From the Mine of the Present to the Brilliance of the Future

Jim Pounds Executive Vice-President, DiamondsDominion Diamond Corporation

TSX/NYSE: DDC

Dominion Diamond Corporation

• World 3rd largest Diamond Producer

• Top Tier Assets

– Ekati Diamond Mine – 90% ownership

– Diavik Diamond Mine – 40% ownership

• Diversified Diamond Supply in Canada

• Strong Near-Term & Long-Term Production Growth Potential

• Significant Resource Base and Exploration Potential on Existing Land Package

History.

Aber Diamond Corporation 1994-2007

Harry Winston Diamond Corporation 2007-2013

Dominion Diamond Corporation 2013-Present

TSX/NYSE: DDC

3

Metal Mining versus Diamond Mining

Metal Mining

• Drilling, blasting, haulage

• Crushing

• Grinding

• Chemical treatment for recovery

• Chemical processing

• Refining

• Sales

Diamond Mining

• Drilling, blasting, haulage

• Crushing

• Physical recovery

• Chemical cleaning

• Sorting

• Aggregation

• Sales

TSX/NYSE: DDC

4

Global Diamond Supply Overview

Rough Supply Dominated by a handful of Players with Mines Mostly

Located in Africa, Russia and Canada

De Beers34%

ALROSA28%

Dominion Diamond

6%

Rio Tinto6%

Other26%

Source: Company reports, KPCS, Dominion analysis

2015 Rough diamond sales (by value)

0%

20%

40%

60%

80%

100%

De Beers ALROSA Dominion Rio Tinto Other

Botswana AngolaOther Africa RussiaCanada Other

2015 Rough production (by value)

TSX/NYSE: DDC

5

Canada is the World’s Third Largest Diamond Producing Country

Dominion Diamond is the Single Largest Canadian Player

2015 Rough production (by value)2015–2020E Canadian rough

production (billion US$, 2015 prices)

Russia29%

Botswana24%

Canada14%

Angola9%

Other Africa21%

Other3%

Source: Company reports, KPCS, Dominion analysis

(forecasts last revised September 2016)

0

1

2

3

2015 2016E 2017E 2018E 2019E 2020E

Dominion Rio Tinto

De Beers Mountain Province

Other

TSX/NYSE: DDC

6

Diavik and Ekati Mines - Summer

Diavik Diamond Mine Ekati Diamond Mine

TSX/NYSE: DDC

7

Winter Road

TSX/NYSE: DDC

8

Diavik and Ekati Mines - Winter

Diavik Diamond Mine Ekati Diamond Mine

TSX/NYSE: DDC

9

Underground Mining

TSX/NYSE: DDC

10

Underground Mining Methods – Sub-level

Retreat (SLR)

TSX/NYSE: DDC

11

Underground Mining Methods

Blasthole Stoping

TSX/NYSE: DDC

12

Road Trains – Ekati Diamond Mine

TSX/NYSE: DDC

13

Processing Plant

Diavik Processing Plant Ekati Processing Plant

TSX/NYSE: DDC

14

Schematic of Processing Circuit

TSX/NYSE: DDC

15

Jaw Crusher

TSX/NYSE: DDC

16

Trommel Screen

TSX/NYSE: DDC

17

Cone Crusher

Rotation

TSX/NYSE: DDC

18

Rolls Crusher

TSX/NYSE: DDC

19

Diamond Recovery

Recovery relies on three unusual physical characteristics of diamonds:

› Diamonds are heavy

› Diamonds emit visible light when irradiated with X-rays (photo luminescence)

› Diamonds bond with grease (oleophylic)

