Mountain Province Diamonds Reports Results of Recently Completed Ninth Diamond Sale

TORONTO and NEW YORK, Nov. 22, 2017 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces the results of its recently completed ninth diamond sale.

The results of the ninth sale, with preceding sale results for comparative context, are summarized as follows:

¹ Diamonds sold at individual sale events will not directly reflect run-of-mine production from specific processing periods. The timing of the sale of some goods may be accelerated or deferred for tactical marketing purposes. Realized average value per carat is also impacted by the binary nature of the fancies and specials bidding process within each production split, conducted approximately every five weeks with the Company's joint venture partner, De Beers Canada Inc. The winning party of each fancies and specials bid then markets 100% of those diamonds.
² Normalized to adjust for goods accelerated or deferred, and to include fancies and specials acquired through bid by De Beers Canada Inc.

Pricing in this ninth sale was stable to firm, with prices across the full assortment profile generally averaging about 2% higher than the eighth sale. The increase in average price realization is primarily a result of an improved quality distribution in the larger stone sizes and increased demand for lower value assortments.

Said Reid Mackie, the Company's Vice President Diamond Marketing, "Despite caution reported in the rough markets after the return from Indian and Jewish holidays, customer participation metrics at our ninth sale were strong with over 150 companies attending the tender, average bids per lot reaching our highest level to date at 11.9, and return customers purchasing 88% by value. This, combined with firming of price-points in our lower qualities and sizes, demonstrates the ability of our tender process to harness positive outlook in the market following encouraging news from the Asian and US retail markets."

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

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 Not applicable as goods from this production period have not yet been sold.
³ Tonnes processed in the month of September reflects the impact of a planned five day shut-down in that month for annual maintenance.
⁴ Total figures may differ slightly from the sum of monthly figures due to the effects of rounding.

Said David Whittle, the Company's Interim President and Chief Executive Officer, "I am pleased to report that Gahcho Kué mine operations is continuing its solid track record, not only in terms of plant performance but with our highest monthly recovered grade to date. This result is a testament to the quality of the mine operating team, which along with the consistent performance of our marketing group is a driving factor behind the strong operating margins we are generating."

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. Gahcho Kué is the world's largest new diamond mine, consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12 year mine plan.

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.