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Mountain Province Diamonds Provides Gahcho Kué Project Update

June 5, 2014

Shares Issued and Outstanding: 106,039,522

TSX: MPV

NYSE MKT: MDM

        --  Overall project on schedule: first production H2 2016
        --  Permitting on schedule: final permits H2 2014
        --  Debt funding on schedule: loan agreements target Q4 2015

TORONTO and NEW YORK, June 5, 2014 /PRNewswire/ – Mountain Province Diamonds
Inc. (“Mountain Province”, the “Company”) (TSX: MPV, NYSE MKT: MDM)
today provided an update on progress at the Gahcho Kué diamond project,
a joint venture between Mountain Province Diamonds (49%) and De Beers
Canada (51%).

Project schedule

As at the end of May 2014 the overall project was progressing according
to plan and first production remains on schedule for H2 2016.

Permitting

Processing of the Gahcho Kué Land Use Permit and Class A Water License
remains on schedule. The public hearing on the Gahcho Kué water license
was held on May 6 and 7, 2014. On May 23, 12014, the Mackenzie Valley
Land and Water Board released draft copies of the Gahcho Kué Water
Licence and Land Use Permit for final review and comment before the end
of June. These permits are expected to be approved during H2 of 2014.

Project funding

Following the appointment last month of Rockface Capital as financial
advisor to the Company, a review of a number of debt terms sheets has
been completed. Indications of interest to participate in the provision
of debt finance to Mountain Province continue to be received. The
Company expects to complete the review of all debt proposals by the end
of June following which detailed negotiations will commence with the
preferred lenders. Based on current progress, Mountain Province expects
to be able to announce further details, including debt terms, by the
end of July and expects to be able to conclude definitive loan
agreements by the end of 2014.

Tuzo Deep drilling

Drilling of the final third hole at Tuzo Deep is currently underway.
Details of the drill results will be released on completion of the
program, which is expected by the end of June. Progress has been slower
than planned due to difficult ground conditions.

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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 35.4 million tonnes grading
1.57 carats per tonne for total diamond content of 55.5 million carats.

Gahcho Kué is the world’s largest and richest new diamond development
project. A 2014 NI 43-101 feasibility study report filed by Mountain
Province (available on SEDAR) indicates that the Gahcho Kué project has
an IRR of 32.6%.

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



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