Dominion Diamond Corporation Files Lynx Pipe Project Description Report

Dominion Diamond Corporation

announced today that it has filed an application with the Wek'éezhii Land and Water Board requesting a land use permit and water licence to enable mining of the Lynx kimberlite pipe ("Lynx Project") at the Ekati Diamond Mine. The Lynx kimberlite pipe occurs in the southeastern portion of the Ekati mine property, underlying a small lake about 30 km from the main facilities and approximately 3 km to the southwest of the active Misery pit, in the Lac de Gras watershed, and is part of the Buffer Zone Joint Venture, in which the Company has a 58.8% interest. The Lynx Project represents an extension of the Misery operations, requiring little new infrastructure. Development of the Lynx Project will require the draining of a small lake as is typical for the kimberlite pipes that have been mined at the Ekati Diamond Mine and the development of an open pit mine with a short access road. All other necessary facilities, such as process plant and camp, are already present, and it is expected that the instruments of environmental management and monitoring currently in use at the Ekati mine will be expanded to include all aspects of the Lynx Project. Based on the scope of the proposed Lynx Project, as well as the fact that the proposed project activities have been previously assessed, it is anticipated that the necessary project approvals will be completed in a timely manner. The Lynx kimberlite pipe is estimated to have 1.3 million tonnes of indicated resource at 0.8 carats per tonne (cpt) and 0.1 million tonnes of inferred resource at 0.8 cpt, in each case on a 100% basis as at December 31, 2012 . The Company has modeled the approximate rough diamond price for the Lynx diamonds at US$257 per carat as at December 31, 2012 (1.2 mm slot screen cutoff, 86% diamond recovery). Mineral resources that are not mineral reserves do not have demonstrated economic viability.