Gahcho Kué Joint Venture and Lutsel K'e Dene First Nation Sign Impact Benefit Agreement

YELLOWKNIFE, TORONTO and NEW YORK, July 18, 2014 /CNW/ - De Beers Canada Inc. (De Beers), Mountain Province Diamonds (TSX: MPV; NYSE MKT: MDM) and Lutsel K'e Dene First Nation are  pleased to announce that an Impact Benefit Agreement (IBA) has been entered into with the Lutsel K'e Dene First Nation for the proposed Gahcho Kué  diamond mine, a joint venture of De Beers (51%) and Mountain Province Diamonds (49%). De Beers is the Operator of the Gahcho Kué Project.

The IBA puts in place a framework for De Beers, as Operator, and the Lutsel K'e Dene First Nation to work together over the life of the mine, with a particular focus on participation by the Lutsel K'e Dene First Nation in the opportunities that the construction and operation of the mine will provide.

"If we work together with the other First Nations, then we will be powerful," said Chief Felix Lockhart. "This agreement ensures that we have our families out on the land, using our land. We are shaping resource development the way we want it, according to First Nations. We are going to be monitoring it."

The IBA provides both respect for the culture and certainty that training, employment and business opportunities are made available to Lutsel K'e Dene members, including financial provisions necessary for ensuring fair participation in opportunities the project will provide.

"Responsible and sustainable development is a priority for De Beers," said Glen Koropchuk, Chief Operating Officer for De Beers in Canada. "Our relationship with Lutsel K'e is important to us and this Impact Benefit Agreement confirms our commitment to work together for the benefit of Lutsel K'e Dene First Nation members as we advance the Gahcho Kué Project and build a mine."

Gahcho Kué will employ close to 700 people during the two years of construction and approximately 400 people during its operational phase.

Gahcho Kué is located 280 km northeast of Yellowknife, Northwest Territories.

The agreement was signed in Lutsel K'e on Thursday, July 17, 2014.

ABOUT THE DE BEERS GROUP OF COMPANIES

De Beers is a member of the Anglo American plc group. Established in 1888, De Beers is the world's leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline, and is the world's largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company's operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com

ABOUT MOUNTAIN PROVINCE DIAMONDS

Mountain Province Diamonds discovered the first kimberlite at Kennady Lake in 1995 and in 1997 entered into a joint venture with Monopros, a subsidiary of De Beers. Mountain Province is a 49% participant with De Beers Canada in the Gahcho Kué JV located in Canada's Northwest Territories. Gahcho Kué is the world's largest and richest new diamond mine development. A March 2014 feasibility study filed by Mountain Province (available on SEDAR) indicates that the Gahcho Kué project has an IRR of 32.6%. Further information is available at www.mountainprovince.com.

FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements, within the meaning of the "safe-harbour" provision of the Private Securities Litigation Reform Act of 1995, regarding Mountain Province's business. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside the control of the Company.

SOURCE: De Beers Canada Corporation

Tom Ormsby, External & Corporate Affairs, De Beers - Mining, Canada, Tel [phone], ext 2151, [email protected]; Chief Felix Lockhart, Lutsel K'e Dene First Nation, Tel [phone]; Patrick Evans, President & CEO, Mountain Province Diamonds, Tel [phone]