Mr. Trevor Haynes reports

BLACK DIAMOND PROVIDES UPDATE ON MINORITY INTEREST IN AUSTRALIAN MANUFACTURING BUSINESS

WesternOne Inc. is winding down its manufacturing operations in Australia by placing it into voluntary administration. Black Diamond Group Ltd. indirectly holds a 20-per-cent minority equity interest in the business. Black Diamond anticipates the wind-down of the business will have no impact on Black Diamond's Australian operations.

As part of the purchase consideration for its 20-per-cent minority equity interest in the business, Black Diamond provided a $5,167,500 (Australian) guarantee to support the business's credit facilities. Black Diamond anticipates that payment under the guarantee will be required. The timing and the amount of such payment are uncertain. However, due to this significant change in circumstances, the company intends to provide for this guarantee in its financial statements for the period ended June 30, 2014. Such provision will not impact the company's earnings before income, taxes, depreciation and amortization.

"The wind-down of the business will be dealt with by WesternOne as they have managed and operated the business since its acquisition," said Trevor Haynes, president and chief executive officer of Black Diamond Group. "Black Diamond's Australian business platform is asset based, and while there has been weakening of our utilization rates, our existing assets service current market demand and continue to generate positive cash flow. As our business is based on the deployment and rental of assets, we are confident in the viability of our operations in this region. Our company will continue to pursue and invest in projects and build our sales and operations teams in Australia."

In North America, Black Diamond continues to see continuing growth for its products and services, driven by oil sands, infrastructure spending, potential liquefied-natural-gas-related activity and general construction.

We seek Safe Harbor.