Market Overview

Dominion Diamond Receives Court Approval for Arrangement with The Washington Companies

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Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the "Company" or
"Dominion") today announced that the Ontario Superior Court of Justice
(Commercial List) has issued a final order approving its
previously-announced plan of arrangement (the "Arrangement") pursuant to
which Northwest Acquisitions ULC (the "Purchaser"), an entity affiliated
with The Washington Companies, has agreed to acquire all of the issued
and outstanding common shares of the Company for US$14.25 per share in
cash.

The closing of the Arrangement remains subject to the Company having a
minimum cash balance of US$150 million if closing occurs on or before
November 30, 2017, or US$200 million if closing occurs after November
30, 2017, and certain other customary closing conditions, including the
receipt of Investment Canada Act (Canada) approval. Assuming the timely
satisfaction of these closing conditions, the Arrangement is expected to
close in the fourth quarter of calendar 2017.

Shareholders who have questions or require assistance with submitting
their shares to the Arrangement, including with respect to completing
the applicable letter of transmittal, are asked to contact AST Trust
Company (Canada), who is acting as depositary under the Arrangement, at
1-800-387-0825 (toll free in North America) or at 416-682-3860 (collect
outside North America), or by email at inquiries@canstockta.com.

About Dominion Diamond Corporation
Dominion
Diamond Corporation is a Canadian mining company and one of the world's
largest producers and suppliers of premium rough diamond assortments to
the global market. The Company operates the Ekati Diamond Mine, in which
it owns a controlling interest, and owns 40% of the Diavik Diamond Mine,
both of which are located in the low political risk environment of the
Northwest Territories in Canada. It also has world-class sorting and
selling operations in Canada, Belgium and India.

Forward-Looking Statements
Certain statements
included in this news release may be considered forward-looking. Such
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements to be
materially different from those implied by such statements, and
therefore these statements should not be read as guarantees of future
performance or results. All forward-looking statements are based on the
Company's current beliefs as well as assumptions made by and information
currently available to the Company and relate to, among other things,
anticipated timing of closing of the transaction and the satisfaction of
closing conditions including, without limitation, (i) Investment Canada
Act (Canada) approval, and (ii) other closing conditions, including,
without limitation, the operation and performance of the Dominion
business in the ordinary course until closing of the transaction,
maintenance by Dominion of a minimum cash balance in the amounts as
specified in the arrangement agreement dated July 15, 2017 entered into
by and between Dominion and the Purchaser (the "Arrangement Agreement")
with respect to the Arrangement, and compliance by Dominion with various
covenants contained in the Arrangement Agreement.

Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this news
release. Due to risks and uncertainties, including the risks and
uncertainties identified by the Company in its public securities filings
available at
www.sec.gov
and
www.sedar.com,
actual events may differ materially from current expectations. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

For more information, please visit www.ddcorp.ca.

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