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Last updated on April 17, 2014 at 15:37 EDT

Mountain Province announces key dates for the plan of arrangement with Kennady Diamonds Inc.

June 25, 2012

Shares Issued and Outstanding: 80,715,558
TSX: MPV
NYSE-MKT: MDM

Record date: July 5, 2012
Effective date: July 6, 2012

TORONTO AND NEW YORK, June 25, 2012 /PRNewswire/ – Mountain Province Diamonds
Inc. (TSX: MPV, NYSE-MKT: MDM) (“Mountain Province” or the “Company”)
is pleased to announce that July 5, 2012 has been established as the
record date in respect of the previously announced plan of arrangement
(the “Arrangement”). The Effective Date has been set as July 6, 2012.
Subject to final approval of the TSX Venture Exchange (“TSX-V”), it is
anticipated that the shares of Kennady Diamonds Inc. (“Kennady
Diamonds”) will commence regular trading on the TSX-V on July 10, 2012.

Under the Arrangement Mountain Province will transfer the Kennady North
property and working capital in the amount of approximately C$3M to
Kennady Diamonds and distribute 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.
The Arrangement is described in detail in the Company’s information
circular dated March 29, 2012, (the “Circular”) and any capitalized
terms otherwise not defined in this press release shall have the
meaning as set out in the Circular.

Mountain Province shareholders voted in favour of the special resolution
on April 25, 2012, approving the Arrangement. The Court issued a final
order approving the Arrangement on April 30, 2012. The Arrangement also
received conditional approval of the Toronto Stock Exchange on May 25,
2012.  The TSX-V conditionally approved the listing of the Kennady
Diamonds shares on June 8, 2012.

No action is required by Mountain Province shareholders in order to
receive shares of Kennady Diamonds, and Mountain Province shareholders
will retain their Mountain Province share certificates. Shareholders
entitled to receive Kennady Diamonds’ shares will receive evidence of
the electronic registration of ownership of the Kennady Diamonds shares
under the Direct Registration System adopted by the Transfer Agent, as
soon as practicable following the Effective Date.

Once Kennady Diamonds is listed on the TSX-V, the company intends to
pursue a listing on the OTCQX in the United States.

Investors are encouraged to consult with their financial advisors
regarding the specific implications of buying or selling shares of
Mountain Province on or before the record date of July 5, 2012.

Mountain Province Diamonds 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%.

Mountain Province also controls 100% of the Kennady North Diamond Project adjacent to the De Beers JV property. Kennady North hosts three known
diamondiferous kimberlites and a number of unexplained kimberlite
mineral indicators.

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 INFORMATION

This news release includes certain information that may constitute
“forward-looking information” under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited
to, the Company’s strategic plans, future operations, future work
programs and objectives. Forward-looking information is necessarily
based upon a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties, and
other factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information contained
in this press release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to
management as at the date hereof.      The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise, except as required by law.

Neither the Toronto Stock Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Toronto Stock Exchange)
has reviewed or accepts responsibility for the adequacy or accuracy of
this release.

SOURCE Mountain Province Diamonds Inc.


Source: PR Newswire