Last updated on April 18, 2014 at 1:21 EDT

Mountain Province Diamonds Announces 78.5% Increase in Tuzo Kimberlite Volume

July 3, 2012

Shares Issued and Outstanding: 80,715,558

TORONTO AND NEW YORK, July 3, 2012 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NYSE MKT: MDM) is
pleased to announced a 78.5 percent increase in the volume estimate of
the Tuzo kimberlite pipe at the Gahcho Kué JV with De Beers Canada Inc.
(“De Beers”). The Tuzo Deep volume estimate is based on the pierce
points from five inclined drill holes completed in April, 2012, as well
as two pierce points from earlier drilling.

The results of the Tuzo Deep drilling indicate an increase from the
previous kimberlite volume estimate of 6.6 million cubic meters to
11.781 million cubic meters. The bulk of this volume increase (4.578
million cubic meters) is modelled from a depth of 354 meters (the
cut-off of the current resource estimate) to a depth of 564 meters; an
increase in depth of 210 meters.

This represents a significant increase in the volume of the Tuzo
kimberlite and confirms the depth extension of the kimberlite pipe from
354 meters to 564 meters. The inclined Tuzo Deep drill holes flattened
as they traversed from granite to the less dense kimberlite; therefore
the volume estimate to 564 meters does not represent the total
potential depth of the Tuzo kimberlite pipe, which remains open to
depth below 564 meters.

Patrick Evans, President and CEO of Mountain Province Diamonds,
commented: “The substantial increase in the volume of the Tuzo
kimberlite pipe to depth below the current resource is very
encouraging. In addition, the current Tuzo resource model indicates
that the diamond grade increases to depth. If this trend continues, the
potential exists for higher grade kimberlite ore below 354 meters”.

With an average density of 2.40 grams per cubic centimeter, the Tuzo
volume increase of approximately 5 million cubic meters is equivalent
to an increase of approximately 12.4 million tonnes over 210 meters
from a depth of 354 meters to 564 meters.

The current Tuzo Indicated Resource, grading 1.21 carats pet tonne, is
from surface to a depth of 300 meters. The Inferred Resource, with an
average grade of 1.75 carats per tonne, is from a depth of 300 meters
to 354 meters. The increase in grade to depth is attributable to a
generally lower degree of dilution as well as a coarser diamond
distribution. This leads to the conclusion that the coherent magmas at depths greater than 300 meters have the
potential for a favourable coarse diamond distribution.

Mr. Evans added: “While we are very pleased that the Tuzo Deep drill
program has confirmed the presence of substantial kimberlite volumes
below the current resource, the flattening of the inclined drill holes
limited the depth to which we were able to test the kimberlite pipe.
Mountain Province is engaging with JV partner De Beers to discuss a
follow-up program to achieve the original objective of defining a
kimberlite resource to 750 meters.”

The above estimate represents kimberlite volume only. A mineral resource
will only be classified once the geological and grade modelling has
been completed. Mountain Province anticipates that an updated resource
estimate will be completed by late 2012 and released in early 2013.
Images depicting the Tuzo kimberlite volume estimates can be seen on
the Company’s website at www.mountainprovince.com.

The Tuzo kimberlite is one of four known kimberlites within the Gahcho
Kué joint venture with De Beers. Three of the four kimberlites (5034,
Hearne and Tuzo) have a Probable Reserve of 29.5 million tonnes with a
grade of 1.66 carats per tonne, for total diamond content of 49 million

In addition to the four known kimberlites at Gahcho Kué, recent
exploration has identified an additional 55 geophysical targets of
which 40 have been classified as high priority. The JV partners are
currently developing a follow-up exploration program to test the newly
discovered high priority exploration targets.

Mr. Evans concluded: “We are very excited about the further exploration
potential at Gahcho Kué. To date, all seven of the kimberlites that
have been discovered in the Kennady Lake area are diamondiferous. This
gives us encouragement that further kimberlite discoveries are also
likely to be diamond-bearing.”


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. 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 in the permitting phase and is the subject of
an environmental review which is expected to be completed in six
months. Subject to successful permitting, construction of the first
mine at Gahcho Kué is expected to commence in 2013 and production is
expected to commence in 2014. Gahcho Kué will produce an average of 4.5 million
carats per year for the first eleven years of the mine life.

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. The Kennady North project comprises thirteen leases
and claims.

The Kennady North project is in the process of being spun-out of
Mountain Province into Kennady Diamonds Inc. (“KDI”), which is expected
to commence trading on the TSX-V on July 10. 2012. The shares of
Kennady Diamonds are will be distributed to Mountain Province
shareholders of record on July 5, 2012, on the basis of one KDI share
for every five shares of Mountain Province.

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