Mountain Province Diamonds Inc.

Mountain Province Diamonds Inc.

June 29, 2005 16:10 ET

Mountain Province Diamonds, Inc. Reports on the De Beers Pre-Feasibilty Study of the Gahcho Kue Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 29, 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., of the completion of the 18 month , C$25 million Pre-feasibility Study of the Gahcho Kue project. The results are encouraging and over the next few months De Beers plans to develop a proposed timetable and budget for the permitting process. The board of directors of the Company is very pleased that De Beers is planning to advance the project to the permitting phase.

The Project consists of the Hearne, 5034 and the Tuzo kimberlite bodies, which are located at Kennady Lake in the joint venture's AK mining leases situated in the Northwest Territories of Canada.

On December 1, 2003, the Company announced that the study would be of sufficient detail to allow the Gahcho Kue Project, previously known as the Kennady Lake Project, to advance to mine permitting, should the project's profitability level support a decision to proceed to the next phase.

The first phase of the study was completed in June 2004. It consisted of the drilling of 110 holes as part of a geotechnical drilling program to investigate geo-hydrology, optimal mine design and ore processing characteristics of the kimberlite pipes and the surrounding country rock. The results were used to develop geology, resource, geotechnical and geo-hydrology models. These models were used to optimize the design of the open pits and the lake containment dykes, as well as for the designs of waste and water management and mine infrastructure. Recovered kimberlite core underwent geological logging and petrographic analysis to augment the existing resource models, as well as metallurgical investigations (ore dressing studies) which, together with previously collected data, helped with the design of the ore processing plant. The process plant, recovery and infrastructure designs were based on the De Beers Canada's Snap Lake and Victor projects, but will not be taken to feasibility level unless and until the project is closer to receiving permits as these estimates could change during the permitting process. Certain activities were undertaken to feasibility level accuracy to ensure that the issues that impact on the environmental impact and permitting of a mine were thoroughly investigated.

The final results of the Study were presented to the Company and Camphor Ventures on June 28. Subject to approval of funding, the intention is to commence the environmental assessment and permitting process and conduct a concurrent drilling and sampling program to improve resource confidence (from inferred to indicated resource for parts of the 5034 and Tuzo pipes) and improve input data for mine design to support a feasibility study.

The Company has engaged the firm of Roscoe Postle Associates Inc. to provide an independent analysis of the Study and they have verified that the technical study report meets industry standards.

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 (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.

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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