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Publish Date : 18-Oct-2014

Prima Diamond Corp. ("Prima" or the "Company") announces that it has entered into a property option agreement (the "Agreement") dated October 14, 2014 to acquire the Orion Diamond Properties located in the Jamesie County of east-central Quebec from Fiducie Ananke, a Quebec entity, whereby Prima can acquire an undivided 100% interest in and to 45 mineral claims covering more than 2,275 ha (5,621 acres) in 7 separate claim blocks. Prospective kimberlite targets have been identified on each of the 7 claim blocks of the Orion Diamond Properties through a recent regional airborne magnetic survey.

"Prima is committed to acquiring diamond properties in successful and proven diamond regions within Canada," commented Robert Bick, Prima's CEO. "So when the Orion Diamond Properties were offered to us, we jumped at the opportunity specifically because these properties are in the same diamond-rich producing zone which hosts Renard, Quebec's new diamond mine. We are also very encouraged by the identification of prospective kimberlite targets on each of the claim blocks." Renard Diamond Project : The Renard Diamond Project contains Probable Mineral Reserves of 17.9 million carats and is scheduled to begin diamond production in 2016 with an 11 years reserve-based mine life with diamond production averaging 1.6 million carats/annum life of mine.

Renard has received significant support from the Quebec government and Quebec investors. The Quebec government through Resources Quebec, a subsidiary of provincial agency Investissement Québec, provided $220 million for the Renard project and Caisse de dépôt et placement du Quebec provided $105 million. In addition the Quebec government is building road infrastructure to the mine site. Terms of the Agreement : In consideration of the grant of the option, Prima has agreed to issue to Fiducie Ananke an aggregate of 12,000,000 common shares of Prima upon TSX Venture Exchange (the "Exchange") acceptance. Fiducie Ananke will also retain a 2% Net Sales Royalty ("Royalty") on all diamond production. Prima shall be entitled at any time to purchase 1% the Royalty for $500,000 and the remaining 1% for $1,000,000. The Agreement is subject to final acceptance of the Exchange. Closing of the agreement is contingent upon Secutor Capital Management Corporation raising a minimum of $2,000,000 for exploration of Prima's properties and for working capital.

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