Mountain Province Diamonds Inc.

Mountain Province Diamonds Inc.

July 11, 2005 08:36 ET

Mountain Province Diamonds Inc. Reports Increased Diamond Valuations

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 11, 2005) - Mountain Province Diamonds Inc. (the Company) (TSX:MPV) (AMEX:MDM) is pleased to announce that it has been informed by its joint-venture partner De Beers Canada Inc., that De Beers has updated the modeled diamond values for the Hearne, 5034 and Tuzo diamond pipes. Values based on the June 2005 DTC price book have increased by an average of approximately 7 percent from the August 2004 modeled values. The Hearne, 5034 and the Tuzo kimberlite bodies (the Gahcho Kue kimberlites) are located in Kennady Lake in the joint venture's AK mining leases situated in the Northwest Territories of Canada.

The diamonds recovered from the 1999, 2001 and 2002 bulk samples of the Hearne and 5034 pipes and the 1999 bulk sample of the Tuzo pipe (all to a 1.5 mm lower cutoff), were last reported using the August 2004 diamond prices from the Diamond Trading Company (DTC). The modeled values per carat, based on those valuations and on production recovery factors as determined by De Beers, were reported on November 17, 2004. Since August 2004, diamond prices have risen due to strong demand and the DTC increased their selling prices in January and June 2005 by an average of 3 percent each time according to industry sources. The modeled values for the three pipes were adjusted recently using the June 2005 DTC diamond prices.

The table shows the weighted average modeled values per carat for the three pipes in August 2004 and June 2005.

Name of Pipe August 2004 June 2005
Modeled Value Per Carat Modeled Value Per Carat
(US $ per Carat) (US $ per Carat)
5034 79.20 85.70
Hearne 65.00 70.00
Tuzo 53.00 56.00

As can be seen from the table the average modeled values per carat increased by an average of approximately 7 and 8 percent for the Hearne and 5034 pipes, respectively, and approximately 6 percent for the Tuzo pipe during the August 2004 to June 2005 time period.

Mountain Province Diamonds Inc. is a company developing a diamond deposit. 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 (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, (909) 466-1411

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

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