Mountain Province Diamonds Arranges C$100M Private Placement

TORONTO, ONTARIO--(Marketwired - Sept. 30, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Mountain Province Diamonds Inc. (TSX:MPV)(NYSE MKT:MDM) ("Mountain Province" or the "Company") today announced that it has entered into an agreement with a syndicate of underwriters led jointly by BMO Capital Markets, RBC Capital Markets and Scotia Capital Inc., under which the underwriters have agreed to buy, on a bought deal basis by way of private placement, 15,000,000 common shares (the "Common Shares") of the Company, at a price of C$5.00 per Common Share for gross proceeds of C$75,000,000 ("the Offering").

Concurrent with the Offering, the Company intends undertaking a non-brokered private placement ("Non-brokered Private Placement") of 5,000,000 Common Shares of the Company at a price of C$5.00 per Common Share. The Non-brokered Private Placement will be sold to Bottin (International) Investments Ltd. and other qualified investors.

The Company intends to use the net proceeds of the offering for the continued development of the Company's Gahcho Kué project and for general corporate purposes.

The Offering and the Non-brokered Private Placement are expected to close on or about October 16, 2014 and are subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and NYSE MKT.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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 mine. 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%.