4 2016		Q3 2016		Q2 2016		Q1 2016		Q4 2015		Q3 2015		Q2 2015		Q1 2015
Tonnes Processed (millions)		2.21		1.98		0.54		0.58		0.54		0.56		0.46		0.48		0.56		0.48
Carats Recovered (millions)		6.66		6.41		1.65		1.54		1.58		1.88		1.50		1.27		2.14		1.50

Note: Totals may not add up due to rounding

Processing volumes in the fourth calendar quarter of 2016 were 16% higher than in the same quarter of the prior year due to the extended planned maintenance shutdown in the processing plant during the fourth quarter of calendar 2015.

Diamonds recovered in the fourth calendar quarter of 2016 were 10% higher than in the same quarter of the prior year, reflecting higher processing volumes that were partly offset by lower recovered grade.

Diamonds recovered in calendar 2016 of 6.7 million carats were 4% higher than in calendar 2015, but 4% lower than the revised calendar 2016 plan of 6.9 million carats. Lower-than-expected diamond recovery reflected lower grades due to underground dilution, which resulted from granite sloughing from the walls of the open pit.

The completion of A-21 dike construction and the start of dewatering are expected during calendar 2017, in accordance with the project plan.

A new mine plan and budget for calendar 2017 is under review by Rio Tinto plc and the Company.

Run of Mine Production – Calendar 2017 Diavik Diamond Mine (100% basis)		Tonnes Mined (millions)		Tonnes Processed (millions)		Carats (millions)
Preliminary Mine Plan for Calendar 2017		2.1 – 2.3		2.0 – 2.2		7.1 – 7.6

Mining activities will be exclusively underground. Processed ore will be sourced from the following kimberlite pipes in the approximate proportions noted below:

Diavik Kimberlite Pipes		Percentage of Tonnes Processed
A-154 South		20%
A-154 North		35%
A-418		45%

Production from Coarse Ore Rejects (“COR”) is expected to be negligible in 2017. Production from COR is not included in the Company’s ore reserves, and is therefore incremental.

The aforementioned mine plan for the Diavik Diamond Mine was prepared and verified by Diavik Diamond Mines (2012) Inc. (“DDMI”), operator of the Diavik Diamond Mine, under the supervision of Calvin Yip, P. Eng., Principal Advisor, Strategic Planning of DDMI, and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.

Diavik Diamond Mine Production 40% basis

For the three months ended December 31, 2016								For the three months ended December 31, 2015
Pipe		Ore Processed (000s tonnes)		Carats (000s)		Grade (carats/tonne)		Ore Processed (000s tonnes)		Carats (000s)		Grade (carats/tonne)
A-154 South		54		147		2.73		55		202		3.66
A-154 North		67		169		2.54		46		100		2.18
A-418		95		340		3.57		84		290		3.44
COR		–		4		–		–		6		–
Total		216		660		3.04(a)		185		598		3.19(a)

For the twelve months ended December 31, 2016								For the twelve months ended December 31, 2015
Pipe		Ore Processed (000s tonnes)		Carats (000s)		Grade (carats/tonne)		Ore Processed (000s tonnes)		Carats (000s)		Grade (carats/tonne)
A-154 South		207		583		2.81		210		760		3.61
A-154 North		281		639		2.27		253		541		2.14
A-418		396		1,407		3.56		328		1,186		3.62
COR		2		34		–		3		75		–
Total		885		2,663		2.97(a)		794		2,562		3.14(a)

(a) Average grade, adjusted to exclude COR
Note: Totals may not add up due to rounding

About Dominion Diamond Corporation
Dominion Diamond Corporation is the world’s third largest producer of rough diamonds by value. Both of its production assets are located in the low political risk environment of the Northwest Territories in Canada where the Company also has its head office. The Company is well capitalized and has a strong balance sheet.

The Company operates the Ekati Diamond Mine and also owns 40% of the Diavik Diamond Mine. Between the two mining operations, diamonds are currently produced from a number of separate kimberlite pipes providing a diversity of diamond supply as well as reduced operational risk. It supplies premium rough diamond assortments to the global market through its sorting and selling operations in Canada, Belgium and India.

For more information, please visit www.ddcorp.ca

View source version on businesswire.com: http://www.businesswire.com/news/home/20170116005757/en/

Source: Dominion Diamond Corporation

Dominion Diamond Corporation
Jacqueline Allison, 416-205-4371
Vice-President, Investor Relations
jacqueline.allison@ddcorp.ca

NT3