Harry Winston Diamond Corporation Announces 3 Million Common Shares Private Placement Agreement

    TORONTO, March 10 /CNW/ - Harry Winston Diamond Corporation  (TSX: HW;
NYSE:   HWD) today announced it has entered into agreements to sell, on a
non-brokered private placement basis, 3 million common shares of the
Corporation at CAN$25 per share. As no fees or commissions are payable on this
transaction, net proceeds to the Corporation are expected to be
CAN$75 million. This transaction will bring the issued and outstanding shares
of the corporation to 61,372,091 million and represents a 5% dilution. Closing
of the transaction is subject to TSX approval and is expected to occur on or
before March 14, 2008.
    The transaction was necessary for the Corporation to pursue a new credit
facility for Harry Winston Diamond Corporation on satisfactory terms and
conditions. Once completed, the new facility, together with proceeds from the
abovementioned transaction and general cash-flow, are expected to fund the
Corporation's portion of the previously announced underground mine plan at the
Diavik Diamond Mine. Diamond production from underground, scheduled to begin
in 2009 and continue beyond 2020, will add significant NPV to the project as
well as enhance mine life.
    In addition to the private placement agreement, Harry Winston Inc., the
Corporation's diamond jewelry and watch retailer, recently completed a
separate US$250 million five-year credit facility to self support the retail
division's operations and future salon expansion.

    This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws. In some
cases, forward-looking information can be identified by the use of terms such
as "may", "will", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. Particularly,
information about the expected closing of the private placement and the
negotiation of new credit facilities is forward-looking information.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, the ability to obtain all necessary approvals
to complete the proposed private placement and the ability to arrange new
credit facilities on terms and conditions satisfactory to it. While the
Company considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. Forward
looking-information is subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially from what
is currently expected. These factors include credit market risks and other
risks relating to the receipt of the necessary regulatory approvals and
satisfaction of other conditions of closing. You should not place undue
importance on forward-looking information and should not rely upon this
information as of any other date. While the Company may elect to, the Company
is under no obligation and does not undertake to update this information at
any particular time, except as required by law.

    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or any applicable exemption from the registration
requirements. This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful.

    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: Nancy Murray, (212) 245-2000,
nmurray@harrywinston.com; Kelley Stamm, (416) 362-2237, EXT 223,

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Dominion Diamond Corporation

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