Harry Winston Diamond Corporation Announces Diavik Diamond Mine Second Quarter 2008 Update



    TORONTO, July 25 /CNW/ - Harry Winston Diamond Corporation (TSX: HW;
NYSE:   HWD) today announced that the operator of the Diavik Diamond Mine has
provided the following update on work during the second quarter of 2008 at the
Diavik Diamond Mine: Ore production accelerated in the second quarter in line
with plan due to improved operating conditions. Ore was mined predominantly
from the A154 South kimberlite pipe, with smaller tonnages mined from the A154
North and A418 pipes. The A418 ore was mined as part of ongoing pre-stripping
of waste overburden to prepare the second open pit. This initial ore is low
grade weathered kimberlite capping the pipe and diluted with overlying glacial
till. Full scale open pit production from A418 is scheduled to begin in
earnest late this year. Natural grade variation in the A154 pipes combined
with the low grade nature of the A418 production of ore mixed with waste
overburden material resulted in 2.522 million carats of diamonds being
recovered during the quarter, 23 per cent below the same quarter of 2007.
Diamond production is now forecast to be from 10 to 10.5 million carats in
2008.
    Work continues at significant pace to prepare the mine site for
underground mining. Below surface, tunnelling work has now passed 8 kilometres
with tunnel advance rates accelerating during the quarter. Construction is
progressing as planned on the new crusher and paste backfill plant, on
expansions to the water treatment and power plants, and on foundations for
mine change rooms and additional permanent accommodation facilities.
Underground mining is projected to begin in 2009 and to replace open pit
mining by 2012. In other capital work, a CDN $50 million project was approved
to make additions and modifications to the ore processing plant to recover
very small diamonds, reflecting good market demand for that product. The first
recovery of small diamonds is expected towards the end of 2009.

    Information in this news release that is not current or historical
factual information may constitute forward-looking information or statements
within the meaning of applicable securities laws. Implicit in this
information, particularly in respect of statements as to future operating
results and economic performance of Harry Winston Diamond Corporation, are
assumptions regarding world economic conditions, projected revenue and
expenses, diamond prices, and the Canadian/US dollar exchange rate.
Specifically, Harry Winston has assumed that construction will continue on
schedule and without undue disruption with respect to current underground
mining construction and processing plant upgrade initiatives. These
assumptions, although considered reasonable by Harry Winston Diamond
Corporation at the time of preparation, may prove to be incorrect.
Forward-looking information is subject to certain factors, including risks and
uncertainties, which could cause actual results to differ materially from what
we currently expect. These factors include, among other things, the uncertain
nature of mining and mine development activities, risks associated with
underground construction activities, risks associated with joint venture
operations, risks associated with the remote location of the Diavik Mine site,
risks associated with regulatory and financing requirements, fluctuations in
diamond prices, changes in world economic and the risk of continued
fluctuations in the Canadian/US dollar exchange rate.

    About Harry Winston Diamond Corporation

    Harry Winston Diamond Corporation (TSX: HW; NYSE:   HWD) is a specialist
diamond enterprise with assets in the mining and retail segments of the
diamond industry. The company supplies rough diamonds to the global market
from its 40% interest in the Diavik Diamond Mine, located in Canada's
Northwest Territories. The company's retail division, Harry Winston, Inc., is
a premier jewelry and timepiece retailer with salons in key locations
including New York, Paris, London, Beijing, Tokyo and Beverly Hills. For more
information, please go to www.harrywinston.com or for investor information,
visit investor.harrywinston.com.

    %SEDAR: 00003786E




For further information:

For further information: Kelley Stamm, kstamm@harrywinston.com, (416)
362-2237 ext. 223

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