Mountain Province Diamonds Results of Second Diamond Sale of 2018 and Confirmation of Dividend Objective - Seite 2

The value per carat of US$142 reflects in part the deferral into this sale of half of the fancies and specials from the last production split of 2017, plus an acceleration into this sale of certain fancies and specials that would otherwise have been scheduled for Sale 3.  Because of this acceleration, the value per carat realized in Sale 3 is expected to be lower than typical, though the normalized value per carat figure will adjust for the acceleration impact.

Customer sentiment in this second sale remained positive, with 192 companies attending the tender and an average of 14.2 bids received per lot.  Pricing remained stable, with increases generally in the low single digits over the preceding sale.

Said Reid Mackie, the Company's Vice President Diamond Marketing, "Our product offering this tender was heavily weighted towards fancies and specials, with a record number of stones contributing over 50% by value and driving our highest average value per carat achieved to date.  These results demonstrate that, over the past year, our customer base has successfully optimized their approach to the polishing and marketing of Gahcho Kué large gem goods.  Our customers' willingness to competitively bid for these goods at our tenders provides important validation of our efforts to acquire these stones."

To more meaningfully relate prices realized at sale events to production results, the Company also provides the following table:

   

                                               H1     Q3    Oct    Nov    Dec    Jan    Feb
    Production Period[4]                     2017   2017   2017   2017   2017   2018   2018

    Sale in Which Goods Were                   Partial 8                  2 &    2 &
    Primarily Sold             3 to 7 & Partial 8  to 10      1      1   3[2]   3[2]  n/a[2]
    Tonnes Processed (100%) ('000s)         1,259    823    263    236    194    327    217
    Recovered Grade (carats per tonne)       1.97   2.22   2.40   2.22   2.42   1.89   2.05
    Carats Recovered (100%) ('000s)         2,481  1,825    632    525    470    618    444
    Carats Recovered (49% share) ('000s)    1,216    894    310    230    257    303    218
    Attributed Value per Tonne in CAD[1]      183    172 214[3] 198[3] n/a[2] n/a[2] n/a[2]

    [1]                                     Attributed Value per Tonne has been determined
                                            based on realized sale results, with any
                                            accelerated or deferred goods adjusted to
                                            their period of production, reflecting only
                                            the Company's 49% share of all diamonds
                                            including fancies and specials.
    [2]                                     Goods from this production period have not yet
                                            all been sold.
    [3]                                     Attributed value per tonne revised for
                                            subsequent reconciliation adjustments.
    [4]                                     Total figures may differ slightly from the sum
                                            of monthly figures due to the effects of
                                            rounding.