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Last updated on April 19, 2014 at 17:21 EDT

Mountain Province Diamonds Provides Gahcho Kue Project Update

March 12, 2013
        --  Ice road reaches Gahcho Kué: deliveries commence
        --  Permitting of first diamond mine progressing
        --  Tuzo Deep Resource Statement due Q2 2013
        --  2013 ground geophysics completed
        --  Geotechnical drilling underway
        --  Exploration drilling to commence in April

Shares Issued and Outstanding: 94,168,151
TSX: MPV
NYSE MKT: MDM

TORONTO & NEW YORK, March 12, 2013 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NYSE MKT: MDM) is
pleased to provide an update on recent developments at the Gahcho Kué
(“GK”) project, a joint venture with De Beers Canada Inc. (“De Beers”).

“There is a high level of activity at Gahcho Kué, which is reflective of
the significant advances made in preparation for development of the
first diamond mine”, said Patrick Evans, Mountain Province President
and CEO. “Encouraging progress continues to be made with the permitting
and we expect an updated NI 43-101 resource statement for the massive
Tuzo kimberlite in Q2. Already the world’s largest and richest new
diamond mine, Gahcho Kué is set to get even bigger with the inclusion
of the Tuzo Deep potential resource. With ground geophysics now
completed we’re also gearing up to start exploration drilling of the
first 15 new targets in immediate proximity to the four known
kimberlites at GK. If successful, our winter exploration drill program
may offer further exciting resource upside.”

2013 winter ice road

The 2013 winter road reached the GK project site at Kennady Lake on
March 2, 2013, with the first loads arriving on March 4, 2013. Over the
next two weeks approximately 110 truckloads of materials, equipment and
fuel will be delivered to GK. The final deliveries are expected by
before the end of March, 2013.

Permitting

The public record for the environmental impact review closed
successfully on January 3, 2013. The report and recommendation from the
Gahcho Kué Panel is now awaited. On completion, the Panel report will
be submitted to the Minister of Aboriginal Affairs and Northern
Development who has the authority to approve the development of the
first diamond mine at GK. While both the Panel report and Ministerial
approval are awaited, the Mackenzie Valley Land and Water Board has
opened the public registry to facilitate expeditious processing of the
GK permits.

Mr. Evans commented: “The project development schedule remains subject
to final regulatory approval. While there is a high level of public and
government support, delays in final regulatory approval could impact
the development schedule. Shareholders will be kept informed of further
developments following receipt of the report of the Gahcho Kué Panel”.

Tuzo Deep

The Tuzo Deep geological report was completed in January, 2013 and the
Tuzo Deep grade report was completed in mid-February, 2013. These
reports were prepared by De Beers in its capacity as the Operator of
the GK project to establish the geological continuity of the Tuzo
kimberlite from the Probable Reserve portion (from surface to 300
meters) to a depth of 564 meters and also to provide a tonnage and
grade estimate for Tuzo Deep.

The reports provide compelling evidence that the kimberlite units
present below 300 meters are the same as those present in the Probable
Reserve portion and also that similar grades were estimated at depth.

The De Beers technical report does not classify the Tuzo Deep potential
resource in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) guidelines. Mountain Province is
therefore retaining an independent qualified person (QP) to complete a
quality assurance (QA) and quality control (QC) review of the De Beers
geological and technical reports with a view to presenting to
shareholders an updated independent National Instrument 43-101 resource
estimate for the Tuzo kimberlite. It is expected that this report will
be released during Q2 2013.

Geophysics

A geophysics team was mobilized to GK in January, 2013 and completed a
ground gravity survey over 15 high-priority drill targets. There were
3,230 stations surveyed on 13 grids over the 15 targets. The results
from the survey will support final exploration drill-hole placement.

Geotechnical drilling

Geotechnical drilling related to planned surface infrastructure at GK
commenced in February, 2013 and is expected to be completed before the
end of April.  A total of 33 sonic holes and 31 core holes will be
drilled.

Exploration drilling

Core drilling of the first phase 15 priority geophysical targets is
expected to commence before the end of March. A second core drill rig
is being mobilized to site and the first phase drilling is expected to
be completed by the end of April. Based on the success of the first
phase drill program, up to a further 14 priority geophysical targets
may be drill tested.

****

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 richest new diamond mine
development. 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.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