Last updated on April 18, 2014 at 12:39 EDT

Canadian Federal Government Approves Gahcho Kué Diamond Mine Development

October 22, 2013

YELLOWKNIFE, TORONTO and NEW YORK, Oct. 22, 2013 /PRNewswire/ – De Beers Canada
and Mountain Province Diamonds (TSX: MPV, NYSE MKT: MDM) are pleased to
announce that the Minister of Aboriginal Affairs and Northern
Development Canada, the Hon. Bernard Valcourt, has today approved the
development of the Gahcho Kué diamond mine as recommended by the
Mackenzie Valley Environmental Impact Review Board.

Tony Guthrie, Chief Executive Officer for De Beers Canada, commented:
“The Minister’s approval confirms that the plans for the development
and operation of the Gahcho Kué diamond mine meet the highest
standards. The new diamond mine will benefit the economy and residents
of the Northwest Territories and enhance Canada’s position as a premier
diamond producer.”

Federal government approval allows the Mackenzie Valley Land and Water
Board to commence processing of the applications for the Land Use
Permit and Water License required to construct and operate the Gahcho
Kué mine.

Patrick Evans, Mountain Province President and CEO, added: “Gahcho Kué
has gone through the most comprehensive environmental review of any
mining project in the Northwest Territories. Through this process,
consultation with stakeholders has been extensive. The shareholders of
Mountain Province now look forward to an efficient and timely
completion of the remaining regulatory process, which is necessary to
ensure the optimal development of the Gahcho Kué diamond mine”.

Gahcho Kué will employ close to 700 people during the two years of
construction and close to 400 people during its operations phase. It
is forecast to produce an average of 4.5 million carats annually over
the eleven year mine life. Gahcho Kué is a joint venture between De
Beers (51%) and Mountain Province Diamonds (49%) and is located 280 km
northeast of Yellowknife, Northwest Territories.

Given the expected timing for the issuance of a land use permit to
enable pioneer work to commence, which requires approximately 42 days
for processing, as well as the impact of the winter ice road on
logistics, the joint venture is currently reassessing the Gahcho Kué
development plan to determine the optimal development schedule. In
addition, the joint venture is also updating the 2010 Gahcho Kué
feasibility study and expects to announce the results of an
Optimization Study early in the New Year. Further details will be
announced as they become available.

About De Beers Group of Companies

De Beers is a member of the Anglo American plc group. Established in
1888, De Beers is the world’s leading diamond company with unrivalled
expertise in the exploration, mining and marketing of
diamonds. Together with its joint venture partners, De Beers employs
more than 23,000 people (directly and as contractors) across the
diamond pipeline, and is the world’s largest diamond producer by value,
with mining operations in Botswana, Canada, Namibia and South Africa.
As part of the company’s operating philosophy, the people of De Beers
are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live
and work, and transforming natural resources into shared national
wealth. For further information about De Beers visit www.debeersgroup.com.

About Mountain Province Diamonds

Mountain Province Diamonds discovered the first kimberlite at Kennady
Lake in 1995 and in 1997 entered into a joint venture with Monopros, a
subsidiary of De Beers. Mountain Province is a 49% participant with De
Beers Canada in the Gahcho Kué JV located in Canada’s Northwest
Territories. 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%. Further information is available at www.mountainprovince.com.

Forward-Looking Statements

This news release may contain forward-looking statements, within the
meaning of the “safe-harbour” provision of the Private Securities
Litigation Reform Act of 1995, regarding Mountain Province’s business.
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