TORONTO, March 14 /PRNewswire-FirstCall/ -- ABER DIAMOND CORPORATION (TSX- ABZ, NASDAQ-ABER) announces its fourth quarter and year-end results for the periods ended January 31, 2006. Commenting on Aber's results, Chairman and Chief Executive Officer Robert Gannicott stated, "The last financial year has been a rewarding one for Aber and its shareholders as sales volumes, prices and earnings have increased in both segments of its diamond businesses. The whole has indeed been shown to be worth more than the sum of its parts in this unique business model. The Aber - Harry Winston team has demonstrated the economic synergy between jeweler and rough diamond marketer. We now have the opportunity to capitalize on that synergy in a market place that is expected to increasingly demand the high quality rough diamond and jewelry products that Aber supplies and understands." Thomas O'Neill, President of Aber and Chief Executive Officer of Harry Winston added, "Harry Winston has once again shown double-digit growth in annual sales and strengthened margins in line with the plan we laid out when we acquired the company in April 2004. These gains are the result of the refinements we made to our product mix and improvements in sourcing, purchasing and manufacturing, along with strong performance in our core markets of the U.S. and the Far East. By combining financial capital and management expertise, Harry Winston is strengthening its position as the pre-eminent purveyor of fine diamond focused jewelry while growing a more accessible high-end diamond jewelry brand in order to deliver long-term value to our shareholders." Fourth Quarter and Annual Highlights Financial Highlights ------------------------------------------------------------------------- Three Three Twelve Twelve months months months months ended ended ended ended January 31, January 31, January 31, January 31, 2006 2005 2006 2005 ------------------------------------------------------------------------- Sales ($ millions) 126 145 505 385 ------------------------------------------------------------------------- Earnings from operations ($ millions) 36 39 176 122 ------------------------------------------------------------------------- Net Earnings ($ millions) 15 30 81 53 ------------------------------------------------------------------------- Earnings per share ($) 0.26 0.51 1.40 0.92 ------------------------------------------------------------------------- Cash Earnings per share ($)(1) 0.66 1.20 3.57 2.96 ------------------------------------------------------------------------- (1) Cash earnings per share is not a recognized measure under Canadian GAAP and does not have a standardized meaning prescribed by Canadian GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. Cash earnings per share is earnings before non-cash income tax expense, non-cash foreign exchange gains (loss), and depreciation and amortization on a per share basis. See "Non-GAAP Performance Measures" in the Company's Management's Discussion and Analysis for the three months ended January 31, 2006, for a reconciliation of earnings to cash earnings. Production Highlights (Aber's 40% share of Diavik Mine production) ------------------------------------------------------------------------- Three Three Twelve Twelve months months months months ended ended ended ended December 31, December 31, December 31, December 31, 2005 2004 2005 2004 ------------------------------------------------------------------------- Diamond recovered (000s carats) 732 601 3,309 3,030 ------------------------------------------------------------------------- Grade (carats/tonne) 3.68 3.30 3.72 3.88 ------------------------------------------------------------------------- Operating costs, cash ($ millions) 20.8 20.1 76.6 70.0 ------------------------------------------------------------------------- Operating costs per carat, cash ($) 28 33 23 23 ------------------------------------------------------------------------- "Fiscal 2006 has been another year of significant sales growth, robust margins and record earnings from both our mining and retail segments. In addition to our record revenue levels our annual gross margin continues to strengthen. These margins, being 59% and 51%, for our mining and retail segments respectively, generated record net earnings of $81 million dollars for the year just ended," stated Alice Murphy, Aber's Chief Financial Officer. "These robust earnings fuelled a working capital balance now in excess of a quarter billion dollars, ensuring that the Company is well positioned to continue to fund Diavik and Harry Winston capital requirements and other strategic growth opportunities, as well as continuing to reward its shareholders through its ongoing dividend program." UPDATED RESERVE AND RESOURCE STATEMENT Aber Diamond Corporation has been provided with an updated mineral reserve and mineral resource statement, which has an effective date of December 31, 2005, for the Diavik Mine by Diavik Diamond Mines, Inc. operator of the Diavik Mine. Delineation drilling completed during 2005 on the A-154 South, A-154 North and A-418 kimberlite pipes in order to further define the shapes of the resource bodies and production data gathered since the beginning of operations has supported an update to the geological model which estimates the mineral reserves and mineral resources contained within the ore bodies. This information is incorporated in the mineral reserve and mineral resource tables below. Proven and probable reserves Open Pit and Proven and Underground Mining Proven Probable Probable Mt Ct/t Mcts Mt Ct/t Mcts Mt Ct/t Mcts A-154 South 5.2 4.7 24.8 4.1 4.4 17.9 9.3 4.6 42.7 A-154 North 3.7 2.0 7.3 6.3 1.9 11.8 10.1 1.9 19.1 A-418 5.0 3.2 16.1 3.7 3.3 12.3 8.7 3.3 28.4 ----- --- ---- --- ---- --- ---- Total 14.0 3.5 48.2 14.2 3.0 42.0 28.1 3.2 90.2 Note: Totals may not add up due to rounding Additional inferred resources Inferred resources Kimberlite Millions Carats Millions Pipe of tonnes per tonne of carats A-154 South 0.6 3.9 2.3 A-154 North 1.8 2.3 4.2 A-418 0.6 4.2 2.3 A-21 4.8 3.0 14.6 ---- --- ---- Total 7.8 3.0 23.4 Note: Totals may not add up due to rounding The above mineral reserve and mineral resource estimates were prepared by Diavik Diamond Mines, Inc. operator of the Diavik Mine. Returning Value to Shareholders Aber is pleased to declare a quarterly dividend payment of US$0.25 per share. Shareholders of record at the close of business on March 29, 2006, will be entitled to receive payment of this dividend on April 13, 2006. Webcast and Conference Call Details Aber will host a conference call and webcast with accompanying presentation tomorrow, March 15, 2006, at 9:00 a.m. (EST), accessible on http://www.aber.ca/. Within North America, access to the call is available by dialing (800) 510-9661, participant passcode 26400882. From International locations, call (617) 614-3452 using the same passcode. Please dial into the conference 10 minutes prior to the start of the call. A replay of the call and webcast will be available on the Company's website at http://www.aber.ca/ later the same day. Aber's press release of its audited consolidated financial statements together with Management's Discussion and Analysis are available on the Company's web site and on SEDAR (http://www.sedar.com/). 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 Aber, and resources and reserves at the Diavik Mine, are assumptions regarding projected revenue and expense, diamond prices and mining costs. These assumptions, although considered reasonable by Aber at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including risks relating to general economic conditions and mining operations, and could differ materially from what is currently expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. MD&A and financial statements to follow About Aber Aber Diamond Corporation is a specialist diamond company focusing on the mining and retail segments of the diamond industry. The Company supplies rough diamonds to the global market through its 40% ownership in the Diavik Diamond Mine, located off Lac de Gras in Canada's Northwest Territories. Aber also holds approximately a 53% interest in Harry Winston Inc., the premier retailer of diamond jewelry. DATASOURCE: Aber Diamond Corporation CONTACT: Robert A. Gannicott, Chairman and Chief Executive Officer, (416) 362-2237; Amir Kalman, Director, Investor Relations, (416) 362-2237 (ext. 244)

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