Mountain Province Diamonds Inc.

Mountain Province Diamonds Inc.

July 26, 2005 08:30 ET

Mountain Province Diamonds Inc. Gives an Exploration Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - Mountain Province Diamonds Inc., (the Company) (TSX:MPV)(AMEX:MDM) has been informed by its joint venture partner De Beers Canada Inc. of its decision to retain the four mining leases, which were up for renewal July 17, that contain the main kimberlite bodies (Hearne, 5034 and Tuzo located at Kennady Lake) which constitute the Gahcho Kue Project and are part of the permitting phase. The Company and Camphor Ventures, Inc. have retained the five leases that contain the Faraday and Kelvin bodies and possible drill targets identified by independent consultants retained by the Company. The remaining leases are being joint ventured with GGL Diamond Corp. The Joint Venture of De Beers Canada, Inc., the Company and Camphor Ventures, Inc. will have a 1.5% Gross Overriding Royalty (GOR) on them.

The Faraday and Kelvin kimberlite bodies (located approximately 9km and 12km respectively, northeast of Kennady Lake, which contains the three main diamond pipes), were discovered in 1999 and 2000, respectively. Exploration has been on-going in that area ever since. Encouraging thick kimberlite intersections have been discovered south of both these bodies. It is believed there is a diamondiferous dyke system that pinches and swells in that area. The Kelvin and Faraday bodies are small blows along this dyke system. In order to try to find larger bodies, which would significantly add to the resource size, De Beers conducted a very large ground gravity survey in that area from February 2004 to May 2004. Numerous ground gravity anomalies (drill targets), including a few larger ones, were identified. The few larger targets were drilled during May 2004 - June 2004 and only one two meter thick dyke was intersected. De Beers analyzed the remaining targets in great detail and decided that the targets were too small to drill.

The Company engaged two consultants, a geologist and a geo-physicist, to independently analyze all possible exploration targets using all the gravity and EM surveys and to meet with De Beers to discuss the targets. They determined that some promising smaller targets remained undrilled and suggested that the Company might want to investigate these targets using the SGH (soil gas hydrocarbon) technique, which could possibly identify which of these targets are kimberlite. That would be more economic than drilling first. The SGH technique can only be done in the summer. The Company and Camphor Ventures, Inc. are evaluating their options.

Mountain Province Diamonds Inc. is a diamond exploration and development company. The AK mining leases, located in the Northwest Territories of Canada are now held 44.1% by Mountain Province Diamonds Inc., 4.9% by Camphor Ventures, Inc (TSX VENTURE:CFV), and 51% by De Beers Canada Inc. As reported in its news release on March 7th, 1997, Mountain Province Diamonds Inc. and its partner entered into a joint agreement with De Beers Canada Exploration, Inc. formerly known as Monopros Ltd. (a wholly owned subsidiary of De Beers sa) under which De Beers Canada Inc. has the right to earn up to a 60% interest in the AK property by taking the project to commercial production. Carl G. Verley, P. Geol., a director, is the qualified person for the Company.

Jan W. Vandersande, Ph.D., President & CEO

This 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 of the control of the Company.

USA Office: 3633 E. Inland Empire Blvd., Suite 465, Ontario, CA 91764

CANADA Office: 21 Nesbitt Drive, Toronto, Ontario, Canada M4W 2G2

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