Mountain Province Diamonds Inc.
TSX : MPV
AMEX : MDM

Mountain Province Diamonds Inc.

January 11, 2007 10:39 ET

Mountain Province Diamonds Announces Results of 2006 Drill Campaign at Gahcho Kue Project

Results in Line With Expectations

TORONTO, ONTARIO and NEW YORK, NEW YORK--(CCNMatthews - Jan. 11, 2007) - Mountain Province Diamonds Inc (TSX:MPV)(AMEX:MDM) (the "Company") today announced the results of the 2006 core drilling program conducted at the Gahcho Kue diamond project in Canada's Northwest Territories. The primary purpose of the drill program, which was managed by project operator De Beers Canada Inc ("De Beers"), was to further delineate the kimberlite bodies of the 5034 North Lobe and Tuzo pipe and to carry out geotechnical drilling for pit design.

Twenty-five of the originally planned 31 core holes were completed as part of the winter drill program. As announced on July 26, 2006, a summer drill program was conducted to complete four of the outstanding core holes from the winter program. These additional holes were completed in August 2006. Based on the encouraging results the program was extended to include two additional holes at the Tuzo kimberlite pipe; bringing the total number of core holes completed this year to 31. The results of this program are contained in Table 1 below.



Table 1

2006 Core Drilling Data

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MICRO
DIAMOND
STONE
MACRO COUNT
DIAMOND (greater
STONE than 75
COUNT microns
(greater less
INCLIN- FINAL KIMBER- KIMBER- than than
ATION HOLE HOLE LITE LITE 500 500
(deg- DIA- DEPTH DRILLED WEIGHT mic- mic-
HOLE PIPE rees) METER PURPOSE (m) (m) (kg) rons) rons)
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MPV-
04- Hydro-
234C 5034 NL -60 HQ geology 359 103.55 89 53 728
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MPV-
05- Hydro-
239C 5034 NL -80 HQ geology 402 162.75 121 62 1074
--------------------------------------------------------------------------
MPV-
05-
241C 5034 NL -90 HQ PILOT 411 266 192 87 879
--------------------------------------------------------------------------
MPV-
05-
242C 5034 NL -80 HQ/NQ PILOT 303 237 192 62 1074
--------------------------------------------------------------------------
MPV-
06-
243C 5034 NL -80 HQ PILOT 378 273 224 99 902
--------------------------------------------------------------------------
MPV-
06-
244C 5034 NL -75 HQ PILOT 333 257 200 80 378
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MPV-
06-
245C 5034 NL -80 HQ PILOT 357 285 192 101 1140
--------------------------------------------------------------------------
MPV- Not
06- GEOTECH proc
254C 5034 -65 HQ -NICAL 180 37.28 -essed n/a n/a
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MPV- Not
06- GEOTECH proc
255C 5034 -60 HQ -NICAL 221 17.79 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
256C 5034 -55 HQ -EATION 258 28.39 -essed n/a n/a
--------------------------------------------------------------------------
MPV-
06- DELIN
258C 5034 NL -90 HQ -EATION 385 306.41 253 124 1321
--------------------------------------------------------------------------
MPV-
06- GEOTECH
260C 5034 NL -60 HQ -NICAL 369 37.39 40 19 213
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MPV-
06- GEOTECH
261C 5034 NL -60 HQ -NICAL 387 64.72 57 21 276
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MPV- CIVIL No
06- COUNTRY ENGIN kimber
267C ROCK -90 HQ -EERING 27 -lite 0 0 0
--------------------------------------------------------------------------
MPV- No
06- GEOTECH kimber
269C 5034 NL -65 HQ -NICAL 380 -lite 0 0 0
--------------------------------------------------------------------------
MPV-
06- DELIN
275C 5034 NL -65 HQ -EATION 233 50.07 49 17 258
--------------------------------------------------------------------------
MPV- No
06- GEOTECH Kimber
264C HEARNE -60 HQ -NICAL 250 -lite 0 0 0
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
246C TUZO -60 HQ -EATION 204 54 -essed n/a n/a
--------------------------------------------------------------------------
MPV-
06-
247C TUZO -90 HQ PILOT 408 386 49 14 137
--------------------------------------------------------------------------
MPV- Not
06- proc
248C TUZO -90 HQ PILOT 295 272 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- GEOTECH proc
249C TUZO -65 HQ/HQ3 -NICAL 402 124 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
250C TUZO -60 HQ -EATION 259 80 -essed n/a n/a
--------------------------------------------------------------------------
MPV-
06- DELIN
252C TUZO -60 HQ -EATION 169 39 23 12 44
--------------------------------------------------------------------------
MPV- Not
06- GEOTECH proc
263C TUZO -80 HQ -NICAL 411 125.40 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
266C TUZO -60 HQ -EATION 75 26 -essed n/a n/a
--------------------------------------------------------------------------
MPV-
06- DELIN
268C TUZO -55 HQ -EATION 90 0 0 0 0
--------------------------------------------------------------------------
MPV- 174 - Not
06- GEOTECH 51.7 proc
270C TUZO -70 HQ -NICAL 426 raft -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
271C TUZO -60 HQ -EATION 66 8.70 -essed n/a n/a
--------------------------------------------------------------------------
MPV- 165.15 Not
06- GEOTECH - 80.2 proc
272C TUZO -65 HQ -NICAL 395 raft -essed n/a n/a
--------------------------------------------------------------------------
MPV- No
06- DELIN Kimber
273C TUZO -55 HQ -EATION 230 -lite 0 0 0
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
274C TUZO -60 HQ -EATION 212 79.25 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
276C TUZO -70 HQ/NQ -EATION 571 0.69 -essed n/a n/a
--------------------------------------------------------------------------
MPV- Not
06- DELIN proc
277C TUZO -70 HQ/NQ -EATION 540 12.7 -essed n/a n/a
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PURPOSE DEFINITION

