Mountain Province Diamonds Operating Partner De Beers Confirms Gahcho Kue Permitting on Schedule

Preparations for development underway

Financing discussions progressing

Shares Issued and Outstanding: 80,715,558

TSX: MPV

NYSE MKT: MDM

TORONTO AND NEW YORK, Aug. 7, 2012 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NYSE MKT: MDM) is
pleased to confirm that joint venture operating partner, De Beers
Canada Inc. (“De Beers”) has reported that the permitting of the Gahcho
Kué diamond project is progressing on schedule. The 24-month
environmental review is nearing completion with the final hearing
scheduled in approximately four months.

Commenting, Mountain Province President and CEO, Patrick Evans, said:
“Excellent progress is being made. All the participants in the
environmental review have been focused on ensuring that the Gahcho Kué
diamond mine meets the highest possible social and environmental
standards”.

The Gahcho Kué project, which is the world’s largest and richest new
diamond mine, is currently the subject of an environmental impact
review (EIR) being managed by the Mackenzie Valley Environmental Impact
Review Board based in Yellowknife, Northwest Territories.

Mountain Province is also pleased to announce that preparations for
development under the Advance Program are also progressing on schedule.
The Gahcho Kué joint venture partners approved an initial capital
allocation of C$31.3M in June, 2012, for:

      1. Construction and operating permit applications;
      2. Front-end engineering and design (FEED);
      3. Preparations and procurement for the 2013 winter road;
      4. Detailed engineering;
      5. Purchase of critical long-lead equipment; and
      6. Feasibility study update.

Finally, Mountain Province today announced that good progress is being
made with the arrangement of the Company’s 49 percent share of the
Gahcho Kué capital budget, which is estimated at approximately C$300M,
inclusive of working capital. Mountain Province has received multiple
proposals for project financing, off-take financing and a variety of
other instruments which, if successfully concluded, would enable to the
Company to substantially meet its capital requirements.

Mr. Evans commented: “We are gratified by the strong interest we have
received from major participants in global mining finance. This
reflects the robust economics of Gahcho Kué as well as the strength and
experience of our operating partner; majority owned by Anglo American,
one of the world’s largest diversified mining companies. As we consider
the financing options available to us we will be keenly focused on
minimizing shareholder dilution which could result from conventional
equity issues. The interests of our longstanding shareholders will be
paramount as we continue to explore financing options”.

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About Mountain Province Diamonds

Located in the heart of Canada’s diamond district, Gahcho Kué is the
world’s largest and richest new diamond mine development. Mountain
Province is a 49% participant with De Beers Canada in the Gahcho Kué
JV.

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. A March 2012 independent valuation estimates the
actual value of the Gahcho Kué diamonds at $186 per carat. A December
2010 feasibility study filed by Mountain Province (available on SEDAR)
indicates that the Gahcho Kué project has an IRR of 33.9%.

Qualified Person

This news release has been prepared under the supervision of Carl G.
Verley, P.Geol. 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.