Mr. Patrick Evans reports

MOUNTAIN PROVINCE DIAMONDS ANNOUNCES START OF RAMP UP TO COMMERCIAL PRODUCTION AT GAHCHO KUE DIAMOND MINE

Mountain Province Diamonds Inc. has provided the following update. Commissioning of the Gahcho Kue diamond plant has been completed ahead of schedule and the ramp-up to commercial production has commenced. Gahcho Kue remains on track to achieve commercial production on schedule during the first quarter of 2017.

First ore at the Gahcho Kue mine was exposed on March 23, 2016, and under the commissioning phase, first ore was introduced to the plant on June 20, 2016, with first commissioning diamonds recovered on June 30, 2016.

Mountain Province president and chief executive officer Patrick Evans commented, "Successful plant commissioning and the start of ramp-up to production at the world's largest new diamond mine is a major achievement for the Gahcho Kue joint venture and a tribute to the operating partner De Beers Canada."

Mountain Province is also pleased to report the recovery of the two gem-quality "special" (over 10.8 carats) diamonds during the ramp-up commissioning phase. A 12.1-carat diamond was recovered during plant commissioning on July 29, 2016, and a 24.65-carat diamond was recovered on Aug. 1, 2016. Photographs of the diamonds can be viewed on the company's website.

The first split of ramp-up diamond production between Mountain Province and De Beers is scheduled for mid-September, and the company's first diamond sale is expected to take place before the end of 2016.

Mountain Province Diamonds is a 49-per-cent participant with De Beers Canada in the Gahcho Kue diamond mine, located in Canada's Northwest Territories. Gahcho Kue is the world's largest new diamond mine and projected to produce an average of 4.5 million carats a year over a 12-year mine life.

The Gahcho Kue 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.

A 2014 NI 43-101 feasibility study report filed by Mountain Province (available on SEDAR) indicates that the Gahcho Kue project has an IRR (internal rate of return) of 32.6 per cent.

Qualified person

This news release has been prepared under the supervision of Carl Verley, PGeo, who serves as the qualified person under National Instrument 43-101.

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