Pilot: Core Hole Precursor for Placement of Evaluation Hole
Delineation: Pipe Contact Pierce Point
Geotechnical: Geotechnical Data Acquisition to Facilitate Mine Design
Civil Engineering: Geotechnical Data Acquisition to Facilitate Mine
Infrastructure Design


Core from two previously drilled 5034 North Lobe holes (MPV-04-234C and MPV -05-239C) was also processed for micro-diamonds and the results are included above.

Furthermore:

1. 5034 drill hole 254C was a geotechnical hole drilled between the 5034 South Pipe and the Wallace kimberlite anomaly, which lies to the south-west of the 5034 South Pipe on the track to the Hearne kimberlite pipe. This hole was sunk to establish the presence of kimberlite and investigate ground conditions. Kimberlite was recovered between depths of 95.37 meters and 132.65 meters, indicating the possible continuity of the kimberlite between the 5034 South Lobe and the Wallace kimberlite anomaly. The hole sits outside the current design of the 5034 mining pit.

2. 5034 drill hole 255C was a geotechnical hole drilled to determine the ground conditions between the 5034 South Lobe and the 5034 West Lobe, and their possible connection. Kimberlite was recovered between depths of 96.36 meters and 114.5 meters, indicating the possible continuity of the kimberlite between the South and West lobes. This hole also sits outside of the current design of the 5034 mining pit.

3. 5034 drill hole 256C was a delineation hole sunk to obtain a pierce point on both faces of 5034 West Lobe where there is insufficient pierce point data.

(Note: Please refer to the Mountain Province website (www.mountainprovince.com) for a Gahcho Kue kimberlite cluster location map.)

With respect to Tuzo, two of the drill holes (MPV-06-247C and MPV-06-252C) encountered what appears to be a new kimberlite phase called the Black TKB. To gain a better understanding of the Black TKB the core from those two holes was processed for micro-diamonds.

As announced on December 19, 2006, the Joint Venture is undertaking an extensive core drilling program at the Tuzo kimberlite this winter and drilling at the Tuzo kimberlite is scheduled to commence within days. This program, which comprises 26 drill holes over 8,400 meters broadly covering a 35 meter grid pattern, is designed to more fully define the volume, geology, dilution, density and grade of the Tuzo pipe and also to upgrade the Tuzo resource. As the 2006 Tuzo drill holes do not conform to the 35 meter grid pattern of the 2007 program, micro-diamond processing of the remaining 2006 Tuzo drill core samples has been deferred pending completion of the 2007 drill program.

Commenting, Mountain Province President and CEO Patrick Evans said: "We are satisfied with the results of the 2006 core drilling campaign, which has delivered results in line with our expectations. The intersection of newly discovered kimberlite between the 5034 South and West lobes and also between the 5034 South Lobe and Wallace anomaly is encouraging. The current 2007 core drilling program, which is very extensive, should give the Joint Venture sufficient data to complete a new geological model for the Tuzo kimberlite and to upgrade the Tuzo resource."

De Beers retained Mineral Services, Vancouver as the consulting petrologist for the 2006 drill program. Micro-diamond processing was conducted at the Saskatchewan Research Council Geoanalytical Laboratory (SRC).

Located in Canada's Northwest Territories, Gahcho Kue is the largest new diamond mine under development globally. The project consists of a cluster of three primary kimberlites with an indicated resource of approximately 14.4 million tonnes grading at 1.64 carats per tonne (approximately 23.6 million carats) and an inferred resource of approximately 17 million tonnes grading at 1.35 carats per tonne (approximately 22.9 million carats). Gahcho Kue is currently in the permitting and advanced exploration stage of development. At full production the Gahcho Kue diamond mine is expected to produce approximately 3 million carats a year over 15 years.

Mountain Province Diamonds is a joint venture partner with De Beers Canada Inc and Camphor Ventures. Mountain Province has a 44.1 percent interest in the Joint Venture; Camphor 4.9 percent; and De Beers 51 percent. Mountain Province recently announced that it has acquired 33.5 percent of Camphor Ventures, increasing the Company's effective interest in the Joint Venture to approximately 46 percent. De Beers is the operator of the project and solely responsible for funding the project through to commercial production. By completing a bankable feasibility study De Beers has the right to increase its interest to 55 percent. Following construction and commissioning of a commercial mine, De Beers will have the right to increase its interest to 60 percent.

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.

Forward-Looking Statements

This news release may contain forward-looking statements, within the meaning of the "safe-harbor" provision of the Private Securities Litigation Reform Act of 1995, regarding the Company's business or financial condition. 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.

Shares Issued and Outstanding: 55,575,715

401 Bay Street, Suite 2700, Toronto, Ontario M5H 2Y4

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