Mr. Stuart Brown reports

MOUNTAIN PROVINCE DIAMONDS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND GUIDANCE FOR 2021

Mountain Province Diamonds Inc. has released its financial results for the first quarter ended March 31, 2021, from the Gahcho Kue diamond mine (GK mine). All figures are expressed in Canadian dollars unless otherwise noted.

Additionally, the company is providing production and cost guidance for 2021.

Financial highlights for first quarter 2021 (production and unit cost figures for Q1 2021 were affected by the 22-day operational stand-down in February):

• 603,000 carats sold, with total proceeds of $54.2-million ($42.7-million (U.S.)) at an average realized value of $90 per carat ($71 (U.S.));
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $19.1-million;
• Earnings from mine operations of $13.7-million;
• Cash costs of $139 per tonne treated and $62 per carat recovered, including capitalized stripping costs (1);
• Net income of $7.3-million or three-cent earnings per share. Included in the determination of net income for the three months ended March 31, 2021, are unrealized foreign exchange gains of $5.0-million, on the translation of the company's U.S.-dollar-denominated long-term debt and Dunebridge revolving credit facility. The unrealized foreign exchange gains are a result of the strengthening of the Canadian dollar versus the U.S. dollar.

(1) Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS (international financial reporting standards) measures with no standardized meaning prescribed under IFRS. See the non-IFRS measures section of the company's March 31, 2021, MD&A for explanation and reconciliation.

Operational highlights for first quarter 2021 (all figures reported on a 100-per-cent basis unless otherwise stated):

• Unplanned 22-day operational stand-down in February due to measures taken to limit the spread of COVID-19 at Gahcho Kue;
• 625,582 ore tonnes treated, a 31-per-cent decrease relative to Q1 2020 and a 15-per-cent decrease relative to Q4 2020 (Q1 2020: 9,356,785 tonnes treated; Q4 2020: 736,138 tonnes treated);
• Average processing rate of 9,200 tonnes per day (excluding operational stand-down time), a 7-per-cent decrease relative to Q1 2020 (9,917 tonnes per day);
• Processing plant achieved several days over 11,500 tonnes of feed in closing days of Q1 2021, demonstrating operational flexibility;
• 1,392,128 carats recovered, 16 per cent lower than the comparable quarter (Q1 2020: 1,655,121 carats), impacted by the unplanned three-week operational stand-down in February;
• Average grade of 2.23 carats per tonne, a 22-per-cent increase relative to Q1 2020 (1.83 carats per tonne).

2021 guidance: (all figures quoted on a 100-per-cent basis):

• 35 million to 37 million total tonnes mined (ore and waste);
• 3.3 million to 3.5 million ore tonnes mined;
• 3.15 million to 3.3 million ore tonnes treated;
• 6.3 million to 6.5 million carats recovered;
• Production costs of $125 to $135 per tonne treated;
• Production costs of $58 to $63 per carat recovered;
• Sustaining capital expenditure of $21-million.

Production and cost guidance reflects the unplanned three-week operational stand-down during the first quarter. Process plant throughput is expected to benefit from a planned production mitigation strategy to change to 1.1-millimetre cut-off screens (up from 0.8 millimetre). This change combined with planned grade management is expected to result in the recovery of 6.3 million to 6.5-million carats from 3.15 million to 3.3 million tonnes treated.

Sales highlights for first quarter 2021

As previously released, during the first quarter 602,773 carats were sold for total proceeds of $54.2-million ($42.7-million (U.S.)) resulting in an average value of $90 per carat ($71 (U.S.) per carat). This is a 6-per-cent increase relative to the average value per carat in Q4 2020 of $85 per carat ($64 (U.S.) per carat) and a near-return to prepandemic pricing levels seen in Q1 2020 ($75 (U.S.) per carat). The increase in average values and the positive product mix sold in Q1 reflected the growing confidence across the rough diamond markets. Over all, on a like-for-like basis, compared with Q1 2020 the company's current average diamond value is now ahead of Q1 2020.

Stuart Brown, the company's president and chief executive officer, commented:

"With a tough quarter behind us, our focus now shifts to making up the carat shortfall and revenue over the remainder of 2021. Despite the unplanned 22-day operational stand-down in February, we expect the process plant to make up most of the lost production by increasing the plant throughput levels with the bottom screen change. This will have a positive effect on the average value of diamonds recovered. We expect this to drive the recovery of between 6.3 million to 6.5 million carats at or just below 2020's recovery of 6.5 million carats.

"The impact of the COVID-19 outbreak at the mine, and the subsequent shutdown, has meant that we have had to cancel our planned May diamond sale in Antwerp. The cancellation of the sale coincided with our usual high cash spend during the annual winter road supply exercise; this meant that we faced some short-term liquidity challenges. We are now able to confirm, as per the earlier announcement today, that we have agreed terms with Dunebridge Worldwide Ltd. for a short-term loan of $33-million (U.S.) that will address our near-term liquidity needs and allows us the time to execute on this year's revised mine plan. This plan shows us largely making up the lost production, revenue and cash generation during 2021, and should allow us to repay this loan by the end of 2021.

"The diamond industry is bearing up well through the ongoing challenges of COVID-19; globally retailers continue to report increasing revenue as economic activity increases, in turn this is having a positive impact on polished and rough diamond prices. There will, no doubt, still be issues to deal with in the coming months such as the intense second wave in India; hopefully with all the work being done and support we will see a recovery in India, and all participants in the industry will benefit from the continued desire for natural diamonds. We believe that the recovery across all sectors of the industry will continue for the remainder of 2021."

Gahcho Kue mine operations

The attached table summarizes key operating statistics for the Gahcho Kue mine in the three months ended March 31, 2021, and 2020.

Financial performance

Conference call

The company will host its quarterly conference call on Thursday, May 13, 2021, at 11 a.m. ET.

Title:  Mountain Province Diamonds Inc. Q1 2021 earnings conference call

Conference ID:  94367303

Date of call:  May 13, 2021

Time of call:  11 a.m. ET

Expected duration:  60 minutes

Participant toll-free dial-in number:  1-888-390-0561

Participant international dial-in number:  1-416-764-8668

A replay of the webcast and audio call will be available on the company's website.

About Mountain Province Diamonds Inc.

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. The Gahcho Kue joint venture property consists of several kimberlites that are actively being mined, developed and explored for future development. The company also controls 106,202 hectares of highly prospective mineral claims and leases that surround the Gahcho Kue joint venture property that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.

For further information on Mountain Province Diamonds and to receive news releases by e-mail, visit the company's website.

Qualified person

The disclosure in this news release of scientific and technical information regarding Mountain Province's mineral properties has been reviewed and approved by Matthew MacPhail, PEng, MBA, and Tom E. McCandless, PhD, PGeo, both employees of Mountain Province Diamonds and qualified persons as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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