Last updated on April 19, 2014 at 8:45 EDT

Mountain Province Diamonds Shareholders Approve Kennady Diamonds Spin-out

April 26, 2012

99.5% Vote in Favour of Spin-out

Shares Issued and Outstanding: 80,715,558

TORONTO and NEW YORK, April 26, 2012 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV) (NYSE-AMEX: MDM)
is pleased to announce that its shareholders have voted 99.5% in favour
of the proposed spin-out of Kennady Diamonds Inc. (“Kennady Diamonds”)
at a special meeting of shareholders held yesterday, April 25, 2012.

The spin-out will be completed through a plan of arrangement and remains
subject to final court and regulatory approval. An application has been
submitted to the TSX Venture Exchange for the listing of the common
shares of Kennady Diamonds under the trading symbol KDI following the
completion of the plan of arrangement. Mountain Province anticipates
receiving final court approval during the first week of May, 2012.
Subject to final court and regulatory approval, Mountain Province
expects the shares of Kennady Diamonds to commence trading prior to the
end of May, 2012.

Under the plan of arrangement, 100% of the Company’s Kennady North
Project will be transferred to Kennady Diamonds together with working
capital in the amount of C$3M. Mountain Province intends distributing
100% of the shares of Kennady Diamonds to Mountain Province
shareholders on the basis of one Kennady Diamonds share for every five
shares of Mountain Province held by shareholders as of the effective
date, which will be set following receipt of final court and regulatory

Mountain Province will shortly provide further guidance on the effective
date of the plan of arrangement.


About Kennady Diamonds
The Kennady North project comprises thirteen leases and claims located
to the west and north of the four leases controlled by the Gahcho Kué
Joint Venture between De Beers Canada Inc. (51%) and Mountain Province

Exploration at Kennady North commenced in the late 1990′s and resulted
in the discovery of the diamondiferous Kelvin, Faraday and Hobbes
kimberlites. The number of diamonds recovered from these kimberlites
and the size-frequency distribution indicate that they may be of
comparable grade to the 5034 (1.77 carats per tonne) and Hearne (2.10
carats per tonne) kimberlites at the Gahcho Kué JV. Exploration samples
from Kelvin and Faraday returned a relatively large number of macro
diamonds with the two largest being a 0.4 carat diamond from Faraday
and a 0.09 carat diamond from Kelvin.

The known kimberlites at Kennady North do not explain all the
kimberlitic indicators previously recovered from glacial till sampling.
Exploration at Kennady North was suspended in 2004 when Mountain
Province focused the Company’s attention on the Gahcho Kué
pre-feasibility and feasibility studies.

Exploration at Kennady North recommenced during 2011 with a 50-meter
line-spacing airborne gravity gradiometry (AGG) survey over the entire
123.6 square kilometer project area. The survey identified 106
geophysical targets.  The Company has also completed a
560-line-kilometre total magnetic field (MAG) ground survey over the
106 geophysical targets identified by the AGG survey. The high priority
targets identified through the AGG and MAG surveys will be scheduled
for drilling as soon as a land use permit is obtained.

About Mountain Province Diamonds
Mountain Province is a 49% participant with De Beers Canada in the
Gahcho Kué JV located at Kennady Lake in Canada’s Northwest
Territories. The Gahcho Kué Project consists of a cluster of four
diamondiferous kimberlites, three of which have a probable mineral
reserve of 31.3 million tonnes grading 1.57 carats per tonne for total
diamond content of 49 million carats.

Gahcho Kué is the world’s largest and highest grade new diamond
development project. A December 2010 feasibility study filed by
Mountain Province (available on SEDAR) indicates that the Gahcho Kué
project has an IRR of 33.9%.

The Gahcho Kué project is currently the subject of an environmental
review, which is expected to be completed in late 2012. Subject to
successful permitting, development of the first mine at Gahcho Kué is
expected to commence in 2013.

Qualified Person
This news release has been prepared under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under National
Instrument 43-101.

Forward-Looking Statements
This news release may contain forward-looking statements, within the
meaning of the “safe-harbor” provision of the Private Securities
Litigation Reform Act of 1995, regarding the Company’s business or
financial condition. Actual results could differ materially from those
described in this news release as a result of numerous factors, some of
which are outside the control of the Company.

SOURCE Mountain Province Diamonds Inc.

Source: PR Newswire