De Beers : PRODUCTION REPORT FOR THE FOURTH QUARTER OF 2016

Diamonds		Q4 2016	Q4 2015	Q4 2016 vs. Q4 2015	Q3 2016	Q4 2016 vs. Q3 2016	2016	2015	2016 vs. 2015
Debswana	000 carats	5,440	4,749	15%	4,549	20%	20,501	20,368	1%
Namdeb Holdings	000 carats	428	405	6%	405	6%	1,573	1,764	(11)%
DBCM	000 carats	1,387	1,459	(5)%	1,094	27%	4,234	4,673	(9)%
De Beers Canada	000 carats	497	439	13%	225	121%	1,031	1,887	(45)%
Total carats recovered	000 carats	7,752	7,052	10%	6,273	24%	27,339	28,692	(5)%

Rough diamond production increased by 10 per cent to 7.8 million carats compared with Q4 2015 when production was reduced in response to trading conditions. The increase also reflected the ramp-up of Gahcho Kué.

Debswana's (Botswana) production increased by 15 per cent to 5.4 million carats. At Jwaneng, production increased 40 per cent, partly offset by Orapa, which decreased by six per cent, and Damtshaa (a satellite operation of Orapa), which was placed on care and maintenance from 1 January 2016.

Production at Namdeb Holdings (Namibia) increased by six per cent to 0.4 million carats due to increased material processed by the Debmarine Namibia fleet.

In DBCM (South Africa), production decreased marginally to 1.4 million carats, mainly due to the sale of Kimberley Mines in January 2016, partly offset by an increase of 18 per cent at Venetia due to the processing of higher grades.

Production in Canada increased by 13 per cent to 0.5 million carats, driven by the ramp-up at Gahcho Kué. This was partially offset by Snap Lake being placed on care and maintenance in December 2015. The ramp-up of Gahcho Kué continues to progress, with commercial production expected to be reached during Q1 2017.

Rough diamond production increased by 24 per cent compared with Q3 2016 as a result of higher production at Orapa, higher grades at Venetia and the ramp-up of Gahcho Kué.

Total rough diamond sales volumes in Q4 2016 compared with Q4 2015 more than doubled to 8.0 million carats (7.5 million carats on a consolidated basis).

For the full year, total rough diamond sales volumes increased by 55 per cent to 32.0 million carats (30.0 million carats on a consolidated basis). The increases reflect the improved trading conditions from those experienced in H2 2015.

For the full year, the average realised price of $187 per carat was 10% lower than in 2015, reflecting the lower average rough price index, which was down 13 per cent, partially offset by a stronger sales mix.