*Included in additions of property, plant and equipment for GK is $34,319 (2020 - $28,939) related to deferred stripping of which $1,431 relates to the depreciation of earthmoving equipment (2020 - $1,781).

**Included in depreciation and depletion is $134 of depreciation on the

right-of-use

assets (2020 - $797).

***As at December 31, 2021, an impairment reversal of property, plant and equipment was recorded at GK mine.

i)	Fiscal 2021 – Impairment reversal of GK mine CGU

During the year ended December 31, 2021, the Company recorded a reversal of previous impairment charges of $240,593, related entirely to property, plant and equipment at

the

GK mine. This impairment reversal represents the partial reversal of prior impairments allocated to property plant and equipment, as adjusted for depreciation. The impairment reversal was primarily a result of increases in the Company’s long-term diamond price estimate

, which is itself based on average price achieved to date by the Company, excluding the year 2020, which was significantly impacted due to COVID-19.

Tax expense related to the impairment

reversal

amounted to

$20,720. After giving effect to the impairment reversal, the carrying value of the GK mine is $557 million as at December 31, 2021.

The significant estimates and assumptions used for the CGUs tested in the Company’s impairment assessment for the year ended December 31, 2021 were as follows:

●

estimated long-term diamond prices of US$71;

●

forward

U.S.

foreign exchange rates between 1.27-1.30;

●

proven and probable mineral reserves and converted resources of 22.6 million

; and

●

real discount rate of 7.9%.

The real discount rate was estimated based on the capital asset pricing model, for which the costs of equity are based on, among other things, estimated interest rates, market returns on equity, share volatility, leverage and risks specific to the mining sector and the GK Mine CGU. The valuation is considered to be level 3 in the fair value hierarchy due to unobservable inputs.

ii)	Fiscal 2020 – Impairment at GK mine CGU

After the Company assessed for impairment, as at December 31

, 2020

, it was determined that an impairment loss of $217,366 on property, plant and equipment occurred. The impairment losses are specific to the GK Mine CGU.

The GK Mine CGU’s recoverable amount of $281.6 million as at December 31

, 2020

was determined using the fair value less cost of disposal, which was calculated based on projected future cash flows utilizing the latest information

available and Management’s estimates, including; estimated future diamond prices, discount rates, foreign exchange rates, production levels and costs used to determine future cash flows.

For the assessment at December 31, 2020, these projected cash flows were prepared using a 2.5% real growth escalation factor for 2021 and a 2.5% real growth escalation factor on diamond pricing thereafter, and discounted using a

post-tax

discount rate of 8.4% on cash flows from proven and probable mineral reserves and converted resources, representing the estimated weighted average cost of capital.