First production from Gahcho Kué expected in Q3

Mountain Province Diamonds Inc. announce its latest development progress on Gahcho Kué, noting it has achieved mechanical completion of the primary crusher and that commissioning of the process plant continues to progress well. % Based on the progress to date, Gahcho Kué expects to commence production during Q3 2016 although the specific timing within Q3 will depend on progress with the remaining commissioning.

In anticipation of first production, Mountain Province has concluded all the necessary contract arrangements to be in a position to receive, sort and sell its share of diamond production from Gahcho Kué. % Mountain Province president and CEO Patrick Evans commented: “We are pleased with the continuing excellent progress at Gahcho Kué and excited that first production will commence within the next few months.” He further noted that, “Key areas of focus are finalization of commissioning of the process plant, remaining earthworks, pre-stripping and mining of kimberlite, as well as preparations for operational readiness.”

Gahcho Kué’s safety performance remains very good. In May 2016, the mine surpassed an impressive one million hours worked without a lost-time injury.

The Company’s diamond marketing team, under the leadership of Reid Mackie, Vice President of Diamond Marketing, has been complemented with appointment of Mark Pearton as manager of diamond operations and Elizabeth Swanson and manager of diamond analysis. Ms. Swanson and Mr. Pearton have considerable diamond experience, principally with Rio Tinto Diamonds. The permanent staff complement of the mine now includes 91 experienced employees transferred from the De Beers Snap Lake mine.

Mr. Evans concluded: “The project also continues to meet our lending group’s tests-to-completion with US$47M advanced to fund cash calls during Q2 2016. A total of US$278M has been drawn against the US$370M facility.”