Mountain Province Diamonds Signs Non-Binding Memorandum of Understanding With De Beers Regarding Kennady Diamonds Resources

TORONTO and NEW YORK, March 16, 2018 /PRNewswire/ --

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Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces it has signed a non-binding memorandum of understanding ("MoU") with its partner in the Gahcho Kué mine, De Beers Canada Inc. ("De Beers").

The MoU contemplates incorporating properties owned by Kennady Diamonds Inc. ("Kennady Diamonds") into the Gahcho Kué joint venture, in the event that Mountain Province's proposed acquisition of Kennady Diamonds is approved. Mountain Province and De Beers will now work towards a definitive agreement based on the MoU.

Kim Truter, Chief Executive - Canada, De Beers Group, said, "We have been very pleased with the progress of our partnership with Mountain Province in the Gahcho Kué mine. Their proposed acquisition of Kennady Diamonds opens up some potential new options for the operation's future, and while further work would be required on the resource and there would need to be agreement on commercial terms, the signing of this non-binding MoU makes sense for both parties as we consider how our partnership might develop."

David Whittle, Interim President and Chief Executive Officer of Mountain Province, said, "The start up of the Gahcho Kué mine under De Beers' operatorship has been a clear success, and the positive working relationship that exists between the joint venture partners is a key component of that success. Mountain Province firmly believes that the proposed Kennady Diamonds transaction can add significant project value through the potential to access Kennady Diamond's kimberlite resources. We look forward to working with De Beers in the effort to develop a plan to integrate the Kennady Diamonds resources into the Gahcho Kué project."

Kennady Diamonds owns 100% of the Kennady North diamond project located in Canada's Northwest Territories, immediately adjacent to the Gahcho Kué mine. Kennady is focused on expanding its high-grade diamond resources along the Kelvin-Faraday kimberlite corridor, as well as identifying new kimberlites outside of the corridor. Kennady reports that to date, an indicated resource of 13.62 million carats of diamonds contained in 8.50 million tonnes of kimberlite, with a grade of 1.60 carats per tonne and an average value of US$63 per carat, has been defined for the Kelvin kimberlite and an inferred resource of 5.02 million carats contained in 3.27 million tonnes of kimberlite, with a grade of 1.54 carats per tonne and an average value of US$98 per carat, has been defined for the Faraday kimberlites using a 1mm bottom cutoff size. The Kelvin-Faraday corridor is also a target for further exploration.