TSX/NYSE: DDC

20

Dense Media Separation Cyclones

TSX/NYSE: DDC

21

X-Ray Sortex

Schematic of single-pass sorting machine

TSX/NYSE: DDC

22

Grease Table

TSX/NYSE: DDC

23

Toronto Cleaning Facility

TSX/NYSE: DDC

24

Diamond Sorting

TSX/NYSE: DDC

25

Assortments

TSX/NYSE: DDC

26

Diavik Production Profile

Diavik Production

› A high colour production with a

small element of brown and

coated material

› A good size frequency distribution

› Many of the larger stones are

crystal in shape – very much in

demand for square-edged fancy

cut diamonds

TSX/NYSE: DDC

27

Diavik Production Profile

Ekati Production

› A wide range of goods coming

from various pipes

› More rounds goods delivering a

better yield

› More of the commercial qualities

and colours

› Vary rare yellow colours from the

Misery pipe

› Some interesting large stones

Both productions complement each

other to deliver well-balanced sales

parcels

TSX/NYSE: DDC

28

How We Sort and Sell

TSX/NYSE: DDC

29

How DDC Sorts and Sells Rough Diamonds

Sales Held 10 Times a Year from Our

Antwerp and Mumbai Offices

› We sell on a contractual basis to 35 clients, a

mixture of manufacturers and retailers

› 85% of our clients are Indian based, purchasing

80% (by value) of our production

› We sort into 12,500 price points and blend into 70

Sales Mixes (parcels)

› We hand sort every diamond over 0.02 carat in

size

› Consistent assortments and regular supply

deliver a premium for our parcels

› Our clients source goods from other suppliers,

allowing them to work with a balanced portfolio

TSX/NYSE: DDC

30

Antwerp Sales

TSX/NYSE: DDC

31

Technological Advances

TSX/NYSE: DDC

32

Mining Equipment

TSX/NYSE: DDC

33

Modern Haul Truck

TSX/NYSE: DDC

34

Diamond Marking

TSX/NYSE: DDC

35

Sarin Stone Mapping

TSX/NYSE: DDC

36

Diamond Cleaving

TSX/NYSE: DDC

37

Laser Cutting

TSX/NYSE: DDC

38

Production Security

TSX/NYSE: DDC

39

Carrier Pigeon

TSX/NYSE: DDC

40

Greasy Rag

TSX/NYSE: DDC

41

Protecting and Growing Demand

Initiatives Support Demand Growth, Both for the Category

and for Dominion Diamond’s Production in Particular

› Founding member of Diamond Producers Association: focus on

protecting and growing natural diamond demand

› Established proprietary program: guarantees natural Canadian origin and

promotes ethical and environmental stewardship. Scope of program to

be extended over the coming year

› Marketing pilot to foster aspirational demand for natural coloured

diamonds

› Other initiatives in planning phase

TSX/NYSE: DDC

42

CanadaMark Hallmark

TSX/NYSE: DDC

43

CanadaMark Hallmark – Main Objective

CREATE DEMAND FOR DOMINION DIAMOND ROUGH

Demand from manufacturers

Demand from retailers

Demand from end consumers

MAIN OBJECTIVE

TSX/NYSE: DDC

44

CanadaMark Hallmark - Targeting Millennial

Consumers

• Profile:

– Age 18-35

– Digital natives

– Largest generation globally

– Highly educated

› Cultural Shifts

• Relationships - With marriage levels

at an all time low, diamonds need to

find their way into multiple moments

during a person’s life, carrying

multiple meanings

• Luxury - Personal stories and

experiences are valued more than

the idea of one perfect product

• Influence - Distrust towards ads that

are targeted at the consumer.

Importance of particpating with the

consumer and their influencer group

TSX/NYSE: DDC

45

Digital Marketing Campaign –

Leveraging Social Media and Ethical

Credentials › Focus on online marketing channels to build

awareness

• Broad range of social platforms (Facebook,

YouTube, Instagram, Pinterest) counts over

140,000 active followers

• Online ad campaign (Google Adwords, SEM)

reaches 85 million people annually.

• Key influencers (bloggers, social celebrities)

› Story of ethically mined Canadian diamonds

resonates with target consumer group

• High engagement levels on social channels

compared to other major diamond and jewellery

brands

• 85% of surveyed millennials are open to pay a

premium (5%-10%) for a CanadaMark diamond

• Traits mostly associated with CanadaMark by end

consumers are: ‘conflict-free’, ‘trustworthy’,

‘conscious’, ‘ethical’ and ‘pure’