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June 12, 2014 --- Vol. 08, No. 24June 2014

Northwest Territories

DIAMONDS – Dominion Diamond Corp. June 11 reported its fiscal 2015 first quarter results for the period ended April 30, 2014, including a consolidated net profit attributable to shareholders of US$14.7 million or US17cents per share for the quarter, compared to a net profit attributable to shareholders of US$506.2 million, or US$5.96 per share, during the same period in 2013. The first quarter of fiscal 2015 marks the anniversary of the divestiture of the company’s luxury business and the acquisition of the Ekati Diamond Mine. Dominion is now focused on delivering enhanced value from its two diamond mining operations in Northwestern Territories. It holds an 80 percent interest in the Ekati Diamond Mine and a 40 percent interest in the Diavik Diamond Mine. Dominion Chairman and CEO Robert Gannicott said, “A year on from our purchase of the Ekati operation, we continue to improve ore production and recoveries as we develop new ore sources. The receipt of full operating permits for the Lynx open pit development in less than a year from application speaks better than words about the determination of a newly empowered Government of the Northwest Territories to effectively manage through this transition and to support well planned resource development.” As for the global diamonds market, Dominion said sentiment at the very important JCK Las Vegas show in June reflected optimism in the U.S. retail market; demand, meanwhile, continues to be steady from China and is picking up from India. Highlights of the first-quarter results include: Production at both mines ran substantially ahead of expectations; an improved plan has been developed for mining the Jay kimberlite, the largest diamondiferous resource in North America; a total of C$163 million of capital expenditures remain to be spent on the Misery push-back before bringing the Misery Main Pipe, which at four carats per metric ton is one of the richest ore bodies in the world, into full production at the beginning of calendar 2016; the company has received an amended Ekati water license to now incorporate the Lynx development; a decision on the development of the A-21 pipe at the Diavik Diamond Mine is expected later this year; the company is well-funded and has a strong balance sheet. Stronger-than-expected production results at the Ekati Diamond Mine for the first quarter reflect Dominion’s strategy for fully utilizing the processing plant capacity, higher-than-expected grades in the reserve feed and an increase in diamond recovery (primarily of smaller diamonds) due to operational improvements to the processing plant implemented by the company over the past eight months. The company estimates that process plant improvements to date have increased the recovered grade during the first quarter, albeit in predominantly smaller diamonds, by about 15 percent. Ore processing at the Diavik Diamond Mine was 11 percent ahead of plan as a result of greater ore availability, higher mining rates and improved equipment availability, equipment efficiencies and utilization of the processing plant. At Ekati, the company processed 962,000 metric tons and recovered 561,000 carats at a grade of 0.58 carats per metric ton during the first quarter of fiscal 2015, while the Diavik Diamond Mine (on a 40 percent basis) produced 735,000 carats from the processing of 236,000 metric tons of ore at a grade of 2.91 cpt during the same three months. Dominion also reported that as of April 30, it held total cash of US$328.1 million and rough diamond inventory with a market value of about US$285 million.

FINANCE – Avalon Rare Metals Inc. June 10 reported that an institutional investor has agreed to purchase 9,237,875 units of the company at a price of US43.3 cents per unit. Each unit will be comprised of a common share and 0.7 of a purchase warrant. Each whole warrant is exercisable into a common Avalon share at US56 cents per share beginning six months following issuance, and has a term of exercise of six and a half years from the initial exercise date and is subject to certain anti-dilution provisions. The gross proceeds of the offering will be about US$4 million. Net proceeds, after deducting the placement agent’s fee and other estimated offering expenses payable by Avalon, are expected to be approximately US$3,.56 million. Avalon plans to use the net proceeds from the offering for general corporate purposes, including funding ongoing operations, capital requirements, and discretionary capital programs. H.C. Wainwright & Co., LLC acted as the placement agent for the transaction, and will be paid a cash fee equal to 6 percent of the aggregate gross proceeds from the sale of the units and will be issued 554,273 agent warrants. Each agent warrant is exercisable into one common Avalon share at an exercise price of US56 cents per share beginning six months following issuance, and has a term of two and a half years from the initial exercise date. The offering is expected to close by June 17.

ANNUAL MEETING – Tyhee Gold Corp. June 6 reported the results of voting by shareholders of the company at the annual general meeting held May 22. A total of 152,304,076 common shares were represented at the meeting, representing about 36 percent of the outstanding shares. Shareholders voted in favor of all items of business before the meeting. This included the election of Denis M. Taschuk, Dave Nickerson, Hans Black, Richard Evans and Brian K. Briggs to the company’s board of directors. The shareholders also re-appointed Deloitte & Touche LLP, Chartered Accountants as auditors of the company for the ensuing year and approved the continuation of the company’s incentive stock option plan until the next annual general meeting. Tyhee Chairman Denis Taschuk said, “As challenging as the past year has been for almost the entire resource sector, we remain confident that we are well-positioned to leverage both our strong team and our current assets to the benefit of our loyal shareholders.” Tyhee President and CEO, Brian Briggs, added, “We are actively considering some very interesting and exciting projects that have the potential to see us in production within the next year or less. We are currently conducting our due diligence and examining our financing options and will provide an update shortly on the company’s progress and plans for the rest of the year.”

FINANCE – Nighthawk Gold Corp. June 6 reported that it will increase the total size of its best efforts private placement previously announced on June 3, 2014 for aggregate gross proceeds of up to C$8 million. All other terms of the offering will remain as previously announced, including that the offering is being led by Primary Capital Inc. The offering is for flow-through units at a price of C40 cents per FT unit and units at a price of C40 cents per unit for aggregate gross proceeds of up to C$8 million. Each FT Unit shall consist of one common share of Nighthawk, which will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each unit shall be comprised of one common share and one-half of one warrant. Each warrant shall entitle the holder thereof to acquire one common share of Nighthawk at a price of C50 cents for a period of 18 months following the closing of the offering. The offering is scheduled to close on or about June 25, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the acceptance by the TSX Venture Exchange.


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